ESFA Invitation to Tender Making an Effective Application

ESFA Invitation to Tender Making an Effective Application Rebecca Rhodes, Senior Associate, UVAC r. rhodes@bolton. ac. uk

ITT Document List

Content Scope & Timetable Next steps and timeline Principles This Tender vs Nov 2017 Volume and Values Costing your Application Specification Questions and Evidence Common Pitfalls

KEY DATES August 22 AUG Deadline for you to post tender queries via BRAVO 29 AUG Last set of ESFA responses to tender queries 4 SEPT (Midnight) 21 NOV (5 pm) Timetable September Deadline for tender submissions to ESFA November December GET READY FOR DELIVERY As a main or subcontractor Intention to Award Notifications issued (successful and unsuccessful) GET READY FOR DELIVERY As a main or subcontractor 1 DEC End of mandatory 10 day standstill period 11 DEC Planned date for contract appointments 1 JAN January GET READY FOR DELIVERY Service commences

What are you applying for 1. 2. 3. 4. 5. 6. This ITT will award funding required to deliver 15 months of apprenticeship delivery costs incurred between 1 Jan 18 - 31 Mar 19 For new apprenticeship starts in nonlevy employers only Different funding rules apply to this provision Contract value = minimum £ 200 k, maximum based on your FY turnover in 15/16 Don’t include funding for any months after March 2019 in this application this will automatically given to you as ‘carry in’ funding You can deliver yourself, and through subcontractors 7. You are bidding for delivery in one or more of 9 regions, and for two age bands (16 -18 and 19 +) in each = 18 budget lines 8. SFA will pro-rata the bids in each budget line 9. It is planned for all non-levy apprenticeships to be managed through the online Apprenticeship Service from April 2019 …. .

Reaching £ 200, 000 in 15 months sample forecast: cap 15 / £ 27000 earnings over 36 month apprenticeship per head No. earnings starts sept oct nov dec jan feb mar apr may jun jul aug sep oct nov dec jan feb mar (Jan 18 needed Mar 19) OPTION 1 starts in Jan 2018 (15 months) 25 525 525 525 525 500 x 2 Incentives OPTION 2 starts in sept 2018 (7 months) 54 Incentives Remove 20 % which goes to month 36 Remove 10% paid by employer 7875 1000 525 525 3675 500 x 2 1000 add in incentives add English and Maths additional Learning support

What is different - PROGRAMME • Restricted access - • More ££ - Up to £ 650 m available – You cannot apply if you are not • Key focus - geographic coverage across already on the Ro. ATP 9 regions with two budget lines each – your ‘Provider Type’ constrains (16 -18 and 19+) your bid upper cap based on your – The pro-rata modelling process organisation’s 15/16 FY turnover means that you may not get what • Minimum bid = £ 200, 000 you bid for • Timeline - Covers 1 Jan 2018 to – if your modelled value is less than 31 March 2019 (15 months ) the £ 200 k minimum; you won’t get • ESFA checking your figures – one a contract chance to resubmit: – If there are gaps in coverage at – If your bid is checked and found region or sector, ESFA reserve the to be below 200 k right to conduct ‘targeted – If there is a ‘discrepancy’ in your procurement at a future date or for historical delivery figs a targeted award through the performance management process’

Provider ‘Class’ / Cap Provider Class Tender Cap Definition New Provider turnover 2015 -2016 financial year multiplied by 1. 25 or £ 750, 000; whichever is lower An organisation that, at 1 July 2017, did not have a contractual arrangement to deliver non-levy apprenticeship provision and/ has not held one since 1 August 2015. Subcontractor turnover 2015 -2016 financial year multiplied by 1. 25 or £ 1. 5 m; whichever is lower Any organisation contracted as a subcontractor through a main contractor provider to deliver apprenticeship off-the-job training, English or maths or planned on-programme assessment, and has been declared as a subcontractor by the main contractor provider through the Agency’s subcontractor declaration process since 1 August 2015. Existing Apprenticeship Provider with nonlevy historical delivery at or below £ 1. 5 m for 2015 -2016 turnover 2015 -2016 financial year multiplied by 1. 25 or £ 1. 5 m; whichever is lower, Any organisation that, at 1 July 2017, has a contractual agreement with the Agency to deliver non levy Apprenticeships training and/or has held a contract since 1 August 2015. As above with non -levy historical delivery above £ 1. 5 m for 2015 -2016 110% of non-levy historical delivery for 2015/2016 funding year (1 st August 2015 – 31 st July 2016), multiplied by 1. 25 Any organisation that, at 1 July 2017, has a contractual agreement with the Agency to deliver non levy Apprenticeships training and/or has held a contract since 1 August 2015.

