Decision Maker: Cabinet Member for Culture, Tourism and Sport
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
The Cabinet Member approved the direct award of a contract under the Eastern Shires Procurement Organisation’s (ESPO) framework agreement, 345 Fitness Equipment for the acquisition of new equipment (as set out in Appendix 1 of the report) to Technogym UK Ltd.
The Cabinet Member delegated authority to the Head of Finance in collaboration with the Acting Chief Solicitor (Corporate Services) and in consultation with the Managing Director of Brimhams to determine the exact financing details (cash purchase, lease or a combination) and enter in to the proposed contract.
The fitness suite at RLC is being completely refurbished and expanded as part of the redevelopment work currently underway.The enlarged facility will accommodate more fitness stations than are currently operated and additional equipment is therefore required.
After at least 5 years of use, the equipment presently in use at Ripon LC is no longer in prime condition and to reflect the multi-million pound investment in premises, it is appropriate that the existing inventory should now be replaced.
Spin bikes at all sites were renewed in 2016 and now show significant signs of wear. Replacement was originally timetabled for 2020 in line with the RLC project. Provision of new bikes will assist with customer retention.
Procuring Technogym equipment rather than considering other suppliers will:
· Deliver service continuity for both customers and staff.
· Provide consistency across sites (Technogym equipment is operated at The Hydro and Nidderdale LC).
· Minimise the costs of re-training staff and conducting customer induction updates for a new supplier’s range.
· Minimise customer disruption as they will be able to continue to use the existing Brimhams App (operated by Technogym) to monitor and manage their exercise programmes.
· Underpin development of a single membership proposition allowing Brimhams members to use any site, not just the one at which they signed up.
· Maintain Brimhams’ market positioning in a competitive marketplace: Technogym equipment is durable and of high quality.
· Enables value to be released from “trade-in” of existing equipment to offset the contract cost. Trade-in is a more effective, efficient and lower risk alternative than seeking to sell direct on the second hand market.
Consideration is currently being given to determine whether it may be more financially advantageous to the Council if it were to lease some or all of the equipment as an alternative to purchase. This option is being given active consideration.
The delegation recognises that there are sufficient funds available within the budgets identified in the report to fund outright purchase of the new equipment.
Retaining the existing, aged equipment following the multi-million pound investment programme at RLC would undermine the image and attractiveness of the facility.
This, combined with continued use of the five year old spin bikes at all sites, would lead to deterioration in service quality and reduced customer confidence in the facilities and service.
That would likely have an adverse impact on customer retention and financial performance in a highly competitive industry, at a time when all operators are fighting to retain and gain customers in the wake of the coronavirus pandemic.
Open the procurement process to include other equipment suppliers:
If this resulted in a new supplier being appointed, all of the substantial benefits summarised in section 8 (above) would be lost.
Budgets are not currently available to extend the replacement programme to all sites.
Publication date: 14/07/2021
Date of decision: 14/07/2021
Decided at meeting: 14/07/2021 - Cabinet Member for Culture, Tourism and Sport
Effective from: 22/07/2021