Decision details

Design, Build, Operate and Maintain Contract for Boroughwide Leisure Facilities

Decision status: For Determination

Is Key decision?: No

Is subject to call in?: No

Decisions:

The Director of Economic Growth and Neighbourhood Services submitted a report providing an update on the process to procure a strategic partner to design, build, operate and maintain the Council’s four leisure centres, and seeking permission to award a 25-year contract to the preferred bidder.  The following documents were attached to the report:

 

•Appendix A – Summary of Requirements

•Appendix B – Summary of Bids & Tender Evaluation (confidential)

•Appendix C – Bidder A images (confidential)

•Appendix D – Risk Register

•Appendix E - Reading Strategic Outcome Planning Model

•Appendix F - Equalities Impact Assessment

 

The report noted that the current leisure contract with Greenwich Leisure Limited (GLL) for Rivermead Leisure Centre expired at the end of December 2022, and a negotiated termination position had been agreed to facilitate the Boroughwide procurement process.  Aside from the management arrangement with GLL the remaining centres were currently managed directly by the Council.  The procurement process had tested the market through a competitive dialogue procedure for an external provider, including direct dialogue and negotiation with bidders to clarify and develop the submissions.  Two comprehensive and competitive bids had been submitted to the Council in October 2019, and these had been evaluated with 50% of the marks awarded for commercial and 50% for technical criteria.  Further information on the detail of the bids and the evaluation was attached to the report at Appendix B.  As a result of the evaluation it was recommended to enter into a new contract with ‘Bidder A’.

 

The report noted that the contract specification issued had included a new-build solution at Rivermead, incorporating a new competition standard pool with provision for diving, a new community pool at Palmer Park linked to existing facilities, improvements to existing leisure centres at South Reading and Meadway and introduction of membership and customer schemes allowing access to all Council facilities.  This would secure significant improvements to the current offer and be a key driver in delivering a number of Council priorities and community outcomes.  Further detail on the requirements of the new contract was set out in Appendix A to the report.  As part of the new contract the Council would enter into a lease agreement for the four sites with the preferred bidder; there would be a requirement to advertise the loss of open space to be used for leisure purposes to facilitate the construction of new facilities at Rivermead and Palmer Park.

 

This report also provided details of a variant bid option which both bidders had been asked to submit, to develop a larger 6 lane pool at Palmer Park in place of the minimum 4 lane pool set out in the specification at Appendix A.  The report set out the additional capital and revenue costs as well as potential increased income of a larger pool.  It was proposed at the meeting that the variant bid be accepted, on the basis of the highly accessible location of Palmer Park, the uniqueness of the comprehensive offer and the affordability of a larger pool.

 

Resolved –

 

(1)     That a 25 year design, build, operate and maintain contract for Boroughwide leisure facilities be awarded to Bidder A subject to the satisfactory conclusion of the statutory stand still period;

 

(2)     That the variant bid to construct a 6 lane community pool at Palmer Park be noted, and, taking into account the highly accessible location of Palmer Park, the uniqueness of the comprehensive offer and the affordability of a larger pool, the variant bid be accepted to secure the construction of a 6 lane community pool at Palmer Park;

 

(3)     That it be noted that TUPE regulations apply to the contract award;

 

(4)     That the Executive Director for Economic Growth and Neighbourhood Services, in consultation with the Lead Councillor for Health, Wellbeing and Sport, the Assistant Director for Procurement and the Assistant Director for Legal and Democratic Services, be authorised to finalise contractual arrangements;

 

(5)     That, subject to agreement of the Council’s Medium Term Financial Strategy by Council in February 2020, the Executive Director for Economic Growth and Neighbourhood Services, in consultation with the Assistant Director for Finance, be authorised to give scheme and spend approval for the Leisure procurement in accordance with the 2020 - 2023 Capital Programme;

 

(6)     That the Assistant Director for Culture be authorised to finalise the Strategic Outcome Planning Model (Appendix E) in consultation with the Lead Councillor for Health, Wellbeing and Sport;

 

(7)     That the Assistant Director for Property and Assets and the Assistant Director of Legal and Democratic Services be authorised to  enter into a lease of land at Rivermead, Palmer Park, South Reading Leisure Centre, and Meadway Sports Centre with the prospective bidder, and to advertise a disposal of open space in accordance with S123 of the Local Govt Act 1972, in order to facilitate the building of new facilities at Rivermead and Palmer Park;

 

(8)     That the Risk Register and Equality Impact Assessment attached to the report at Appendices D and F be noted.

 

Following agreement of the resolution above the Chair made the following announcement:

 

‘It would be normal practice to keep the name of the winning bidder confidential until after the end of the procurement standstill period which is at midnight this evening.  Notwithstanding, I considered it be to be appropriate, in light of the decision to award a 25-year contract, to announce that Bidder A is GLL. A full press release will be issued tomorrow with a statement from GLL.’

 

Publication date: 13/02/2020

Date of decision: 20/01/2020

Decided at meeting: 20/01/2020 - Policy Committee

Accompanying Documents: