Section one: Contracting authority/entity
one.1) Name and addresses
Shropshire Council
Shirehall, Abbey Foregate
Shrewsbury
SY2 6ND
Contact
Procurement
Telephone
+44 1743252992
Country
United Kingdom
NUTS code
UKG22 - Shropshire CC
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
Leisure Services
Reference number
RMC 133
two.1.2) Main CPV code
- 92610000 - Sports facilities operation services
two.1.3) Type of contract
Services
two.1.4) Short description
Management, operation and promotion of sports facilities in Shropshire
two.1.5) Estimated total value
Value excluding VAT: £62,000,000
Method used for calculating the estimated value of the concession
As set out in Article 8 of the directive
Estimated value of the 5 year extension is 20200000.00 inclusive of VAT which is less than 50% of the estimated value of the original concession
two.1.6) Information about lots
This concession is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £62,421,234
two.2) Description
two.2.3) Place of performance
NUTS codes
- UKG22 - Shropshire CC
Main site or place of performance
Shropshire CC
two.2.4) Description of the procurement
Management, operation and promotion of the sports facilities at the following locations: The Quarry Swimming and Fitness Centre, Shrewsbury Sports Village, Oswestry Leisure Centre and Market Drayton Swimming Centre
Modification of Shropshire’s concession contract to extend the original 10 year contract partly but not wholly in accordance with the terms of the concession contract. The extension is 5 years with modified provisions which are not in accordance with the contractual modification terms as set out in detail below at paragraph 3 (last paragraph of this award notice). These include a break provision at year 2 on 12 months notice by either party. The Original concession started on 1/8/2012 and ends on 31/7/22 with modification the concession is extended to 31/07/27
two.2.5) Award criteria
Concession is awarded on the basis of the criteria described below:
- Criterion: This is the extension of a Concession
two.2.7) Duration of the concession
Start date
1 August 2022
End date
31 July 2027
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) Form of procedure
Award procedure without prior publication of a concession notice in the cases listed below
- The services can be provided only by a particular economic operator for the following reason:
- absence of competition for technical reasons
Explanation:
Prior to the modification the concession was a 10 year contract for service delivery by the concessionaire at the leisure centres identified at II.2.4 from 1st August 2012. The contract includes wide modification provisions including specifically the opportunity for a 5 year extension together with modification to the terms or scope of the contract.
The following terms are outside the modification terms in the contract:
A break provision at year 2 on 12 months notice by either party
A rebasing of the base cost for utilities from the annual base cost and cost set out in the contract which is the actual cost of base usage for the financial year 2012/13 to the annual base cost for each utility shall be for the period 1st August 2022 to 31st July 2023 of the base usage for that 12 month period for each utility.
A payment to the concessionaire which is part of the overall payment to reflect their revenue gap whereas without this the overall revenue payment to them would have significantly decreased
The completion of negotiations outside the timetable for agreeing these set out in the contract which provides for the negotiations to be completed by.31st March 2021.
All of the above terms are considered to be outside the modification provisions of the contract.
The changes to the modification provisions are necessary because of the Worldwide Sars (COVID) pandemic together with a significant recent increase in energy prices, neither of which the contracting authority could have foreseen as provided for in article 43 of the directive. The VAT inclusive and VAT exclusive figures are identical because of the VAT status of the concessionaire and agreed commercial terms.
This contract award is conditional on further authority of Shropshire Council being obtained during week commencing 25 July 2022.
Section five. Award of concession
A concession/lot is awarded: Yes
five.2) Award of concession
five.2.1) Date of concession award decision
18 July 2022
five.2.2) Information about tenders
Number of tenders received: 1
Number of tenders received from SMEs: 1
The concession has been awarded to a group of economic operators: No
five.2.3) Name and address of the concessionaire
Shropshire Community Leisure Trust Ltd
Office 6, Town Hall, 86 Watling Street East
Towcester, Northants
NN12 6BS
Country
United Kingdom
NUTS code
- UKG22 - Shropshire CC
National registration number
IP031079
The concessionaire is an SME
Yes
five.2.4) Information on value of concession and main financing terms (excluding VAT)
Initial estimated total value of the contract/lot/concession: £62,000,000
Total value of the concession/lot: £62,421,234
Section six. Complementary information
six.3) Additional information
To view this notice, please click here:
https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=704289660
GO Reference: GO-2022719-PRO-20635238
six.4) Procedures for review
six.4.1) Review body
Shropshire Council
Shirehall, Abbey Foregate
Shrewsbury
SY2 6ND
Telephone
+44 1743252992
Country
United Kingdom
six.4.4) Service from which information about the review procedure may be obtained
Shropshire Council
Shirehall, Abbey Foregate
Shrewsbury
SY2 6ND
Telephone
+44 1743252992
Country
United Kingdom