Tender

Rushmoor Borough Council - Leisure Centre Operator

Rushmoor Borough Council

UK4: Tender notice - Procurement Act 2023 - view information about notice types

Notice identifier: 2025/S 000-034902

Procurement identifier (OCID): ocds-h6vhtk-04eed1

Published 25 June 2025, 12:55am

Last edited 25 June 2025, 8:45am

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Scope

Reference

DN779246

Description

INTRODUCTION

Rushmoor Borough Council ('the council') is inviting tenders from suitably experienced leisure facility operators for the operation of a planned new leisure centre to be located in Farnborough as well as the operation of the council's existing leisure centre & lido facilities located in Aldershot.

The new Farnborough Leisure Centre, which is currently scheduled to open late 2027 / early 2028, will proactively address identified community needs aligned to health, physical activity and social wellbeing.

The leisure operator appointed via the subsequent formal procurement process will manage both the Aldershot and Farnborough facilities, with the contract split into two distinct phases:

• the Interim Phase, during which the contractor will manage the Aldershot facility and provide at the request of the Council, provide any input requested in relation to the opening of Farnborough Leisure Facility, and

• the Main Phase, during which the contractor will fully operate both facilities.

The Council is currently targeting award of the contract to the successful Operator by mid-February 2026. The Interim Phase of the Contract is planned to commence shortly afterwards from 1st April 2026, at which point the Operator will be required to commence delivery of services at the existing Aldershot facilities to coincide with the summer opening of the Lido.

The operator may be asked to provide input into the final design & configuration of the new Farnborough Leisure Centre where possible within the development programme, as well as mobilisation, launch and other pre-opening services for the new centre.

The Council's target date for opening of the new Farnborough facility is late 2027 / early 2028, at which point the contract will enter its Main Phase. The duration of the Interim Phase is dependent on the date the new facility is ready to be opened, but is likely to run for around 18 to 24 months

Once awarded the contract will also allow for the alteration, addition and removal of sporting and leisure assets / sites which may go beyond just the existing Aldershot and planned Farnborough centres.

LOTTING STRATEGY

In order to investigate the benefits to the Council of different business models and enable the council to arrive at a fully informed market tested award decision, Suppliers are invited to submit bids for either or both of the following Lots;

• Lot 1 - Leisure Operator Concession Model

• Lot 2 - Leisure Operator Agency Model

CORE SCOPE

The scope of services / activities / inputs that the Operator will be responsible for can be summarised as:

• Equipment fit out of the new Farnborough Leisure Centre

• Operational management of the specified Rushmoor Borough Council leisure facilities;

o Operation, programming, activities & events

o Marketing, promotion & communication

o Customer on-boarding, booking, account management, website, back office & customer service

o Facilities management, Health & Safety management, Servicing, Repairs & Maintenance

o Open book performance reporting, partnership working & continuous improvement

• Delivery of the Authority and Public Health priorities to address the wider determinants of health;

• Partnership working including;

o Developing a higher profile for community sport

o Advocating the benefits of leisure time and activities.

o Open book performance reporting

o Continuous improvement

CONTRACT DURATION, PHASING & OPTIONS

The duration of the Interim Phase of the contract will continue for a maximum of 2 years. It is anticipated that the interim phase will commence on 1st April 2026 to coincide with the opening of Aldershot Lido for the 2026 summer season.

The duration of the interim phase is dependent on the date when the new facility is ready to be opened so may run for a shorter period. Should the opening of the new facility be delayed, the interim phase contract will terminate after 2 years.

Once the new Farnborough Leisure Centre facility opens the Main Phase of the contract will then run for a further 15 years. Opening of the new facility is targeted for late 2027 / early 2028.

The contract may subsequently be extended by up to 10 years, in further increments to be agreed by both parties up to a maximum term of 25 years.

ESTIMATED CONTRACT VALUE

The annual estimated value of the Contract in respect of turnover generation for the Interim Phase is in the range of £1.2m to £1.6m. Estimated turnover per annum for the Aldershot facilities is highly variable as usage of the Lido is directly impacted by weather conditions. Turnover for the Aldershot Pools is currently c.£1.1m, with turnover for the lido varying between £150-£450k.

The Main Phase of the contract will involve operation of both the Aldershot facilities and new Farnborough facility. New Farnborough facility - In respect of the new facility the current business case projections, which are based upon local demand forecasts and industry benchmarking, are that operations, activities and events run from the new centre that fall within the scope of this contract could generate more than £2.5m turnover per annum.

Contract value for total term of contract:

• Interim Phase: (based on 2 years) - £2.4m - £3.2m

• Main Phase: Initial period (i.e.15 years) - £55.5m - £61.5m

• Main Phase: Including extension (i.e. 25 years) - £92.5M - £102.5M

The Council is providing these estimates for transparency purposes only and is not placing any binding upper or lower volume and value parameters which could constrain development of the scheme in terms of scope and revenue generation.

