Subcontracting

Crosby Training > Policies & Procedures > Subcontracting

POLICIES & PROCEDURES:
SUBCONTRACTING

1. PURPOSE OF THE POLICY

Crosby Training is a directly funded organisation using the Adult Education Budget, devolved to the Liverpool City Region Combined Authority, to deliver high standards of education and training programmes and to provide a broad offer of learning opportunities and choice to all learners. 

The purpose of this document is to show how we meet the requirement of the LCRCA AEB Funding and Performance Management Rules to provide information in relation to any subcontracted activity and to define the basis, on which any subcontracting arrangements are made for the selection of our delivery subcontractors and/or third parties, engaged in the learner journey. 

We have a contingency plan in place for learners in the event that: we need to withdraw from a subcontract arrangement; a delivery subcontractor withdraws from the arrangement; a delivery subcontractor goes into liquidation or administration.

We ensure that safeguarding is rigorously policed for subcontractor and/or third-party provision.

This policy describes the procurement of subcontractors and the monitoring and control of all subcontracted delivery to provide consistency of approach and transparency to our sub-contracting processes, fees and charges and the support and development of supply chain partners to aid continuous improvement. We assess all performance against Ofsted’s Education Inspection Framework and incorporate the evidence subcontractors provide into our self- assessment report and guide the judgments and grades within the SAR. 

2. SCOPE

This Subcontracting Policy applies to all AEB provision to be subcontracted from the period starting 1st August 2022-31st July 2023 ensuring that Crosby Training is operating within the guidelines set by the AEB with regards to capping any subcontracting activity of up to a maximum of 20% from August 2022.This policy along with service level agreements will be reviewed and agreed with the Senior Management Team, at least annually and can be found on our website.We ensure that learners supported through subcontracting arrangements know the roles and responsibilities of Crosby Training and those of the delivery subcontractor in providing the learning. 

3. RATIONALE

Where appropriate, Crosby Training will sub-contract with other parties, using AEB funding to offer training and education programmes to add value and help to deliver better outcomes for our learners.  This company is committed to effectively managing subcontractors to ensure the very best outcomes for our customers and the communities in which we work, delivering training and education that meets the standards required by qualification awarding organisations and Ofsted standards.

Subcontracting some of our funding to third party organisations allows us to meet our long-term strategic objectives, responding to government priorities and to widen participation and respond quickly to employer and learner demand and help them to achieve their goal and plan to ensure continued availability of the additional provision.  
We are able to offer programmes that are innovative and diverse and enhance the quality and availability of training and education programmes to learners delivered by experienced industry-specific providers.  
We can deliver a wide sector offer that effectively responds to local and regional priorities. Subcontracting helps us to support and complement directly delivered provision and to maintain the delivery of niche and expert provision. We are able to reach wider geographical areas to improve access to the training and support needs for some communities. 
We are better able to reach and provide training for disadvantaged groups including those who share protected characteristics. 
We can achieve increased social value delivered through learning with the voluntary and community sector and opportunities for onward progression in learning and skills.
We can work with partners that reflect the diverse economies and populations in which we operate. Monitoring all aspects of the provision ensures that subcontractors represent diverse communities.

4. PROCUREMENT

Crosby Training is committed to ensuring that when it has identified a need to subcontract that all interested businesses are subject to an opportunity to bid for advertised tenders in a transparent bidding process. 

The procurement process is designed to address any conflicts of interest and to ensure that the subcontractors we engage are good quality, and have sufficient capacity and business arrangements in place to effectively deliver the funding awarded. 

All opportunities to engage supply chain partners are advertised and communicated to attract the best subcontracting partners to work with us.   The opportunities are advertised directly on the Crosby Training web site and set out the specification, requirements, evaluation and scoring criteria, bidding instructions and contract award processes. 

Bids are evaluated and shortlisted following the scoring and evaluation criteria provided in the procurement documents including a moderation process to ensure consistency and fairness. 

We will inform all bidders of the outcome of the process and provide feedback. We will advertise on our own website and through our own and wider communication channels locally and nationally and on the Government Contracts Finder.   

 In addition to publishing this policy on our website, sub-contractors name, contract start and end date and provision will also be published. 

5. DUE DILIGENCE

The Due Diligence process is completed with all potential partners before awarding a contract to deliver on our behalf. There will then be an annual update of the due diligence process.  

Prior to entering a subcontract Crosby Training will conduct stringent checks that are dependent upon the subcontractor being able to ensure that the organisations with which Crosby Training subcontracts will be subject to the requirements set out below in the following legislation:

  • • Health and Safety at Work Act 1974 
  • • Management of Health and Safety at Work Regulations 1999 
  • • Equalities Act 2010 

The subcontractors will be required to hold Matrix Accreditation or attain Matrix Accreditation within six months of the commencement of any contract with Crosby Training.  

They must meet the standards set out in OFSTED’s inspection Framework. 

Before delivery, subcontractors will supply Crosby Training with all relevant information requested to protect customers and to ensure the subcontractor is a legally, financially and fit-for-purpose organisation, prior to a contract being signed. We have robust procedures in place to ensure subcontracting does not lead to the inadvertent funding of extremist organisations.  

We require extensive information, including: details of staff including Partners/Directors contact names and addresses and company registrations; latest audited accounts to support a financial viability health check; insurance details; Safeguarding arrangements; Information Security and Data Protection Policy ; Information Handling, Retention & Disposal Policy; Security Incident Reporting Policy; Quality Assurance / Monitoring Policy; Observational Training and Learning Policy;  Complaints Procedure; Modern Slavery Policy; Fraud Prevention Policy; PREVENT Policy; Eligibility Criteria Checks Policy. 

