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Fareham Borough Council 2005 — Public Private Partnership Case Study

The brief

Fareham Borough Council lies at the foot of the Meon Valley set in the Hampshire countryside, and adjacent to The Solent. The Borough covers almost 30 square miles of southern Hampshire and is positioned midway between Portsmouth and Southampton.

Fareham Borough Council provides a high quality and wide ranging Leisure Service primarily through the Fareham Leisure Centre. The leisure centre is the borough’s main venue for indoor sport, is viewed as the ‘flagship’ indoor sports facility in the borough.

As a result of an options appraisal, the Council decided to develop a partnership for the management, operation and development of the Fareham Leisure Centre The Council identified in their Best Value review process definitive objectives swimming services. Of paramount importance was the need for a significant transfer of risk, revenue reductions and investment in the facility..

Our Approach

Strategic Leisure managed the procurement process attracting significant interest from the wider leisure management market including the private sector operators and established Trusts. In keeping with the principles of Best Value, Strategic Leisure’s advice was for the Council to adopt a modern partnership approach based upon shared vision and objectives. The Council embraced this strategy and modern partnership principles were used to develop the partnership documentation.

Project Outcomes

The procurement process and subsequent evaluation identified a preferred partner SLM Ltd who met the Council’s financial and service objectives. This partner was identified following a robust evaluation based upon the Economy, Effectiveness and Efficiency of each submission. The result has realised significant benefits for the Council, in summary these are;

  • A long-term sustainable solution for the leisure centre service for 10 years.
  • Savings of nearly £3m over ten years and removal of the service subsidy
  • A partner that shares the Council’s vision and Partnership commitment.
  • Significant investment in the region of £2,100,000
  • A performance management framework based upon a balanced scorecard for the future measurement of the performance of the service.
  • A significant transfer of risk from the Council to the new Partner. Specifically a full repairing obligation on the Partner
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