What is different - APPLICATION • Size - over double last ITT at 65, 200 characters • The bullet points are now Scoring Elements - you MUST respond to them all • • Coverage - 17 Questions asking for more detail and specifics • Weighting - 17 questions all score 100 but are very different sizes • Focus on standards and transition • Very demanding threshold: – minimum 50 on every question but – must reach 75% overall i. e. 1275 out of 1700 – some questions need to score maximum points just to deliver the 75% over all score • The low character questions look like best value ESFA looking for ‘Delivery Ready’ – cutting the ribbon vs shovel ready – Less room for ‘will be in place’ • Previous ITT is a reference document only

Scoring & Mapping to 2016 Tender Readiness to Delivery planning Meeting Employer & Apprentice needs Characters Number of Questions Score 11, 500 3 300 Readiness to Deliver (5000 characters) 300 Delivery Of Wider Apprenticeship Training Support For Employers And Their Apprentices (5000 characters) Delivery Plan (5000 characters) 500 Engaging With & Meeting The Needs Of Employers (6000 characters) Management, Reporting & Quality Assurance (6000 characters) 17, 300 11, 500 3 5 Management, reporting & Quality Assurance 15, 200 3 300 Outcomes & Impact 9, 700 3 300 NOV 2016 TENDER Questions Track Record (5000 characters)

Implications of the detailed criteria, scoring matrix and minimum £ value threshold: • More subcontracting and subcontractors – Fewer people bid themselves and a higher fail rate = Competition for allocations to subcontract – a buyers market ? – Opportunity to form high quality partnerships NOW – Have a contingency plan • You need a strong, evidenced bid to ensure a high score in all sections – No room for error or waffle write to the exam question – Fix what you need to, now • Delivery demand will be fierce – ESFA will have to performance manage to tight tolerances – you must deliver on time to your plan – Performance management is against national profiles - does not favour end loaded delivery and means constant battle to retain funding. • Pro-rata approach means you might pass the score threshold but still fail on the minimum bid value – aiming at £ 200 k might make you vulnerable

Non-Levy Delivery Options Impact -ve Don’t bid • • • Work • together in partnership to create a • volume bid • Subcontract with a main provider organisation for your provision • • Impact +ve Unable to meet local community or sector priorities Local reputation / sector reputation Loss of local employer relationships possibly for the long-term • One organisation must be the bidder and lead provider with others as subcontractors Everyone must work to deliver their agreed volumes or risk the partnership losing funding that might affect everyone Some loss of autonomy and independence – and employer links • • Partner may not be successful Must use main provider paperwork/ processes e. g. their employer contract Minimal influence over fees Loss of some of the revenue to the main provider • • • Reclaiming of short-term sanity, and resources plus smug reinstatement of August holidays Can look for a subcontract at any time if needed Keep your employer relationships Can agree mutually beneficial terms e. g. regarding employer poaching Agree low / no ‘management’ fees Mutual benefit of the partnership to build a strong geographic coverage Can maintain each partner’s individual low volumes inside the overall total Keep your employer relationship and continue to meet local / sectoral needs Low risk option

Conditions, Scope & Principles

Application Elements (to download, complete and upload through BRAVO )

General Principles and Conditions • • • The SFA expect you to spend the funding that you applied for – don’t over bid It is not clear whether you are restricted to the regions, sector subject areas or apprenticeships that you specify in your tender – this is usually flexibility for you to respond to demand The volumes you put in your plan are context for your tender BUT you will be performance managed (June 18 / October 18) – SFA will take money back if you don’t look like you need it and give it to others who do – This is based on a national profile – your case for having a different profile needs tobe based on ‘historical patterns of delivery • • You will be allocated two funding amounts; one for 16 -18 and one for 19+ - These are ringfenced Where you are asked for figures that involve standards that are not yet available use your best judgement.

