Spinnaker Tower Operator

Location

Portsmouth:

Description

Portsmouth City Council - the 'Council - is inviting tenders from suitably qualified and experienced operators for the operation of the Spinnaker Tower - the 'Tower' - on a long term mutually incentivised partnership basis. THE TOWER The Spinnaker Tower is located on the waterfront within Gunwharf Quays shopping centre and is a prominent landmark offering views of the city, the Solent and the Isle of Wight. The Tower is Portsmouth's most prominent landmark, 170m in height with 3 upper viewing platforms at 100, 105 and 110 metres providing views of Portsmouth Harbour and the Solent. The tower opened in 2005 attracting 100,000 visitors in the first two months of opening. There is a reception at the base of the building with ancillary interpretation space, entertainment and leisure uses, ticketing, plant, management and staff facilities. There are two cafes - the ground floor Spinnaker Kitchen and Bar and the Cloud Café located on View Deck 2, 105 metres up. There is an additional podium area at ground level which is activated over the festive period for a Christmas market, with potential for it to be used permanently as commercial space. Permitted Uses, Opening Times & Access Under the new contract the primary function of the Tower must remain a public viewing tower, to be open in line with hours set out within the Council's specification. Through the procurement process suggestions for incorporation of historical and maritime components, that may also include literary and cultural references associated with the wider city, will be considered. The Operator must ensure that the Tower is open to the public for a minimum of 8 hours/day April to September and 6 hours/day October to March except Christmas Day. Core opening times are 10.00 - 18.00 during summer months and 6 hours within the core times during the winter months (e.g.10.00 - 16.00). The Operator may open earlier or later to support other activities such as breakfasts or evening events and functions. No curfew has been set. The Council will require use of the Tower for its own direct activities and in support of wider community activities to a total of 47 hours free of charge per year, further details are provided within the specification. Suggestions for complementary ancillary uses will be permitted. Examples include but are not limited to: • Food and beverage options such as a café, fine dining etc. • Entertainment including comedy evenings, cocktail evenings etc. • Virtual reality 'thrill experiences' • Private Functions including weddings, corporate events etc. Proposals for other activities / experiences will be considered. Suggestions for the use of the overall space, including the associated capital investment, will be considered. For example, the opportunity for development of the underused podium deck. Any investment must be solely funded by the operator. Contract Term, Estimated Value & Target Commercials Award of the contract is targeted for 28th July 2026. The successful operator will be required to seamlessly commence operations under a lease with associated concession arrangement from 11th October 2026 following expiry of the lease held with the current incumbent operator on 10th October 2026. The lease and associated concession contract will be let on a 25-year basis. Break clauses subject to 12 months notice will be included for at years 10, 15 and 20 of the lease. The Lease will be subject to rental / management fee and optional revenue share payments from the Operator to the Council. For the initial 3 years of the contract the Council is able to allow for the Operator to operate on a rent-free basis - although the Council is incentivising a level of rental payment to the Council within this period through application of the tender evaluation model. From year 4 of the contract the Council is targeting a total guaranteed rental payment of ideally approx. £275k per annum. This target value can also be provided through the addition of optional revenue share payments, although achievement of the target should predominantly (ideally 90% / £247k) be through the value of the fixed rental payment. NB: Suppliers should note that the rental payment value stated is an approximate target only and bids which do not meet this target will not be disqualified at tender evaluation. Rental payments are to be made in advance on a quarterly basis per annum. Rental payments will be subject to 5 yearly rent reviews with increases subject to CPI adjustments. Operators are able to include for revenue share proposals with their bids. The inclusion of a revenue share element is solely at the option of Operators, although inclusion is incentivised through application of the award criteria. As the revenue share element is optional no minimum revenue share percentage of shall apply, however the proposed percentage must not exceed 10%. The revenue share proposed by the Operator may vary over the term of the agreement but must always be no more than 10%. In addition to rental and revenue share payments, the Council will also recover reinstatement insurance premium costs from the Operator. The Council is currently seeking specialist insurance advice which will inform the per annum figure to be accounted for within Operator commercial models. The Council is targeting to issue an insurance cost recovery value by week 3 - 4 of the tender period. The contract will be subject open book reporting. The Operator will be required to report on revenues generated by business activities on a quarterly basis and upon request within 10 working days along with provision of supporting evidence. At the end of each operating year the Operator will be required to produce full audited accounts for operation of the Tower, providing full details of sales, costs, O/H contribution, profits, dividends, etc. Based upon current revenue and subject to indexation the Council estimates that the successful Operator could achieve a 25-year turnover figure of approx. £90M. However, the Council considers that there are significant opportunities to increase revenue though investment, diversification of activities, food & beverage offer, sponsorship, advertising, etc. which could have a major positive impact upon revenue generation, potentially increasing revenue generation to £110M and beyond over the 25 year term. However, it should be noted that all estimates in respect of the value of the business opportunity are purely indicative and provided to comply with the requirements of the Procurement Act 23 in relation to publication of estimated contract values. Maintenance, Servicing & Facilities Management The Council will retain responsibility for the repair and maintenance of the items listed below which are further detailed within the procurement documents: • External Structure Works and inspections including the spire, view decks, tower legs, concrete shafts, ribs, bows, transfer landings and substructure, but excluding the base building and podium level. • Structural Glazing and Curtain Walling System on View Decks • Upgrading / major refurbishment / replacement of the lift. The Council is also progressing with lift refurbishment and other structural maintenance works which are currently scheduled to take place during the 1st year of the lease. Operators should be aware that a closure period for the viewing tower will be required to undertake these works. The exact length and scheduling of these works have yet to be confirmed but are likely to be approximately 6 months in duration. The Council will fund and deliver the works and will work with the Operator to agree the timing of any closures where possible. Operators should note that future lift refurbishment / replacement responsibility will fall with the Operator. The Operator will be responsible for all internal repairs and maintenance and to keep the property in good repair and condition including, but not limited to: • Reactive repairs and planned maintenance • Decorations and finishes • Fixtures and fittings • Sanitary facilities • Bar and kitchen areas • Surfaces in plant rooms, internally to the bows and spire The Operator will be responsible for the following external repairs and maintenance and to keep the property in good repair and condition including, but not limited to: • Base building - Floors, Walls and Roof • Podium level • Doors and Windows • External decoration works of the legs, concrete shafts, ribs, bows, transfer landings, base building, podium level, brise soleil etc. • Paving surrounding the tower and at podium level • Balustrades/Handrails round the podium level, podium stairs, terrace level and promenade level The Operator will be required to undertake all Planned Preventative Maintenance (PPM) and reactive repairs including maintenance, servicing and replacement (both minor and major) to those building elements highlighted as tenant responsibility. The Operator is responsible to keep all M&E, both internal and external to the Tower, in good condition and maintenance including, but not limited to: • Servicing • Reactive and Planned Repairs/Maintenance • Surveys • Lifecycle replacement • Lift servicing & general maintenance (excluding upgrading / major refurbishment / replacement) The Operator shall provide the M&E maintenance service through a regular and organised regime and provide the Council with records of the works such as EICRs etc. Beyond the maintenance activities listed above, the Operator will be responsible for all building management activities required to ensure that the Tower is kept safe, clean and secure, including for: • Statutory Compliance Testing • Heating & Lighting • Cleaning • Security • Utilities and Environmental Management • Fire Detection & Emergency Lighting • Accessibility, Health & