Shropshire Council: Leisure Services

UK-Shrewsbury: Sports facilities operation services.

Section I: Contracting Authority
I.1) Name and addresses:
       Shropshire Council
       Shirehall, Abbey Foregate, Shrewsbury, SY2 6ND, United Kingdom
       Tel. +44 1743252992, Email: procurement@shropshire.gov.uk
       Contact: Procurement
       Main Address: www.shropshire.gov.uk
       NUTS Code: UKG22

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 - Sports facilities operation services.
          

   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       
      Currency : GBP       
      Method used for calculating the estimated value of the concession: 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 (excluding VAT)    
         Value : 62,421,234 Currency : GBP
   

   

II.2) Lot Description    

   II.2.2) Additional CPV code(s)
    Not Provided

   II.2.3) Place of performance
      Region Codes:      
      UKG22 - 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.2.5) Award criteria:
               
      Concession is awarded on the basis of
         the criteria described below
         
            Criterion: This is the extension of a Concession
            

   II.2.7) Duration of the 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       
               
   
   II.2.14) Additional information Not Provided             
         
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 (refer Annex D4)   

   
   
   IV.1.11) Main features of the award procedure    
    Not Provided

IV.2) Administrative information

   IV.2.1) Previous publication concerning this procedure:
      Notice number in OJ S: Not Provided

Section V: Award of concession
   
Award of concession : 1
      
Title:
A concession/lot is awarded: Yes    

V.2) Award of concession:
   
   V.2.1) Date of concession award decision: 18/07/2022    
   
   V.2.2) Information about tenders
      Number of tenders received: 1       
      Number of tenders received from SMEs: 1 (SME - as defined in Commission Recommendation 2003/361/EC)
      Number of tenders received from tenderers from other EU Member States: Not Provided       
      Number of tenders received from tenderers from non-EU Member States: Not Provided       
      Number of tenders received by electronic means: Not Provided       
      
      The contract has been awarded to a group of economic operators No
   
   V.2.3) Name and address of the concessionaire       
      Name and address of the concessionaire No. 1
       Shropshire Community Leisure Trust Ltd, IP031079
       Office 6, Town Hall, 86 Watling Street East, Towcester, Northants, NN12 6BS, United Kingdom
       NUTS Code: UKG22
      The concessionaire 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: 6.2E7      
      Total value of the concession/lot: 6.2421234E7       
      Revenue from the payment of fees and fines by the users: Not Provided       
      Prizes, payments or other financial advantages provided by the contracting authority/entity: Not Provided       
      Currency: GBP       
      Any other details relevant to the value of the concession according to Art. 8(3) of the directive: Not Provided       


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-2022719-PRO-20635235 TKR-2022719-PRO-20635234       
VI.4) Procedures for review

   VI.4.1) Review body
       Shropshire Council
       Shirehall, Abbey Foregate, Shrewsbury, SY2 6ND, United Kingdom
       Tel. +44 1743252992, Email: procurement@shropshire.gov.uk    
               
   VI.4.2) Body responsible for mediation procedures
      Not Provided

   VI.4.3) Review procedure
   Precise information on deadline(s) for review procedures:       
         Not Provided          
         
   VI.4.4) Service from which information about the lodging of appeals may be obtained:
       Shropshire Council
       Shirehall, Abbey Foregate, Shrewsbury, SY2 6ND, United Kingdom
       Tel. +44 1743252992    

VI.5) Date Of Dispatch Of This Notice: 19/07/2022

Annex D4 - Concession

Justification for the award of the concession without prior publication of a concession notice in the Official Journal of the European Union 2014/23/EU
   
   1. Justification for the award of the concession without publication of a concession notice in accordance with Article 31(4) and (5) of Directive 2014/23/EU
      
      No tenders or no suitable tenders/requests to participate in response to a procedure with prior call for competition - No       
      
      The services can be provided only by a particular economic operator for the following reason:
             Absence of competition for technical reasons   
            

   3. 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.