Management Options, Outsourcing and Competition

Market testing: Since the advent Compulsory Competitive Tendering in the late 1980’s, we have helped clients with market testing of their services. A sample of projects includes:

 

  • The transfer of London Borough of Lambeth’s DSO to Relaxion (now Leisure Connection).  During a one year secondment to the Council we drafted all contact documents, ran the tendering process and made a final report to the Council on the best option available.  The transfer was one of the biggest of its kind involving four major facilities and a total annual turnover of £8 million.  The transfer achieved a reduction in the annual operating costs of £0.5 million and levered in investment of £2.5 million. 

 

  • A similar project at the London Borough of Brent.  Here the process was made more complicated by the failure of an existing private contractor whose contract was terminated.  This resulted in a quickly organised, short term contract with the Council bearing the trading risk followed by a longer contract with the risk being transferred to the contractor. These contracts also delivered annual subsidy savings in the order of £0.25 million and attracted investment of £2.5 million. 

 

  • Identifying the best contract and service packaging arrangements for a new swimming pool and other leisure facilities at North Hertfordshire District Council and to oversee the award of the contract to a leisure trust from a neighbouring borough.

 

  • The procurement of leisure management services for all facilities for West Somerset District Council, including specifying the service, evaluation of tenders and post-tender negotiations’.