Section one: Contracting authority/entity
one.1) Name and addresses
London Borough of Hillingdon
London
Hillingdon
London
Contact
Allison Mayo
Country
United Kingdom
NUTS code
UKI74 - Harrow and Hillingdon
Internet address(es)
Main address
one.4) Type of the contracting authority
Regional or local authority
one.5) Main activity
General public services
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
LB Hillingdon - Deed of Variation in relation to leisure operating contracts of various leisure facilities
two.1.2) Main CPV code
- 92610000 - Sports facilities operation services
two.1.3) Type of contract
Services
two.1.4) Short description
The London Borough of Hillingdon (the Authority) intends to enter into a deed of variation with Greenwich Leisure Limited (the Contractor) in relation to the leisure operating concession contracts for the Authority's four leisure facilities (the Underlying Contracts), for the adoption of an agency model for the future management of leisure facilities. The Underlying Contracts were originally procured under Concession Notice 118316-2019, published on 13 March 2019.
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £2,800,000
two.2) Description
two.2.2) Additional CPV code(s)
- 45212290 - Repair and maintenance work in connection with sports facilities
- 45259000 - Repair and maintenance of plant
- 50000000 - Repair and maintenance services
- 50324100 - System maintenance services
- 50700000 - Repair and maintenance services of building installations
- 55520000 - Catering services
- 71314200 - Energy-management services
- 72500000 - Computer-related services
- 72511000 - Network management software services
- 77314000 - Grounds maintenance services
- 79313000 - Performance review services
- 79342300 - Customer services
- 79952000 - Event services
- 90710000 - Environmental management
- 90910000 - Cleaning services
two.2.3) Place of performance
NUTS codes
- UK - United Kingdom
two.2.4) Description of the procurement
The Authority appointed the Contractor to provide the leisure services pursuant to Leisure Operating Contracts, Procurement Agency Agreements, and Leases, for the management and operation of the Council's leisure portfolio.
The Authority intends to enter a deed of variation with the Contractor to modify the Leisure Operating Contracts, the effect of which will be the following:
• To identify the agency agreement between the parties, the extent to which the Contractor will act as the Authority's Agent, and areas where it will act as Principal;
• Reference to the Contractor acting as the Agent of the Authority will be inserted into the definition of Leisure Services;
• To articulate a process by which the Contractor will communicate and transfer the customer income collected as the Agent;
• To extend the expiry date to 22 February 2035;
• The Council agrees to make available the sum of £100,000 per year improvements to the fabric or equipment within the facilities that will benefits users; and
• The modifications give effect to other ancillary changes to the Underlying contracts to adopt the agency model, that are not considered to be substantial.
two.2.11) Information about options
Options: No
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Award of a contract without prior publication of a call for competition in the cases listed below
- The procurement falls outside the scope of application of the regulations
Explanation:
Explanation:
This VTN gives notice that the Authority is entering into a deed of variation (the "Contract") to extend the duration of existing leisure operating contracts between the Authority and the Contractor and to make certain changes summarised in this VTN. A procurement procedure is not necessary on the basis that the award of the Contract is permitted pursuant to regulation 43(1)(e) of the Concession Contracts Regulations 2016. The Contract will have the effect of modifying the Underlying Contracts in accordance with Regulation 43 of the Concession Contracts Regulations 2016.
The Underlying Contracts concern the provision of a range of management and related services, by the Contractor, in relation to five sports and leisure facilities. The Underlying Contracts will be varied for the adoption of an agency model for the future management of leisure facilities in relation to the outsourcing arrangements for the leisure facilities. Under the current structure, the Contractor acts as Principal in the supply of leisure facilities to the public, so that the Authority is not making the supplies of leisure services. Under the new agency model, the Contractor would make supplies to the public as an Agent of the Authority.
This modification is being made in accordance with regulation 43(1)(e) and 43(9) of the Concession Contracts Regulations 2016. Namely, the proposed modification is not substantial within the meaning of regulation 43(9) on the basis that:
1. the modification does not render the Underlying Contracts materially different in character - the proposed modification remains limited to the same type, scope and nature of services, where the operating cost risk remains with the Contractor, and the services will be delivered to the same facilities. The modifications only concern contractual changes to establish an agency model for VAT purposes and other ancillary modifications.
2. the Council has satisfied itself that the modification does not 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 - 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.
3. The modification does not change the economic balance in favour of the contractor in a manner which was not provided for in the contract – The Authority has satisfied itself that the new agency model and VAT arrangement does not impact on GLL's payment under the Underlying Contracts, which remains reflective of market costs and does not amount to an over-compensation of the services to be provided. The agency model will allow for a more certain financial position to the Authority and will provide a greater surplus share than previously anticipated.
4. As per our comments at 1. above, the modification does not extend the scope of the contract. For the reasons set out above, the proposed modification does not constitute a substantial modification and is permitted by regulation 43(1)(e) and 43(9) of the Concession Contracts Regulations 2016.
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: No
Section five. Award of contract/concession
A contract/lot is awarded: Yes
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract
3 February 2020
five.2.2) Information about tenders
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor/concessionaire
Greenwich Leisure Limited
Middlegate House, The Royal Arsenal
London
IG1 1LR
Country
United Kingdom
NUTS code
- UK - United Kingdom
The contractor/concessionaire is an SME
No
five.2.4) Information on value of contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession: £2,800,000
five.2.5) Information about subcontracting
The contract/lot/concession is likely to be subcontracted
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
High Court of England and Wales
London
Country
United Kingdom
six.4.2) Body responsible for mediation procedures
High Court of England and Wales
London
Country
United Kingdom
six.4.3) Review procedure
Precise information on deadline(s) for review procedures
The Contracting Authority will conduct itself in accordance with the Concession Contracts Regulations 2016.
six.4.4) Service from which information about the review procedure may be obtained
Cabinet Office
London
Country
United Kingdom