The approaching expiry of a leisure facilities management contract naturally raises important questions, and determining the next steps can be complex, especially given the various external pressures and resource constraints local authorities often face. While a contract end date that’s two to three years away may seem distant, it can approach quickly. Determining and progressing the next steps can take longer than expected, making early planning essential.
The options can vary - extend your current contract, tender for a new provider, bring services back in-house, or explore alternative delivery models such as a local authority trading company. While it can be tempting to stick with the status quo, the end of a contract presents the ideal opportunity to review your position, assess performance, and explore opportunities for cost savings, service improvements, and better alignment with wider strategic objectives.
A comprehensive review of the current contractual arrangements should ideally begin two to three years before the contract’s end. This should include careful consideration of whether an alternative delivery model might better meet future needs.
Early appraisal is crucial in order to plan resources and timelines appropriately. Procurement processes for new contracts and the bringing of services back In-House or setting up alternative delivery vehicles can often take up to 18 - 24 months, including the time required for procurement and strategy development. Stakeholder engagement, business case development and internal governance procedures also involve additional resource and time.
Delaying these steps can lead to rushed decisions, lost opportunities, and even service disruption as expiry dates approach.
The end of the contract provides a natural review point to fully assess how well, or otherwise, it has worked for your facilities. Authorities should conduct a thorough review of:
Robust assessment will both highlight areas where the existing arrangements are performing well and areas which require improvement to ensure future service delivery models are closely aligned with needs and budgetary requirements.
Leisure provision plays a crucial role in advancing wider local authority objectives such as public health, social inclusion, and community wellbeing. As a contract approaches its end, it creates a timely opportunity for local authorities to re-evaluate the role of leisure services and ensure that future service delivery is fully aligned with the authority’s long-term strategic priorities, not simply as providers of sport and fitness, but as key contributors to improved physical and mental health, reduced pressure on public health services, greater social cohesion, local employment, and progress towards its climate goals.
It is also an ideal time to reflect on the key factors that should shape a management options appraisal. These include the capacity to manage services in a different way, opportunities to expand or reconfigure the leisure portfolio, future budgetary targets, and the potential for closer collaboration with other Council services.
Importantly, this stage provides the opportunity to define or revisit the core drivers and strategic outcomes the Authority seeks to achieve through its leisure provision, ensuring future delivery is purposefully aligned with those goals.
There are several options open to local authorities approaching the end of their leisure management contract and it’s worth considering them all:
A well-structured management options appraisal will consider all these options in detail and is a critical step in shaping a future-proof delivery model. It enables a thorough review of current performance and provides clear, evidence-based recommendations for each option under consideration. By incorporating robust business cases that assess wider social and economic benefits, the appraisal ensures alignment with strategic objectives, supports informed decision-making, and strengthens the case for future investment in the service. Ultimately, it lays the foundation for a sustainable and effective management strategy.
Is your leisure management contract due to expire in the next few years? FMG Consulting can support you with management options appraisals, stakeholder engagement, and future delivery planning. Contact our team today to begin the conversation!
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