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SUBCONTRACTING
VERSION CONTROL
SCL EDUCATION GROUP
2
VERSION AUTHOR
DATE
COMMENTS
Updated policy to reflect the fees and standards update.
1.0
Josh Hill
Jul 2025
1. 1
Gill Hampsey
Mar 2026
Policy updated to reflect new processes following team restructures.
Version control is to be employed for any amendments to the content which result in substantive changes to the meaning, intent or outcome of the policy or process described within and must be approved by the Executive Committee. Spelling mistakes or other
typographical errors are not
required to be subject to Version Control.
POLICY OWNER
POLICY OWNER S
ACCOUNTABLE EXECUTIVE
Executive Director o f Legal and Procurement
APPROVAL CONTROL
Approval of this Policy and subsequent amendments is made by the executive committee.
Board
VERSION
DATE APPROVED
APPROVED BY
NEXT REVIEW DATE
1. 1
Mar 2026
Adrian Fantham (CFO)
Feb 2027
SCL EDUCATION GROUP
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CONTENTS
Context ................................ ............................... ............................... ............................... ........ 4
Policy Statement
................................ ............................... ............................... ..................... 4
Protocols for SCL Staff
......................................................................................................... 4
Expectations for Subcontractors:
................................ ............................... .......................5
Expected Subcontracting Levels for 2025/26:
................................ ...............................5
Scope: ................................ ............................... ............................... ............................... ...........5
Procurement:
................................ ............................... ....... Error! Bookmark not defined.
Contracting:
............................................................................................................................. 7
Appointment of Subcontracting Partners:
................................ ............................... .....7
Management Fees & Risk Rating:
..................................................................................... 8
Supply Chain Fees and Charges:
...................................................................................... 8
Supply Chain Fees and Charges:
................................ ............................... ........................9
Quality Assurance:
................................ ............................... ............................... .................10
Health & Safety, Safeguarding, Prevent:
................................ ............................... ......... 11
Monitoring, Reporting & Audit:
................................ ............................... ..........................11
SCL EDUCATION GROUP
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SCL Subcontracting Policy
Context
This policy aligns with the DfE Subcontracting Funding Rules for Post
-16
Education and Training. SCL Education (hereafter "SCL") engages subcontracting only to enhance the learner offer, not for short -term funding objectives. Our provision is primarily direct delivery; subcontracting is expected to remain below the 25% threshold per funding stream. If subcontracting exceeds this threshold, a formal exemption request will be submitted to the DfE before 30 April for the following year.
Policy Statement SCL will only subcontract where it demonstrably enhances
or enriches the learner
offer and aligns with SCL’s strategic objectives. All arrangements must comply with DfE funding rules and guidance, with subcontracting used only where it provides educational value and not for profit. Subcontracting will remain exceptional and controlled, with SCL retaining full accountability for quality, funding compliance, and learner outcomes. publish its subcontracting policy, rationale, supply chain fees, and subcontractor list annually on its website in line with DfE funding rules
SCL will
Protocols for SCL Staff
For each new
full subcontractor, the Contract Manager
must complete a
•
Subcontracting Rationale Form at least detailing why subcontracting is necessary.
4 weeks prior to contract signing,
• The rationale must identify how the subcontract enhances SCL’s delivery by:
o Addressing learner access in niche markets.
o Expanding provision in underserved areas.
o Meeting employer or community skill needs.
o Supporting progression for disadvantaged learners.
The Responsible
Executive will review and approve each rationale
,
•
confirming it meets strategic aims.
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Expectations for Subcontractors:
Subcontractors must demonstrat
e how their services align with the agreed
•
rationale.
• They must agree not to pursue subcontracting based solely on financial opportunity. • Subcontractors proposing expansions must notify SCL at least 12 weeks prior to delivery changes so rationales can be reassessed.
Expected Subcontracting Levels
for each academic year :
16-19 provision: <2 5% subcontracted
•
AEB provision: <5% subcontracted
•
• Apprenticeships: <5% subcontracted (specialist delivery only)
Our rationale for subcontracting includes:
Enhancing learner opportunities
•
Filling gaps in specialist provision
•
Supporting better geographical access
•
• Providing entry points for disadvantaged or underrepresented groups
SCL’s Board and senior leaders will ensure subcontractors are
high-quality and
low risk to public funds, supported by staff with the knowledge and experience to select, manage, and contract effectively.
Scope:
Purpose
This policy applies to all
new and existing
subcontractors
involved in delivering
any part of SCL’s DfE -funded provision, including:
16–19 Study Programmes
•
Adult Skills Fund (formerly AEB)
•
Apprenticeships
•
Other applicable contracts
•
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SCL retains full responsibility as the lead provider, including:
Funding compliance Quality of delivery
•
•
Learner data (as Data Controller)
•
The Responsible Executive must confirm compliance with this policy prior to contract execution.
P rocurement
To ensure open, fair and
transparent procurement that selects only
subcontractors able to meet DFE standards and SCL’s strategic aims.
Protocols for SCL Staff:
Procurement processes must ensure selection of subcontractors capable of meeting DfE requirements and public funding standards.
The Responsible Executive,
along with support teams,
where applicable,
must:
• Review any tender outcomes and due diligence
, as appropriate
• Confirm subcontracting is justified and proportionate • Ensure conflicts of interest are identified and managed • Follow Public Contracts Regulations 2015, advertising opportunities and avoiding conflicts of interest. • All tendering subcontractors must submit initial due diligence . • Re -contracting existing subcontractors requires a refreshed
due diligence
by 31 st July in any year
submission and funding profile
Protocols for Subcontractors:
• Submit completed due diligence by the deadline stated • Maintain compliance with DfE rules (as updated) • Notify SCL of material changes affecting delivery or financial viability • Notify SCL immediately of potential conflicts of interest. • For existing contracts, submit updated due diligence no later than
31 st July
in any year
Due Diligence Requirements:
Subcontractors must provide:
• UKPRN and Companies House registration (although only
the Companies
House number for partial subs if UKPRN is not applicable). • Latest audited accounts
information, or full financial statements.
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• Evidence of active insurance policies.
• Safeguarding, Prevent, and GDPR polic
y confirmation .
• References from recent clients.
• Due diligence reviews are valid for 12 months; renewed documentation must be submitted by 31 st July in any year
Expectations for Subcontractors:
• Maintain financial health and alert SCL of adverse changes
during the
monthly management meetings
.
• Maintain policies up to date with changes in legislation or
DFE rules within
30 days of updates being issued.
Consent to SCL contacting the
DFE regarding subcontractor status or
•
concerns.
Contracting:
Before delivery starts, subcontractors will enter a written agreement with SCL that includes all DfE -mandated terms:
• Granting access to DfE, auditors, and SCL to all delivery
-related documents
• Providing accurate ILR data for timely and compliant data returns
• Provisions for cooperation upon contract termination
• Agreement to inform SCL of any financial or delivery irregularities
• Confirmation that SCL remains the lead provider and accountable body
• Prohibition of second -level subcontracting
Subcontractors must not deliver provision in a way that compromises SCL’s ability to meet its obligations to the DfE, including funding, quality, safeguarding, and audit requirements.
Appointment of Subcontracting Partners
:
Protocols for SCL Staff:
The Responsible Executive
, along with support teams,
must:
• Review rationale, due diligence, and risk
• Confirm subcontracting is compliant with DfE expectations
• Approve all subcontractor appointments prior to contract award
Obtain signatures from the
Chief Financial Officer
on all contracts .
•
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Expectations for Subcontractors:
• Provide all required compliance documentation promptly.
• Accept appointments are conditional on approval by SCL’s governance structures.
Management Fees & Risk Rating
:
SCL’s management fees are set according to subcontractor risk ratings based on the SCL Risk Rating Table:
Low risk (score 6 -9): ~15% fee
•
• Medium risk (score 10 -14): ~20% fee with additional monitoring
• High risk (score 15 -18): >20% fee with
a comprehensive plan to reduce risk
rating
The risk rating considers financial health, delivery experience, Ofsted/SAR outcomes, success rates, compliance, and communications.
Supply Chain
fees :
Purpose To provide transparency of management fees, services provided, and how fees contribute to high -quality delivery.
Protocols for SCL Staff:
• Calculate subcontractor risk band and fee percentage using the published risk rating matrix.
Contract Managers must explain
the fee structure to subcontractors at
•
pre -contract meetings.
Expectations for Subcontractors:
Review and acknowledge
the management fee breakdown
prior to
•
contract signature
Provide feedback on
the fee structure
where required, but accept the final
•
approved fee set by SCL. Understand fees cover services including ILR management, safeguarding training, monitoring, and data audit.
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Supply Chain Fees and Charges:
Performance will be managed in line with SCL
’s Subcontract Performance
Management Process
:
• Risk ratings (RAG) determine monitoring frequency: Green
– bimonthly;
Amber – monthly; Red
– fortnightly
• Kick -off meetings set expectations and profiles
• Regular review meetings scheduled; performance issues escalated to
the
Executive Board
• A risk register and escalation log will be maintained
Payments to subcontractors will be: •
Based solely on eligible, evidence
-based delivery recorded in ILR
• Subject to reconciliation, adjustment, and clawback where delivery is not evidenced or funding is not received
• Withheld where compliance, quality, or audit requirements are not met
Management fees will be proportionate to the services provided and represent value for money in line with DfE funding rules.
Managing Risk
Purpose To ensure all risks to learners, funding, and SCL’s reputation from subcontracted provision are identified, recorded, mitigated, and monitored.
Protocols for SCL Staff:
A Subcontractor Risk Register must be
maintained for each subcontractor
•
by the Contract Manager
.
