Deed of Variation of Leisure Operating Contract

Scope, procedure and submissions

Id

ocds-h6vhtk-06632c

Status

complete

Main Procurement Category

services

Procurement Method

limited

Procurement Method Details

Award procedure without prior publication of a call for competition

Why this procedure was chosen

The procurement is a permitted modification of an existing contract. Explanation: This voluntary ex ante transparency notice (VEAT Notice) gives notice that the London Borough of Havering is entering into a deed of variation (Variation) to make certain changes summarised in this VEAT Notice. A procurement procedure is not necessary on the basis that the Deed of Variation of the Contract is permitted pursuant to Regulation 72 of the Public Contracts Regulations 2015. The Contract is for the operation and management of the London Borough of Havering's five leisure centres to ensure the London Borough of Havering can provide quality and affordable leisure services for the residents within the borough, maintain the facilities and provide a financial return to the borough to invest in core services. The Contract will be varied to adopt an agency model for the future operation and management of the five sports and leisure facilities. Under the current Contract, SLM acts as Principal in the supply of leisure facilities to the public. Under the new agency model in the Variation, SLM would make supplies to the public as an Agent of the London Borough of Havering so that it is the London Borough of Havering providing leisure services to the public through its Agent. This modification is being made in accordance with regulation 72(1)(e) of the Public Contracts Regulations 2015 on the basis that it is not substantial within the meaning of regulation 72(8). The proposed modification does not constitute a substantial modification and is permitted by regulation 72 of the Public Contracts Regulations 2015 because: (a) the modification does not render the Contract materially different in character. The Variation concerns the same type, scope and nature of services which will be delivered at the same London Borough of Havering facilities to the London Borough of Havering's residents. The Contract was already for the operation of the London Borough of Havering's leisure facilities and the Variation makes contractual changes to establish an agency model so that SLM provides the London Borough of Havering's statutory leisure services to the public on the London Borough of Havering's behalf and other ancillary modifications. This generates VAT savings. (b) the modification does not introduce conditions which would have (i) allowed for the admission of other candidates, (ii) allowed for the acceptance of another tender, or (iii) attracted additional participants in the procurement procedure. Delivering the London Borough of Havering's statutory leisure services as agent rather than outsourced contractor will not affect the physical operation of the leisure centres. 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. (c) The modification does not change the economic balance in favour of the contractor in a manner which was not provided for in the initial contract. The new agency model and associated VAT benefits does not impact on SLM's operating costs and management fee under the Contract, which remains reflective of market costs. The agency model will provide a greater return than previously anticipated. (d) the modification does not extend the scope of the contract.

Lots and requirements

Items and delivery

Buyer, suppliers and contacts

Award information

Contracts and changes

Recorded locations

• Buyer location · Romford · UKI52 · RM13BB · United Kingdom
• Delivery location · UKI52