TD2317 - Management of Derby City Council Leisure Centres

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.