Deed of Variation of Leisure Operating Contract

Concepts

• hemel hempstead
• recreation, culture and sport
• operation services
• leisure operating contract
• leisure management limited
• the councils core leisure centre facilities
• sports and leisure management limited
• the core leisure centre facilities
• the leisure operating contract
• hemel hempstead leisure centre • berkhamsted leisure centre • jarman park athletics ground dacorum borough council

Location

Hemel Hempstead

Description

Dacorum Borough 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 March 2018 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: • Hemel Hempstead Leisure Centre • Berkhamsted Leisure Centre • Jarman Park Athletics Ground

Total Quantity or Scope

Dacorum Borough 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 March 2018 in order to appoint SLM as the Council's agent in delivering the leisure services at the Council's core leisure centre facilities.

Award Detail

CPV Codes

• 92000000 - Recreational, cultural and sporting services
• 92610000 - Sports facilities operation services

Indicators

Legal Justification

The Council appointed SLM to provide the leisure services pursuant to the Contract and Leases for the management and operation of the Council's three leisure centres. The Contract Period is 10 years from 29 March 2018 with a 5-year possible extension. The Council intends to enter a deed of variation with SLM to modify the Contract to appoint SLM as the Council's Agent. The Deed of Variation will set out the scope of the agency appointment and the extent to which SLM will act as the Council's agent. SLM shall be appointed as the Council's Agent to provide the leisure services and maintenance of the Council's facilities but shall continue to carry out other services (specifically, the provision of food, beverages and retail services) as an outsourced supplier to the Council. The Deed of Variation does not materially alter the risk position of the parties. The Agent shall receive a variable management fee and reimbursement for its operating costs in providing the agency services. The Council is guaranteed a Guaranteed Minimum Return of the revenue received each year on the Council's behalf having regard to the operating costs and management fee payable to the Agent. The Agent shall have a licence to occupy each of the Council's facilities.

Other Information

The Council appointed SLM to provide the leisure services pursuant to the Contract and Leases for the management and operation of the Council's three leisure centres. The Contract Period is 10 years from 29 March 2018 with a 5-year possible extension. The Council intends to enter a deed of variation with SLM to modify the Contract to appoint SLM as the Council's Agent. The Deed of Variation will set out the scope of the agency appointment and the extent to which SLM will act as the Council's agent. SLM shall be appointed as the Council's Agent to provide the leisure services and maintenance of the Council's facilities but shall continue to carry out other services (specifically, the provision of food, beverages and retail services) as an outsourced supplier to the Council. The Deed of Variation does not materially alter the risk position of the parties. The Agent shall receive a variable management fee and reimbursement for its operating costs in providing the agency services. The Council is guaranteed a Guaranteed Minimum Return of the revenue received each year on the Council's behalf having regard to the operating costs and management fee payable to the Agent. The Agent shall have a licence to occupy each of the Council's facilities.