To:Finance and Resources Committee

From:Cheryl Cameron

Date of Meeting:November 2017

Item to discussForecast Partnership Activity 2017/18

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Purpose:To update the Finance and Resources Committee on the planned partnership activity for 17/18

Executive Summary

  • 17/18 contracts have been issued to the value of £3.98m with a predicted contribution of £823k (management fee).

Recommendation:

Members are requested to:

  • Acknowledge the sub-contracting partnership details for individual sub-contractors
  • Acknowledge the 17/18 contracts value

17/18 Planned Partnership Activity

Contracts to the value of £3.98m are in place with partners: £3.44m stud and adult programmes and £546K of all-age Apprenticeships. Challenges to the 17/18 business plans are the impact of the Apprenticeship reform, austerity in the public sector and difficult trading conditions in the private sector.

Balancing risk in the apprenticeship market can be achieved from the awarding of levy contracts. 2 Apprenticeship sub-contractors (KSA and Tyne and Wear LGV) do not require new world funding as they work exclusively with Levy paying employers and we will be paid directly from the employers Digital Apprenticeship Account.

A combined tender (Tyne Coast College) has been placed with the ESFA to the value of £1.3m to fund non-levy Apprenticeship provision from January 2018. The funding will be allocated to both internal and external apprenticeship delivery.

Balancing risk in the study programme market can be achieved by the careful allocation of funding to high quality, key strategic partners, such as Monkwearmouth Academy Trust and The Foundation of Light, to grow provision in niche areas. An increased proportion of funding has been allocated to the NEETS (learners not in employment, education or training) provision to support learner progression, which is in line with emerging trends.

Further risk reduction via rigorous quality assurance has led to sub-contracting numbers decreasing. Plumbskills and Academy of Music were not awarded contracts for 17/18 due to poor retention and declining achievement rates.

In programme withdrawals and short term financial pressures on employers may encourage the curtailing of training programmes which continue to threaten success rates.

Individual Partnership Details

Table 1: 2017/18 Sub-Contractors

Partner / Provision / Occupational Areas / Rationale
Carillion Construction Ltd / 16-18 Study Programmes / Bricklaying Carpentry & Joinery Painting & Decorating / Compliment college offer as STC currently don’t offer construction based provision internally.
Based in Gateshead.
Foundation of Light / 16-18 study programmes / Football Scholarship (male and female)
Coaching Scholarship / Compliment college offer and utilise the expertise of FoL to provide niche football scholarships to local learners who wish to pursue footballing careers. Male and female football scholarships offered to talented footballers – programme develops football skills and also educational skills and knowledge to prepare learners for life after football.
Based in Sunderland, South Tyneside (at college) and Shildon.
Keith Stevenson & Associates Ltd (KSA) / Apprenticeships / Business Improvement Techniques (BIT)
Management / KSA deliver BIT and Management training to national companies to support internal staff training programmes. KSA have the contract to deliver to Sodexo employees in the defence sector.
KSA offer compliments college provision and provides support to deliver over a national range.
KSA office based in Sunderland however delivery is South from Catterick at Sodexo bases.
NECC Training & Assessment Centre Ltd / 16-18 Study Programmes
19+ Study Programmes
Apprenticeships / Employability Skills
Business Administration
Uniform Public Services
Early Years
Health and Social Care / NECC are based in Northumberland and Bishop Auckland.
Compliment the college offer in this area, working with NEETS learners to progress into apprenticeships via study programmes.
Phoenix Employment Training Academy Ltd / 16-18 Study Programmes
19+ Study Programmes / Warehousing
Fork lift training
Employability skills / Phoenix are based in Sunderland and deliver niche provision which is currently not offered at STC. Phoenix work primarily with NEET learners who are often referred to Phoenix after exclusion from main stream provision or via the Youth Probation team.
TTE Technical Training Group / 16-18 Study Programmes / Engineering / TTE are based in Middlesbrough and compliment college provision to cover Teesside and the surrounding area.
Tyne & Wear LGV Driver Training Centre Ltd / Apprenticeships / Driving Goods and Logistics / Tyne and Wear LGV offer a niche curriculum offer which the college does not have the specialism to deliver internally.
Tyne and Wear LGV are based in Gateshead however they deliver nationally to a number of levy and non-levy paying customers.
J B Skills / Apprenticeships / Health and Social Care / JB Skills are based in Sunderland and offer a range of health and social care apprenticeships which compliment to College offer. JB Skills offer niche L5 apprenticeships and clinical based apprenticeships which the college does not have the specialism to deliver internally.
The majority of JB Skills employers are based in Teesside and North Yorkshire.
Learning Curve / Adult – Distance Learning / Health and Social Care
Education / Learning Curve has a national, distance learning programme which is not offered by the college internally.
Learning Curve has the systems and networks to attract large numbers of learners on short, distance learning courses.
Maersk / Adult – Professional / Wind Turbine / Maersk offer niche qualifications which compliments the college Marine offer.
Maersk are based in North Shields.
Monkwearmouth Academy / 16-18 Study Programmes / A Levels / Partnership with Monkwearmouth to compliment post 16 offer. STC do not offer A Levels at Westoe Campus. Working in partnership with the school to develop provision to meet local need due to relocation of Sunderland College.
Partnership delivery with STC lecturers supporting A Level delivery of niche areas such as criminology, sociology and psychology.
Profound / Adult – English and Maths / Functional Skills / Based in County Durham. Profound offer adult functional skills courses to improve learners English and maths skills. Compliments college adult offer at a location which we do not currently access through internal provision.
Skills Network / Adult – Distance Learning / Health and Social Care / Skills Network has a national, distance learning programme which is not offered by the college internally.
Skills Network has the systems and networks to attract large numbers of learners on short, distance learning courses.
South Tyneside Homes / 16-18 Study Programmes
19+ Study Programmes / Construction / New for 2017/18
Niche partnership opportunity to work alongside South Tyneside Homes to offer construction provision in the borough. STC do not offer construction internally. Level 1 learners spend 3 days per week on work experience with South Tyneside Homes to develop skills with end goal to progress onto apprenticeship provision.
Groundworks / 16-18 Study Programmes
19+ Study Programmes / Animal Care / New for 2017/18
Niche provision that is not offered internally by STC. Partnership with Groundworks to develop animal care provision offer – initially offered as a study programme for NEETS learners. Aim to increase to LLDD and adult courses.

Table 2: 2017/17 Sub-Contractors – New contract not awarded (have learners to complete within 2017/18)

Partner / Provision / Occupational Areas / Rationale
Business Transformation Associates (BTA) / Apprenticeships / Business Improvement Techniques (BIT) / BTA want to focus entirely upon commercial training (due to the changes to apprenticeship funding) and as such as completing roll over apprenticeships in 17/18 to fulfil contract.
No future contract awarded.
Essential Business Skills North East Ltd (EBS) / Apprenticeships / Hospitality and Catering / EBS have relocated and bought a guest house in South Shields. They are focusing on the development of this business and will not recruit any new apprentices. Completing 3 apprentices in 17/18.
No future contract awarded.
Logistics & Manufacturing Recruitment Ltd (LMR) / Apprenticeships / Various including business admin, security, customer service, IT. / LMR have undergone management and staff changes which has impacted upon the timely achievement of apprentices. To complete remaining apprentices in 17/18.
No future contract awarded.
Port Training Services (Blyth Harbour Commissioners) / Apprenticeships / Port Operatives / Provision can now be offered internally utilising Marine specialism. No future contract awarded.

Table 3: New 2017/18 Sub-Contractors – New approvals awaiting contracts to be signed before learners can be enrolled.

Partner / Provision / Occupational Areas / Rationale
Miltech / Traineeships / Motor Vehicle / Miltech offer a motor vehicle traineeship which will act as a feeder into internal provision at Level 1 / 2.
STC doesn’t currently offer traineeships in this area. Miltech have good relationships with local SMEs in the Motor Vehicle industry.
Based in Sunderland.
Training and Consultancy Ltd / Adult – English and Maths / Functional Skills / Functional skills offer for employed learners to upskill and develop English and maths qualifications based on employer responsive skills development.
Based in the North East primarily, however some of the employers are national.

Table 4: Contract Values for 2017/18

Name of Subcontractor / Contract Value / Subcontractor Funding / Management Fee / Funding to date from FFR 06.11.17
Carillion Construction Ltd / 512132 / 400106 / 112026 / 154153
Essential Business Skills Borth East Ltd / 2000 / 1600 / 400 / 2152
Foundation of Light / 740000 / 592000 / 148000 / 512081
Keith Stevenson & Associates Ltd / 373386 / 317378 / 56008 / 240420
NECC Training & Assessment Centre Ltd / 257614 / 206090 / 51524 / 143031
Phoenix Employment Training Academy Ltd / 270050 / 216040 / 54010 / 90266
TTE Technical Training Group / 752776 / 602221 / 150555 / 557193
Tyne & Wear LGV Driver Training Centre Ltd / 80668 / 64535 / 16133 / 51648
J B Skills / 90449 / 63349 / 27100 / 100693
Maersk / 33450 / 25088 / 8362 / 0
Monkwearmouth Academy / 500000 / 400000 / 100000 / 264741
Profound / 40000 / 28000 / 12000 / 0
Skills Network / 50000 / 35000 / 15000 / 6516
Miltech * / 30000 / 21000 / 9000 / 0
Training and Consultancy * / 115280 / 92224 / 23056 / 0
Groundworks / 30000 / 18000 / 12000 / 18818
Health and Safety Training Ltd / 110000 / 82500 / 27500 / 0
GRAND TOTAL / 3,987,805 / 3,165,131 / 822,674 / 2,141,710

Risk Implications

The Education Funding Agency/Skills Funding Agency (ESFA) consider partnership provision to be ‘high risk’.

The following control measures are in place:

  • all partnership activity is managed by the Head of Employer Engagement (HOEE);
  • a Contracts Compliance Officer manages the contracts and compliance including unannounced visits and learner forums;
  • a Quality Support Manager completes Quality Monitoring audits, right learner -right course checks, learner forums and supports with observations of teaching and learning and learning walkthroughs, arranges and delivers CPD activities;
  • Partnership Administrators complete paperwork audits, learner existence calls, registration checks and monitoring of missing achievement;
  • Rigorous and robust quality assurance policies and procedures have been reviewed, amended and implemented in response to Funding Rules and maintaining high quality standards;
  • regular internal audits of partnership activity take place;
  • Internal CILTA team assist with observations of teaching, learning & assessment and CPD activities;
  • open and competitive tendering and due diligence procedures are in place;
  • Partner Information Files (PIF) are maintained on all partners;
  • Internal Verifier (IV), External Verifier (EV) and OFSTED reports are monitored;
  • regular meetings between HOEE and Management Information Systems (MIS) to monitor compliance with Funding Rules;
  • telephone interviews are conducted at enrolment to confirm learner existence;
  • all partnership activity is managed in a single cost centre;
  • regular meetings between HOEE and Financial Controller to monitor financial performance;
  • a partner portal on the College website supports communications with partners and effective collection of data;
  • partner success rates are monitored and reported in the Self-Assessment Report (SAR) and Quality Monitoring Visits;
  • External audits are completed annually;
  • Contingency plan and escalation process developed;
  • RAG rated subcontracted provision