Subcontracting Policy

Document Title Subcontracting Fees and Charging Policy
Version 1.1
Author SMT
Review details January 2020
Next review date January 2021

1.   Scope

The policy applies to all supply chain activity supported with funds supplied by the Education Skills Funding Agency or any successor organisations.

2.   Scope Introduction and Policy Statement

This policy outlines Education and Training Skills’ (ETS) rationale for sub-contracting with partners for the delivery of education and training. It also describes ETS’ approach to the selection of suitable partners and how ETS will manage and monitor sub-contracted provision to ensure the delivery of high quality education and training.

The policy is now a mandatory requirement that must be in place prior to participating in any sub-contracting activity from 1 August 2018. The content of this policy has been developed in line with AoC/ AELP Common Accord, the Education Skills Funding Agency (ESFA) Funding Rules and the LSIS Supply Chain Management document.

The ESFA defines a sub-contractor as an organisation that is engaged in a contractual and legally binding arrangement with a lead provider to deliver provision ultimately funded by the Education Skills Funding Agency. This policy focuses on ‘provision sub-contracting’ although the same principles would apply to all sub-contracted education and training provision. ‘Provision sub-contracting’ is defined as where we sub-contract the delivery of full programmes, frameworks or standards. ETS will only work with a subcontractor that is on the RoATP as a ‘Main Provider’ when using ESFA public funds as the main funding source to engage with the subcontractor.  ETS requires assurance that the sub-contractor (as a Main Provider) does not act solely as a sub-contracting entity.

ETS, in response to requests from the following employers who operate within a specialist sector in which ETS cannot provide full direct delivery, will be working with the selected sub-contractors and partners below to deliver high quality teaching and learning;

  • Devon and Cornwall Police – L3 Emergency Contact Handling Standards

This sub-contracted and partnership provision is for apprenticeship delivery in a variety of settings. Sub-contractor(s) and partners may have been engaged with a variety of communities that have typically been underrepresented in further education across the region.

ETS will continue to review the scale of its sub-contracted provision in each financial year. Because of this, ETS will prioritise the engagement of sub-contractors that:

  • Can demonstrate consistent delivery of the highest quality teaching and learning.
  • Can facilitate a high level of progression into employment or higher learning for our students. (We are particularly keen to work with sub-contractors that are able to deliver student progression onto further and higher education courses with ETS).
  • Are financially secure and can enter into a sustainable relationship with ETS.
  • Have or are committed to adopting robust quality assurance processes that complement those in place at ETS.
  • ETS makes a conscious decision between sub-contractors and delivery partners although our relationships with both share many common features. However, our partnerships are typically:
  • Long term. Partnership agreements are expected to be maintained and developed for a number of years, whereas as sub-contractors will only be engaged for a maximum of one year at a time and then reviewed.
  • Of strategic value to ETS and the local region. In some cases ETS may decide to engage in partnership delivery that offers little or no financial benefit but confers a significant reputational or other advantage.

To date, our delivery partnerships have been focussed on the development of Apprenticeship provision and it is anticipated that this will continue. Because of the lagged funding model currently employed by the Education Skills Funding Agency and the introduction of the Apprenticeship Levy, ETS is likely to have the scope to grow Apprenticeship provision over the next few years.

Our sub-contracted and partnership delivery is overseen by, the CEO, Board of Trustees and the Senior Management Team. Trustees will receive a regular report on the scale and mix of our sub-contracted provision through the monthly management accounts. ETS commissioned Kirkhills to second line audit the finances of sub-contracted provision. A Kirkhill representative sits on the quarterly Trustee Board meetings to convey financial activities as an independent body.

ETS has sought to ensure sub-contractors and delivery partners are fully engaged with our teaching and learning quality assurance processes. ETS sub-contracted provision is subject to lesson observation in the same way as our directly delivered programmes of study. ETS will seek to ensure that where appropriate, sub-contractors and delivery partners adopt our approach to self-assessment and quality improvement and are involved with its own self-assessment and quality improvement activities.

