Leading consultancy SLC shares insights from recent successful leisure services procurement exercises

For many councils, securing a partnership with a specialist operating partner delivers best value and in many cases, a financial return. This can be reinvested back into essential services and/or help achieve savings targets.

This is often linked to the council adopting a strategic approach using the Strategic Outcomes Planning Guidance – which SLC co-authored.

Through our unique experience of supporting over 50 successful procurement exercises we have identified ten key steps to success. We highlight two recent case studies from Mole Valley and North Herts who followed them and secured outstanding outcomes.

Ten key steps to successful procurements

Step 1: Establish what outcomes your future services should deliver and for whom

Step 2: Understand the likely value of your management contract

Step 3: Identify if/how investment will feature

Step 4: Establish a fair and balanced risk share

Step 5: Make your procurement attractive to the market

Step 6: Resource your procurement appropriately

Step 7: Determine your governance structure and key gateways

Step 8: Set your evaluation priorities

Step 9: Ensure you have robust supporting information

Step 10: Capture your requirements in clear procurement documentation.

Case Study 1: Mole Valley District Council

Mole Valley DC commissioned SLC in September 2022 to support the procurement of a new leisure management contract.

SLC had previously supported the Council in exploring options for the future management of its two leisure centres which were previously operated under separate contracts. This concluded that procurement of a single, combined contract with an external operator partner was the preferred option.

SLC worked with the Council to identify new strategic objectives which would direct and guide the future delivery of its leisure services.

A robust procurement strategy was developed, informed by market insight and presenting an optimal balance of risk. Managing the Council's preferred risk levels whilst ensuring the opportunity was attractive to the operator market was critical to this process.

The new services specification reflected the new strategic approach and included a requirement for a new Active Communities Programme of outreach interventions targeted at less active residents. Following the comprehensive and robust tender process, the new 15-year Active Communities Leisure Management Contract commenced on 26 November 2023.

The partnership will collaborate on investment and improvement opportunities at the facilities, working with wider stakeholders to co-design and deliver a new Active Communities Programme.

The financial outcome significantly improved on the previous arrangements in place.

"It was great working with SLC – easy to work with, responsive and supportive with a wealth of experience and expertise in the leisure industry"

Patrick McCord – Service Lead, Community Safety and Wellbeing, Mole Valley DC

 

Case Study 2: North Herts Council

North Herts Council commissioned SLC in February 2023 to support the procurement of a new leisure operating contract for its portfolio of five leisure facilities. SLC had recently supported the Council in developing a new Active North Herts Strategy.

The procurement of a new contract provided the Council with an exciting opportunity to embed the objectives of the Active North Herts Strategy into the operation of its leisure facilities. The new contract is designed to deliver more impactful health and wellbeing outcomes. It focuses on broader active wellbeing, delivered through targeted work within less active communities, recognising the role of the service as a critical element within the wider ‘system'.

A new 10-year contract will commence on 1 April 2024 with a broader remit to help tackle local health inequalities. It also secures a business case for c. £6.7M investment into the facilities. Despite broadening the scope of services to include a new Active Communities Programme, the new arrangements will improve the management fee by c. £6M over 10 years.

"Working with SLC on our procurement has been a positive experience from start to finish. Their professional expertise and market knowledge has been invaluable in ensuring we went out to tender with a high-quality specification and followed a robust procurement process. The complexity of procuring a leisure contract should not be underestimated and using SLC was a very wise investment, as we are all delighted with the end result."

Sarah Kingsley, Service Director – Place, North Herts Council

 

Next in this series

In our final article we will explore how to procure a partnership focused on Active Wellbeing. This draws on our latest work with progressive local authorities and features a recent highly successful leisure and active communities procurement exercise.

Find out more

• SLC will be running a free virtual Leisure Procurement Think Tank seminar on Tuesday 19th March 10am - 12pm – Preparing for procuring a new leisure partnership – key learning from recent procurements from Mole Valley DC and North Herts Council. For local authority public health, leisure and community leads.

• We are also offering the opportunity for a one hour session with our Directors to explore your current circumstances in more depth. Following this you will receive a free State of the Market Summary report highlighting our learning from recent procurement projects.

• To request a place at our Think Tank or to book an exploration session and receive a State of the Market Summary Report, email us at info@slc.uk.com.

www.slc.uk.com          Call: 01444 459927          Email: info@slc.uk.com

This article is sponsored content for The MJ