Approach to apprenticeship subcontracting

Teesside University engages with subcontractors through a subcontracting agreement where there is a clear education rationale for doing so that adds value and quality to its own or another training provider's apprenticeship delivery by meeting one or more of the following aims:

enhancing opportunities available for apprentices
filling gaps in niche or expert provision or providing better access to training facilities
supporting better geographical access for apprentices
offering an entry point for disadvantaged groups; or
giving consideration to the impact on individuals with shared protected characteristics, where there might otherwise be gaps

The University has a clear policy for how it operates its apprenticeship subcontracting arrangements in line with the Education and Skills Funding Agency (ESFA) apprenticeship funding rules in the following ways:

The University is the lead training provider and subcontracts some of the training to a partner organisation for delivery. The University leads and retains oversight of the whole apprenticeship.
The University is a subcontractor to another lead training provider for parts of the training. The lead training provider retains oversight of the whole apprenticeship.

Normally, the University plans and validates apprenticeship training programmes with the intention of delivering all parts of the programme itself, without the use of subcontractors. The University will only agree to subcontract delivery of any part of an apprenticeship in the following circumstances:

There is a contractual requirement with the employer that part of the delivery of the apprenticeship is subcontracted to them.
The University does not have the in-house expertise to deliver an essential part of the apprenticeship.
The education rationale is clear.
The subcontractor is registered as either a main or employer provider on the Register of Apprenticeship Training Providers (RoATP).

The University will undertake a robust process of due diligence when selecting potential subcontractors in line with its Procurement Strategy and Quality Framework to assess their ability to ensure delivery of the highest quality and lowest risk, that demonstrates value for money, has a positive impact on the experience of employers and apprentices, and is comparable with the University's aims, values and mission.

In some cases, the University will choose to retain a proportion of the funding as management fees to cover day-to-day management and administration of subcontracted delivery that includes regular quality monitoring of all elements of the provision. This will not exceed 20% of the cost of the delivery unless there are exceptional circumstances. The full activity undertaken is set out in the Higher and Degree Apprenticeships Subcontracting Policy.

Where any element of the programme is subcontracted to an employer or another provider, they must be either a Main or Employer Provider on the ESFA Register of Apprentice Training Providers (RoATP) or a registered Employer Provider.

Payment to employer providers will be made to cover direct costs only. All employer subcontractors must evidence the direct costs of their delivery in order to be paid. Main providers must provide evidence of delivery in order to be paid.

In line with the ESFA funding rules, the University will submit subcontractor declarations to the ESFA as required and will provide updates if subcontracting arrangements or circumstances change in a timely manner. The University will also publish a summary of payments made to subcontractors in the previous year on its website each year.