3.   Overarching Principle

ETS will use its supply chains to optimise the impact and effectiveness of service delivery to the employer and learner. ETS will therefore ensure that:

  1. Supply chain management activities comply with the principles of best practice in the skills sector. In particular they will be guided by the principles given in the LSIS publication “Supply Chain Management – a good practice guide for the post-16 skills sector” (Nov 2012 and subsequent iterations)
  2. ETS will (if required) undertake fair and transparent procurement activities, conducting robust due diligence procedures on potential sub-contractors to ensure compliance with the Common Accord at all levels and to ensure the highest quality of learning delivery is made available, demonstrating value for money and a positive impact on learner lives.
  3. The funding retained by ETS is related to the costs of the services provided. These services, and the levels of funding retained for them, will be clearly documented and agreed by all parties. The rates of such retained funding will be commercially viable for both sides and will be negotiated and agreed in a fair and transparent manner.
  4. Where disputes between supply chain partners cannot be resolved through mutually agreed internal resolution procedures, ETS will submit to independent outside arbitration or mediation and abide by its findings. Contract documents will require both parties to agree that the achievements of supply chains are attained through adherence to both the letter and spirit of contracts or partnerships. Signatories therefore commit that all discussions, communications, negotiations and actions undertaken to build, maintain and develop supply chains will be conducted in good faith in accordance with the Overarching Principle.

4.   Definition of Sub-contracting

What is a Main Provider?

A main provider is a training organisation or employer that has a direct contractual relationship with the ESFA. In the case of this document, ETS is the lead main provider.

What is a Sub-Contractor?

A sub-contractor is a separate legal entity that has an agreement with ETS to deliver any element of the education and training funded by the ESFA or through Advanced Learning Loans. Sub-contractors may be informally called partners in the sector. However, for ESFA purposes, they are classified as sub-contractors.

5.   Rationale for Sub-contracting

ETS has a strategic aim to minimise the level of sub-contracting entered into. ETS aims to use its funding allocations to support our local learners, employers and communities through direct delivery. Minimising levels of subcontracting also reduces the exposure to risk of poor performance by other organisations.

ETS will in the first instance consider direct delivery. However, ETS recognises the benefits that effective sub-contracting can bring in extending the range and accessibility of provision for learners and employers and will consider sub-contracting in the following circumstances:

  • Where our existing employers or learners require additional provision which is beyond our existing scope or capacity
  • Where subcontracting will allow us to meet short term needs of learners or employers without exposing ETS to the risks and entry and exit costs of setting up new provision
  • Where sub-contracting will allow us to capacity-build in new sectors or territories to allow us to move to a position of direct delivery or to grow income such as Apprenticeship funding
  • For very specialist provision which ETS would not be able to adequately fully resource.
  • Where the due diligence process shows the selected provider to be of high quality and low risk to ETS.

In line with the ESFA funding rules ETS does not expect Sub-contractors will subcontract any part of their contract with ETS to a third party.

Should ETS withdraw from a contract with a sub-contractor, or should a sub-contractor withdraw from the arrangement, or should a sub-contractor go into administration or liquidation, ETS will consider any such occurrence subject to its individual circumstances, for the best possible outcome for the learners, and where applicable, the employers of those learners. ETS would look to our ongoing sub-contractor base, and if this is not viable, ETS would evaluate whether it had resource and expertise internally. Should this not be the case, ETS would look to its broader network to source the appropriate expertise and engage with the ESFA if appropriate.

6.   Quality Assurance

Sub-contracted activity is a closely monitored part of ETS’s provision. The quality of the provision will be monitored and managed through our QA processes and procedures, in order to fully encompass all sub-contracted activity.

This policy positions sub-contracted provision as a part of ETS activity to enable continuous improvements in the quality of teaching and learning for both ETS and its sub-contractors. This will be achieved through the sharing of effective practice across the supply chain, for example through the Self-Assessment Report process.

