Concession award notice
Results of the procurement procedure
Section I: Contracting
authority/entity
I.1) Name and addresses
Shropshire Council
Shirehall, Abbey Foregate
Shrewsbury
SY2 6ND
UK
Contact person: Procurement
Telephone: +44 1743252992
E-mail: procurement@shropshire.gov.uk
NUTS: UKG22
Internet address(es)
Main address: www.shropshire.gov.uk
I.4) Type of the contracting authority
Regional or local authority
I.5) Main activity
General public services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Leisure Services
Reference number: RMC 133
II.1.2) Main CPV code
92610000
II.1.3) Type of contract
Services
II.1.4) Short description
Management, operation and promotion of sports facilities in Shropshire
II.1.5) Estimated total value
Value excluding VAT:
62 000 000.00
GBP
Method used for calculating the estimated value of the concession: (if not specified in other concession documents)
As set out in Article 8 of the directive
Estimated value of the 5 year extension is 20200000.00 inclusive of VAT which is less than 50% of the estimated value of the original concession
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
62 421 234.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UKG22
Main site or place of performance:
Shropshire CC
II.2.4) Description of the procurement
Management, operation and promotion of the sports facilities at the following locations: The Quarry Swimming and Fitness Centre, Shrewsbury Sports Village, Oswestry Leisure Centre and Market Drayton Swimming Centre
Modification of Shropshire’s concession contract to extend the original 10 year contract partly but not wholly in accordance with the terms of the concession contract. The extension is 5 years with modified provisions which are not in accordance with the contractual modification terms as set out in detail below at paragraph 3 (last paragraph of this award notice). These include a break provision at year 2 on 12 months notice by either party. The Original concession started on 1/8/2012 and ends on 31/7/22 with modification the concession is extended to 31/07/27
II.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession
Start:
01/08/2022
End:
31/07/2027
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
Section IV: Procedure
IV.1) Description
IV.1.1) Form of procedure
Award procedure without prior publication of a concession notice in the cases listed below (please complete Annex D4)
Justification for selected award procedure:
The services can be provided only by a particular economic operator for the following reason: absence of competition for technical reasons
Explanation
Prior to the modification the concession was a 10 year contract for service delivery by the concessionaire at the leisure centres identified at II.2.4 from 1st August 2012. The contract includes wide modification provisions including specifically the opportunity for a 5 year extension together with modification to the terms or scope of the contract.
The following terms are outside the modification terms in the contract:
A break provision at year 2 on 12 months notice by either party
A rebasing of the base cost for utilities from the annual base cost and cost set out in the contract which is the actual cost of base usage for the financial year 2012/13 to the annual base cost for each utility shall be for the period 1st August 2022 to 31st July 2023 of the base usage for that 12 month period for each utility.
A payment to the concessionaire which is part of the overall payment to reflect their revenue gap whereas without this the overall revenue payment to them would have significantly decreased
The completion of negotiations outside the timetable for agreeing these set out in the contract which provides for the negotiations to be completed by.31st March 2021.
All of the above terms are considered to be outside the modification provisions of the contract.
The changes to the modification provisions are necessary because of the Worldwide Sars (COVID) pandemic together with a significant recent increase in energy prices, neither of which the contracting authority could have foreseen as provided for in article 43 of the directive. The VAT inclusive and VAT exclusive figures are identical because of the VAT status of the concessionaire and agreed commercial terms.
This contract award is conditional on further authority of Shropshire Council being obtained during week commencing 25 July 2022.
Section V: Award of contract
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
18/07/2022
V.2.2) Information about tenders
Number of tenders received: 1
Number of tenders received from SMEs: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Shropshire Community Leisure Trust Ltd
IP031079
Office 6, Town Hall, 86 Watling Street East
Towcester, Northants
NN12 6BS
UK
NUTS: UKG22
The contractor is an SME:
Yes
V.2.4) Information on value of the concession and main financing terms (excluding VAT)
Initial estimated total value of the contract/lot/concession: 62 000 000.00 GBP
Total value of the concession/lot:
62 421 234.00
GBP
Section VI: Complementary information
VI.3) Additional information
To view this notice, please click here:
https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=704289660
GO Reference: GO-2022719-PRO-20635238
VI.4) Procedures for review
VI.4.1) Review body
Shropshire Council
Shirehall, Abbey Foregate
Shrewsbury
SY2 6ND
UK
Telephone: +44 1743252992
E-mail: procurement@shropshire.gov.uk
VI.4.4) Service from which information about the review procedure may be obtained
Shropshire Council
Shirehall, Abbey Foregate
Shrewsbury
SY2 6ND
UK
Telephone: +44 1743252992
VI.5) Date of dispatch of this notice
19/07/2022