Deed of Variation to Lease for Riviera International Conference Centre

CPV: Architectural, construction, engineering and inspection services · Hotel, restaurant and retail trade services · Recreational, cultural and sporting 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

Unspecified in notice

First published

12 Jan 2021, 12:44 GMT

Last source update

12 Jan 2021, 12:44 GMT

Authority reference

DN375675

FTS notice number

2021/S 000-000573

Classification (CPV)

Architectural, construction, engineering and inspection servicesHotel, restaurant and retail trade servicesRecreational, cultural and sporting services

Delivery area

South West (UKK42)

Official registry OCID

ocds-h6vhtk-028991 Find a Tender

Why no open competition

The works, supplies or services can be provided only by a particular economic operator due to absence of competition for technical reasons; Extreme urgency brought about by events unforeseeable for the contracting authority/entity and in accordance with the strict conditions stated in the directive

Published justification

The Council and Parkwood Leisure Ltd were in the process of finalising the lease when the first national COVID-19 lockdown commenced. In accordance with government guidance the RICC ceased operation whilst restrictions were in place. Due to uncertainty of the date for re-opening and the cancellation of booked conferences/events signing of the lease was stalled. In June 2020 the Council assumed responsibility for the RICC management company to provide some surety for staff, whilst options for the RICC’s future were explored:

1. Parkwood Leisure Ltd take over the lease and commence operating the RICC with the addition of a short term agreement to provide funding to support recovery. Parkwood Leisure Ltd.'s tender submission provided a sound basis for negotiation, offering an expedient solution and reducing risk to staff and the business.
2. Retender for an operator. Market uncertainty in relation to post COVID-19 recovery and timescales for putting new arrangements in place would increase the risk to staff, extend the time for the RICC to recover and impact on the local economy.
3. Council continue to manage the RICC. The Council’s lack of experience and expertise in this specific area would increase the risk to staff, extend the time for the RICC to recover and impact on the local economy
4. Close the RICC. This would put all of the staff at RICC at risk and have a significant/long term impact on the local economy.

Options 2 and 3 would be further considered should agreement with Parkwood Leisure Ltd not be reached.

The Council entered into negotiation with Parkwood Leisure Ltd on the basis set out in II.2.4 above. Subject to the outcome of the negotiations and approval through Council governance processes, the Council intends to enter into a short term agreement with Parkwood Leisure Ltd, with a view to moving to a lease only arrangement once recovery has been established. The Council would enter into agreement under clauses 2(b)(ii) and 2(c) of Article 32 Use of the negotiated procedure without prior publication of Directive 2014/24/EU. The justification under clause 2(b)(ii) is that Parkwood Leisure Ltd was the successful economic operator under a Competitive Dialogue Procedure as outlined within Article 30 of the Directive (2014/24/EU) and implemented in the UK by The Public Contracts Regulations 2015 (SI 2015/102). The Council received two bids through this tender process, the second bid being rejected as non-compliant. This meant Parkwood Leisure Ltd was the only credible option in terms of enabling the re-opening of the RICC in a timely manner, minimising the risk of job losses or complete closure of the site. They have a sound track record in operating similar facilities and demonstrated through the procurement process and subsequent renegotiation that they are in a position to take on operation of the site within a reasonable timescale. The justification under clause 2(c) is that neither the Council nor Parkwood Leisure Ltd could have foreseen the outbreak of Coronavirus or the impact it would have on all aspects of everyday life. The Council had undertaken a compliant procurement process to appoint Parkwood Leisure Ltd, but the requirement to close the RICC and uncertainty around timescales for re-opening have impacted on their business plan for the site. The closure will result in a significant reduction in income including future conference bookings, putting at risk the ability for any organisation to effectively operate the RICC, resulting in its closure and loss of jobs for all staff. This risk would increase with any delay in reaching an agreement with an economic operator to take on the lease. The RICC plays a significant role in the visitor/tourism economy of Torbay and its effective operation is vital to rebuilding that economy. To safeguard as many jobs as possible and support the local economy through operating the RICC, the Council considers there is an urgent need to commence rebuilding the business.

• Parkwood Leisure LtdAwarded supplier Preston, North West

No document links were published on the notice.