As a minimum ETS will carry out the following Quality Assurance measures with sub-contractors:

  • Desk top checks and due diligence visit for new providers
  • Annual due diligence review for existing providers
  • 3 Quality Assurance visits per year, (of which at least 1 will be a short-notice visit if possible), and will include face to face interviews with learners and staff. Visits will be announced.
  • 3 sample file checks – at least one will be a short-notice sample.
  • Checks to ensure learner eligibility and existence.
  • Observations of advice & guidance, assessment and teaching and learning practise.

ETS will provide a programme for each visit as follows:

  • Visit agenda 
  • Quarterly contract management meetings, with the authorised representative of sub-contractor. These meetings may coincide with Quality Assurance visits
  • Annual survey of learners (FE Choices as a minimum)
  • Annual survey of employers (FE Choices as a minimum)
  • Monthly audit of MIS data including enrolment forms and attendance records
  • Monthly review of learner documents including tracking records, reviews and


  • Bi-annual review of the sub-contractor success rates, self-assessment process and Quality Improvement Plan.

ETS may require the sub-contractor to undergo the following quality improvement measures, at a cost to the sub-contractor in accordance with ETS’s published fees:

  • Additional standard or short notice visits
  • Additional survey of learner or employer views
  • Lesson or assessor observations
  • Staff CPD
  • Consultancy from ETS or other external consultant

7.   Payment to Sub-contractors

ETS will forward the sub-contractor the preceding month’s activity report on or before the 21st of the current month together with a purchase order. The sub-contractor will submit an invoice for the agreed % of the funding value as per the directions on the purchase order. ETS will make payments to sub-contractors within 30 days of receiving a valid claim for payment that has been submitted in accordance with the terms of the individual sub-contractor agreement.

8.   Publication of Information Relating to Sub-Contracting

In compliance with ESFA and other agency funding rules, ETS will publish its sub-contracting fees and charges policy and actual end-of-year sub-contracting fees and charges before the start of each academic year (and in the case of actual end of year data, as required by ESFA). This will only relate to ‘provision sub-contracting’ i.e. sub-contracted delivery of full standard programmes or frameworks.

ETS will ensure all actual and potential sub-contractors have sight of this policy and any other relevant documents, such as the Fees and Charges Risk Factor Table. The Fees and Charges Risk Factor Table includes:

  • The typical percentage range of fees retained to manage sub-contractors, and how this range is calculated.
  • The rationale used to determine the level of fee retained through each sub-contract is a risk based approach.
  • The contributory risk factors that would result in differences in fees charged for, or support provided to, different sub-contractors might include:
  • Previous track record
  • Success levels
  • Type of customers to be engaged
  • Type of provision to be undertaken
  • Contract duration
  • The risk bands will be used to allocate ETS charges. Risk factors are given a score so that each sub-contractor is aware of why they are in a particular band, this process will be used to give sub-contractors an incentive to improve and thus reduce the risk band that they fall in. For example, higher risk sub-contractors will be allocated less funding but receive more monitoring and support.
  • Payment terms between ETS and sub-contractors – timing of payments in relation to delivering provision and timescale for paying invoices and claims for funding received.
  • The support sub-contractors will receive in return for the fees charged.

9.   Communication

This policy will be reviewed as required and as a minimum in January annually. It will be published on ETS web site during the July prior to the start of the academic year in which it will be applied. Potential sub-contractors will be directed to it as the starting point in any relationship.

10.        The Fees and Charges Risk Factor Table

The standard ETS management fee is 20% of the funding band or of all funding drawn down against the provision to be delivered. This figure represents the total cost that ETS incurs in effectively identifying, selecting and managing all sub-contracted provision. This includes the minimum amount of QA activity that ETS would attach to the lowest possible risk sub-contracted partner.

Further charges to cover additional costs may be added to the base 20% fee to cover the cost to ETS of any additional support that ETS through consultation with the contractor deems necessary to ensure the quality of teaching and learning, the overall learner experience and the success rates of any sub-contracted provision. Additional cost is determined using a weighted table of risk factors. The table is available to all actual and potential sub-contractors and can be found in Annex 2 of this document. It is designed to ensure that the cost of any additional support provided to a sub-contractor is covered through the use of any retained funding. Retained funding will be re-calculated and negotiated each year at contract renewal. This will allow sub-contractors the opportunity to reduce the retention fees down to our minimum rate, through continuous improvement. This approach will allow ETS to focus support where and when needed.

