URL: https://democracy.southend.gov.uk/ieDecisionDetails.aspx?ID=1464

Decision Maker: Cabinet Member for Business, Culture, Music and Tourism

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Purpose: Following a competitive tender was undertaken in accordance with the Public Contract Regulations 2015, the award of the contract for the management of the Council’s Leisure Centres across the City to the preferred supplier, which will be effective from 1stJuly 2025.   This decision is being taken under Part 5 Section 4 of the constitution due to circumstances which arose during the course of the procurement process.  This decision is not subject to scrutiny and will be reported to Council for information at a future date, as required in the constitution.

Content: Following a competitive tender was undertaken in accordance with the Public Contract Regulations 2015, the award of the contract for the management of the Council’s Leisure Centres across the City to the preferred supplier, which will be effective from 1stJuly 2025.   This decision is being taken under Part 5 Section 4 of the constitution due to circumstances which arose during the course of the procurement process.  This decision is not subject to scrutiny and will be reported to Council for information at a future date, as required in the constitution. The Cabinet Member for Business, Culture, Music & Tourism awards the contract for the Council’s Leisure Centre Management contract for a period of 36 months to the preferred bidder and further delegate to the Executive Director, Adults & Communities to finalise the contract.   This decision is being taken under Part 5 Section 4 of the constitution due to circumstances which arose during the course of the procurement process. The new Leisure Centre Management Contract covers the operation of three of the Council’s leisure centres; Belfairs Swim Centre, Shoebury Leisure Centre and Southend Leisure & Tennis Centre.   The contract was tendered in February 2025 in line with council procurement regulations.  The tender documents confirmed the council was seeking to achieve a contract that was as close to cost neutral as possible. Nevertheless, an appropriate annual budget was earmarked to address elements of risk sharing within utility pricing and to recognise changes within the market, suggesting that third party managed leisure contracts were less likely to provide an income to their local authority clients. This information was gathered by 2 different rounds of Market Engagement, undertaken by the project team.   The contract has a period of 36 months, without the possibility of an extension.The council received two tender responses. Both bids were subject to a thorough evaluation process. The scores were verified by the internal auditor, who is a member of the project team, before the tender evaluation process concluded.   The preferred bid has been determined to be the most advantageous, in compliance with the agreed evaluation methodology.   This decision is being taken under Part 5 Section 4 of the constitution due to circumstances which arose during the course of the procurement process. These circumstances could not have been foreseen and meant that the timetable had to be extended. Any further delay between the end of the evaluation process and contract award could expose the council to risk and the closure of its leisure centres.   The required 10-day standstill period needs to be commenced without delay so that the mobilisation and handover can happen in time for the contract start date.   This decision is not subject to scrutiny and will be reported to Council for information at a future date, as required in the constitution. The Cabinet Member could decide not to make the award however this would leave the council without a leisure operator and lead to the closure of the council’s leisure centres, resulting in several thousand residents having limited access to alternative local leisure provision.   The procurement process has been completed in good faith and a decision not to award at this point could leave the council open to a procurement challenge.   The option to deliver the work in house was considered prior to tendering the contract but not found to be economically or practically viable.

Date of Decision: May 29, 2025