1. Minimum Contract Level Support Programme Lead Providers and Performance Management Michael Gray, LSIS Adviser Jim Austin, Head of Adult Education Service, Gloucestershire County Council, October 2011 1

2. Outcomes
You will be aware of the key issues in managing subcontractor performance
You will have reflected on your own practice or plans
You will be able to plan to manage the performance of subcontractors effectively
Emphasise that this stimulates questions and reflection and action – it doesn’t give you a ‘manual’ 2

3. What is top of your agenda?
Agreeing learner numbers and targets with subcontractors
Carrying out due diligence checks
Meeting Agency requirements in respect of subcontracting
Ensuring compliance by subcontractors
Getting timely and accurate information from subcontractors
Reallocating contract values between subcontractors
Identifying high quality potential subcontractors
Quality assurance and improvement of subcontractors
For the poll; gather up other issues too
Use Agency due diligence checklist to elaborate on the compliance issues:
Legislation
H and S, and safeguarding
Resources of subcontractor

4. Some Performance Management Issues
The monitoring process between lead provider and subcontractor – how you do it specifically, and the cost
Auditing
Compliance v support
How the subcontractor is involved in the Agency’s quarterly or other review processes
How under- and over-performance are managed, and rewarded or penalised
How changes to contract value (up or down) are managed
How contract values might be reallocated between the lead provider and the subcontractor and/or between the subcontractor and other subcontractors of the lead provider
Point 1: this is the first part of the equation; some lead providers adopt the same words as the Agency uses in its contract with lead provider; others talk more about processes
2: elaborate on auditing options: what sample size? How often? Invite sharing of comments later
3: what’s the balance? How do you use risk assessment? Does it depend on the maturity of the relationship?
4: explain that the Agency contracts only with the lead provider; numbers can be moved around between subcontractors; the lead provider has to have ways of involving the subcontractor; explain that in Agency note 8 the profile and tolerances are explained; the lead has to make sure the subs understand these and any implications, for example for cash flow
5: are there penalties and rewards/
6: tough decisions; sort early on
7: what criteria do you use? What about new work? Who gets that?
Give examples of what lead providers are doing.

5. Questions to ask yourself
Have we defined exactly how we monitor performance?
Do all subcontractors understand and agree the results of over- or underperformance?
Do we monitor and take action in a supportive and robust way?
Questions to ask yourself
First and second point: about clear agreements in a contract, and commitment
Third point: About robust actions when needed but also about providing support when things go a bit wrong.
Remember also that the Agency doesn’t guarantee to fund overperformance!

6. Best practice for lead providers
Ensuring compliance without micro-managing
Building relationship beyond the contract and the fee
Ensuring there are clear agreements about who does what and by when, and about cashflow
Ensuring the subcontractor(s) is/are a part of the lead contractor’s quality improvement process– e.g. that they measure impact on learners, not just improvement actions
Dealing with the trickier aspects – redistributing or clawing back monies, for example, or distributing new funding
This is much more than the Agency requirements
How do you build a better and broader relationship? Does it matter?

7. Any questions?

8. Over to Jim…
Jim Austin… 8

9. Resources Support for Collaborative Contracting Case Studies Toolkits:
Managing Risk
Partnership Planning and Working
Shared Leadership and Governance
Shared Services
Sub-contracting
Quality Management
Sub-contracting (Nov 2011)
Annual planning and operations cycle (Nov 2011)

10. Wrapping Up We’ll send you evaluation form and a link to the recording
Slides from the seminar will be on the Excellence Gateway
You may be be interested in further support from the LSIS MCL Support Programme.
A range of resources are available on the Excellence Gateway site
Further web seminar events are planned,  you can find details and registration on events.lsis.org.uk/Pages/Event/Stage1/Events.aspx
If you would like to talk to an MCL Partnership Adviser please send an to