Notice Information
Notice Title
Sports and Leisure Management Limited Outsourced Services
Notice Description
Watford Borough Council intends to enter a deed of variation with Sports and Leisure Management Limited (the Contractor) as the outsourced provider of leisure management services. SLM acts as the principle in providing leisure services from the council owned premises at Woodside, Central and the paddling pool at Cassiobury Park. SLM will act as agent of the council, with SLM providing leisure services on behalf of the council in the council's name. The Underlying Contract was originally procured under Procurement Notice Watford Sports facilities operation services 2017/S 049-089978:, published on 10th March 2017. The opportunity to change the status, follows the successful litigation taken by Chelmsford City Council in 2022 and subsequently HMRC revised its guidance in 2023 in relation to the VAT treatment of leisure services provided by local authorities.
Lot Information
Lot 1
The Authority appointed the Contractor to provide the leisure services pursuant to the Underlying Contract and Leases for the management and operation of the Council's leisure portfolio. The Authority intends to enter a deed of variation with the Contractor to modify the Underlying Contract, the effect of which will be the following: *To identify the agency agreement between the parties, the extent to which the Contractor will act as the Authority's Agent, and areas where it will act as Principal; *The Operator shall be appointed as the Authority's Agent to provide the Leisure Services and Maintenance Services (together the "Agency Services") but shall continue to carry out other services (specifically, food, beverages and retail) as an independent supplier to the Authority (the "Supplier Services"); *The Restated Leisure Management Agreement does not materially alter the risk position of the parties;
Procurement Information
This VTN gives notice that the Authority is entering into a deed of variation (the "Contract") to make certain changes summarised in this VTN. A procurement procedure is not necessary on the basis that the award of the Deed of Variation of the Underlying Contract is permitted pursuant to Regulation 72 of the Public Contracts Regulations 2015. The Underlying Contract concerns the provision of a range of operation, management and related services, by the Contractor, in relation to four sports and leisure facilities and two theatres. The Underlying Contract will be varied for the adoption of an agency model for the future operation and management of the four sports and leisure facilities. Under the current structure, the Contractor acts as Principal in the supply of leisure facilities to the public, so that the Authority is not making the supplies of leisure services. Under the new agency model, the Contractor would make supplies to the public as an Agent of the Authority. This modification is being made in accordance with regulation 72 of the Public Contracts Regulations 2015. Namely, the proposed modification is not substantial within the meaning of regulation 72(8) on the basis that: 1. the modification does not render the Underlying Contract materially different in character - the proposed modification remains limited to the same type, scope and nature of services, where the services will be delivered to the same facilities. The modifications only concern contractual changes to establish an agency model for VAT purposes so that the Contract to provide leisure services to the public on the Authority's behalf and other ancillary modifications. 2. the Council has satisfied itself that the modification does not introduce conditions which would have (a) allowed for the admission of other candidates, (b) allowed for the acceptance of another tender, or (c) attracted additional participants in the procurement procedure - 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. 3. The modification does not change the economic balance in favour of the contractor in a manner which was not provided for in the contract - The Authority has satisfied itself that the new agency model and VAT arrangement does not impact on the Contractor's Operating Costs and Management Fee under the Underlying Contract, which remains reflective of market costs and does not amount to an over-compensation of the services to be provided. The agency model will allow for a more certain financial position to the Authority and will provide a greater surplus share than previously anticipated. 4. As per our comments at 1. above, the modification does not extend the scope of the contract. For the reasons set out above, the proposed modification does not constitute a substantial modification and is permitted by regulation 72 of the Concession Contracts Regulations 2015.
Notice Details
Publication & Lifecycle
- Open Contracting ID
- ocds-h6vhtk-055b8a
- Publication Source
- Find A Tender Service
- Latest Notice
- https://www.find-tender.service.gov.uk/Notice/038405-2025
- Current Stage
- Award
- All Stages
- Award
Procurement Classification
- Notice Type
- Award Notice
- Procurement Type
- Standard
- Procurement Category
- Services
- Procurement Method
- Limited
- Procurement Method Details
- Negotiated without publication of a contract notice
- Tender Suitability
- Not specified
- Awardee Scale
- Large
Common Procurement Vocabulary (CPV)
- CPV Divisions
92 - Recreational, cultural and sporting services
98 - Other community, social and personal services
-
- CPV Codes
92000000 - Recreational, cultural and sporting services
98330000 - Physical well-being services
Notice Value(s)
- Tender Value
- Not specified
- Lots Value
- Not specified
- Awards Value
- Not specified
- Contracts Value
- £63,000,000 £10M-£100M
Notice Dates
- Publication Date
- 8 Jul 20257 months ago
- Submission Deadline
- Not specified
- Future Notice Date
- Not specified
- Award Date
- 6 Jul 20257 months ago
- Contract Period
- Not specified - Not specified
- Recurrence
- Not specified
Notice Status
- Tender Status
- Complete
- Lots Status
- Not Specified
- Awards Status
- Active
- Contracts Status
- Active
Buyer & Supplier
Contracting Authority (Buyer)
- Main Buyer
- WATFORD BOROUGH COUNCIL
- Contact Name
- Mitchelle Kasimu
- Contact Email
- mitchelle.kasimu@watford.gov.uk
- Contact Phone
- +44 1923226400
Buyer Location
- Locality
- WATFORD
- Postcode
- WD17 3EX
- Post Town
- Watford
- Country
- England
-
- Major Region (ITL 1)
- TLH East (England)
- Basic Region (ITL 2)
- TLH2 Bedfordshire and Hertfordshire
- Small Region (ITL 3)
- TLH27 South West Hertfordshire
- Delivery Location
- TLI London
-
- Local Authority
- Watford
- Electoral Ward
- Park
- Westminster Constituency
- Watford
Further Information
Open Contracting Data Standard (OCDS)
View full OCDS Record for this contracting process
The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.
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