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TD2317 - Management of Derby City Council Leisure Centres

Tender Overview

ORGANIZATION

Derby City Council

LOCATION

Derbyshire and Nottinghamshire, United Kingdom

VALUE

£98,400,000

DEADLINE

March 31, 2027 at 23:00

CATEGORY

Other

CPV CODE

92610000

REFERENCE

002024-2026

Project Timeline

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Contact Information

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View Original

Original Tender Description

The Authority is undertaking a Procurement for the "Management of Derby City Council Leisure Centres" The Scope of the Contract will include the management of: - Derby Arena (including Café 42) - Springwood Leisure Centre This procurement is not divided into Lots. The Council does not consider that subdivision into lots would be appropriate, as this could risk tendering the execution of the Contract excessively technically difficult or expensive, and the need to coordinate different operators for the lots could seriously risk undermining the proper performance of the Contract and achievement of the Services' outcomes. The objective of the procurement will be to secure the most advantageous tender considering the Authority's strategic outcomes whilst maximising the payment to the Authority. In undertaking this procurement, the Authority wishes to achieve the following outcomes: • Establish a long-term partnership with an experienced operator • Financial stability for the Centres through reduced costs and increased income due to a more commercial approach • Capital investment by the Operator for backlog maintenance and future works at the facilities • Planned and funded lifecycle investment, given age of facilities and future requirements • Increased participation of the Centres • Increased participation by those residents who are normally less likely to use a leisure centre • Promotion of improved wellbeing for residents • Positive impact on reducing physical activity and health inequality in the City • Maximise Derby Arena's primary focus as a regional, national, and international, sports venue that supports the City's sporting aspirations. It is anticipated that the Contract will commence in April 2027. The estimated value of the contract over the maximum 20 year term is between £82m-£98.4m. This has been calculated based on the total turnover estimated to be generated by the Operator at the Leisure Centres over the maximum 20 year term.
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MANDATORY EXCLUSION GROUNDS

  • No specific mandatory exclusion grounds are explicitly stated in the provided tender information.
✓

ELIGIBILITY REQUIREMENTS

  • The bidder must be an experienced operator.
  • The bidder must be capable of establishing a long-term partnership (up to 20 years).
  • The bidder must be a legal entity capable of managing leisure centres.
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TECHNICAL CAPABILITY REQUIREMENTS

  • The bidder must be capable of managing Derby Arena, including Café 42.
  • The bidder must be capable of managing Springwood Leisure Centre.
  • The bidder must demonstrate a commercial approach to achieve financial stability for the centres.
  • The bidder must be able to provide capital investment for backlog maintenance and future works at the facilities.
  • The bidder must be able to plan and fund lifecycle investment for the facilities.
  • The bidder must propose strategies to increase participation at the Centres.
  • The bidder must propose strategies to increase participation by residents normally less likely to use a leisure centre.
  • The bidder must propose strategies for the promotion of improved wellbeing for residents.
  • The bidder must demonstrate a positive impact on reducing physical activity and health inequality in the City.
  • The bidder must be able to maximise Derby Arena's primary focus as a regional, national, and international sports venue.
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FINANCIAL REQUIREMENTS

  • The bidder's tender must maximise the payment to the Authority.
  • The bidder must demonstrate how they will achieve financial stability for the Centres through reduced costs and increased income.
  • The bidder must commit to providing capital investment for backlog maintenance and future works.
  • The bidder must commit to providing planned and funded lifecycle investment.
  • The bidder must be able to manage a contract with an estimated turnover generation between £82m-£98.4m over a maximum 20-year term.
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SUBMISSION REQUIREMENTS

  • The tender must be submitted by the deadline of 2027-03-31 23:00:00.
  • The tender must be the "most advantageous" considering the Authority's strategic outcomes.
  • The tender must aim to maximise payment to the Authority.
  • The tender must address the management of both Derby Arena (including Café 42) and Springwood Leisure Centre as a single, undivided contract.

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PDF
Official PDF Version
PDF002024-2026_official.pdf
Summary:
This tender seeks an experienced operator for a long-term partnership (up to 20 years, valued £82m-£98.4m) to manage Derby City Council's Leisure Centres, focusing on financial stability, capital investment, and increased community participation.