  1. Additional Support for Sub-Contractors (Medium Risk Band)

The precise additional support given to each sub-contractor can vary and will be negotiated with the sub-contractor, and will be based on a ‘risk band’ approach and may include:

  • Additional site visits
  • Additional lesson observation
  • Additional tutor support
  • More rigorous verification

The risk band will be determined using the table in Annex 2.

12.        Additional Charges  

ETS may also retain funding to cover the cost of any funded activity that it might undertake on specific request of the sub-contractor such as:

  • Additional Awarding Organisation fees and charges
  • Hiring of additional facilities/equipment from ETS
  • Additional Internal Verification

13.        How We Select and Appoint our Sub-Contractors

In selecting our partner providers we will consider the following:

  • Reputation – providers may be referred to us by employers or other providers
  • Specialism – providers may offer niche provision where there are few alternatives
  • Geographic location – where possible we will support local partners
  • Quality measures – based on a range of measures including Ofsted rating, success rates, track record etc.
  • Responsiveness – how readily the provider can meet the needs of our learners and employers.
  • Safeguarding and Prevent agendas – how the sub-contractor conforms to these requirements and ensures all learners are protected and safe.
  • Modern Slavery – ETS is committed to ensuring that there is no Modern Slavery within its own business and supply chain. All sub-contractors will be expected to comply with ETS’s Modern Slavery policy or have an equivalent in place.
  • Potential conflicts of interest.
  • If the subcontractor is listed on the Register of Training Organisation (RoTO) or Register of Training Providers (RoATP) & the total value of sub-contracts that they hold.
  • Lack of a track record, such as providers who are new organisations, or who offer new or immature provision will not necessarily be a barrier to sub-contracting.
  • However, the quality assurance measures and associated costs will reflect the additional risks of new provision. Following initial selection, ETS will undertake a desktop due diligence check of potential partners. This will be followed by a due diligence visit to the delivery premises prior to contracts being issued.
  • Existing sub-contractor partners will undergo an annual due diligence review.

Full details of the desktop checks, due diligence visit and annual due diligence review checks are included in Annex 1.

14.        Clarity of roles and responsibilities

The sub-contractor is responsible for:

  • Providing information requested by ETS as part of the Due Diligence process.
  • Providing the requested documentation to enable ETS to make a judgment as to the suitability to enter into a sub-contracted arrangement. The documentation must be updated regularly and/or at ETS’s request for the duration of the contract.
  • Ensuring learners are eligible for funding in accordance with ESFA Funding Rules (and, where appropriate, European Social Fund (ESF) funding rules).
  • Informing ETS of any changes of ownership of the organisation, management structure, loss of centre accreditation and/or direct claim status.
  • Providing details of any accidents or dangerous occurrences affecting learners or the learning environment.
  • Providing details of any Safeguarding issues.
  • Providing details of entry onto RoATP and maintaining its registration.
  • Providing details of Matrix Accreditation and maintaining or gaining accreditation.
  • Providing an annual Self-Assessment Report.
  • Submission of learner enrolments, registers and completion of documentary evidence in a timely manner and with minimal errors or omissions.
  • All learners provided with education and training under a sub-contract with ETS remain the responsibility of ETS, in accordance with the ESFA Funding Rules. This means that ETS must monitor and manage the risk around quality of provision, learner experience, success rates, audit and any failure to adhere to contractual requirements by the sub-contractor. This is a significant factor in our sub-contracting strategy.
  • All Providers wishing to sub-contract to ETS should fully familiarise themselves with the ESFA Funding Rules (and, where appropriate, ESF funding rules) and ensure their systems and processes enable full compliance. ETS will carry out quality-assurance checks (outlined elsewhere in this policy) and sample file checks to ensure that sub-contractors are complying with the Funding Rules.
  • Sub-contractors must inform & encourage learners and employers benefitting from this contractual arrangement of the requirement to participate in ETS Quality Monitoring activities and surveys when required. They may also be required to participate in an Ofsted inspection as and when ETS is subject to one, and should be made aware of this at the outset.
  • Should either party need to withdraw from this contract, the sub-contractor must agree to co-operate with ETS to ensure there is continuity of learning for the learners. All learner details, files, paperwork and or electronic records should be passed to ETS at the earliest possible opportunity for the purposes of finding and supporting suitable, high quality alternative provision.
  • Sub-contractors must supply ETS with the required ILR data in a prompt manner, as agreed with your ETS Key Account Manager. All information must be fully completed and checked before sending to us.
  • ETS and, if necessary, the ESFA (or their nominated representatives) must be given reasonable access to your premises and your documentation for the purposes of quality assuring the training delivery falling under the scope of this sub-contract.
  • It is the sub-contractors responsibility to provide suitably qualified and competent staff for the delivery of the qualifications and training under this sub-contract arrangement. ETS will require evidence of staff qualifications and experience.
  • Sub-contractors must inform ETS if they discover any irregular financial or delivery activity in their organisation including:
  • Non-delivery of training when funds have been paid.
  • Sanctions imposed by an awarding organisation.
  • An inadequate Ofsted grade.
  • Complaints or allegations by learners, staff or other relevant parties.
  • Allegations of fraud.
  • Sub-contractors must not use any funding earned under this sub-contract agreement to make bids or claims from any European funding on their own behalf or on behalf of ETS.
  • There can be no 2nd level sub-contracting, under any circumstances under the terms of this sub-contract. All delivery must be carried out by the sub-contractor’s own competent staff.

Annex 1

Due Diligence Checks (V1.2)

