1. Purpose/Abstract
1.1 This Policy applies to University of Derby (the ‘University’) sub-contracted provision for education and training financed using Department for Work and Pensions (DWP or any successor organisations) funds, and is reviewed annually, to ensure compliance with the published Apprenticeship Funding Rules.
1.2 Subcontracting in all its forms is managed through the University Registry team. This includes provision funded through the Apprenticeship Levy, 16-19 and Adult Skills Fund funding.
1.3 The University recognizes the importance of building effective supply chain relationships to deliver excellent learner outcomes and to develop that relationship within a subcontracting context.
1.4 The Policy is a requirement of the Department for Work and Pensions (DWP or any successor organisations) Funding Agreement.
2. Policy Statement
2.1 Rationale for Offering Sub-Contracted Provision
2.1.1 Our rationale for subcontracting the delivery of an element of an apprenticeship programme is determined during programme validation where necessary provision is specialist or otherwise beyond our existing scope or capacity.
2.1.2 The University enters sub-contracting arrangements to meet the needs of learners by providing a relevant, comprehensive and innovative curriculum offer.
2.1.3 The University does not engage in second level subcontracting. Subcontractors may not subcontract or outsource their contractual obligations to another party.
2.1.4 Reasons for offering sub-contracted provision vary but may include:
- To offer increased choice of provision
- To enhance delivery through partnership with a subcontractor
- To develop niche sectors of provision
- To develop opportunities for specific communities or groups of learners
- To develop networks of expertise
2.1.5 By acting as the “Prime” contract holder, the University is looking for subcontracted provision that compliments its offer and geographical reach whilst maximizing the amount of funding that reaches front line delivery of high-quality learning.
2.1.6 The University retains responsibility for: management, administration and quality assurance of subcontracted provision.
2.2 Responsibilities
2.2.1 The following is a (non-exclusive) list of responsibilities for subcontracted apprenticeship provision (full list included within subcontract agreements):
University:
2.2.2 Retains responsibility for the academic standards and quality of provision for all subcontracted delivery;
2.2.3 Retains responsibility for liaising with the employer in regard to all aspects of the provision;
2.2.4 Is responsible for the ILR returns for the apprentices on the apprenticeship.
Subcontractor:
2.2.5 Is responsible for providing copies of all requested policies and procedures to carry out initial due-diligence processes;
2.2.6 Is responsible for delivering the subcontracted elements in accordance with the subcontract;
2.2.7 Is responsible for providing data and information required to complete the ILR return for the apprentices, providing regular updates in a timely manner;
2.2.8 Is responsible for cooperating with on-going quality assurance (including monitoring) processes including making available student data;
2.2.9 Is responsible for informing of any changes to its provision (curriculum/staff) prior to those changes being made;
2.2.10 Is responsible for informing of any changes to its status (financial, legal, registration etc).
2.3 Procurement
Existing subcontractors
2.3.1 A robust process is in place to evaluate, and re-contract with existing subcontractors at the beginning of each academic year, incorporating cohorts starting within that financial year.
2.3.2 Where additional cohorts of learners are required (or not confirmed at the start of the academic year), contract variations are created to amend the number(s) of learners for each cohort / start-point and the total cost of the subcontract.
New Subcontractor provision
2.3.3 Following programme is validation, the University undertakes any Subcontracting tendering process in line with the University’s procurement regulations in compliance with current Public Contracts Regulations.
2.3.4 Should an employer contract / award stipulate the use of a particular sub-contractor then an exemption from tender process will be undertaken.
2.3.5 Each Tender will be appropriate and proportionate to its requirements in line with current Public Contract Regulations.
2.3.6 Applicants will be required to produce evidence that meets the University’s due diligence criteria including: legal, financial, and quality checks, as well as Conflict of Interest declarations.
2.3.7 Any applicants considered as high-risk or identified as funding (directly or indirectly) extremist organizations will not be considered.
2.3.8 Award Letters are issued to successful applicants who are then registered on the University’s preferred list of suppliers for subcontracting delivery.
2.3.9 The tendering process involves stakeholders from across the University functions, each responsible for identifying concerns or missing information at various phases as appropriate.
2.4 Subcontractor Eligibility & Contracting
2.4.1 Subcontracts are updated each year in compliance with the DWP Apprenticeship Funding Rules (as updated for that academic year).
2.4.2 All organisations considered for subcontracted provision must be registered on the UK Register of Learning Providers (holding a valid UKPRN).
2.4.3 The University reserves the right to refuse to contract or re-contract to any training provider that, in its reasonable opinion, poses a considered risk to quality, performance, or reputation to the University or is considered to be a high risk by the DWP.
2.4.4 For Apprenticeship delivery, subcontractors must be approved and registered as a Main Provider, Supporting Provider or Employer Provider on the Apprenticeship Provider and Assessment Register (APAR) where this is a requirement.
2.4.5 All planned subcontracted provision must be approved by the University’s Apprenticeships and Skills Sub-Committee (ASSC) who will review annual approvals report, to determine the quality and risk associated with each Subcontractor. Approval is evidenced in ASSC Minutes.
2.4.6 During each academic year, our use of Subcontractors will be declared to the DWP.
2.4.7 Subcontracts include a termination clause in the event of un-rectified poor performance.
2.4.8 In the event a subcontractor is removed from the APAR (where they are required to maintain status), an automatic contract termination will be triggered.
