Quality Handbook Supplement AP2: Apprenticeships subcontracting requirements

2.1 For the purposes of subcontracting arrangements where NTU is the lead training provider in an apprenticeship, the University is deemed a contracting authority awarding a public contract as defined by the Public Contracts Regulations 2015 and thus should comply with the provisions of those regulations.

2.2 To comply with 2.1, apprenticeship subcontracting should be carried out in consultation with NTU Procurement. The contract value of the subcontracted provision will determine the nature of the procurement process.

2.3 The University retains responsibility for all of the actions of our delivery subcontractors that are connected to, or arise out of, all the apprenticeship training and on-programme assessment that is subcontracted to them.

2.4 In accordance with DfE funding rules, as the lead training provider the University will undertake a substantive portion of the delivery of any apprenticeship where a subcontracting arrangement is in place.

2.5 The University shall only use delivery subcontractors who satisfy one of the following two criteria:

• They are on the published Apprenticeship Provider and Assessment Register and have applied by the main or supporting application routes. However, a subcontractor’s presence on the Apprenticeship Provider and Assessment Register should not be used as sole indicator that they are suitable to deliver the specific requirements; separate due diligence should be carried out, for example, Ofsted reports;
• They are either the apprentice’s employer, a connected company or charity as defined by HMRC and are on the published Apprenticeship Provider and Assessment Register, having applied through the employer-provider application route.

2.6 The University has a standard legal agreement template for apprenticeship subcontracting and this is used/adapted for all subcontracting agreements. Agreements are signed after approval has taken place, and before the sub-contracting arrangement commences.

2.7 Serial subcontracting is not permissible under the apprenticeship funding rules. Therefore, as the lead training provider, the University should take steps to ensure that any subcontracting arrangement it enters into with a delivery subcontractor does not require this type of arrangement.

2.8 The University is required to obtain an external auditor's report where the total apprenticeship contracts with delivery subcontractors exceed £100,000 in any one financial year, as set out in the DfE apprenticeships funding rules.

2.9 The University is required to complete a subcontracting declaration for the DfE on a bi-annual basis, detailing the amounts paid to subcontractors NTU works with.

3.1 As per the requirements set out in paragraphs 2.1 and 2.2 above, Schools are required to seek guidance from NTU Procurement prior to the commencement of the academic approval process.

3.2 The nature of the academic approval is proportionate to the level of risk involved and will form part of the formal approval process. A risk assessment should be carried out to determine the nature of the approval event. (See Appendix).

3.3 Appropriate due diligence must be completed as part of the selection and approval process to provide assurance that a subcontractor is suitable to deliver to the University and/or the employer’s specific requirements.

3.4 The level of due diligence required will be determined by the type of subcontractor and the level of risk involved. It will, however, in all instances, include an extremism check, where the delivery subcontractor completes the subcontractor questionnaire provided by NTU Procurement. The Apprenticeships Team will also check that the delivery subcontractor is not included on the Financial Sanctions List published by HM Treasury Office of Financial Sanctions Implementation. The academic approval process should form part of the due diligence checks.

3.5 Subcontracting arrangements are initially approved for a fixed term period of between one and three years and periodic review must take place before approval is renewed. The length of the initial approval period is determined by the procurement process, the academic approval process and the level of risk associated with the arrangement which is based on a set of standard risk indicators (see Appendix).

3.6 Following satisfactory periodic review, the subcontractor is approved for a further fixed term period of between one and three years. The re-approval period is based on the findings of the review.

3.7 For the purposes of academic approval, a collaborative operational document must be produced to identify the roles and responsibilities of each partner. The collaborative operational document is reviewed annually by the relevant School Apprenticeships Sub-Committee to ensure it remains current. A member of the Apprenticeships Quality and Compliance Team should be present during the annual review.

3.8 The collaborative operational document must contain details of the training and/or on-programme assessment that each delivery subcontractor will contribute to the apprenticeship programme and the amount of funding NTU will pay each delivery subcontractor for their contribution.

3.9 Where the School has no previous experience of the operation of subcontracting for apprenticeship delivery, approval will always involve scrutiny of the School’s mechanisms for maintaining oversight of subcontracting arrangements. This may take place without the subcontractor being present and should include a representative from the Apprenticeships Quality and Compliance Team.

4.1 Except for the principles set out in paragraphs 4.2 – 4.4, the University’s normal quality management processes for School-based collaborative provision (Quality Handbook Sections 10A and 10B) apply to apprenticeship subcontracting arrangements.

4.2 Subcontracting arrangements are overseen by the Apprenticeship Portfolio Sub-Committee (ApSC) on behalf of the Academic Standards and Quality Committee.

4.3 Subcontracted provision that forms part of the University’s responsibility as the lead provider is within the scope of Ofsted inspection. As part of the inspection, inspectors may look at any provision carried out on behalf of the University by subcontractors.

4.4 Ofsted will make judgements regarding the University’s arrangements to quality assure and improve subcontracted provision.

4.5 The University identifies a specific member of staff as a Collaborative Academic Lead link tutor to take responsibility for monitoring the ongoing quality of subcontracted apprenticeship provision.

4.6 Mechanisms for ongoing monitoring of subcontracted apprenticeship provision are as follows:

• Visits to the subcontractor at short notice;
• Direct observations of initial guidance, assessment and delivery of training and/or on-programme assessment;
• Face-to-face interviews with delivery staff and apprentices;
  d. Quarterly reports produced by the subcontractor, which should be sent to the Collaborative Academic Lead and the Apprenticeships Quality and Compliance Team.

4.7 These mechanisms are designed to ensure the quality of delivery, that apprentices exist and that they are eligible for funding under the DfE apprenticeship funding rules.

4.8 In any instances where the findings are not consistent with NTU expectations, this must be reported to the Apprenticeship Team.

Further information

• All delivery subcontractors must be contracted directly by NTU. This is to ensure that the main provider retains clear and transparent accountability for the quality of training provision.

5.1 Periodic review aims to satisfy the University that the subcontracting arrangement continues to fulfil the requirements for quality, that the academic standards of the award are appropriate and that apprentice learning opportunities are maintained.

5.2 Approved subcontracting arrangements are published on the NTU website and reported to the DfE via the bi-annual subcontracting declaration.  The Apprenticeship Portfolio Sub-Committee (ApSC) also record the names of subcontracting partners on the University’s apprenticeship subcontracting register.

5.3 Review is intended to give all parties an opportunity to explore the strengths of the arrangement and to identify any weaknesses perceived by stakeholders with a view to their improvement.

5.4 The nature of the review is proportionate to the scale of the subcontracted provision and is determined on a case by case basis. Where a subcontracting arrangement works across multiple Schools, the Cross-School Standards and Quality Committee is responsible for undertaking the periodic review.

5.5 Each subcontracting arrangement is subject to review before the end of the current approval period.

5.6 The University reserves the right to bring a review date forward if there are significant concerns about the standards and quality of provision delivered by a subcontractor.