The figures provided are purely provided as guides and it is for suppliers to determine their own projections in relation to demand, revenue generation, costs, etc. and provide a rationale for their estimates as part of their tender submissions.

Whilst the Council may add or remove sites from the contract as well as significantly alter sites, it cannot provide details of what these changes could entail and what may trigger such changes over the term of the contract. The Council is also therefore unable to provide any additional information on how such changes could positively or negatively impact the value of the contract over the base and extended term.

CONTRACT PAYMENT MECHANISM

During the Interim Phase, the Council requires to contract on a cost-plus 'fixed fee' basis. The Council will pay the operator the fixed annual 'Contractor Management Sum' tendered for the interim phase in accordance with the contract/agreement terms on a quarterly basis.

Upon opening of the new facility, the interim phase payment mechanism will cease, and the main phase payment mechanism will come into effect.

During the main phase, the payment mechanism will be subject to a fixed management fee, (a payment to the Council), plus % open book surplus share following the share %s set out within the Specification.

CONTRACT TERMS

The contract/agreement will operate on an open book basis. The contract/agreement has been developed using the Sport England model as set out in its latest Leisure Services Delivery Guidance (LSDG), format but has been updated to reflect relevant changes since the pandemic relating to CIL, risk and utility benchmarking.

The draft contract/agreement for each lot are provided as separate documents.

• Lot 1 contract - Leisure Operating Contract

• Lot 2 contract - Agency Agreement

VAT AGENCY RULES & GUIDANCE

The agency model is based on existing VAT agency rules and the principles of contract law. As such, the Agency Agreement is subject to changes in HMRC's guidance on VAT agency rules and the treatment of leisure services. Should this occur, the contract will be changed in accordance with the provisions detailed within the Agency Agreement or Leisure Operator Contract (as applicable).

PROCUREMENT TIMETABLE & PROCESS

The procurement timetable is shown below and, while the council does not intend to depart from it, it reserves the right to do so at any time. Should the programme above change, all Suppliers will be informed of this change via ProContract/SEBP.

The procurement timetable is based upon the more likely scenario where the Council does not proceed to award following receipt of 1st stage tenders and instead undertakes negotiations and invites best and final 2nd stage tenders.

• Contract Notice issued on FTS - 24th June 2025

• Procurement documents published on ProContract/SEBP Portal - 24th June 2025

• Site visit registration deadline - 4th July 2025 17:00

• Aldershot facilities site visit - 7th July 2025 - 10:30

• Teams supplier briefing registration deadline - 8th July 2025 - 17:00

• Online TEAMS supplier briefing - 9th July 2025 - 12:30

• 1 - 1 clarification meetings registration deadline - 14th July 2025 - 17:00

• 1 - 1 clarification meetings (TEAMS) - w/c 21st July 2025

• Clarification deadline - 8th August 2025 - 23:59

• 1st stage tender return deadline - 28th August 2025 - 12:00

• Interview & presentation (TEAMS) - if required w/c 22nd September 2025

• Notification of 1st stage decisions - 29th September 2025

• Negotiation meetings (TEAMS) - 6th - 17th October 2025

• Invitation to submit 2nd stage best & final tenders - 3rd November 2025

• 2nd stage best & final tender return deadline - 5th December 2025 - 12:00

• Interview & presentation (TEAMS) - if required - w/c 15th December 2025

• Notification of award decision & issue of assessment summaries - 2nd February 2026

• Contract Award Notice issued on FTS - 2nd February 2026

• Statutory 8 working day standstill period - 3rd - 12th February 2026

• Contract award - 13th February 2026

• Commencement of contract interim phase - 1st April 2026

• Commencement of contract main phase - Late 2027 / Early 2028

PROCUREMENT ADMINISTRATION

The Council is utilising its e-sender tool ProContract to manage this procurement which can be accessed using the following link: https://procontract.due-north.com/Login

Total value (estimated)

£105,700,000 including VAT

Above the relevant threshold

Contract dates (estimated)

1 April 2026 to 31 March 2043
Possible extension to 31 March 2053
27 years

Description of possible extension:

The Main Phase of the contract may be extended by up to 10 years, in further increments to be agreed by both parties up to a maximum term of 25 years.

Options

The right to additional purchases while the contract is valid.

Over the term of the contract, including for any extension period, the scope may be amended to include for the addition or removal of sport and recreational facilities as required, with agreement of both parties. Changes to scope will be made using the change mechanism provided for within the contract and as a result the value of the contract may be amended accordingly.