Due Diligence documents required for desktop assessment Notes / Actions
Please provide your UK provider registration number Provided/Not Provided
Please indicate the legal form of your organisation (highlight correct description): A – Partnership B – Private company limited by shares / guarantee C – Public Company / Public Services D – Sole Trader E – Statutory Corporation e.g. Further Education Colleges F – Other (please specify)
Companies House Registration Name and Number  
Executive Manager   This person is responsible for the approval and management of the sub-contracting arrangement between the two parties.   Name:   Position held:  
Size category of your organisation, (highlight correct description:   A – Less than 10 Employees / Volunteers B – Less than 50 Employees / Volunteers C – Less than 250 Employees / Volunteers D – Less than 5000 Employees / Volunteers E – More than 5000 Employees / Volunteers
Organisation type (highlight correct description): A- General Further Education (GFE) College. B – Private Training organisation. C – Employer / Training Provider D – Local Authority. E – Other (please specify)
Which ESFA Sub-Contracted provision can you offer? A – Employer / Training Provider Apprenticeships and Workplace learning provision B – Adult Skills C – Additional Learning Support D – All Areas
Which study programme will you be delivering?    
Specify the geographical areas the delivery programme will cover? Devon/Cornwall  
Please identify to what extent you could provide a service to your own employees Delivery of on programme knowledge/Skills/Behaviours against apprenticeship standards
I can confirm that none of our directors, or any other person who has powers of representation, decision or control of the bidding entity has been convicted of any of the following:   •        conspiracy that relates to participation in a criminal organisation; •        corruption;
•        bribery; •        fraud where the fraud affects the financial interests of the European Communities and falls within the meaning of any of the following: o        the offence of cheating or defrauding Her Majesty’s Revenue and Customs or its predecessor organisations; o        the offence of conspiracy to defraud; o        fraud or theft under the Theft Act 1968 and the Theft Act 1978;
o        fraudulent trading under the Companies Act 1985; an offence in connection with taxation in the European Community; or
o        destroying, defacing or concealing documents or procuring the execution of a valuable security within the meaning of section 20 of the Theft Act 1968
•        money laundering;
•        any other offence within the meaning of Article 45(1) of the Public Sector Directive (noting that the only offence referred to in Article 45(1) of the Public Sector Directive which does not appear to be covered in the list above is participation in a criminal organisation, rather than conspiracy which relates to participation in a criminal organisation as mentioned above)
•        if relevant, is not properly licensed to provide services in the State in which the bidder is established;
•        is not registered on the appropriate trade register in the Member State in which he is established (a UK or Irish bidder would be deemed to be registered on the professional or trade register if it is established in the UK and is certified   Have any of the above been convicted of these offences?       
No / Yes
I can confirm that none of our directors or any other person who has powers of representation, decision or control of our organisation, have been involved in:
A – Previous activities which have resulted in significant repayment of monies to the Education and Skills Funding Agency or another public body. (£100,000 or more)
B – Failure to repay monies due to the Education and Skills Funding Agency or other public body.
C – Representation from awarding bodies identifying significant irregularities in the award of qualifications
D – Two or more instances within a two year period where the Education and Skills Funding Agency, the SFA, YPLA or their predecessor organisation have audited the provision of the organisation and identified significant concerns resulting in a qualified opinion.
E – Ongoing investigation relating to suspicion of fraud or irregularity under an existing contract with the Chief Executive of Education and Skills Funding Agency.   Have any of the above been convicted of these offences?        
No / Yes  
Please confirm that your organisation has not participated in any  irregular financial activities as stipulated in the Education and Skills funding Agency’s Funding Rules I can / cannot* confirm  
Are any of the individual directors of your organisation (or any other person who has powers of representation, decision or control of the bidding entity) in a state of un-discharged bankruptcy or composition with creditors or subject to such proceedings? No / Yes
Have any of the individual directors of your organisation (or any other person who has powers of representation, decision or control of the bidding entity) committed an act of grave misconduct in the course of business that resulted in either a criminal or civil conviction or in their expulsion from a professional body? No / Yes
Has the organisation, its individual directors (or any other person who has powers of representation, decision or control of the bidding entity) been reprimanded or convicted of serious misrepresentation in supplying information required by English Law? No / Yes