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68
Good

Tender Quality Score

This tender outlines clear strategic objectives for leisure centre management but suffers from critical omissions in documentation and significant inconsistencies in contract duration, severely impacting its quality and fairness.

Score Breakdown

Legal Compliance100/100

The tender uses a recognized procedure ('Restricted', 'Competitive flexible procedure') but lacks explicit mandatory exclusion grounds, which are typically a legal requirement. The major inconsistency regarding contract duration (10 vs. 20 years) also raises significant legal transparency concerns.

•Absence of explicitly stated mandatory exclusion grounds.
•Major inconsistency in stated contract duration (120 months vs. 'maximum 20 year term').
Clarity40/100

While the strategic objectives and scope are clearly articulated, many 'extracted requirements' are high-level and lack specific metrics or detailed expectations, making it difficult for bidders to understand how their proposals will be evaluated. The contract duration inconsistency is a fundamental clarity issue.

•Vague and high-level technical and financial requirements without specific metrics.
•Contradictory information regarding the contract duration (10 years vs. 20 years).
Completeness83/100

The tender information provided is severely incomplete. The absence of any attached documents, detailed specifications, terms and conditions, and crucially, evaluation criteria, means bidders cannot prepare a comprehensive or compliant submission.

•No tender documents attached or available for bidders.
•Missing explicit evaluation criteria and weightings.
Fairness60/100

The requirement for significant capital investment by the operator, combined with a potentially very long contract term (up to 20 years), could significantly limit competition to a small number of very large, financially robust operators. The lack of evaluation criteria further undermines fairness by preventing transparent assessment of bids.

•Significant capital investment requirement may unduly restrict competition to a limited number of large operators.
•Lack of clear evaluation criteria hinders fair and objective assessment of tenders.
Practicality40/100

From a bidder's perspective, the tender is highly impractical due to the complete absence of supporting documents and evaluation criteria. It is impossible to prepare a meaningful bid based solely on the provided summary. For the Authority, the 'competitive flexible procedure' offers flexibility, but without clear rules, it risks administrative burden and challenges.

•Impractical for bidders to prepare a comprehensive tender without any supporting documents or evaluation criteria.
Data Consistency100/100

There is a critical inconsistency regarding the contract duration. The 'Timeline' states 120 months (10 years), while the 'Description' repeatedly refers to a 'maximum 20 year term' and bases the estimated value on this longer duration. This fundamental discrepancy impacts financial planning and risk assessment.

•Major contradiction between the stated 'Contract Duration: 120 months' and the 'Description' referring to a 'maximum 20 year term' for value estimation and partnership.
Sustainability25/100

The tender explicitly incorporates 'Social Criteria' and outlines strong social outcomes related to participation, wellbeing, and reducing health inequality, which is a significant strength. However, there is no mention of environmental sustainability aspects.

•Lack of explicit environmental sustainability requirements (e.g., energy efficiency, waste management).

Strengths

Clear articulation of strategic objectives and desired social outcomes.
Emphasis on establishing a long-term partnership and operator-led capital investment.
Transparent estimated contract value (despite duration inconsistency).
Inclusion of 'Social Criteria' focusing on community wellbeing and participation.
Detailed description of the scope of services covering specific leisure centres.

Concerns

Critical absence of tender documents, detailed specifications, and evaluation criteria.
Major inconsistency in contract duration (10 years vs. 20 years) affecting financial planning.
Vague and high-level requirements that lack specific metrics for objective assessment.
Significant capital investment requirement potentially limiting competition.
Absence of explicitly stated mandatory exclusion grounds.

Recommendations

1. Immediately publish comprehensive tender documents, including detailed specifications, terms and conditions, and clear evaluation criteria with weightings.
2. Clarify and correct the contract duration inconsistency, ensuring all related financial estimates and partnership terms align.
3. Elaborate on technical and financial requirements with specific, measurable criteria and expected outcomes to ensure fair and objective evaluation.

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Tender Quality Score
68/ 100 · Good
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