Subcontractor Contract Management Plan

Subcontractor Contract Management Plan

Next review date July 2025

SECTION 1

1.1 Purpose of the contract management plan

The purpose of this plan is to outline the expectations the College has when entering into a subcontract agreement for the whole life of the contract. Ensuring all partners meet the exacting standards set out in this guide. Any subcontracted provision should ensure a high-quality learner experience, delivering outstanding teaching, learning and assessment, stretching and challenging learners to succeed and progress onto higher learning or employment.
Excellence through Learning
Colchester Institute is committed to driving forward educational success in further and higher education. We are extremely passionate about raising the aspirations, knowledge and skills of individuals, communities and businesses in Essex and beyond.
Excellence through learning is at the heart of what the college does. Excellence is what we do and is what we support others to attain. Colchester Institute will enable the highest levels of learner achievement and the highest levels of career and life fulfilment, through learning that will stretch and challenge.
Excellence is what customers, businesses and other organisations can expect to achieve themselves through working with the college.
Colchester Institute continues to strive to be celebrated as an outstanding provider of education and training in the eastern region, recognised for its significant contribution to the social and economic recovery of individuals and organisations following events of 2020.
Colchester Institute has a 3-year strategic plan with 10 goals that will help us achieve this mission. View this plan here.

1.2 Contract Management – Roles & Responsibilities

Section 2 – Contract transition – Selecting and approving subcontracting Subcontractors

2.1 Selecting a Subcontractor

The College recognises that delivery Subcontractor provision can play an important role in providing a broad and flexible mix of provision for learners, employers and the wider community.
The key principles of selecting a new Subcontractor are whether they fit with the aims and goals of the College in relation to at least one or more of the following:

• Fill gaps in niche or expert provision or provide better access to training facilities.

In order to approve the selection of a new subcontractor, the College will review:

• The quality of provision from delivery Subcontractors and their ability to achieve outstanding success.
• Past performance of delivery Subcontractors and a track record of high success
• The sound financial health of delivery Subcontractors.
• Compliance to Government and funding agency targets, priorities, and regulations.

Currently Subcontractors may not further sub-contract provision. (This is referred to as 2nd Tier Sub Contracting, which the College will not enter into)

2.2 Contract Due Diligence

To comply with the Education and Skills Funding Agency funding rules, the College will need to be reassured that Subcontractors satisfy the following key elements of which are:

• The College is able to ensure that learners are enrolled (or rejected if applicable) on appropriate programmes in the name of the College not the Subcontractor(s)
• The College is satisfied (through a direct observation where possible) that the quality of provision is of the highest standard
• The College has measures in place to ensure it is not funding higher risk organisations or organisations involved in extremist activities. See appendix 1a
• The provider has the capability and capacity to deliver to the tender specification
• There is a written learning agreement, entered into at the time of enrolment which is prepared and agreed with each learner and that reflects the outcome of the learner’s initial guidance and assessment, and any learning support to be provided
• A learning programme and its means of delivery have been clearly specified by the College
• There are arrangements for assessing the progress of individual learners
• Adequate measures are in place to ensure the health and safety of learners
• Procedures exist for the College to regularly monitor the quality and delivery of programmes
• The subcontractor complies with the Modern Slavery Act 2015 and has in place throughout the Agreement Period policies and procedures to ensure full compliance

To ensure compliance with these elements the Pre-Qualified Questionnaire is a key source of information for new Subcontractors. See Appendix 1 for entering a subcontracting arrangement with a new and existing Subcontractor. See Appendix 2 for the Pre-Qualified Questionnaire checklist summary of documents to return.
If 16-19 provision ensure Whole Programme Subcontracting approval sought from the ESFA in advance of contracting.
The College ensures it remains below the 25% 2024/25 threshold for subcontracting per ASF or 16 to 19 excluding apprenticeships
Other Independent sources of information about potential and existing providers include:

• Ofsted inspection reports (www.gov.uk/find-ofsted-inspection-report )
• Register of Apprenticeship provider and assessment register (APAR)
• UKPRN (https://www.ukrlp.co.uk/)
• Companies House Companies House – GOV.UK (www.gov.uk)

Selecting a Subcontractor/Due Diligence process Flowchart
Business Need Established
Request for Quotation
Tender opportunity advertised on Contract Finder
Expression of Interest Received
New and existing Supplier
Vice Principal Director of Finance, Resource and Regional Affairs approval process, consideration of RFQ/Tender scoring
Contracts issued once approved and signature to take place prior to delivery start

