In most cases, the University of Northampton will carry out all parts of the apprenticeship delivery without the use of any subcontractors. However, in some limited instances this may not always be possible and therefore the University may decide to subcontract part of the apprenticeship delivery.
The University will only subcontract any part of the apprenticeship delivery where:
- 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 internal expertise to deliver a crucial part of the apprenticeship. This will also include English and Maths functional skills where the apprentice cannot demonstrate that they have these qualifications as per the ESFA requirements.
The University will only subcontract the apprenticeship delivery to subcontractors that are on the Register of Apprenticeship Training Providers (RoATP) as a main or employer provider.
Where subcontracting is required, the University will discuss this with the employer before entering into any subcontract arrangements. This will be recorded in the contract/services level agreement with the employer. The University of Northampton will lead the employer relationship at all times.
The University will carry out its own due diligence checks on potential delivery subcontractors including taking account of any relevant OFSTED reports.
Guidance for apprenticeship subcontracting fees and charges
In the rare occasion that the University engages with an apprenticeship subcontracting provision, its management fee will typically vary between 15% and 30% of all the funding received for the provision to be delivered.
The agreed management fee will be dependent upon the activities being undertaken and the level of support required in order to maintain provision of the highest quality.
Target learner numbers, previous experience, success rates and the level of risk determined by the due diligence process will also be taken into consideration when determining the management fee.
The management fee represents the cost which the University incurs in effectively identifying, selecting and managing all of its subcontracted provision.
The University may also retain with prior agreement, in addition to the management fee, an appropriate amount of funding to cover the cost of any funded activity that it undertakes which is related to the provision, such as:
- Awarding organisation fees and charges
- Hiring of facilities/equipment within/from the University
- Internal Verification.
Payment to employer providers will be made to cover direct costs only as required in the ESFA funding rules. Employers subcontracted to deliver part of an apprenticeship must evidence the direct costs of their delivery in order to claim payment.