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Rushmoor Borough Council - Leisure Centre Operator

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Descriptions

Award Criteria - Error on evaluation weightings for cost elements. These have been amended to:
Main Phase Total 15 Year NPV Management Fee 37.5%
Interim Phase Per Annum Contractor Management Sum 2.5%

INTRODUCTION

Rushmoor Borough Council ('the council') is inviting tenders from suitably experienced leisure facility operators for the operation of a planned new leisure centre to be located in Farnborough as well as the operation of the council's existing leisure centre & lido facilities located in Aldershot.

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:

• the Interim Phase, during which the contractor will manage the Aldershot facility and provide at the request of the Council, provide any input requested in relation to the opening of Farnborough Leisure Facility, and

• 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 mid-February 2026. The Interim Phase of the Contract is planned to commence shortly afterwards from 1st April 2026, at which point the Operator will be required to commence delivery of services at the existing Aldershot facilities to coincide with the summer opening of the Lido.

The operator may be asked to provide input into the final design & configuration of the new Farnborough Leisure Centre where possible within the development programme, as well as mobilisation, launch and other pre-opening services for the new centre.

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

Once awarded the contract will also allow for the alteration, addition and removal of sporting and leisure assets / sites which may go beyond just the existing Aldershot and planned Farnborough centres.

LOTTING STRATEGY

In order to investigate the benefits to the Council of different business models and enable the council to arrive at a fully informed market tested award decision, Suppliers are invited to submit bids for either or both of the following Lots;

• Lot 1 - Leisure Operator Concession Model

• Lot 2 - Leisure Operator Agency Model

CORE SCOPE

The scope of services / activities / inputs that the Operator will be responsible for can be summarised as:

• Equipment fit out of the new Farnborough Leisure Centre

• Operational management of the specified Rushmoor Borough Council leisure facilities;

o Operation, programming, activities & events

o Marketing, promotion & communication

o Customer on-boarding, booking, account management, website, back office & customer service

o Facilities management, Health & Safety management, Servicing, Repairs & Maintenance

o Open book performance reporting, partnership working & continuous improvement

• Delivery of the Authority and Public Health priorities to address the wider determinants of health;

• Partnership working including;

o Developing a higher profile for community sport

o Advocating the benefits of leisure time and activities.

o Open book performance reporting

o Continuous improvement

CONTRACT DURATION, PHASING & OPTIONS

The duration of the Interim Phase of the contract will continue for a maximum of 2 years. It is anticipated that the interim phase will commence on 1st April 2026 to coincide with the opening of Aldershot Lido for the 2026 summer season.

The duration of the interim phase is dependent on the date when the new facility is ready to be opened so may run for a shorter period. Should the opening of the new facility be delayed, the interim phase contract will terminate after 2 years.

Once the new Farnborough Leisure Centre facility opens the Main Phase of the contract will then run for a further 15 years. Opening of the new facility is targeted for late 2027 / early 2028.

The contract may subsequently be extended by up to 10 years, in further increments to be agreed by both parties up to a maximum term of 25 years.

ESTIMATED CONTRACT VALUE

The annual estimated value of the Contract in respect of turnover generation for the Interim Phase 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.

The Main Phase of the contract will involve operation of both the Aldershot facilities and new Farnborough facility. New Farnborough facility - 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 more than £2.5m turnover per annum.

Contract value for total term of contract:

• Interim Phase: (based on 2 years) - £2.4m - £3.2m

• Main Phase: Initial period (i.e.15 years) - £55.5m - £61.5m

• Main Phase: Including extension (i.e. 25 years) - £92.5M - £102.5M

The Council is providing these estimates for transparency purposes only and is not placing any binding upper or lower volume and value parameters which could constrain development of the scheme in terms of scope and revenue generation.

The figures provided are purely provided as guides and it is for suppliers to determine their own projections in relation to demand, revenue generation, costs, etc. and provide a rationale for their estimates as part of their tender submissions.

Whilst the Council may add or remove sites from the contract as well as significantly alter sites, it cannot provide details of what these changes could entail and what may trigger such changes over the term of the contract. The Council is also therefore unable to provide any additional information on how such changes could positively or negatively impact the value of the contract over the base and extended term.

CONTRACT PAYMENT MECHANISM

During the Interim Phase, the Council requires to contract on a cost-plus 'fixed fee' basis. The Council will pay the operator the fixed annual 'Contractor Management Sum' tendered for the interim phase in accordance with the contract/agreement terms on a quarterly basis.

Upon opening of the new facility, the interim phase payment mechanism will cease, and the main phase payment mechanism will come into effect.

During the main phase, the payment mechanism will be subject to a fixed management fee, (a payment to the Council), plus % open book surplus share following the share %s set out within the Specification.

CONTRACT TERMS

The contract/agreement will operate on an open book basis. The contract/agreement 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.

The draft contract/agreement for each lot are provided as separate documents.

• Lot 1 contract - Leisure Operating Contract

• Lot 2 contract - Agency Agreement

VAT AGENCY RULES & GUIDANCE

The agency model is based on existing VAT agency rules and the principles of contract law. As such, the Agency Agreement is subject to changes in HMRC's guidance on VAT agency rules and the treatment of leisure services. Should this occur, the contract will be changed in accordance with the provisions detailed within the Agency Agreement or Leisure Operator Contract (as applicable).

PROCUREMENT TIMETABLE & PROCESS

The procurement timetable is shown below and, while the council does not intend to depart from it, it reserves the right to do so at any time. Should the programme above change, all Suppliers will be informed of this change via ProContract/SEBP.

The procurement timetable is based upon the more likely scenario where the Council does not proceed to award following receipt of 1st stage tenders and instead undertakes negotiations and invites best and final 2nd stage tenders.

• Contract Notice issued on FTS - 24th June 2025

• Procurement documents published on ProContract/SEBP Portal - 24th June 2025

• Site visit registration deadline - 4th July 2025 17:00

• Aldershot facilities site visit - 7th July 2025 - 10:30

• Teams supplier briefing registration deadline - 8th July 2025 - 17:00

• Online TEAMS supplier briefing - 9th July 2025 - 12:30

• 1 - 1 clarification meetings registration deadline - 14th July 2025 - 17:00

• 1 - 1 clarification meetings (TEAMS) - w/c 21st July 2025

• Clarification deadline - 8th August 2025 - 23:59

• 1st stage tender return deadline - 28th August 2025 - 12:00

• Interview & presentation (TEAMS) - if required w/c 22nd September 2025

• Notification of 1st stage decisions - 29th September 2025

• Negotiation meetings (TEAMS) - 6th - 17th October 2025

• Invitation to submit 2nd stage best & final tenders - 3rd November 2025

• 2nd stage best & final tender return deadline - 5th December 2025 - 12:00

• Interview & presentation (TEAMS) - if required - w/c 15th December 2025

• Notification of award decision & issue of assessment summaries - 2nd February 2026

• Contract Award Notice issued on FTS - 2nd February 2026

• Statutory 8 working day standstill period - 3rd - 12th February 2026

• Contract award - 13th February 2026

• Commencement of contract interim phase - 1st April 2026

• Commencement of contract main phase - Late 2027 / Early 2028

PROCUREMENT ADMINISTRATION

The Council is utilising its e-sender tool ProContract to manage this procurement which can be accessed using the following link: https://procontract.due-north.com/Login