• The Risk Register must assess risks in achievement rates, safeguarding, Prevent, financial stability, quality of delivery, health & safety, and GDPR compliance. • The Responsible Executive must review the Risk Register quarterly and after any significant events (e.g., Ofsted inspections or complaints). • Contract Managers must escalate risks rated as “High” within 5 working days to the Responsible Executive and agree on a mitigation plan within 10 working days.
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Expectations for Subcontractors:
• Co -operate fully in risk assessments, providing
the requested documents
as required
• Implement agreed risk mitigation actions within 10 working days of being notified. • Notify SCL immediately of incidents affecting risk profile (e.g., staff changes, safeguarding concerns, major complaints). Subcontracting arrangements presenting material risk to funding, inspection outcomes, or learner welfare must be subject to immediate review and potential suspension.
Quality Assurance:
SCL conducts: •
100% audit of starts/leavers
Mid -point sampling of live learners
•
Spot checks and lesson observations
•
Learner and employer voice activities
•
Subcontractors must: •
Operate an observation of teaching, learning, and assessment system
• Share SARs, QIPs, and EQA reports with SCL
• Provide up -to-date CPD records and DBS checks
as required
SCL will apply its internal QA policies, supported by annual and ongoing quality reviews.
Audit and Data
Purpose
To ensure robust audit trails protect public funds and demonstrate compliance with DfE funding rules and audit requirements.
Protocols for SCL Staff:
• Contracts and signed agreements must be filed centrally before delivery starts. • Contract Managers must validate the accuracy of subcontractor ILR data submissions monthly.
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• All starts, leavers, and completions must have full supporting evidence audited at least once per term, with 100% sample for starts and leavers, unless partial subcontractors , where this is not applicable. • SCL acts as Data Controller for all learner data and retains ultimate responsibility for its integrity, security, and lawful processing.
Expectations for Subcontractors:
• Maintain complete records of learner enrolments, attendance, learning agreements, reviews, and outcomes
(partial subcontractors are exempt
from this as not responsible for learner enrolments).
• Submit ILR data and supporting evidence within 3 working days of SCL requests.
Permit SCL,
DFE , or nominated auditors access to documents and staff
•
with 48 hours’ notice.
• Maintain learner records for a minimum of 6 years after contract end, per DFE requirements.
Health & Safety, Safeguarding, Prevent:
Subcontractors must supply up
-to-date Health & Safety and Equality &
•
Diversity policies on request
• A signed Letter of Assurance confirming safeguarding checks for external/third -party staff must be provided per SCL External Staff Guidance
SCL will review safeguarding,
Prevent, and equality during contract reviews
•
• Subcontractors’ staff must undertake safeguarding, Prevent, and British Values training, and notify SCL of Designated Safeguarding Leads
Monitoring, Reporting & Audit:
• Subcontractor declarations must be submitted to DfE via
the appropriate
systems by 31 October and 30 June
in each year (nil returns required if no
subcontracting)
External audit reports
are required where aggregate subcontracted
•
delivery exceeds £100,000 in any year
• Subcontractors delivering whole programmes or distance learning require pre -approval from DfE, submitted at least 12 weeks prior to delivery start
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Support, Monitoring and Provision
Purpose To assure continuous improvement in quality, safeguarding, compliance, and learner outcomes.
Protocols for SCL Staff:
• Conduct monthly monitoring meetings for subcontractors rated Red or Amber; Green -rated subcontractors must have meetings at least every 2 months.
• Schedule announced and unannounced visits at least once per term.
• Carry out at least one joint lesson observation and learner feedback survey per academic year. • Provide safeguarding and Prevent training updates to subcontractor staff annually. • Maintain learner eligibility checks for bursary and learning support funding. Expectations for Subcontractors:
• Attend all scheduled meetings and provide required documents within 3 working days.
• Allow SCL to interview learners and staff during visits.
• Implement action plans agreed at monitoring meetings within 15 working days. Subcontracting Control Statement
SCL will not enter into or continue subcontracting arrangements where:
• Delivery could reasonably be undertaken directly
• Oversight cannot be effectively maintained
• The arrangement introduces disproportionate risk to funding, compliance, or learner outcomes
Disputes & Termination
Disputes will follow SCL’s escalation procedure
as outlined in the contract
arrangement
1. Initial meeting 2. SLT discussion 3. Formal escalation to
Executive Board
4. Termination decision if necessary
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SCL retains responsibility for provision continuity if subcontractors fail.
Purpose To establish clear, fair procedures for resolving disputes and terminating
contracts when necessary. Protocols for SCL Staff:
• If performance falls below minimum standards or compliance fails, issue a written Improvement Notice with a 15
-working -day deadline to implement
corrective actions.
• If issues remain unresolved, escalate to the
Responsible Executive , who
may recommend contract termination.
• Use dispute resolution mechanisms in the contract for disagreements.
Expectations for Subcontractors:
• Respond to Improvement Notices with detailed action plans within 10 working days. • Co -operate fully with dispute resolution and attend any required mediation.
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SCL EDUCATION GROUP
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