SCL Subcontracting Policy

SCL Group Subcontracting Policy

SCL EDUCATION GROUP

VERSION CONTROL

VERSION AUTHOR

DATE

COMMENTS

Updated policy to reflect fees and standards update.

Josh Hill

July 2025

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

Gill Hampsey

Adrian Fantham

APPROVAL CONTROL

Approval of this Policy and subsequent amendments is made by the executive committee.

Board

VERSION

DATE APPROVED

APP ROVED BY

NEXT REVIEW DATE

01/09/2025

Adrian Fantham

July 2026

SCL EDUCATION GROUP

CONTENTS

Context ................................ ................................ ................................ ................................ ... 4

Policy Statement

.................................................................................................................. 4

Protocols for SCL Staff

................................ ................................ ................................ ........ 4

Expectations for Subcontractors:

................................................................................... 4

Expected Subcontracting Levels for 2025/26:

................................ .............................. 5

Scope: .......................................................................................................................................5

Procurement:

................................ ................................ ................................ ......................... 6

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

SCL Subcontracting Policy

Context

This policy aligns with the DfE Subcontracting Funding Rules for Post

-16

Education and Training 2025

-2026. 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 clearly benefits learners and aligns with SCL’s mission. All arrangements must meet ESFA 2025/26 requirements, with subcontracting driven by educational need, not profit.

Protocols for SCL Staff

• For each new subcontractor, the Contract Manager must complete a Subcontracting Rationale Form at least 8 weeks prior to contract signing, detailing why subcontracting is necessary. • 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 Executive Director of Legal and Procurement will review and approve each rationale within 10 working days

of submission, confirming it meets

strategic aims.

• Rationales must be included in the annual Board subcontracting review and published on the SCL website by 31 October

each year, as required by

ESFA.

Expectations for Subcontractors:

• Subcontractors must provide a statement demonstrating how their services align with the agreed rationale.

SCL EDUCATION GROUP

• 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 2025/26:

16-19 provision: < 20% 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 • 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. Providing entry points for disadvantaged or underrepresented groups

Scope:

Purpose

This policy applies to all new and existing subcontractors involved in delivery of any part of SCL’s ESFA -funded provision for 16 -19 Study Programmes, Adult Education Budget, or other applicable contracts.

Protocols for SCL Staff:

• The Procurement Team must send this policy to all potential subcontractors as part of the Invitation to Tender and annually to existing subcontractors at least 4 weeks before re -contracting discussions • Contract Managers must document subcontractor acknowledgement of the policy within 5 working days of it being sent. • The Executive Director of Legal and Procurement must confirm compliance with policy scope before final contract sign -off.

begin.

Expectations for Subcontractors:

• Read, sign, and return the Acknowledgement of Subcontracting Policy within 5 working days of receipt. • Update internal procedures to reflect SCL safeguarding, Prevent, equality, and data protection protocols within 30 days of contract award.

SCL EDUCATION GROUP

• Accept that SCL retains full accountability for subcontracted provision, per ESFA rules, and cooperate fully with SCL’s monitoring and audits.

Procurement:

Purpose

To ensure transparent, fair procurement that selects only subcontractors able to meet ESFA standards and SCL’s strategic aims.

Protocols for SCL Staff:

• Procurement must follow Public Contracts Regulations 2015, advertising opportunities widely and avoiding conflicts of interest. • Tenders must include a clear scoring rubric addressing quality, financial stability, safeguarding, and experience. • All tendering subcontractors must submit initial due diligence within

working days

of shortlisting notification.

• The Executive Director of Legal and Procurement must review tender evaluations and initial due diligence within 15 working days • Re -contracting existing subcontractors requires a refreshed Expression of Interest (EOI) and funding profile at least

of submission.

8 weeks before the start of the

new contract year

Protocols for Subcontractors:

• Submit complete tender responses, including due diligence, by the deadline stated in the Invitation to Tender. • Notify SCL immediately of potential conflicts of interest. • For existing contracts, submit updated EOI and funding profile no later than 8 weeks before renewal date .

Due Diligence Requirements:

Subcontractors must provide: o

•

UKPRN and Companies House registration

(although only

companies house number for partial subs if UKPRN is not applicable). o Latest audited accounts or full financial statements

Evidence of active insurance policies

o Safeguarding, Prevent, and GDPR policies

References from recent clients

SCL EDUCATION GROUP

• Due diligence reviews are valid for 12 months; renewed documentation must be submitted 30 days before annual review .

Expectations for Subcontractors:

• Maintain financial health and alert SCL of adverse changes within

working days

• Maintain policies up to date with changes in legislation or ESFA rules within 30 days of updates being issued . • Consent to SCL contacting the ESFA 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 • 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 • Specific costs for management, quality assurance, and support services, which are reasonable and proportionate • Reference to this policy, published annually on SCL’s website by 31 October No second -level subcontracting is permitted; all subcontractors must hold direct agreements with SCL.

-related documents

Appointment of Subcontracting Partners

Protocols for SCL Staff:

• Submit complete procurement rationale, risk assessments, and due diligence findings to the Executive Director of Legal and Procurement. • Present proposed appointments to the Subcontractor Governance Board at least 4 weeks before intended contract start date . • Obtain signatures from the Executive Chair, CEO, and Executive Director of Legal and Procurement before contracting.

Expectations for Subcontractors:

• Provide all required procurement and compliance documentation promptly.

SCL EDUCATION GROUP

• 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 2425: • 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 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 and Charges:

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.

• Document fee rationale and publish annually by

31 October .

• Contract Managers must explain fee structure to subcontractors at pre

contract meetings.

Expectations for Subcontractors:

• Review and acknowledge management fee breakdown within

5 working

days of receipt.

• Provide feedback on fee structure if required, but accept final approved fee set by SCL.

Understand fees cover services including ILR management, safeguarding training, monitoring, and data audit.

SCL EDUCATION GROUP

Supply Chain Fees and Charges: Performance will be managed in line with the SCL Subcontract Performance Management Process V2 (Aug 202 5): • 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 Head of Employability and Governance Board • A risk register and escalation log will be maintained

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 created for each subcontractor by

•

the Contract Manager within

5 working days of contract signing

• The Risk Register must assess risks in achievement rates, safeguarding, Prevent, financial stability, quality of delivery, health & safety, and GDPR compliance. • The Executive Director of Legal and Procurement 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

2 working

days to the Executive Director of Legal and Procurement and agree a mitigation plan within 5 working days .

Expectations for Subcontractors:

• Co -operate fully in risk assessments, providing requested documents within 5 working days .

• 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).

SCL EDUCATION GROUP

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 SCL will apply its internal QA policies, supported by annual and ongoing quality reviews.

AUDIT & DATA

Purpose To ensure robust audit trails protect public funds and demonstrate compliance with ESFA rules.

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.

• 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.

• The Executive Director of Legal and Procurement will review mid

-year

audits and provide findings to the Subcontractor Governance Board within 15 working days of completion.

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, ESFA, or nominated auditors access to documents and staff with 48 hours’ notice .

SCL EDUCATION GROUP

1 1

• Maintain learner records for a minimum of

6 years

after contract end, per

ESFA requirements.

Health & Safety, Safeguarding, Prevent:

Subcontractors must supply up

-to-date Health & Safety and Equality &

•

Diversity policies

• 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 MYESF by 31 October 2025 and 30 June 2026 (nil returns required if no subcontracting) • External audit reports 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

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.

SCL EDUCATION GROUP

• Maintain learner eligibility checks for bursary and learning support funding.

Expectations for Subcontractors:

• Attend all scheduled meetings and provide required documents within

working days

• Allow SCL to interview learners and staff during visits.

• Implement action plans agreed at monitoring meetings within

15 working

days .

Disputes & Termination

Disputes will follow SCL’s escalation procedure: 1. Initial meeting 2. SMT discussion 3. Formal escalation to Governance Board 4. Termination decision if necessary 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 Executive Director of Legal and Procurement, 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

working days

• Co -operate fully with dispute resolution and attend any required mediation.

SCL EDUCATION GROUP

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