Colchester Institute has an obligation to ensure value for money from its external expenditure therefore the decision to award contracts will usually be based upon the most economically advantageous tender which will take into account a number of factors including price, quality, sustainability, social value and running costs to establish the full life cycle costs. Tenders will usually advise what criteria will be used when selecting a supplier.
Colchester Institute will endeavour to advise all those who have quoted the outcome of a tender process. Prior to submitting a quote, it is important that you read all of the tender documentation to ensure that you fully understand our requirements, the specification for the goods or services and the timescales involved.
This Pre-qualified questionnaire will be reviewed by the Director of Apprenticeships and Business Solutions, who will decide whether to issue contracts, the scoring from Request to Quotation and Tender is also considered at this point.
The scoring criteria for tender approvals is:

• Price dependent on actual cost – 20%
• Maintain Quality of provision to ensure high quality and low risk to public funds – 65%
• Timescales for Completion – 15%

The engagement and management of delivery Subcontractors will be carried out by the Quality Enhancement Officer and Director of Apprenticeships and Business Solutions.

Section 3 – Contract Compliance

3.1 Audit & Data compliance

A key element of the audit trail is the process undertaken to sub contract. To this end the following evidence is required:

• Details of sub-contract, which includes the:
  o What is the nature of the provision and the contractual relationship
  o Data sharing protocols
  o Ensuring the College, the appointed auditors and the Education Skills Funding Agency have access to all information
• What is the rationale behind the College’s decision to appoint a sub-contractor

The Education and Skills Funding Agency have the right to audit all documentation in relation to the subcontracted provision. A satisfactory audit is essential to avoid loss of funding through claw back or termination of contracts. The College’s audit principles include:

• All paperwork from Subcontractors must be originals
• PDSATS will be used to test integrity of data submitted by the Subcontractor

Controls to ensure no double funding include:

• Gaining information on other prime contractors at due diligence stage
• Personal Learner Record checks/Regular PDSATS testing

The Data and Contracts Officer and the Apprenticeships Administration Manager will ensure the relevant teams undertake the audit compliance and funding checks required throughout the life of the contract and at key ILR submission dates.

3.2 Contract Compliance

Apprenticeships:
In order to ensure we have up-to-date contracts each year we review our contract as part of the annual external audit carried out by Scrutton Bland. Contracts will be issued as follows which indicate the terms and conditions required.
16-19 Provision/Adult Skills and National Skills Fund:
Colchester Institute will provide an up-to-date subcontracting contract for our 16-19/Adult and National Skills Funding. Originals of all subcontractor contracts will be held centrally in the Executive Office and will be signed by the Principal and Chief Executive.

All subcontracts will need to ensure that they:

• Meet the agreed educational needs
• Are achievable and affordable
• Address the desired outcome(s) of the subcontract, the possible alternatives, including existing contracts, the risks including the extent and where they may fall,
• Identify any contingent needs and ramifications of proceeding
• Meet the Data Protection Laws to maintain the security of processing and storing data and
• follow the requirements of the relevant funding rules. See appendix 3 ESFA Guidance on sub-contracting

The Quality Enhancement Officer will ensure all contracts are monitored regularly throughout the whole life of the contract.

3.3 Contract Fees & payment

As part of the College’s funding agreement with the Agency, the College is required to submit details of sub-contracting arrangements by submitting a returning the ‘Subcontractor Declaration’ on the Skills Funding Service website.
All Subcontractors will have a standard profile of payments throughout the term of the contract, all invoices will be paid within 30 days. Payments are signed off by the Head of Funding and Information.

3.4 Funding rules compliance

Apprenticeships: The college will continue to deliver a substantial proportion of the apprenticeship programme and will continue to always maintain the employer relationship
All funding models: We reserve the right to take appropriate action in line with the funding higher risk organisations policy, not only if we deem it is necessary, but also where ESFA requires us to take appropriate action
Management fees will be set according to the level of risk associated with the Subcontractor. The Subcontracting Policy includes a list of all the services we will provide and the associated costs for doing so. This will include a list of individually itemised, specific costs for managing the subcontractor, specific costs for quality monitoring activities and specific costs for any other support activities offered.
Management fees cover the costs of the below:

• The College provides a Contract Manager to manage the relationship with the subcontractor.
• The College provides a Quality Assurance and Teaching & Learning Lead to ensure that the quality of subcontractor’s delivery meets its expectations and to support the continuous improvement of the subcontractor’s provision.
• The College provides administration support to ensure the timely recording of learner
• The College undertakes a regular and substantial programme of quality assurance checks on the education and training provided by subcontractors, including visits at short or no notice and face-to-face interviews with staff and learners. These checks include whether the learners exist and are eligible, and involve direct observation of initial guidance, assessment and delivery of learning programmes. Where required arrangements are implemented to provide internal verification support to the subcontractor.
• The College ensures that all of the subcontractor’s delivery meets the Education & Skills Funding Agency’s Funding Rules.
• The College ensures that any Apprenticeship provision delivered by subcontractors meets all of the required standards and specific ESFA funding rules.