The Service – what you need to demonstrate Employer Engagement Readiness Flexibility to make changes in your service & Plan Focus on SME /nonlevy payers Staff, Relationships, Processes, Premises, history of success with all age groups in small employers Growth & Capacity expand No. employers and learners Focus on Quality Underpinned by systems and policies

Attachment 3 Specification Questionnaire

Understanding the Narrative Sections

Scoring Matrix

Scoring & Mapping to 2016 Tender Readiness to Delivery planning Meeting Employer & Apprentice needs Characters Number of Questions Score 11, 500 3 300 Readiness to Deliver (5000 characters) 300 Delivery Of Wider Apprenticeship Training Support For Employers And Their Apprentices (5000 characters) Delivery Plan (5000 characters) 500 Engaging With & Meeting The Needs Of Employers (6000 characters) NB Ro. ATP 17, 300 11, 500 3 5 NOV 2016 TENDER Questions Management, reporting & Quality Assurance 15, 200 3 300 Management, Reporting & Quality Assurance (6000 characters) NB Ro. ATP Outcomes & Impact 9, 700 3 300 NB Ro. ATP DON’T FORGET YOUR Ro. ATP SUBMISSIONS Track Record (5000 characters)

Principles and Pitfalls • This is an SME/ non-levy ITT – Focus specifically on non levy payers and how your service will work for them and explain why you believe this to be the case • This ITT is looking for evidence that you: – Can performance manage and contract manage this funding contract – Can deliver the apprenticeship programme that you have set out in your application – Demonstrate both in your responses • Explain what you do, or will do to cover the areas identified within the question. Refer to policies, governance, processes, documents, outcomes so that this is clear. Explain what you do, but above all how and why this delivers what is asked for • Data counts - back up your assertions, particularly as rationale for your capacity to deliver with your proposed resource levels e. g. staffing ratios applied • A reader that does not know you should be able to see from your responses that you: • Have systems, processes, policies in place, that are embedded and led from the top • Demonstrate how what you do meets the requirements of SMEs, apprenticeships and the contract requirements • Demonstrate that your systems, processes and policies identify and mitigate risk of non delivery of contract outcomes and poor quality in delivery

Basics – Working with Text Sections • SFA are seeking reassurance and confirmation that you are ‘competent on paper’ and action is embedded and led from the top - Use the character limit to the full • Every question stands on its own, every response is assessed on its own. Each responses is scored using only the text supplied in the response so expect to repeat yourself and don’t refer to other answers. • Don’t include evidence or information not asked for – it won’t be read and don’t include links to other documents - they won’t be opened • It is ok to not have something in place … but it won’t score as highly as if you do Your response must refer to what you do, or would do, to cover the areas identified within the questions. • Write in Plain English and write your own response based on your organisation • Every bullet point needs a response with evidence. Don’t just regurgitate or repeat the bullet points within the question. • Make it easy for the scorers - Use the bullets as the structure for your response and create a clear, a narrative • Don’t include information that is not relevant - ESFA wont read it an don’t include links to other documents. They wont be opened or read • DON’T EXCEED THE CHARACTER LIMIT (every letter, space, punctuation, carriage return counts )

