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Report of the Council on proposed collaborative arrangements between the Local Examinations Syndicate and National Computer Systems, Inc.

The COUNCIL beg leave to report to the University as follows:

1. In its Annual Report 1998 (Reporter, 1998-99, Special No. 18) the Syndicate referred to the introduction of its new examinations processing system, for which the design principles had been laid down in 1989. The Syndicate noted that its processing requirements have changed markedly since then and an evaluation of future needs and possible options was being undertaken. During the last year it has become clear that the need for change applies most strongly in the case of the Syndicate's UK schools examinations, which are now the responsibility of Oxford, Cambridge, and RSA Examinations (OCR), a wholly-owned subsidiary of the University (see the Council's Report on regulations for the Local Examinations Syndicate, Reporter, 1997-98, p. 50). The Council share the Syndicate's view that it is important for the University of Cambridge to continue to be engaged in UK public examinations. OCR must therefore be able to respond to the Secretary of State for Education's requirement to return examination scripts to schools, for anonymous marking, and for the first mark not to be revealed to a second marker or remarker. These new requirements will entail major changes to OCR's working practices and IT systems.

2. The Syndicate has been offered the opportunity to introduce new process technology and workflow management into examinations administration, and so meet the new requirements outlined above, through a collaborative venture with National Computer Systems, Inc. (NCS). OCR is already a partner of NCS in a contract, awarded by the Teacher Training Agency after a competitive bidding process, to develop and administer the new Qualified Teacher Status Skills Test.

3. NCS, whose headquarters are in Minneapolis, USA, is a global information services company providing software, services, and systems for the collection, management, and interpretation of data; it is the world's largest commercial processor of educational measurement instruments, handling over 40 million student assessment tests annually. NCS is quoted on the NASDAQ.

4. The proposed form of collaboration with NCS is through a joint venture company in which NCS's UK subsidiary would have a controlling interest; the University's shares would be held either directly through a new wholly-owned subsidiary, provisionally called UCLES Ltd, which would be established under Regulation 10 of the regulations for the Local Examinations Syndicate (Statutes and Ordinances, p. 136), or indirectly by OCR.

5. The first stage of the collaboration would involve the transfer of the administration of OCR's examinations to the joint venture company, to be called Oxford, Cambridge, and RSA Education Services Limited. In practice this transfer will be phased over a period of two to three years. OCR will remain the accredited awarding body, with responsibility for quality control, syllabus development, question paper production, awarding of examination grades and standards, marketing of qualifications, and qualifications development, and will remain the point of contact for examination centres. The joint venture company will be responsible for the other aspects of examinations administration. Transfer of staff to the joint venture will be subject to the Transfer of Undertakings (Protection of Employment) legislation. No redundancies are envisaged as a result of such transfers. Consultation with staff affected by the proposed collaboration is in progress.

6. There is no intention at this stage to transfer other activities of the Local Examinations Syndicate into the joint venture. Should further proposals come forward, they will be the subject of a further Report.

7. NCS has also agreed to contribute to the joint venture its on-line examinations and learning-support systems, in order that the new company together with OCR can provide a complete educational service to schools and colleges in the UK. This represents a new area of growth for OCR, and is consistent with the University's aim to broaden participation and access.

8. The Syndicate has concluded that in principle the opportunity offered by a joint venture with NCS offers many advantages operationally and financially over the alternative of seeking to update and transform the workflow process of OCR entirely in house, and it has agreed to recommend the proposed collaboration to the Council. The Council, after consulting its Finance Committee, have agreed to accept the recommendation of the Local Examinations Syndicate.

9. Regulation 10 of the regulations for the Local Examinations Syndicate permits the establishment, with the approval of the Council, of subsidiary companies wholly-owned by the University and the transfer of parts of the work of the Syndicate to such companies. As, in this case, the proposed collaboration involves the formation of a company in which the University will not hold a controlling interest, and transfer to that company of part of the work of OCR, the Council have agreed that the approval of the University should be sought for the proposed collaboration.

10. The Council therefore recommend:

I. That approval in principle be given to the collaborative arrangements between the Local Examinations Syndicate and National Computer Systems, Inc., referred to in paragraphs 4 and 5 of this Report.

II. That the Local Examinations Syndicate be authorized to conclude a formal agreement with National Computer Systems, Inc., to effect the collaborative arrangements.

15 May 2000

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Cambridge University Reporter, 17 May 2000
Copyright © 2000 The Chancellor, Masters and Scholars of the University of Cambridge.