Agenda item

To receive an update on progress with the Health and Leisure Review.

The Panel received a report setting out progress on the Health and Leisure review.

The report dealt with the procurement process and expressions of interest, which resulted in the 4 highest scoring bidders progressing to the next phase. Depending on their progress, the next step was the Invitation to Negotiate phase.

Details of Stakeholder Engagement were given, together with the provisional procurement timeline and financial implications.

Interested bidders had been invited to submit responses by the closing date of 18 October 2019.  A bidder open day had been held across the five centres on the 3 October and the Evaluation Panel reviewed the responses from bidders and scored them on the main categories as follows:-

·         Service Quality Criteria

·         Organisation and resources

·         Market viewpoint and Outlook

·         Customer Experience and Continuous improvement

·         Experience, Track Record and References

Once scores had been established the Evaluation Panel presented their findings to the Stakeholder Panel on the 7 November 2019.

Of the six bidders, four scored 6 or above in all categories, which would indicate that each of these was capable of delivering the service to the expected standards as a minimum.

A detailed Tender Pack had been completed and made available.  Contracts had been drawn up using internal and external legal support and included requirements regarding facilities, contract performance, management provisions, change protocols, council policies, draft underleases and payment mechanisms.

Four bidders, who had progressed through the Expressions of Interest phase, were formally invited to tender on the 29 November 2019.

By the end of December, around 100 requests were received for further information from the bidders, which were being responded to by the Project Team.  The closing date for tenders had been extended from 20 January to 31 January, to allow a thorough response from bidders.

The Evaluation Panel will spend a period of at least two weeks considering the bids received to establish a final score.

On Stakeholder Engagement, the Project Team continued to engage with key stakeholder groups including the monthly Customer Focus Groups and the Health and Leisure Staff Forum as well as meetings with Trade Union Representatives.  Engagement was also continuing with Hampshire County Council and the affected schools, as well as the Customer Forum.  Approximately 250 Customers attended the Customer Forums across five meetings in December.  The Task and Finish Group continues to meet approximately every three weeks to receive updates, including procurement progress and stakeholder engagements.

It was noted that the Evaluation Panel were expected to present their evaluation response to the Task and Finish Group and then to the Stakeholder Panel in early/mid March, when one or more bidders will progress to the negotiation stage.

‘Best and Final’ offers were expected to be made by the end March/early April, and bidders would then present this to customers and stakeholder groups in late April.

The Panel would receive a further update at its meeting in March and any recommendations will be presented to the Panel in June.  Final recommendations would be presented to the Cabinet and Council in July 2020 for a decision. 

Members noted the financial implications, including the additional budget requirement of £50,000 from the Council’s pre-approved service transformation fund.  In answer to a question about the financial implications, it was explained that the additional budget requirement was in part due to the project not being based on a standard contract, and that the extra diligence involved meant a more costly process.  The original estimate was based on a standard contract and the review had evolved over time.  The process was a complex one, with negotiations with schools, the County Council and a very detailed tender specification. 

In answer to a question, it was hoped that bids would substantially improve upon the current surplus to realise the anticipated savings.

RESOLVED: 

That the report be noted, including the additional budget requirement of £50,000 from the Council’s pre-approved Service Transformation Fund, and that the Panel continues to receive regular updates.