Service Contract - Operator to manage the Council’s five Health and Leisure Centres on behalf of New Forest District Council using a ten year Contract commencing in Q4 2020

A Contract Addendum Notice
by NEW FOREST DISTRICT COUNCIL

Source
Find a Tender
Type
Contract (Services)
Duration
10 year (est.)
Value
___
Sector
MISCELLANEOUS
Published
21 Dec 2023
Delivery
To 21 Dec 2033 (est.)
Deadline
n/a

Concepts

Location

Lyndhurst

Geochart for 1 buyers and 0 suppliers

Description

Service Contract - Operator to run five Health & Leisure Centres on behalf of New Forest District Council ("the Council") under a service contract made up of a transition year commencing 1st July 2021 followed by an initial 10-year term with the option to extend by a further 4 years (“the Services”) – subject to contract OJEU Contract Notice: 2019/S181-440831 ProContract Ref: DN435977

Ammendments to Previous Notice

2. II.1.4 Service Contract modification 21.12.23

(1) Description of the modification The Contract has been modified such that Freedom Leisure will absorb the first 10% of increased utility costs compared against their year 2, 3, 4 & 5 bid assumption (3% inflation adjusted) and a share arrangement has been put in place for any overspend beyond 10% for each contract year. The share will be 50% the Council and 50% Freedom Leisure. Based on the Year 2 outturn, the increased price which will be paid by the Council for Year 2 is £347,866. At this stage, the Council is unable to set out what the price increase will be for years 3, 4 and 5 but the Council does not consider that the total increase in price will exceed 50% of the value of the original contract. (2) Reasons for modification The need to modify the contract has been brought about by the extraordinary increase in utility costs caused in part by the shortage of gas as a result of the war in Ukraine. The significant increase in energy prices which has been caused by the war in Ukraine could not have been foreseen by the Council at the time that the contract was signed and the modification is necessary in order to ensure that the contract remains deliverable without a reduction in service levels/ changes to service delivery for the remainder of the contract term. The variation will not alter the overall nature of the contract as the same services will continue to be provided and the increase in payment from the Council will not exceed 50% of the value of the contract. The variation is therefore permitted in accordance with Regulation 72(1)(c) of the Public Contracts Regulations 2015.

CPV Codes

  • 92000000 - Recreational, cultural and sporting services

Reference

Domains