Purpose

The Council established a Dynamic Purchasing System for the provision of apprenticeship training and assessment for Sandwell Council employees and new start apprentices. There are currently 36 providers listed on the Dynamic Purchasing System.

The expenditure to date is as follows:

2017/18 - £42606.87
2018/19 - £387436.60
2019/20 - £659220.12
2020/21 - £695968.46
2021/22 - £837,648.00
2022/23 - £803,312.00

The annual Council contribution into the apprenticeship levy for the period of the extension is projected to be £1,115,496 per annum. This equates to 0.5% of the Sandwell council pay bill (including Local Authority maintained schools). The levy contribution receives a 10% top up from government.

Price Increases:
There are no known price increases to be applied as the original terms of the DPS are to continue. Any changes will be in line with previously agreed mechanisms, in line with ESFA funding rules and continue to offer value for money.

This contract extension is compliant with Regulation 72(1)(c) of the Public Contracts Regulations 2015 in that:

(i) the need for modification has been brought about by circumstances which a diligent contracting authority could not have foreseen;
(ii) the modification does not alter the overall nature of the Framework;

Decision

That approval be given to extend the Dynamic Purchasing System (DPS) for the provision of Apprenticeship training and Assessment for a period of 2 years from 1 November 2023 to 31 October 2025.

Reasons for the decision

The existing DPS is still fit for purpose and working well, allowing new providers to join to cater for emerging requirements.

Cabinet approved the original 4-year period from 1 November 2017 to 31 October 2021 on 30 August 2017. The cabinet report and OJEU notice allows for a further period of extensions up to 31 October 2025.

Alternative options considered

The Council could choose to not extend the Apprenticeship Levy DPS but this would result in a delay in the delivery of apprenticeships since there is not enough time to procure a new DPS by 1 November 2023.