Corrigendum to Deed of Variation of Leisure Operating Contract notice

CPV: Recreational, cultural and sporting services · Sporting services · Sports facilities operation services

Procedure method

Negotiated without publication of a contract notice

Legal basis

CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)

Procurement category

Services

Notice status

Awarded

Procurement threshold

Unspecified in notice

Regulatory regime

Standard

Commercial structure

Stand-alone contract (no framework)

Competition type

Competitive procedure

GPA / WTO covered

Yes (GPA)

Recurring procurement

No (one-off requirement)

First published

25 Mar 2024, 15:36 GMT

Last source update

10 Oct 2025, 11:10 BST

Award evaluation window

30 Apr 2024 – …

FTS notice number

2025/S 000-064082

Classification (CPV)

Recreational, cultural and sporting servicesSporting servicesSports facilities operation services

Delivery area

London (UKI52)

Official registry OCID

ocds-h6vhtk-044c8f Find a Tender

Why no open competition

No tenders or no suitable tenders/requests to participate in response to open procedure; The works, supplies or services can be provided only by a particular economic operator due to absence of competition for technical reasons

Published justification

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 three leisure centres to ensure the Council can provide quality and affordable leisure services for the residents within the borough, maintain the facilities and provide a financial return to the borough to invest in core services.

The Contract will be varied to adopt an agency model for the future operation and management of the three 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.

Publisher note: The Council appointed SLM to provide the leisure services pursuant to the Contract and Leases for the management and operation of the Council's three leisure centres. The Contract Period is 10 years from 15 September 2024. The Council will be entitled at its absolute discretion to extend the Contract Period on the same terms for a further period or periods of up to 5 years making a total possible Contract Period of 15 years. The Council intends to enter a deed of variation with SLM to modify the Contract to appoint SLM as the Council’s Agent. The Deed of Variation will set out the scope of the agency appointment and the extent to which SLM will act as the Council’s agent. SLM shall be appointed as the Council's Agent to provide the leisure services and maintenance of the Council’s facilities but shall continue to carry out other services (specifically, the provision of food, beverages and retail services) as an outsourced supplier to the Council. The Deed of Variation does not materially alter the risk position of the parties. The Agent shall receive a variable management fee and reimbursement for its operating costs in providing the agency services. The Council is guaranteed a Guaranteed Minimum Return of the revenue received each year on the Council’s behalf having regard to the operating costs and management fee payable to the Agent. The Agent shall have a licence to occupy each of the Council’s facilities. Date of proposed modification is 1st November 2025.

Submission deadline

30 Apr 2024, 12:00 BST

Submission channel

{"electronicSubmission","written"}

Accepted languages

en

Bid validity

270 days from the deadline

Bids opened

30 Apr 2024, 12:00 BST

• Sports and Leisure Management Ltd (SLM)Awarded supplier2204085 2 Watling Drive, Hinckley, Leicestershire., Leicestershire., East Midlands, LE10 3EY
• Sports and Leisure Management Ltd (SLM)Awarded supplier2204085 2 Watling Drive, Hinckley, Leicestershire, East Midlands, LE10 3EY