6. SUBCONTRACTING MANAGEMENT

Crosby Training, as prime provider will take responsibility for reporting, data and performance management, relationship management, quality assurance and risk management for all contracts. 

Our risk management strategy and robust internal quality assurance allows us to mitigate risk across a range of provision and partners.  It is based upon the application of the risk principle set out in ISO 9001 in relation to the performance standards set in the Quality Assurance Framework.  All subcontractors will have a risk rating which will determine the frequency and scope of the quality audits undertaken by Crosby Training’s Internal Quality Assurance team.  Further due diligence checks may be made proportionately.

At the start of any subcontract a selection of suitable performance measures are identified. They show a mixture of quantitative and qualitative measures that provide a balanced but robust view of   performance, enabling a risk measure of Red, Amber and Green to be applied on a monthly basis. 

The measures considered at the start of the contract year and on an on-going basis, include the following but not limited to: 

  • • Profile of delivery against contract value 
  • • Financial Strategy 
  • • Success rates 
  • • Retention rates 
  • • Accuracy of data return 
  • • Learner and employer feedback 
  • • Quality of teaching and learning 
  • • Learner progress and tracking 
  • • Any other performance matters 

The risk rating can change at any point in the year dependant on any changes to the performance measures noted above. Should the risk rating be increased partners will be informed at the contract review, if performance improves the risk rating may be reduced in-year. If improvements are not made it may be deemed appropriate to terminate the contract. The management fee may change to reflect the additional intervention and support required to bring about improvements. 

Further investigations of any subcontractor would be undertaken if any of the following were identified via monitoring or any other means: 

  • • Ofsted has awarded the provider a Grade 3 or 4 
  • • Any irregular financial or delivery activity arises such as credit ratings that move to ‘above average risk’. 
  • • Sanctions are placed on any subcontractor by the awarding organisation 
  • • Non-delivery of training 

7. SUPPLY CHAIN PARTNER RETAINED FUNDING

Supply chain partner retained funding for the academic year 2022-2023 will be at most, 20% of the full value of the amount allocated to each funding stream by the LRCRA devolved funding of the AEB. 

 Crosby Training management fees will be deducted at source with providers receiving contract value allocation that reflects the funds to spend in the contract year 2022-2023. Maximum contract values are confirmed in individual contracts. 

The management fee will be agreed before signing the service level agreement.  This fee funds for example:  administration; quality assurance; quality improvement; Performance Review;  MIS functions in relation to AEB data;  Due Diligence; on-boarding guidance;  audits; claims and data imputing;  marketing and engaging with employers and other stakeholders. 

8. PAYMENT TERMS

All claims need to comply with current AEB funding rules and also the terms of contractual agreement with Crosby Training.  Payment terms are set out in contracts and are dependent upon terms and conditions. Payment is subject to the correct evidence and data being provided to Crosby Training by the agreed monthly deadline. Based on the correct submission of programme statistical information corroborated with supporting evidence of quality assured learning, subcontractors will receive monthly payments. Crosby Training will make payment 30 days following receipt of a valid and accurate claim /invoice. This is paid via BACS into bank accounts.  

If claims for funding are unsubstantiated, Crosby Training will make proportionate deductions from the monthly payment to the subcontractor and if needed, make a repayment to the AEB.

If during contract monitoring it is identified that there are elements of non-compliance with regards to the AEB rules & guidelines or contractual agreements then support will be offered by Crosby Training in order to assist with improving the subcontractor’s processes, if in follow-up monitoring non-compliance has not been addressed in the agreed timescales this will trigger the penalty clauses included in the contract which could ultimately mean termination of the contract. 

9. SUPPORT & DEVELOPMENT OF SUPPLY CHAIN PARTNERS

We ensure that any delivery subcontractor we appoint continues to meet the requirements of our due diligence procedures by providing them with monitoring and all necessary support.   

Partner organisations are supported from initial contract agreement and throughout the lifetime of the contracts.  Our Subcontractor-retained funding typically enables the following support for partner organisations: 

  • • Support to meet contractual requirements 
  • • Regular meetings and performance reviews – to support and improve performance  
  • • A range of management information and performance reports. These will be used to support the effective and timely delivery of programmes/interventions to participants and to monitor performance against agreed targets.   
  • • Support to allow submission of successful claims 
  • • Support to make continuous improvements to delivery of IAG and teaching and learning. 
  • • Support for Quality of delivery, to include IAG and teaching and learning. This will be achieved through session observations, the sharing of effective practice across the partner organisations and Self-Assessment Reports/Quality Improvement Plans. 
  • • Supporting with performance management – Each partner will be allocated an individual support manager to support them with performance management, through regular reviews. This can also include regular networking meetings and events to help encourage collaboration. 

A range of CPD opportunities that actively promote and facilitate the development of staff can include: 

  • • OTLA, Compliance, Quality, SAR
  •  • Safeguarding, Prevent, E&D & Data Security
  • • Going Green/ Environmental Sustainability, Modern Slavery
  • • MI and Information Security systems training.
  • • Mental Health Awareness
  • • Paperwork and Procedures Workshops / Understanding Data.

10. POLICY OWNER & APPROVAL

The policy owner is the overall manager of Crosby Training. The Crosby Training Senior Management Team fully endorses this policy and is shared with our Governance Board. This version takes effect from 1st August 2022. The policy will be reviewed annually with relevant changes to legislation or contractual requirements. 

Policy docs : Subcontracting Policy: V2022 MP Review Jan 2026