---
title: "LB Hillingdon - Deed of Variation in relation to leisure operating contracts of various leisure facilities"
ocid: "ocds-h6vhtk-0446e1"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-0446e1"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-0446e1.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-0446e1.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "LONDON BOROUGH OF HILLINGDON"
published: "2024-03-08"
---

# LB Hillingdon - Deed of Variation in relation to leisure operating contracts of various leisure facilities

Buyer: LONDON BOROUGH OF HILLINGDON  
Current stage: Award  
OCID: ocds-h6vhtk-0446e1

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## Summary

The London Borough of Hillingdon has recently awarded a contract to Greenwich Leisure Limited for a deed of variation in relation to the leisure operating contracts of various leisure facilities. This procurement falls under the sports facilities operation services category. The contract involves modifying existing leisure operating contracts to adopt an agency model for future facility management, extending the expiry date to 2035, and making improvements to the facilities for users.

This tender presents business growth opportunities for companies in the services industry, particularly those involved in sports facilities operation, repair and maintenance work, plant maintenance, energy management, computer-related services, and environmental management. Businesses with experience in agency models and leisure facility management are well-suited to compete in this limited procurement procedure without prior publication of a call for competition. The contract value is £2,800,000, and the contracting authority is the London Borough of Hillingdon.

## Notice

The London Borough of Hillingdon (the Authority) intends to enter into a deed of variation with Greenwich Leisure Limited (the Contractor) in relation to the leisure operating concession contracts for the Authority's four leisure facilities (the Underlying Contracts), for the adoption of an agency model for the future management of leisure facilities. The Underlying Contracts were originally procured under Concession Notice 118316-2019, published on 13 March 2019.

### Lot Information

Lot 1

The Authority appointed the Contractor to provide the leisure services pursuant to Leisure Operating Contracts, Procurement Agency Agreements, 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 Leisure Operating Contracts, 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; * Reference to the Contractor acting as the Agent of the Authority will be inserted into the definition of Leisure Services; * To articulate a process by which the Contractor will communicate and transfer the customer income collected as the Agent; * To extend the expiry date to 22 February 2035; * The Council agrees to make available the sum of PS100,000 per year improvements to the fabric or equipment within the facilities that will benefits users; and * The modifications give effect to other ancillary changes to the Underlying contracts to adopt the agency model, that are not considered to be substantial.

### Procurement Information

Explanation: This VTN gives notice that the Authority is entering into a deed of variation (the "Contract") to extend the duration of existing leisure operating contracts between the Authority and the Contractor and to make certain changes summarised in this VTN. A procurement procedure is not necessary on the basis that the award of the Contract is permitted pursuant to regulation 43(1)(e) of the Concession Contracts Regulations 2016. The Contract will have the effect of modifying the Underlying Contracts in accordance with Regulation 43 of the Concession Contracts Regulations 2016. The Underlying Contracts concern the provision of a range of management and related services, by the Contractor, in relation to five sports and leisure facilities. The Underlying Contracts will be varied for the adoption of an agency model for the future management of leisure facilities in relation to the outsourcing arrangements for the 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 43(1)(e) and 43(9) of the Concession Contracts Regulations 2016. Namely, the proposed modification is not substantial within the meaning of regulation 43(9) on the basis that: 1. the modification does not render the Underlying Contracts materially different in character - the proposed modification remains limited to the same type, scope and nature of services, where the operating cost risk remains with the Contractor, and the services will be delivered to the same facilities. The modifications only concern contractual changes to establish an agency model for VAT purposes 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 GLL's payment under the Underlying Contracts, 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 43(1)(e) and 43(9) of the Concession Contracts Regulations 2016.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/007532-2024 |
| Notice type | Award Notice |
| Procurement type | Standard |
| Procurement category | Services |
| Procurement method | Limited |
| Procurement method details | Award procedure without prior publication of a call for competition |
| Tender suitability | Not specified |
| Awardee scale | Large |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 8 Mar 2024 |
| Submission deadline | Not specified |
| Future notice date | Not specified |
| Award date | 3 Feb 2020 |
| Contract period | Not specified |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | Not specified |
| Lots value | Not specified |
| Awards value | Not specified |
| Contracts value | £2,800,000 |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Not specified |
| Awards status | Active |
| Contracts status | Active |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | LONDON BOROUGH OF HILLINGDON |
| Locality | HILLINGDON |
| Post town | Not specified |
| Postcode | LON DON |
| Country | Not specified |
| ITL 1 | Not specified |
| ITL 2 | Not specified |
| ITL 3 | Not specified |
| Local authority | Not specified |
| Electoral ward | Not specified |
| Westminster constituency | Not specified |
| Delivery location | Not specified |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | GREENWICH LEISURE |

## CPV Codes

### Divisions

- 45 - Construction work
- 50 - Repair and maintenance services
- 55 - Hotel, restaurant and retail trade services
- 71 - Architectural, construction, engineering and inspection services
- 72 - IT services: consulting, software development, Internet and support
- 77 - Agricultural, forestry, horticultural, aquacultural and apicultural services
- 79 - Business services: law, marketing, consulting, recruitment, printing and security
- 90 - Sewage, refuse, cleaning and environmental services
- 92 - Recreational, cultural and sporting services

### Codes

- 45212290 - Repair and maintenance work in connection with sports facilities
- 45259000 - Repair and maintenance of plant
- 50000000 - Repair and maintenance services
- 50324100 - System maintenance services
- 50700000 - Repair and maintenance services of building installations
- 55520000 - Catering services
- 71314200 - Energy-management services
- 72500000 - Computer-related services
- 72511000 - Network management software services
- 77314000 - Grounds maintenance services
- 79313000 - Performance review services
- 79342300 - Customer services
- 79952000 - Event services
- 90710000 - Environmental management
- 90910000 - Cleaning services
- 92610000 - Sports facilities operation services

## Release History

- 8 Mar 2024 at 14:01 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/007532-2024

## Notice URLs

- http://www.hillingdon.gov.uk

## Provenance

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