In 2022, Max Associates was commissioned by South Holland District Council, Boston Borough Council, and East Lindsey District Council to deliver strategic reviews, investment proposals, feasibility studies, and procurement support for three new leisure centres and seven existing facilities.
Context
In 2022, we completed a strategic review and developed investment proposals for South Holland District Council, Boston Borough Council, and East Lindsey District Council. Across the partnership, we delivered investment plans and feasibility studies for three new leisure centres, and support the Councils in securing a combined total of £60 million in funding through the Levelling Up Fund (LUF) and Towns Fund.
We supported the Councils through two short-term procurement exercises to align existing contracts, followed by an area-wide procurement covering all seven leisure centres across the sub-region.
A summary of our support is outlined below. We provided full feasibility studies for all three leisure centres and developed a comprehensive Green Book-compliant Full Business Case for the Towns Fund application for the Geoff Moulder Centre. We also provided supporting evidence for the Levelling Up Fund application for the South Holland Health and Wellbeing Centre (with Amion coordinating the submission on behalf of the Council), alongside full feasibility and revenue business planning for the Leisure and Learning Centre in Mablethorpe.
Area-wide Operator Procurement
At the outset, each council operated under different management arrangements: Boston operated in-house, East Lindsey worked with Magna Vitae (an established trust), and South Holland partnered with Parkwood Leisure.
A short-term procurement exercise at Boston resulted in Parkwood Leisure being appointed to manage the Geoff Moulder Leisure Centre under an open-book arrangement during the investment phase. This provided the Council with valuable insight into the operation of an externally managed model. The mixed arrangements meant that each council had a different approach and varying levels of control over their leisure facilities and there was a risk that one of the councils may withdraw from the process, if they felt their outcomes were not being met.
Our support included:
- Development of service specifications aligned to strategic outcomes
- Design of a robust evaluation framework, including criteria and weightings
- Commercial and financial advisory input to optimise risk allocation and value for money
- Procurement strategy, phasing, and programme development
- Participation in evaluation panels and bidder negotiations
- Finalisation of financial contract documentation and schedules
The resulting contract includes different commencement dates for each council and accounts for the phased onboarding of new facilities during the early years of delivery.
A key element of the process was the inclusion of an “agency model” agreement. A major lesson learned was that operators typically prefer to adopt their own delivery models and are more willing to accept risk under these structures than under models prescribed by the authority. The procurement process allowed for this flexibility, ultimately delivering a stronger overall financial position and improved risk profile for the councils.
Testimonial
“This suite of leisure projects, delivered since 2022, has formed a key part of the Alignment and Delivery Plans of the three Council’s Partnership securing significant capital investments and contributing heavily towards the partnership achieving its savings target of £50M ahead of programme. Given the programme range and complexity, it was essential that we should appoint a credible and experienced specialist partner with a track record of successful delivery of leisure commissions to support the coordination and delivery of such an innovative programme.
Having worked with Max Associates on previous leisure contract procurement, we were delighted to be able to appoint them to assist with this complex set of project requirements.
The team at Max Associates provides an experienced, knowledgeable and timely specialist service and I would have no hesitation in appointing them again, and in recommending them. Their support, guidance and attention to detail have been excellent.”
Mark Humphreys, Head of Special Projects (Leisure), South & East Lincolnshire Council’s Partnership