Also included in the contract is a description of how each specific cost is reasonable and proportionate to the delivery of the subcontracted teaching or learning and how each cost contributes to delivering high quality learning.
The subcontracting fees and charges policy is available via the following link: Policies Procedures and Reports

3.5 Policies

Subcontractors will be asked to supply a copy of their policies as listed in the due diligence form. These will be checked by qualified staff within the organisation to ensure current and up-to-date. This will include but not limited to, Health and Safety, Safeguarding including prevent/extremism, Equality & Diversity, Complaints, Quality Assurance, GDPR, Business Continuity, Modern Slavery Act 2015.
Subcontracting partners need to ensure they are up-to-date with and have read Keeping Children Safe in Education where 16-19 learners are studying with them. As well as ensuring learners have information about and access to 16-19 Bursary and other student support funding, information, advice and guidance and access to learning support if required.
Keeping children safe in education – GOV.UK (www.gov.uk)

3.6 Communication Strategy

The main principles of communicating with Subcontractors are in line with Relationship Charter:

• Regular scheduled meetings set up
• Subcontractor provides a named contact to the College
• Notes / minutes of meetings kept on file and shared with Subcontractor
• Records of e-mails, correspondence etc. kept on file
• Data provided on request/or as and when required for audit monitoring/funding reporting purposes in regular meetings.

3.7 European Social Fund

In order to comply with ESF funding rules. All subcontractors will be required to have an Equality and Equal Opportunities policy, and a Sustainable Development Policy.
Subcontractors will also be expected to display the ESF funding plaque in all their delivery premises.

Section 4 – Contract management – Performance

4.1 Contract Quality Assurance Process

a) Performance Monitoring Framework
This cycle of performance monitoring scrutinises performance against contractual key performance indicators: attendance, achievement, retention benchmark statistics, learners at risk, quality around teaching, learning and assessment, CPD, safeguarding training, learner and employer satisfaction and financial health. See Appendix 4
Continuous monitoring will take place throughout the academic year. A central filing system is in place to record and evaluate the quality of delivery. Quality review meetings are held internally each term and will capture the action points from minutes of meetings and the external exam boards. Any actions required will be shared with the subcontractors including external body reports. See Our central system for quality assurance includes:

• Records of learners
• All correspondence internal/external
• Links to the relevant award boards covering quality assurance/specifications/forms
• Minutes of meetings internally and externally
• Standardisation meeting minutes
• Risk assessment/recommendations
• Action plans internal/external
• Organisational charts for verification purposes
• Development activities ESFA standards
• Improvement action plans

b) Lesson visits and observations
As per our internal policy Learning and Teaching Observation, lesson observations will be carried out to observe teaching and assessment to ensure that all teaching, learning and assessment meets the requirements of OFSTED, awarding organisations, and professional standards. Scheduling of observations will be carried throughout the academic year. Two observations will be carried out for subcontractors, one announced which will be a paired observation between the Quality Enhancement Officer and Subcontractors and one short notice themed learning walk. The following criteria will be recorded on the subcontractors learning observation report form which will be shared with the staff member being observed. This provides constructive and supportive feedback with an action plan for improvement or actions for further training/CPD if required.
Please note that support meetings are available in addition to the observations when required. Any meetings held will be minuted and shared with the subcontractor providing actions if required and monitored internally to evaluate if further training for staff is required.
The observation criteria to include evidence to be observed and recorded:

• Observation of initial guidance to learners
• Observation of teaching, learning and assessment
• Observation of scheme of works and lesson plans
• Interviews with staff including feedback and training requirements if applicable to support their delivery and development of the courses
• Interviews with learners which will provide feedback on their experience of the course delivery to support any further action required for improvements
  See Appendix 5 for the observation form

c) Annual Quality Assurance Compliance Audit
The audit will seek to provide assurance regarding the subcontractor’s quality processes and procedures, with a specific focus on minimizing risks. The audit findings will be categorized into nine main areas: Conflict of Interest, Financial Health and Insurance, Marketing, Disclosure and Barring, Human Resources, and General Data Protection Regulation (GDPR), Company Policies, Information Advice and Guidance, Apprentice Progress- Planning for Learning and Progress and Continuous Improvement.
Each category will undergo a meticulous assessment, resulting in the assignment of risk ratings. Moreover, the audit report will identify specific actions or recommendations to be implemented to address areas requiring improvement or mitigate potential risks.
The “Summary of Activity” section of the report will concisely present the audit’s findings, highlighting significant developments and exemplary practices observed during the evaluation. See Appendix 6 for the annual compliance requirements.
d) Development Activities
To enhance relationships with subcontractors, we will focus on improving performance and capability. This involves:

• Identify the specific skills, services, and capabilities required from subcontractors.
• Understanding the subcontractor’s motivations and align development activities with both our goals and theirs.
• Engaging in joint activities such as process improvement and shared training for mutual benefit.
• Supporting operational performance improvements like Lean and 6-sigma initiatives.
• Contributing to wider government initiatives, including sustainability and employment diversity.
• Developing initiatives to identify, manage, and mitigate potential risks that could negatively impact both parties.
• Participating in shared management activities to drive performance improvement.

e) Self-Assessment Report (SAR) and Quality Improvement Plan (QIP)
The Self-Assessment Reviews (SAR) and Quality Improvement Plans (QIP) will draw upon various sources of information, including Performance Improvement Reviews (PIRs), departmental reflection, analysis of attendance, achievement, and retention data. Additionally, platforms will be utilized to capture comprehensive student feedback throughout the entire duration of the contract.
Through these rigorous processes, the subcontractor is committed to proactively evaluating its performance, pinpointing areas in need of improvement, and devising strategies to elevate the quality of its subcontracting provision. This approach ensures an unwavering dedication to delivering exemplary educational services.
f) Mandatory Training
As part of the subcontractor’s requirements, it is mandatory for personnel to successfully complete a series of online training courses. These courses encompass vital topics such as Safeguarding, Preventing Radicalisation, Responding to sexual Violence, Inclusion Essentials, Information Security and Health and Safety. The successful completion of these courses ensures that personnel possess the necessary knowledge and competence in the applicable practices and procedures. By adhering to these mandatory training requirements, the subcontractor aims to create a secure learning environment that prioritizes the physical and emotional wellbeing of learners, while also addressing safeguarding concerns.

Section 5 – Contract Termination and dispute resolution

5.1 Termination of sub-contracting provision & managing disputes

5.1.1 Disputes and problem resolution
Provision for resolving disputes is contained within the contract. This sets out how disputes will be resolved and the escalation procedures followed.
In the event of a compliant by the subcontracting partner they can submit via the following link: Colchester Institute Complaints Form
5.1.2 Termination:
Provision for termination of a contract is contained within the contract
5.1.3 Continuity of contract and delivery
The college will undertake all reasonable steps to ensure the viability and continuation of any contractual arrangements with sub-contractors’ provision. Due diligence undertaken is robust enough to ensure the risk of failure of a sub-contractor’s ability to deliver under its original contract terms is low and mitigated as far as possible through regular quality audits, annual financial review
and regular contact with the Contracts Manager. In the unlikely event of a subcontractor failing to deliver the college will either pick up delivery through its own means or facilitate transfer to another provider.
5.1.4 Contractual changes
All contract variations during the whole lifespan of the contract will only be authorised by the principal or delegated authority following discussion and approval from the Vice Principal Director of Finance, Resources and Regional Affairs. Copies of signed contract variation agreements will be kept on file in the Executive Office.
5.1.5 Whole life oversight
The definition of whole life / whole programme oversight is deemed to include all aspects of a learners programme as detailed in their enrolment/learning agreement and/or Training Plan if an apprentice including End Point Assessment.
Subcontractors delivering apprenticeship provision are not permitted to deliver the entire programme and an agreement as to the elements that make up the subcontract will be agreed in advance and outlined in the contract schedule.

Appendices

Table 1: Data Submission Deadlines
1. Pre-Qualified Questionnaire
1a. Extremist Organisation assessment form
2. Pre-Qualified checklist summary
3. ESFA Guidance on sub-contracting
4. Performance Monitoring framework
5. Observation Form
6. Annual Quality Assurance Compliance Questionnaire
7. Contingency Plan for Continuity of Delivery