---
title: "Deed of Variation of Leisure Operating Contract"
ocid: "ocds-h6vhtk-05d70e"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-05d70e"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-05d70e.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-05d70e.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "EAST HERTFORDSHIRE DISTRICT COUNCIL"
published: "2025-10-30"
---

# Deed of Variation of Leisure Operating Contract

Buyer: EAST HERTFORDSHIRE DISTRICT COUNCIL  
Current stage: Award  
OCID: ocds-h6vhtk-05d70e

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## Summary

East Hertfordshire District Council is entering into a Deed of Variation concerning its existing Leisure Operating Contract with Sports and Leisure Management Limited (SLM) to appoint SLM as the Council's agent. The process, tagged with both 'award' and 'contract', focuses on recreational, cultural, and sporting services, specifically operating the Grange Paddocks and Hartham leisure centres situated in UKH23. This contract revision, scheduled for 1 December 2025, aims to modify the contractual relationship without substantially altering its nature, ensuring continued quality leisure services. This contracting process is categorized as a limited procurement method, with no prior call for competition, falling outside the typical directive's application scope.

This tender presents significant opportunities for businesses specializing in leisure services and facility management, particularly those familiar with agency models that focus on optimising VAT benefits and financial returns. By adopting an agency model, firms like SLM can drive efficiency and sustainability in leisure service delivery, which involves food, beverage, and retail management alongside administrative responsibilities. Companies that can strategically manage cost-effective leisure operations while providing innovative service solutions are well-positioned to benefit from participating or collaborating in similar agency-modified contracts. With an active contract status and a substantial value, businesses in this sector can leverage such public partnerships to expand their operational footprint and develop long-term strategic growth.

## Notice

East Hertfordshire District Council (the Council) intends to enter into a deed of variation with Sports and Leisure Management Limited (SLM) in relation to the Leisure Operating Contract dated 29 July 2022 (which commenced 1 January 2020) in order to appoint SLM as the Council's agent in delivering the leisure services at the Council's core leisure centre facilities. The core leisure centre facilities include: * Grange Paddocks Leisure Centre * Hartham Leisure Centre The date of the proposed modification is 1 December 2025.

### Lot Information

Lot 1

East Herts Council (the Council) intends to enter into a deed of variation with Sports and Leisure Management Limited (SLM) in relation to the Leisure Operating Contract (Contract) dated 29 July 2022 (which commenced 1 January 2020) in order to appoint SLM as the Council's agent in delivering the leisure services at the Council's core leisure centre facilities. The core leisure centre facilities include: * Grange Paddocks Leisure Centre * Hartham Leisure Centre The date of the proposed modification is 1 December 2025.

### Procurement Information

This voluntary ex ante transparency notice (VEAT Notice) gives notice that the Council 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 award of 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 Council's two leisure centres to ensure the Council can provide quality and affordable leisure services for the residents within the district, maintain the facilities and provide a financial return to the district to invest in core services. The Contract will be varied to adopt an agency model for the future operation and management of the two 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 Council so that it is the Council 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 Council facilities to the Council's residents. The Contract was already for the operation of the Council's leisure facilities and the Variation makes contractual changes to establish an agency model so that SLM provides the Council's statutory leisure services to the public on the Council'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 Council'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.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/069702-2025 |
| 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 | 30 Oct 2025 |
| Submission deadline | Not specified |
| Future notice date | Not specified |
| Award date | 1 Dec 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 | £100,873,582 |

## Status

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

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | EAST HERTFORDSHIRE DISTRICT COUNCIL |
| Locality | HERTFORD |
| Post town | Stevenage |
| Postcode | SG13 8EQ |
| Country | England |
| ITL 1 | TLH East (England) |
| ITL 2 | TLH2 Bedfordshire and Hertfordshire |
| ITL 3 | TLH26 North and East Hertfordshire |
| Local authority | East Hertfordshire |
| Electoral ward | Hertford Castle |
| Westminster constituency | Hertford and Stortford |
| Delivery location | TLH23 Hertfordshire CC |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | SPORTS AND LEISURE MANAGEMENT |

## CPV Codes

### Divisions

- 92 - Recreational, cultural and sporting services

### Codes

- 92000000 - Recreational, cultural and sporting services

## Release History

- 30 Oct 2025 at 12:13 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/069702-2025

## Notice URLs

- https://www.eastherts.gov.uk/

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-05d70e. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-05d70e.json.