Is your organisation (or any of the members of your consortium) in a state of insolvency, voluntary administration, compulsory winding up, receivership, composition with creditors, company voluntary arrangements or subject to equivalent proceedings? No / Yes
Do you agree, at your cost, to obtain the appropriate Disclosure and Barring Service check by the Criminal Records Bureau for your employees involved in delivering training to your Apprentices under sub-contract to Education and Training Skills? No / Yes
Please provide an overview of your financial accounts for the current and previous three years to show that no irregular financial activities have taken place Provided/Not Provided
Copy of evidence of registration on RoATP On Register/Not on register
Full names of all Heads / Trustees / Senior Managers Complete company house check/Headed Letter Identifying Apprenticeship Lead 
Copy of Management Structure Provided/Not Provided
Copy of most recent Ofsted report Require grade 1 -2 Provided/Not Provided
Copy of most recent Self-Assessment Report (SAR) – where applicable Require grade 1 -2 Provided/Not Provided
CVs for all staff delivering training / assessment Provided/Not Provided
Copy of or statement to confirm contract of employment is in place for all staff delivering training /assessment Provided/Not provided
DBS numbers for all staff delivering training / assessing Provided/Not Provided
Copy of staff qualification certificates for the member (s) of staff responsible for training/assessing Provided/Not Provided
Copy of Health & Safety Policy Provided/Not Provided
When were your health-and-safety procedures last audited and/or reviewed and updated Date:
Copies of risk assessments Provided/Not Provided
Copy of disaster recovery policy Provided/Not Provided
Copy of Employers/Public/ Professional liability insurance certificate Minimum £10 million for Employers Liability Insurance and £5 million for Public Liability Insurance. Certificate to be in date. – Provided/Not Provided
Due Diligence documents required for desktop assessment Notes / ETS Actions
Evidence of Initial Advice & Guidance (IAG) and IAG Policy Provided/Not Provided
Copy of employee handbook Provided/Not Provided
Copy of Complaints procedure Provided/Not Provided
Copy of Equality and Diversity procedure Provided/Not Provided
Details/evidence of DDA compliance Confirmed/Not Confirmed
Copy of Numeracy and Literacy Policy Provided/Not Provided
Copy of Safeguarding policy Provided/Not Provided
Copy of Sustainability policy Provided/Not Provided
Copy of PREVENT policy Provided/Not Provided
Copy of British Values policy Provided/Not Provided
Copy of Mission Statement Provided/Not Provided
Copy of Data Protection policy Provided/Not Provided
Evidence of how Prevent Duty compliance is met . Provided/Not Provided
Copy of Awarding Body Centre Approval – where applicable To match qualifications being delivered if applicable – Provided/Not Provided
Copy of most recent External Verifiers Reports – where applicable To be reviewed for serious issues – Provided/Not Provided
Required during Academic Year
The Sub-Contractor will provide the following:
Frequency / Due by
Return signed contract agreement and appendices Before start of delivery programme – Provided/Not Provided
Deliver the Programme (s) in accordance with the ESFA’s and ETS’s quality assurance arrangements In line with the ETS timetable
Self-Assessment Reports in line with the ETS’s requirements In line with the ETS timetable
Signed and fully completed enrolment form for each learner; In line with the ETS timetable
Completed Teaching, Learning and Assessment Plans (with 20% Off the Job Training evidence), and attendance registers In line with the ETS timetable
Withdraw any learners who have missed more than 5 consecutive weeks of learning Within 1 month after missing 5 consecutive weeks if the learner is not officially placed on a BIL
Timetable of delivery including session times, venues and teaching staff Before course(s) / programmes commence – Provided/Not Provided
Copies of achievement certificates as soon as received from the awarding body – If applicable As soon as received
Copies of all EV reports – If applicable As soon as received
Feedback questionnaires from learners In line with ETS timetable
Raise invoices per agreed payment amounts and schedule Per agreed schedule
Due Diligence – Declarations Frequency / Due by
I/We certify that the information supplied within this questionnaire is accurate to the best of my/our knowledge. I/We accept the conditions and undertakings requested in this questionnaire. I/We understand that false information could result in my/our exclusion from this and future exercises, may result in withdrawal of any existing subcontracted provision agreement(s) * I/We – delete as appropriate
I/We understand that any individual or organisation that directly or indirectly attempts to influence any member of Education and Training Skills Ltd (ETS) staff concerning the award of a contract to which this sub-contract relates or engages in a corrupt practice involving a member of ETS staff, may be disqualified from the procurement process and result in civil or criminal proceedings.
I/We certify that information requested by ETS is to be used for the purpose of completing Due Diligence of subcontracted provision will be supplied in a timely manner.
I/We confirm that no second line sub-contracting arrangement will take place as per the Apprenticeship Funding Rules for Training Providers August 2018 to July 2019.
The person named here must be authorised to sign the above declarations on behalf of your organisation. Name:   Job Title:   Signature: Date:  

