Issue - meetings

REPORT OF THE SERVICE DIRECTOR - PLACE

To seek the authority to proceed with a Competitive Procedure with Negotiation (CPN) procurement for the Leisure Management contracts which are due to expire in March 2024.

RESOLVED: That Cabinet approved:

(1)  A Competitive Procedure with Negotiation (CPN) procedure for the procurement of the Leisure Management contract.

(2)  The delegation of powers to the Director of Place in consultation with project board, in relation to decisions associated with the development of the procurement strategy.

(3)  The letting of a 10-year contract with an option to extend by up to 5 years.

(4)  The combining of the existing three contracts into a single contract, using the nationally recognised Sport England contract format, in order to secure economies of scale and to attract the most interest from the operator market.

(5)  To continue with the principle of the existing contractual shared risk approach to utilities and maintenance.

REASONS FOR DECISIONS: the leisure management contract. expire on 31 March 2024. These recommendations ensure the procurement will be managed effectively to ensure the successful ongoing provision of leisure services in North Herts. The Procurement offers an opportunity to review the existing specification and provide a clear policy position on its approach to the future delivery of sports, leisure, physical activity and wellbeing across the district. 

Audio recording – 31 minutes 39 seconds

The Chair invited Councillor Steve Jarvis, Executive Member for Environment and Leisure to present the report entitled ‘Leisure Management Contract Procurement‘ and advised of the following:

·         The current Leisure Management Contacts expires at the end of March 2024.

·         There was also ongoing work developing a wider Leisure Strategy to form part of this retendering process.

·         The Procurement has been budgeted for, in 2022-23 and 2023-24.

·         It was proposed to proceed with a competitive procedure with negotiation procurement, which would allow the Council to negotiate with bidders and enter into discussions as to how best meet the Council strategies and needs of the district.

·         A project board had been established to oversee the procurement process.

·         It was proposed that this would be  a single Leisure Management Contract for the 3 areas of Letchworth, Hitchin and Royston with a 10 year duration, which was standard practice in this industry.

·         To make the contract more desirable we will be sharing the risk of maintenance and utilities costs.

Councillor Steve Jarvis proposed, and Councillor Ian Albert seconded and following a vote, it was:

RESOLVED: That Cabinet approved:

(1)  A Competitive Procedure with Negotiation (CPN) procedure for the procurement of the Leisure Management contract.

(2)  The delegation of powers to the Director of Place in consultation with project board, in relation to decisions associated with the development of the procurement strategy.

(3)  The letting of a 10-year contract with an option to extend by up to 5 years.

(4)  The combining of the existing three contracts into a single contract, using the nationally recognised Sport England contract format, in order to secure economies of scale and to attract the most interest from the operator market.

(5)  That we would continue with the principle of the existing contractual shared risk approach to utilities and maintenance.

REASON FOR DECISIONS: The leisure management contract, expire on 31 March 2024. These recommendations ensure the procurement will be managed effectively to ensure the successful ongoing provision of leisure services in North Herts. Procurement offers an opportunity to review the existing specification and provide a clear policy position on it approach to the future delivery of sport, leisure, physical activity and wellbeing services across the district.