Home ContractsDeed of Variation of Leisure Operating Contract

Deed of Variation of Leisure Operating Contract

WAC ID:512739

Local GovernmentAward noticeClosed32014L0024

Source:	Find a Tender Service (FTS)
Notice Type:	Award notice
Buyer:	East Hertfordshire District Council
Main Category:	Services
Procurement Method:	Award procedure without prior publication of a call for competition
Method Rationale:	This voluntary ex ante transparency notice (VEAT Notice) gives notice that the Council is entering into a deed of variation (Variation) to make certain changes summarised in this VEAT Notice. A procurement procedure is not necessary on the basis that the award of the Deed of Variation of the Contract is permitted pursuant to Regulation 72 of the Public Contracts Regulations 2015. The Contract is for the operation and management of the Council's two leisure centres to ensure the Council can provide quality and affordable leisure services for the residents within the district, maintain the facilities and provide a financial return to the district to invest in core services. The Contract will be varied to adopt an agency model for the future operation and management of the two sports and leisure facilities. Under the current Contract, SLM acts as Principal in the supply of leisure facilities to the public. Under the new agency model in the Variation, SLM would make supplies to the public as an Agent of the Council so that it is the Council providing leisure services to the public through its Agent. This modification is being made in accordance with regulation 72(1)(e) of the Public Contracts Regulations 2015 on the basis that it is not substantial within the meaning of regulation 72(8). The proposed modification does not constitute a substantial modification and is permitted by regulation 72 of the Public Contracts Regulations 2015 because: (a) the modification does not render the Contract materially different in character. The Variation concerns the same type, scope and nature of services which will be delivered at the same Council facilities to the Council's residents. The Contract was already for the operation of the Council's leisure facilities and the Variation makes contractual changes to establish an agency model so that SLM provides the Council's statutory leisure services to the public on the Council's behalf and other ancillary modifications. This generates VAT savings. (b) the modification does not introduce conditions which would have (i) allowed for the admission of other candidates, (ii) allowed for the acceptance of another tender, or (iii) attracted additional participants in the procurement procedure. Delivering the Council's statutory leisure services as agent rather than outsourced contractor will not affect the physical operation of the leisure centres. The change to an agency model for VAT purposes does not change the service requirement or the way in which those services are provided, and is unlikely to have changed the outcome of the procurement. (c) The modification does not change the economic balance in favour of the contractor in a manner which was not provided for in the initial contract. The new agency model and associated VAT benefits does not impact on SLM's operating costs and management fee under the Contract, which remains reflective of market costs. The agency model will provide a greater return than previously anticipated. (d) the modification does not extend the scope of the contract.

View Original Notice

Access the full notice on the official portal

🤝 Need a consortium or subcontracting partner?

SMEs & Primes team up to win opportunities like this. Find partners on the board.

Find partners →

Award outcome

Awarded to

Sports and Leisure Management LtdGB-COH-2204085

Award status:

Active

Contracting Authority

Organisation

East Hertfordshire District Council

Wallfields, Pegs Lane, HERTFORD, SG138EQ

Description

East Hertfordshire District Council (the Council) intends to enter into a deed of variation with Sports and Leisure Management Limited (SLM) in relation to the Leisure Operating Contract dated 29 July 2022 (which commenced 1 January 2020) in order to appoint SLM as the Council's agent in delivering the leisure services at the Council's core leisure centre facilities. The core leisure centre facilities include: • Grange Paddocks Leisure Centre • Hartham Leisure Centre The date of the proposed modification is 1 December 2025.

CPV Classifications1 code — click to expand

92000000Recreational, cultural and sporting services

Links & Documents

Original notice

View the published notice on Find a Tender Service (FTS).

View original notice

About East Hertfordshire District Council

Published contracts in the last 12 months

total contracts

£1.0m

total value

£1,000,000

average contract size

Typical categories

Recreational, cultural and sporting servicesIT services: consulting, software development, Internet and supportTransport equipment and auxiliary products to transportation