Learn Devon Sub-contracting Policy

1. Purpose and Scope

This policy governs all learning funded by the Department for Education (DfE) and managed by Learn Devon, where delivery is formally sub-contracted to an external organisation. 

It ensures that all subcontracted activity: 

• Complies with DfE Adult Skills Fund (ASF) and Free Courses for Jobs (FCJ) funding rules; 

• Meets the ESFA Subcontracting Standard (2022/23 onward), which acts as a licence to subcontract; 

• Aligns with the Procurement Act 2023 and Devon County Council’ (DCC) Financial Regulations; 

• Embeds robust oversight, quality assurance, and financial control over all subcontracted public funds. 

The policy applies to all Learn Devon subcontracting, including community, accredited and non-accredited provision. 
Where total subcontracted delivery across all ESFA-funded streams exceeds £100,000, Learn Devon will obtain external assurance against the ESFA Subcontracting Standard. 

2. Strategic Rationale and Objectives

Learn Devon will only subcontract provision where there is a clear, approved, and published educational and business rationale. 

Each subcontract must demonstrably: 

• Enhance opportunities for learners; 

• Fill gaps in niche or specialist provision; 

• Improve geographical access to learning; 

• Provide entry points for disadvantaged or under-represented groups; 

• Support the priorities of the Devon & Torbay Local Skills Improvement Plan (LSIP), the DCC Skills Strategy, and the Get Devon, Plymouth & Torbay Working framework. 

A business case for any subcontract will be prepared, consulted on with stakeholders, and approved at executive level prior to tender or contract award. 

3. Pre-Award: Procurement and Due Diligence

3.1 Procurement Framework 

All subcontracting will be commissioned through competitive, transparent processes that comply with DCC’s Financial Regulations and the Procurement Act 2023.  This may include the framework as listed below and any other compliant procurement routes to market: 

• Use of the ASF & FCJ Framework; 

• Crown Commercial Services frameworks 

• DCC-approved compliant routes where alternative funding applies. 

3.2 Pre-Qualification and Evaluation 

A Pre-Qualification/Conditions of Participation will gather evidence on: 

• Legal status and ownership (including persons of significant control); 

• Financial health, insurance, and trading history; 

• Quality assurance systems, Ofsted/EQA history; 

• Safeguarding, Prevent, and Equality, Diversity & Inclusion compliance; 

• Information security and GDPR measures; 

• Curriculum experience and local capacity within Devon or Torbay; 

• Track record of compliance with DfE/ESFA funding rules; 

• Confirmation of valid UKPRN. 

Evaluation will assess quality, reach, curriculum alignment, capacity, price transparency, and risk. 
Only providers that meet these standards will be eligible to sub-contract to Learn Devon. 

3.3 Contract Management Planning 

Before contract award, a Contract Management Plan (CMP) will be developed. This will set: 

• Objectives, milestones, and KPIs; 

• Quality assurance and reporting expectations; 

• Roles and responsibilities; 

• Audit, data, and ILR submission arrangements; 

• Risk assessment and mitigation measures; 

• Escalation and change control procedures. 

4. Contract Award and Terms

Contracts will: 

• Specify funding stream, qualification aims, delivery location, mode (face-to-face/blended), and target learner volumes; 

• Include all obligations under the DfE ASF/FCJ funding rules; 

• Prohibit further sub-contracting without express written permission; 

• Embed clauses on data protection, confidentiality, Freedom of Information, and equality legislation; 

• Set payment terms (quarterly in arrears) and audit access; 

• Include termination, dispute resolution, and learner-protection provisions. 

• Subject to DCCs Standard Terms and Conditions 

All signed contracts are centrally logged and stored securely. Key contract dates, triggers, and renewal or termination periods will be tracked. 

5. Governance, Roles and Responsibilities

Roles are reflected in job descriptions and performance objectives. All staff receive training on contract management, funding compliance, and safeguarding. 

 6. Relationship and Communication Management

Learn Devon maintains open, professional relationships with subcontractors, including: 

• Monthly communication and minimum three formal review meetings annually; 

• Documented joint action plans and progress monitoring; 

• Named contacts for both organisations; 

• Defined problem-resolution and escalation routes; 

• Collaborative sharing of good practice through moderation and CPD; 

• Annual review of subcontractor ownership, financial health, and business continuity plans. 

7. Performance Management and Quality Assurance

Subcontractor performance will be assessed against agreed metrics aligned with DCC’s ITT 

Specification: 

Providers must operate within the Ofsted Education Inspection Framework (EIF) and be subject to: 

• Regular OTLA observations; 

• Internal verification and moderation; 

• Safeguarding and Prevent audits; 

• Participation in Learn Devon’s SAR and QIP; 

• Learner feedback and complaints monitoring. 

Corrective action plans will be implemented and tracked where standards fall below expectations. 

8. Data Management and Information Security

Subcontractors must comply with: 

• The DCC ASF Information Sharing Agreement; 

• ESFA ILR, EAS and ELS rules; 

• Secure collection, transfer, and storage of learner data; 

• Use of approved systems (e.g., Cognisoft or equivalent). 

Evidence requirements include learner enrolment forms, registers, achievement certificates, support evidence, and progression records. 
Failure to meet data submission or evidence requirements may result in withheld payments or contract suspension. 

9. Payments and Financial Control

• Payments will be made quarterly in arrears, based on verified delivery data and supporting evidence. 

• The payment model will normally comprise 80% on-programme and 20% on learner achievement/completion, mirroring DCC’s ASF/FCJ contract structure. 

• No payment will be made in advance of delivery. 

• Management fees will reflect only the actual cost of contract oversight, normally up to 15% of contract value. 

• 30-day payment terms will be passed down the supply chain. 

• Comply with DCCs Financial requirements for Purchase to Pay. 

10. Risk Management and Business Continuity

Learn Devon maintains a live Subcontracting Risk Register, reviewed quarterly. 
Risks considered include financial stability, quality, data compliance, safeguarding, extremism, and reputational issues. 

Key controls include: 

• Early-warning triggers through performance data; 

• Escalation and reporting routes through governance boards; 

• Contingency and learner continuity plans in the event of subcontractor failure; 

• Clear understanding of warranties, indemnities, and termination clauses; 

• Annual financial health checks and credit-rating reviews of subcontractors. 

11. Contract Change and Termination

All changes will follow formal change-control procedures, ensuring value for money and proportionality. 

Major variations require executive sign-off and, where relevant, market testing or benchmarking. 

Contracts may be terminated for material breach, underperformance, non-compliance, insolvency, or loss of regulatory approval. 

Learners affected will be safeguarded through managed transition arrangements. 

12. Transparency and Publication

Learn Devon will publish annually (by 30 November): 

• The value of each subcontract; 

• The management fee retained and its rationale; 

• The educational/business rationale for each subcontract; 

• This policy and the subcontracting reduction plan; 

• The name of the Senior Responsible Owner. 

13. Provider Development and Continuous Improvement

Learn Devon works collaboratively with subcontractors to build capability through: 

• Shared CPD and quality improvement sessions; 

• Peer review, moderation and joint observation; 

• Support for digital delivery, safeguarding, and inclusion; 

• Shared initiatives on sustainability, equality, and community engagement. 

14. Review and Approval

This policy will be: 

• Reviewed annually or earlier following ESFA or DfE guidance updates; 

• Approved by Learn Devon Executive and DCC governance; 

• Published on the Learn Devon website by 31 October each year. 

• Effective period: 1 August 2025–31 July 2026 Next review: by 31 July 2026 

Updated November 2025