Becoming an Apprenticeship Subcontractor

Herefordshire and Worcestershire Group Training Association (HWGTA) currently work in partnership with one subcontractor in the delivery of 16-18 and Adult Skills Budget Apprenticeships. This subcontractor only delivers “services provision”

As a Prime Contract holder with the Education Skills Funding Agency (ESFA), HWGTA must publish a supply-chain fees and charges policy before entering into any subcontractor arrangement.

• HWGTA is pleased to enter into discussion with any provider who can complement, support or develop existing provision.

• Any organisation wishing to become a subcontractor would have to go through a due diligence process prior to any subcontract being awarded.

• It is not normal practice for HWGTA to enter into any “whole” provision arrangements and normal arrangements are around “service” provision where a subcontractor would deliver a specific element of the Apprenticeship programme.

• In line with ESFA guidance, where “whole” provision is occurring a management fee is charged to administer the contract and ensure successful claim management.

• The management fee charged for “whole” provision includes: on-site auditing of learner claims, quality assurance monitoring of teaching and learning, regular contract review and performance management.

• Management fees for “whole” provision are in line with ESFA guidance and would not exceed 15% of the contract value.

• Fees for “services” provision will be negotiated with the subcontractor, based on the guided learning hours and resource implications of specific qualifications.

• It is expected that any subcontractor monitors its own quality assurance of certification through their own awarding bodies.

• Payments for “whole” provision are made on a monthly basis through BACS following the successful payment from ESFA less the management fee as published, unless another arrangement is agreed that is mutually agreeable.

• Payments for “services” provision are made through agreed invoicing from the subcontractor and are paid through BACS

• Supply chain partners are responsible for all registration costs and any associated costs of maintaining approval with their awarding bodies.

• All subcontractors would be expected to sign an annual Subcontractors Contract, which would outline the roles and responsibilities of a subcontractor and those of HWGTA as the Prime Contract Holder.

• This policy is reviewed on an annual basis