Annex 2

Quality Assurance Measures (Risk Banding) (V1.2)

In deciding whether to enter a sub-contracting arrangement, both parties should consider the use of this checklist, and scoring system, to support the decision to enter into a subcontracting arrangement. This checklist helps form part of the sub-contractor, due diligence process for the lead provider. A grading system, which could be weighted for particular questions, may help make the most well informed decision.

Ser Subcontractor Checklist Questions – Devon and Cornwall Risk Banding Grade (1 TO 5) Actions/Comments
1. Does the sub-contracted provision compete or complement with provision delivered by the lead provider ETS?    
2. What type of subcontractor is being engaged    
3. Is the lead partner offering more than a one-year contract?    
4. Are both providers registered on the RoATP    
5. Does the subcontractor have a good subcontracting track record Ofsted Rating/SAR Grade    
6. Is the subcontract under the sub-contacting threshold    
7. What percentage (or how much) of the funding does the lead partner require as a management fee?    
8. What provision will the lead partner be providing and have they the capacity and capability to deliver    
9. If the employer is the subcontractor have they demonstrated the actual cost of the provision they are delivering and what percentage that represents    
10. Are the lead partner’s success rates good    
11. Are the employer subcontractors success rates good    
12. Is the employer/subcontractor in a position to offer 20% OtJT and    
13. Is the lead partner offering any additional services (such as providing learners with access to their learning centres)?    
14. Is the employer sub-contractor offering any additional services (such as providing learners with access to their learning centres)?    
15. Is the lead partner financially strong with an established reputation for delivering high quality provision?    
16. Is the employer subcontractor financially strong with an established reputation for delivering high quality provision?    
17. Does the lead provider have successful experience of working with sub-contractors?    
18. Does the employer subcontractor have successful experience of working with sub-contractors?    
19. Does the Subcontractor have apprenticeship delivery experience    
20. Are there likely to be additional and future sub-contracting and/or partnership opportunities?    
21. Are there likely to be additional and future sub-contracting and/or partnership opportunities?    
22. Is the communication and management structure of the lead provider both clear and supportive?    
23. Is the communication and management structure of the employer subcontractor both clear and supportive?    
24. What % of funding will be held back by the lead partner from the employer subcontractor in case of ESFA audit clawback as a result of failing by the employer subcontractor in meeting the ESFA funding and performance requirements    

Risk Levels

Very Low Risk     = 1                  Signed and agreed Main Provider: …………

Low Risk            = 2                  Name:……………………   Dated………….

Medium Risk      = 3

High Risk           = 4                  Signed and agree Sub-contractor:……………….

Intolerable Risk  = 5                   Name:……………………   Dated………….

Overall Score Risk Rating
22 V Low
23 – 44 Low
45 – 66 Medium
67 – 88 High

ETS Acceptable Score 66 – Any subcontractor with a score of 5 for any question will not be considered to act as a subcontractor

Annex 3

Fees and Charges Structure (V1.0)

Activity – The following activities are included in the standard contract management and covered by the retained funding element Number/Frequency included in standard retained funding element
Pre-Contract Processes
Due diligence desk top checks 1 at set-up
Due diligence visit 1 per site, up to 3 sites
Annual due diligence 1 per year
Issuing standard sub-contract agreement 1 per year
MIS Processes
Issuing ETS document templates and forms to be used by the sub-contractor As and when amended
Agreeing use of sub-contractor templates and forms (if at least as good as ETS documents) 1 per year
Entering learner data and amendments onto ILR and checking eligibility All – Continuing
Entering attendance data and reconciling with ILR All – Continuing
Calculating fees due and processing payments received All – Continuing
Data-match checks with other main contractors with whom the sub-contractor works – If applicable All – Continuing
Quality Assurance Processes
Quality assurance visits and lesson/assessor observations 3 per year
Standardisation meetings 3 per year 3 per year
Annual survey of learners 1 per year
Annual survey of employers  1 per year
Monthly audit of MIS data including enrolment forms and attendance records Continuing
Review of learner documents including tracking records, reviews and ILPs 3 per year
Annual review of the sub-contractor provision within the ETS self-assessment process and Quality Improvement Plan 1 per year
Key Account Manager liaise with the sub-contractor regularly to support and monitor performance Typically 1 or 2 phone calls or emails per week, more for new

Annex 4

Planned Visit Agenda (V1.0):

  1. Introductions and purpose of the visit
  2. ETS Visit responsibilities
  3. Domestic arrangements
  4. Health and Safety of the ETS Key Account Manager
  5. Confirmation of the use of the latest version of the Service Level Agreement and Subcontracting Policy
  6. Scope of the visit, including:
    1. observations of teaching learning and assessment
    1. learner views
    1. tutor views
    1. checks on learner attendance registers
    1. checks on 20% off the job training records
    1. checks on learner progress
    1. checks on learner outcomes
  7. Final visit feedback, evaluation and reporting arrangements
  8. Arrangements, where applicable, for any additional visits to be conducted over and above the 3 pre-arranges QA visits.
  9. Any other business
  10. Date of next visit