Healthy living partnering project – re-issue of contract award notice

Contracts

• Contract 077337-2025-B278-1 · Greenwich Leisure Limited

  Signed

  1 Apr 2012

  Value

  £21,000,000

  Status

  active

• Healthy living partnering project – re-issue of contract award notice · Greenwich Leisure Limited

  Signed

  1 Apr 2012

  Value

  £27,200,000

  Period

  1 Apr 2027 – 31 Mar 2032

  Status

  active

  • Change In 2012 the Authority appointed the Delivery Partner to manage and operate the Authority’s leisure portfolio. The Agreement was for a period of 15 years from 31st March 2012 to expire on 31st March 2027. It concerns the provision of a range of management and related services by the Delivery Partner in relation to 8 leisure facilities. The Authority intends to enter a deed of variation with the Delivery Partner to modify the Agreement, the effect of which will be to extend the expiry date by 5-years to 31st March 2032 and to give effect to other ancillary changes to the Agreement (and associated leases). The Authority needs time to determine the future model for delivery of the services including the operation and management of the facilities, the facilities in scope, targeted outcomes and indeed the affordability of services in the highly challenging budget context. The Authority has procured a partner organisation to develop the next Active Bridgend strategy (to include leisure infrastructure and other broader opportunities that support community activity and wellbeing which will help the Authority identify its longer-term strategy). The post-pandemic market indicates that the current market is volatile and allowing time for conditions to settle makes sense and may pay dividends in the long run. Following the development of the strategy, the Authority will require time to consider and then implement such strategy. If the strategy suggests that the operation of the facilities should be outsourced then a competitive procurement exercise will be undertaken which will take a considerable period of time. Additionally, the “lost years” of the COVID-19 pandemic has had a significant impact. The pandemic caused significant disruption to the leisure sector and also the need for progressive rebuilding of services and related income to support operational costs when Governmental hardship-related support was curtailed. Due to national restrictions and public caution there has been reduced benefit to the Authority in terms of usage by the public, investment into assets and the development of new services that had been anticipated. Service development aspirations have been sidetracked, commercial performance stalled and the overall scope of the Healthy Living Partnership – as originally defined in 2011 – considerably affected. Extending the partnership would allow the initial aspirations and objectives to be realised (including community outcomes, social benefits as well as commercial return on investment initially planned but would not be possible without the extension). The Authority have determined that due to those circumstances that could not have been reasonably foreseen an extension of 5-years is now required to allow the Authority to focus on the longer term provision when the facilities may need major investment. The period of 5-years is deemed necessary and the minimum period required to allow the Authority to develop and implement its new strategy and if required undertake a competitive procurement exercise for any replacement contract. The charging mechanisms under the Agreement will remain the same for the extended period. The Authority will continue to pay a Management Fee to the Delivery Partner and the Management Fee payable by the Authority for the extended period will in fact reduce from that currently paid, resulting in savings to the Authority. This Contract Modification Notice gives notice that the Authority is entering into a DoV to modify the Agreement in order to extend the duration of existing leisure operating contracts between the Authority and the Delivery Partner and to make certain changes summarised in this Contract Modification Notice. A further procurement procedure is not necessary on the basis that the modification is permitted pursuant to regulations 43(1)(c) and/or (e) of the Concession Contracts Regulations 2016 and/or regulations 72(1)(c) and/or (e)., Need for additional works, services or supplies by the original contractor/concessionaire: This modification is made in accordance with reg 43(1)(c) CCR 2016 and/or reg 72(1)(c) PCR 2015:1.the proposed modification is necessary due to circumstances that the Authority, acting diligently, could not have foreseen. 2.the modification does not render the Agreement materially different in character 3.The increase in value of the extended duration does not exceed 50% of the value of the original Agreement. Additionally/alternatively, this modification is not a substantial modification (reg 43(1)(e) CCR 2016 and/or reg 72(1)(e) PCR 2015) as it does not:1.render the Agreement materially different in character. 2.introduce conditions which would have (a) allowed for the admission of other candidates, (b) allowed for the acceptance of another tender, or (c) attracted additional participants in the procurement procedure 3.change the economic balance in favour of the contractor in a manner which was not provided for in the contract. 4.considerably extend the scope of the contract.

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