Rushmoor Borough Council - Leisure Centre Operator - Preliminary Market Engagement

Descriptions

Following completion of the Preliminary Market Engagement process, Rushmoor Borough Council - the 'Council' - will undertake a formal procurement process to appoint a leisure operator to manage both the existing Aldershot Pools & Lido, and a proposed new leisure centre in Farnborough. The new Farnborough facility will be located in the regenerated Civic Quarter, which seeks to provide a new community heart in the town centre. The new Farnborough Leisure Centre, which is currently scheduled to open late 2027 / early 2028, will proactively address identified community needs aligned to health, physical activity and social wellbeing. The leisure operator appointed via the subsequent formal procurement process will manage both the Aldershot and Farnborough facilities, with the contract split into two distinct phases: (i) the Interim Phase, during which the contractor will manage the Aldershot facility and provide pre-opening services in relation to Farnborough, and (ii) the Main Phase, during which the contractor will fully operate both facilities. The Council is currently targeting award of the contract to the successful Operator by the end of February 2026. The Interim Phase of the Contract is planned to commence shortly afterwards, at which point the Operator will be required to commence delivery of services at the existing Aldershot facilities. The Council's target date for opening of the new Farnborough facility is late 2027 / early 2028, at which point the contract will enter its Main Phase. The duration of the Interim Phase is dependent on the date the new facility is ready to be opened, but is likely to run for around 18 to 24 months. Payment of a significant management fee - and a surplus share - to the Council is an important part of ensuring the business case to deliver the facility is robust and allows for the proposed development to proceed. The key specific priorities for the Council which are developed within the operational specification are: • To increase physical activity and participation through the activities in our Leisure Facilities • To ensure leisure facilities will promote and address improved physical and mental health and well-being in the borough • To ensure that mental and physical health is addressed through a wide programme of activities, both within the Leisure Facilities and on an outreach basis • Employment of a Health and Wellbeing Officer to establish links with local health and care services and providers to provide pathways into physical exercise and wellbeing activities, particularly for residents with poorer health outcomes. • To ensure that opportunities for active travel are promoted • To reduce energy consumption in the operational delivery of the contract to support the Authority's ambition to become carbon neutral • That in operating the Leisure Facilities there is a focus on both income generation and social outcomes. Ensuring that children and young people start to become physically active from an early age, adults integrate physical activity into their everyday lives, and older people stay active are key principles for this new operational management contract. The Council wishes this operational management contract to focus on: • Improving the health and wellbeing of the whole community • Contributing to reduced obesity levels, particularly for priority groups • Contributing to improved mental health levels in the community, particularly for priority groups • Increasing levels of participation in physical activity and sport through behaviour change The Council has identified the following key Strategic Priorities for the Services to be delivered by the Operator Partner which are designed to contribute to the Council's wider local Strategic Outcomes. • Deliver high quality Services that meet the Performance Standards and exceed customer expectations • Deliver financially and environmentally sustainable Facilities • Ensure Facilities are maintained to a high standard throughout the life of the contract • Increase inclusive opportunities to participate in sport and physical activity, from beginner to performance level for all sections of the community • Increase activity levels from underrepresented/priority groups identified as having no or low levels of physical activity including people with disabilities and their priority groups • Improved access to Facilities, activities and opportunities for priority groups that participate less in sport and physical activity, including people with disabilities • Provide wider social value through strong and positive engagement with partners/community • Support the development of local sports clubs to deliver • Ensure programmes and activities provide maximise use of all the Facilities • Ensure Facilities remain commercially attractive, recognising that a quality environment attracts participation. The Operator will be required to achieve and maintain the Sport England recommended Quest Facility Management accreditation scheme (or any equivalent successor scheme) for the Facilities, and Quest for the Active Communities Programme (Health and Wellbeing Development Programme). This should be obtained by: • The end of Year 2 of the Main Phase of the contract for the Health and Wellbeing Development Programme. • The end of Year 2 of the Main Phase of the contract for the new Farnborough Leisure Centre and Aldershot Pools & Lido for the Facility Management accreditation. The Operator will be required to achieve and maintain a minimum standard of 'Excellent' for the Sport England recommended Quest ™/Quest ™ Plus Facility Management accreditation scheme (or any equivalent successor scheme) and Quest ™/ Quest ™ Plus Active Communities scheme for the outreach Health and Wellbeing Programme. The envisaged partnership and operational management contract will operate on an open book basis. The contract has been developed using the Sport England model as set out in its latest Leisure Services Delivery Guidance (LSDG), format but has been updated to reflect relevant changes since the pandemic relating to CIL, risk and utility benchmarking. During the Interim Phase, the Council is proposing to contract on a 'fixed fee' basis. The Council will pay the Operator a fixed annual 'Contractor Management Sum', (sum tbc), in quarterly instalments. The sum will be set by the Council and may be adjusted through the procurement process. It is envisaged that the Operator will then issue the Council a monthly invoice in respect of a Monthly Service Charge, (operating costs and expenditure, minus all operating income plus an apportionment of the quarterly 'contractor management sum'). This will in effect underwrite any losses incurred by the Operator on a dynamic open book basis which protects against under and over payments. Upon opening of the new facility, the payment model will be subject to a fixed management fee, (a payment to the Council), plus % open book surplus share. Whilst the Council will require a fixed management fee and surplus share, tenderers may have the ability to profile fees and surplus share percentages. The Council will be seeking a hybrid approach in relation to servicing and maintenance of the sites. The Operator will take on full delivery and risk for all aspects of facilities management, servicing, reactive maintenance and lifecycle maintenance for the new Farnborough Leisure Centre. In respect of the Aldershot site, the Operator will be required to take on responsibility and risk for facilities management, servicing and reactive repairs but will not be required to take on lifecycle maintenance responsibility. It is envisaged that the Operator will take risk on all costs of operation, other than in respect of utilities where the Council may accept risk in respect of tariff fluctuations. The Council's starting position will be that consumption risk will still sit with the Operator. Where possible and where it is in the interests of the achieving best value, the Council may allow access to any advantageous utilities rates that it has leveraged from the market. In respect of the new Farnborough Leisure Centre, a utility benchmarking exercise will be undertaken twelve months after the opening of the new facility to assess any change in tariff rates. The finalised speciation will be based upon the Sport England template as set out in its latest Leisure Services Delivery Guidance (LSDG). The scope of services that the Operator will be responsible for can be summarised as: • Equipment fit out of the new Farnborough Leisure Centre • Operation, programming, activities & events • Marketing, promotion & communication • Customer on-boarding, booking, account management, website, back office & customer service • Facilities management, Health & Safety management, Servicing, Repairs & Maintenance • Open book performance reporting, partnership working & continuous improvement The annual estimated value of the Contract in respect of turnover generation for the Interim Period is in the range of £1.2m to £1.6m. Estimated turnover per annum for the Aldershot facilities is highly variable as usage of the Lido is directly impacted by weather conditions. Turnover for the Aldershot Pools is currently c.£1.1m, with turnover for the lido varying between £150-£450k. In respect of the new facility the current business case projections, which are based upon local demand forecasts and industry benchmarking, are that operations, activities and events run from the new centre that fall within the scope of this contract could generate in excess of £2.5m turnover per annum. The duration of the Interim Phase is dependent on the date when the new facility is ready to be opened but is likely to run for around 18 months to 2 years. Once the new facility opens the Contract will then run for a further 10 years. The contract may be subsequently extended by up to a further 5 years.