The following is a non-exhaustive list of potential sport and recreational facilities that may be added to/removed from the scope in the future:

• Swimming pools & lidos

• Gymnasiums, fitness studios & sports halls

• Physio & rehabilitation facilities

• Yoga & wellbeing centres

• Soft play facilities

• Climbing walls

• Skate parks

• Pitches & courts - football, rugby, hockey, basketball, netball, tennis, badminton, squash, volleyball, etc.

• Golf courses

• Ski centres

• Ice rinks

• Cafes, restaurant & hospitality

Main procurement category

Services

CPV classifications

45212100 - Construction work of leisure facilities
45212290 - Repair and maintenance work in connection with sports facilities
45451000 - Decoration work
45452000 - Exterior cleaning work for buildings
45453100 - Refurbishment work
45454000 - Restructuring work
50510000 - Repair and maintenance services of pumps, valves, taps and metal containers
50531100 - Repair and maintenance services of boilers
50531200 - Gas appliance maintenance services
50700000 - Repair and maintenance services of building installations
55330000 - Cafeteria services
55500000 - Canteen and catering services
70332200 - Commercial property management services
77320000 - Sports fields maintenance services
79342200 - Promotional services
79342300 - Customer services
79342320 - Customer-care services
92610000 - Sports facilities operation services
92620000 - Sport-related services

Contract locations

UKJ37 - North Hampshire

Lot constraints

Maximum number of lots a supplier can be awarded: 1

Description of how multiple lots may be awarded:

In order to investigate the benefits to the Council of different business models and enable the council to arrive at a fully informed market tested award decision Suppliers are invited to bid for either or both of the following Lots;

• Lot 1 - Leisure Operator Concession Model

• Lot 2 - Leisure Operator Agency Model

Suppliers may apply for either or both lots and must make clear which they are applying for within their tender submissions following the instructions provided.

Only one contract will be awarded and the Council will reserve the right to decide upon which Lot to award from.

In forming this decision, the Council may take into account the following, non-exhaustive considerations which are set out in no particular order:

• Financial considerations including for the relative position between the Lots on. The income the Council estimates it can secure via the management fee vs the certainty of securing the fee.

• The relative quality of the proposals between the Lots.

• Legal matters including for the relative position on terms between the Lots.

• Outside factors including for relative opposition between the Lots on:

o Any additional implementation and on-going costs

o Risk positions between the parties

o Best practice position, guidance, benchmarking & findings

Once the Council has decided upon which Lot to award from, which it may take at 1st stage tender or 2nd stage best & final tender stages, it will proceed with awarding the contract to the highest scoring bidder for the Lot selected in accordance with the evaluation criteria set out later in this document.

Over the term of the contract the Council may vary the contract to move from a concession to an agency arrangement and vice versa if there benefits to the Council and end users, a change in the Council's financial position or wider changes in law and / or tax system.

Lot 1. Leisure Operator - Concession Model

Description

Lot 1 specific requirements are set out in the the following key documents included within the Procurement Documents accessible via ProContract:

• Specification - Lot 1 (Concession Model)

• Leisure Operator Contract_74494032 v1.0

• Financial Tender Submission - Lot 1 - (Concession Model)

N.B. - The estimated value for Lot 1 has been entered below with a different value due the Find a Tender Service system preventing the same value being entered for the Lot value as for the general value stated within the Scope section of this notice. The value estimate for Lot 1 is actually the same as the estimate stated for the contract in the Scope section. i.e. £105,700,000.

Lot value (estimated)

£105,600,000 including VAT

Same for all lots

CPV classifications, contract locations, contract dates and options are shown in the Scope section, because they are the same for all lots.

Lot 2. Leisure Operator - Agency Model

Description

Lot 2 specific requirements are set out in the the following key documents included within the Procurement Documents accessible via ProContract:

• Specification - Lot 2 (Agency Model)

• Draft Agency Agreement_ 74485630 v1.0

• Financial Tender Submission - Lot 2 - (Agency Model)

TBA???

Lot value (estimated)

£100,000 including VAT

Same for all lots

CPV classifications, contract locations, contract dates and options are shown in the Scope section, because they are the same for all lots.

Participation

Legal and financial capacity conditions of participation

Lot 1. Leisure Operator - Concession Model

Lot 2. Leisure Operator - Agency Model

As included within the procurement documents accessible via ProContract.

Technical ability conditions of participation

Lot 1. Leisure Operator - Concession Model

Lot 2. Leisure Operator - Agency Model

As included within the procurement documents accessible via ProContract.

Particular suitability

Lot 1. Leisure Operator - Concession Model

Lot 2. Leisure Operator - Agency Model

Small and medium-sized enterprises (SME)
Voluntary, community and social enterprises (VCSE)

Submission

Enquiry deadline

8 August 2025, 11:59pm

Submission type

Tenders

Tender submission deadline

28 August 2025, 12:00pm

Submission address and any special instructions

The Council is utilising its e-sender tool ProContract to manage this procurement and communicate with Tenderers. Accordingly, there will be no hard copy documents issued to Tenderers and all communications with the Council, including the submission of Tenderers' Responses, will be conducted via the ProContract system, which can be accessed using the following link: https://procontract.due-north.com/Login

Tenders may be submitted electronically

Yes

Languages that may be used for submission

English

Award decision date (estimated)

2 February 2026

Award criteria

This table contains award criteria for this lot
Name	Description	Type	Weighting
15 year NPV Management Fee Total		Cost	37.5%
Health, Wellbeing and Programme Delivery		Quality	12.5%
Marketing, Media Communications, PR and Customer Experience		Quality	7.5%
Business Model and Pricing		Quality	7.5%
Maintenance - Environmental, Carbon Reduction and Utilities		Quality	7.5%
Resourcing		Quality	5%
Social Value	Criterion sub divided into two elements: a. Quantitative - 2.5% b. Qualitative - 2.5%	Quality	5%
Health and Safety Management and Quality Assurance		Quality	5%
Mobilisation and Phasing		Quality	5%
Aldershot Development	Criterion sub divided into two elements: a. Proposal 1 - 2.5% b. Proposal 2 - 2.5%	Quality	5%
Per Annum Interim Phase Fixed Payment		Cost	2.5%

Other information

Description of risks to contract performance

The Council has identified the following known risks that may occur during the duration of the term of the contract and may positively or negatively impact the scope, scale, value, timescales, end user demand, etc. related the contract:

• Changes to VAT agency rules and associated legislation

• Changes to VAT agency guidance from HMRC

• Alterations, additions and removals of sporting and recreational assets to the contract over the life of agreement

• The progression and opening of the new Farnborough Leisure Centre

• Changes to the scale, facilities mix and timescales for opening of the new Farnborough Leisure Centre

• Local Government Review impacts including for assignment of contract to successor expanded unitary authority

• Inflation and other cost of living impacts which could increase or decrease demand / revenues

• Marco and micro environmental impacts on utilities costs

• Increased or decreased competition from other public or privately run sports and recreational centres

• Development and changing demographics of Rushmoor area which could impact positively or negatively on demand and revenues

• Changes in demand for specific services / activities / equipment

• Changes to relevant government policy / legislation

• Changes to relevant Council policies

• Changes to relevant standards, accreditations and best practice

• Inflationary and other impacts (National Insurance) on operational costs for both parties

• Impacts of technological change in respect of unknown future standards or innovations in equipment / activities / service delivery

• An endemic or pandemic event similar to Covid 19 which could increase costs and / or reduce demand.

The Council has identified the risks above associated with the delivery of this contract. In accordance with Schedule 8 of the Procurement Act 2023, the Council reserves the right to modify the contract, without initiating a new procurement procedure, should any of these risks materialise during the contract term.

Any such modification will be limited to addressing the consequences of the known risk and will not alter the overall nature of the contract. Where applicable, a Contract Change Notice will be published in accordance with the requirements of the Act.

Applicable trade agreements

Government Procurement Agreement (GPA)
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

Conflicts assessment prepared/revised

Yes

Procedure

Procedure type

Competitive flexible procedure

Special regime

Concession
Light touch

Competitive flexible procedure description

The council is using a multistage Competitive Flexible Procedure (CFP) for the procurement of this Light Touch concession contract. Full details of the procurement procedure are included for within the Invitation to Tender document accessible via the Council's e-sender system ProContract which can be accessed via the following link:

https://ProContract/SEBP.due-north.com/Login

A high-level summary of the stages and features that are included for within this procurement procedure are:

• Multi-lot bidding options

• Stage 1 - Conditions of Participation and Initial Invitation to Tender undertaken in parallel

• Stage 1 - Pre-submission clarification dialogue

• Optional interviews & presentations

• Optional selection of preferred bidder following Stage 1 initial tender evaluation

• Optional down-selection to reduced number of tenderers following stage 1 initial tender evaluation, for one or both lots

• Optional Stage 2 negotiation period followed by Invitation and submission of 2nd stage Best & Final Tenders, for one or both lots

• Post Award Negotiation

As set out within the Conditions of Tender and allowed for under Section 31 of the Procurement Act 2023 the Council may seek to vary and refine:

• Evaluation weightings

• Scoring criteria

• Procurement programme & process

• Procurement, technical, commercial and legal documentation

• Tender submission requirements

subject to the appropriate notifications being provided and timescales being reviewed, and this refinement not being substantial and/ or creating the risk of unfair treatment (if the modification is substantial, the notice inviting Tenders, and the timescales will be updated/ restarted).

Documents

Associated tender documents

https://procontract.due-north.com/Login

Documents to be provided after the tender notice

Technical specifications to be met

https://procontract.due-north.com/Login

Contracting authority