Principles and Pitfalls • Readiness and track record when you haven’t delivered apprenticeships previously – Delivery of the underpinning degree and other work place study programmes, placements, research – Expertise in the delivering provision for underpinning skills in the sector visa other degrees or programmes – Destination data as evidence of employer satisfaction – Partnerships with employer bodies / stakeholders incl CBI/ BCC in this sector/ size band –. feedback and performance monitoring e. g. Success rates, quality, – or what your plans are and why you think this will work – evidence and data • Evidence of meeting employer needs / employer engagement – Via joint research, placements, or other delivery ( or current apprenticeship provision ) – and your feedback and review processes as evidence that you met employer needs e. g. survey feedback, repeat business. NSS at programme level – Involving employers in programme development or in course approval panels – Try to find relevant data

Attachment 4 Volume and Values

Volumes and Values Sheet - Core Information This is your whole organisation’s turnover - i. e. from published accounts OR Ro. ATP F. Health If you select NO here, the subcontractors tab reminds you not to complete it i. e. non-levy AND levy cash All blue cells calculate automatically

Volumes and Values Sheet – Subcontractor List Auto populates your details from the Core Information sheet Based on your response to point 3 on the Core Information Sheet Submit a nil return at least

Principles and Pitfalls • READ THE GUIDANCE • ESFA, where they hold records, will check your previous submissions Ro. ATP Financial Health declarations in particular, information on the provider Hub • ESFA will update forms so don’t be surprised if these change - use the form that is present when you are ready to submit not the version you downloaded on day 1. • Do submit a subcontractor spreadsheet with a nil return if you don’t intend to subcontract • Bid realistically and act to deliver what you commit to. Accurate forecasting is part of what is expected in managing the contract • Only include the 15 months worth of costs but don’t forget the timing of incentive payments and other costs in your calculations - develop a spreadsheet or use the FAS tool http: //www. fas. report/

Costing Your Plan

Funding Volume and Values • Only include what government will pay you, not what you will charge the employer i. e. – the employer contribution - remember 20 % is not paid until the last month of the apprenticeship and 10 % is paid by the employer so you divide 70% of the funding equally across the months from start to completion date – employer / provider incentives paid at month 3 and month 12 so add these in at the right month – English and maths at £ 471 per level – Learning Support 150 per calendar month – 100% contribution, incentives, English and maths if the employer is <50 and apprentice 16/18 • CHECK the duration of your programme – If you have a programme that runs beyond 31 March this point – DON’T include the monthly costs from April 2019

Funding Volume and Values • Only cost activity for the months 1 Jan 2017 to 31 March 2019 (15 months ) • If the apprenticeship duration is less than 15 months so you will have completed apprenticeships, don’t forget to include the 20% payment and any early months for new starts that will follow • Check the SSA for apprenticeship standards - they are not always where you might think • An educated guess is fine for regions - these are not ringfenced pots so you can swap funding between them in year • BUT - you must split costs between 16 to 18 and 19+ apprentices and you cannot move funding between the age groups. These are two different ringfenced funding lines.

Volume and Vlaues Auto populates your details from the Core Information sheet

Funding Volume and Values

Next Steps

Checklist q Check that every response size is within the limit q Read the specification questions again and check that you responded to each bullet point and with evidence - what you do (process) and how this meets the requirements in the bullet point q Check that you have referred to relevant formal documentation, policy, procedures and governance in each response. q Check that you have explained fully what you do/would do and how this delivers the desired outcomes for anything where your evidence is light or recent q Check that your volume and values data matches the narrative in your specification question responses q Check that you have uploaded the specification questions, volume and values sheet in the correct section q Keep looking at BRAVO for Q and A

Next Steps • Raise ‘Tender Clarifications’ i. e. application questions through the BRAVO messaging facility by 22 August • Submit by midnight 4 th September 2017 – All Tenders must be submitted to the Agency using BRAVO eportal. Tenders submitted by any other means will not be accepted • If you’d like 1 -1 advice on your draft you can book a slot at the ITT workshop on Wednesday 16 th August in London - DEADLINE NOON TODAY! • https: //www. eventbrite. com/e/surgery-clinic-day-itt-for-funding-to-deliverapprenticeships-non-levy-registration-36436665046

Questions