Deed of Variation of Leisure Management Services – Agency Model

Scope, procedure and submissions

Id

ocds-h6vhtk-05aa25

Status

complete

Procurement Method

limited

Main Procurement Category

services

Procurement Method Details

Award procedure without prior publication of a call for competition

Why this procedure was chosen

This notice relates to the modification of an existing contract, not the award of a new contract. While the contract was sourced under PCR2006, the Authority considers the modification must be carried out pursuant to PCR2015 Regulation 72. A procurement procedure is not necessary given the award of the Deed of Variation is permitted pursuant to PCR2015 Regulation 72. The modification may lawfully be agreed between the parties and implemented without the need to conduct a fresh procurement procedure. The contract is for the operation and management of the Authority’s leisure centres to ensure the Authority can provide quality and affordable leisure services for residents of Westminster, maintain facilities and make financial returns to invest in core services. The contract will be modified to adopt an agency model. Under the current contract, SLM acts as Principal in the supply of leisure facilities to the public. Under the new agency model, SLM would make supplies to the public as an Agent of the Authority. It is the Authority providing leisure services to the public through its Agent. The proposed modification is not ‘substantial’ within the meaning set out in Regulations 72(1)(e) and 72(8) PCR2015. • The character of the original contract and services will remain substantially the same and is not rendered materially different from the original. • The modification concerns the same type, scope and nature of services at the same facilities to residents. The contract already provided operation of the leisure facilities, the modification establishes an agency model so SLM provides the Authority’s statutory leisure services to the public on its behalf and other ancillary modifications. This generates VAT savings. The underlying contract is for a range of leisure centre operation, management and related services by SLM for the Authority. The original contract will be modified to an agency model. Under the current structure, SLM acts as Principal in the supply of public leisure facilities so that the Authority is not making the supplies of leisure services. Under the new agency model, SLM would make supplies as an Agent of the Authority. The Authority is satisfied that the modification does not introduce conditions which would have allowed for (a) the admission of other candidates, (b) the acceptance of another tender or (c) additional participants in the procurement procedure - delivering the Council’s statutory leisure services as agent rather than outsourced contractor will not affect the physical operation of the leisure centres and the change to an agency model for VAT purposes does not change the service requirement or how those services are provided. It is unlikely to have changed the outcome of the procurement. The modification does not change the economic balance in favour of SLM in a manner which was not provided for in the contract. The Authority is satisfied that the agency model and VAT arrangement does not impact SLM’s operating costs under the original contract. The agency model allows for a more certain financial position to the Authority and a greater surplus share than previously anticipated.

Lots and requirements

Items and delivery

Buyer, suppliers and contacts

Award information

Contracts and changes

Recorded locations

• Buyer location · London · UKI32 · SW1E 6QP · United Kingdom
• Delivery location · UKI32