TheInvitation to Tender - Why It’sNow Judgement Time for the ESFAon Degree Apprenticeships

So, the tenders are in for the second attempt at procurement for Apprenticeship provision for non-levy paying employers and it’s over to the ESFA. As well as evaluating tenders, we’d suggest it’s also time for the ESFA’s own performance to be held to account. It’s fundamental this time that the procurement is successful and based on the skills needs of employers, localities and the Country as a whole. No one would argue that managing an ITT of this scale is easy– but isn’t this the ESFA’s job? And they designed it, complexities and all. In Apprenticeship terminology, shouldn’t the ESFA have the knowledge, skills and behaviours to manage a successful procurement?

UVAC, as a representative organisation, along with others,has raised concerns on the procurement. The unstable nature of the process, repeated updates to forms, 800 tender clarifications, extending the deadline 48 hours before the original deadline, changes to threshold calculations and running a critical procurement exercise over the Summer etc. The list could go on!

Why getting this procurement right is so important for the Apprenticeships Reforms in general and Degree Apprenticeship in particular was outlined in a recent HEFCE report. It’s worth reinforcing the point that HEFCE is the Higher Education regulator. Remember, also, that Apprenticeship is the Government’s flagship productivity programme and that around a third of new employer developed Apprenticeship standards are at higher education level. We’re not therefore talking about ‘niche’ Apprenticeship provision.

HEFCE’s report identified that:

-Of those higher education providers surveyed not proceeding with the first ESFA attempt at procurement for non-levy paying employers resulted in only 13% of Degree Apprenticeship starts planned with non-levy paying employers remaining

-After the ‘pause’ of the first procurement one higher education provider adjusted its targeted starts for non-levy paying employers downwards from 90 to 2 and a London based institution from 77 to zero

-One region had no provider with an allocation to deliver Degree Apprenticeships to non-levy paying employers.

In one case study the report outlines how a higher education provider ‘had conducted a survey of demand for Apprenticeship provision among (its local)SME population which showed around 50 SMEs had an immediate or future interest in Degree Apprenticeship and a further 60 SMEs requested further information.’ Following the pause in procurement the provider had been unable to follow-up ‘such clearly evidenced local demand’.

From UVAC’s perspective, the above is a rather worrying position for what’s supposed to be England’s flagship productivity programme. It’s also important to realise that the damage caused by the failure of the first attempt at procurement isn’t just a short-term problem. There’s been a loss of confidence in the ESFA – or at least this part of the organisation. Higher Education providers had developed partnerships not just with SMEs, but also with LEPs and further education providers, many of which have been delayed or abandoned. Momentum has been lost and some HEIs with a skills focustook the decision to solely focus on levy paying employer business and not to respond to the ITT to the detriment of the productivity agenda.

The silence, at least in public, of the Institute for Apprenticeships on the ESFA’s approach to procurement of Apprenticeship provision is surprising. I appreciate that the remit of the Institute focuses on the quality of standards and assessment plans and advising on funding bands. But, if ESFA’s funding system prevents non-levy payers from using those new Apprenticeships developed through the Trailblazer process such employers can’t benefit from new high quality Apprenticeship standards.

The result of the second ITT will reveal whether the ESFA is a ‘skills’ funding agency able to fund the new Apprenticeships developed by employer groups. I suspect no one will be entirely happy with the outcome of the ITT. But if the ESFA is able to demonstrate it’s based on the Apprenticeship offer developed by employers, clearly reflective of employer demand and the policy pillars of enhancing social mobility and raising productivity, it may be able to redeem a reputation.