Contract Variations
2.4.9 Where changes are required to an existing, signed subcontract - a contract variation is signed to confirm continuing students through existing subcontractors and includes a summary of changes to the standard sub-contract.
2.5 Due Diligence
2.5.1 Due Diligence documentation requested annually and monitored throughout the year:
- Company & Staffing Information
- Company Structure
- Delivery Staff DBS records
- Insurance Cover details
- Procedures & Policies
2.5.2 Finance (credit / risk rating) checks are undertaken on a regular basis (monthly / quarterly) through a credit search agency to monitor financial standing of the subcontractor.
2.5.3 Due Diligence monitored throughout the year and updates requested when due for review or update.
2.6 Quality of Teaching & Learning
2.6.1 The University is committed to delivering high quality teaching and learning for apprentices and employers across its apprenticeship provision and works with subcontractors to ensure on-going support is available to achieve our joint aims, this includes:
- An induction meeting with new subcontractors;
- A planning meeting prior to new cohorts starting;
2.6.2 The University will:
- Define the responsibilities and expectations of both subcontractors and the University within the subcontracts.
- Conduct regular Performance Monitoring meetings as defined by the contract to discuss progress against contracted targets and KPIs.
- For Apprenticeships, deliver an agreed proportion of the programme (elements / modules / qualifications) as negotiated through the contracting process.
- Organise and complete Quality Assurance visits including (where applicable) observation of lessons.
- Support in areas such as funding guidance, standardization and sharing of best practice.
- Provide support with the financial claims process.
2.6.3 Quality will be built in from the beginning of the contract, and prior to the start of any contract all subcontractors will be required to provide CVs, DBS checks for staff.
2.6.4 Throughout the lifetime of the contract, and to help identify areas for improvement, The University will visit the learners during their teaching, learning and assessment to conduct observations. This will involve checking the quality of learning taking place and to observe the quality of teaching by the tutor or delivery team. The University also conducts spot checks, as appropriate, at least one per year with all subcontractors.
2.6.5 Where areas of concern are identified, an action plan will be drawn up in conjunction with the subcontractor, and agreed by both parties, to address the areas of concern within an agreed timeframe. Where issues are not resolved within the agreed timeframe, they will be escalated to the University ASSC.
2.7 Retained Funding & Support to Subcontractors
2.7.1 The University has ensured that it has the knowledge, skills, and experience within the organisation to successfully procure, contract with and manage its subcontractors.
2.7.2 Subcontractor activity will be discharged across the University, through the following expert teams:
- College Finance
- Senior Leadership
- Central Procurement
- Legal
- Registry
2.7.3 The amount of funding retained where necessary by the University is calculated as a percentage of the total contract value. The typical rate retained is 0%.
2.7.4 The University considers due diligence and the results of the quality visits before issuing contracts.
2.8 Financial Arrangements
2.8.1 All subcontractors must be registered as a supplier of the University.
2.8.2 Payment terms and approval criteria are contained within individual subcontracts.
2.8.3 Invoice submission process is contained within the Purchase Order confirmation, which is automatically emailed to the subcontractor’s finance contact upon creation of the purchase order.
2.8.4 Invoicing is monthly / quarterly following a sub-contract review meeting where apprentice delivery and progress evidence has been received and discussed, in line with ILR data returns and adjusted to reflect any changes in learner status.
2.8.5 Invoices may only be submitted for the agreed value covering the preceding month / quarter and will only be valid if the designated purchase order number is displayed and are submitted in accordance with the subcontract and University invoicing terms.
2.8.6 Where an approved invoice contains bank account details, these must match the details given when the University supplier application was received as payments will only be made to the supplier bank account the Purchase Order was raised under.
2.8.7 Invoices raised where the amount has not been agreed at in advance will be rejected.
2.8.8 Payments are made within 30 days of receipt of approved invoice.
2.9 Dispute Resolution
2.9.1 In the event of disputes arising, in the first instance the dispute will be escalated internally via the relevant college or Head of Apprenticeships.
2.9.2 Should this not be successful then the Parties may attempt to settle it by mediation in accordance with the model mediation procedures published by the Centre for Effective Dispute Resolution (CEDR).
2.9.3 To initiate mediation, a Party must give notice in writing (“the Mediation Notice”) to the other Party to the dispute.
2.10 Contingency Planning & Contract Termination
2.10.1 All learners undertaking training programmes with providers subcontracted by the University remain our responsibility.
2.10.2 In the event of the following situations, we remain responsible for making alternative arrangements for the delivery of education and training:
- The University withdraws or terminates a subcontract arrangement, or
- A subcontractor does not maintain APAR registration (or is removed by the DWP), where registration is required to maintain, or
- A subcontractor withdraws from the arrangement, or
- A subcontractor goes into liquidation or administration.
2.10.3 We will ensure continuity of learning and minimum disruption to learners.
3. Policy Review & Publication
This policy is reviewed during each summer term and must be approved by the University’s Further Education Governance Committee. In line with DWP Funding Rules, the policy is published on the University Website.
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4. Sanctions
4.1 This policy sets out how we engage with subcontractors as far as our fees and charges for administering the subcontract are concerned. No sanctions are applicable.
5. Equality & Diversity
5.1 We are committed to equality of opportunities and expect that the subcontractors that we work with demonstrate the same level of commitment.
6. Equality Analysis
6.1 This policy sets out how the University calculates its supply chain fees and is applied to all subcontractors as set out in the Apprenticeship Funding Rules and Subcontracting Standard.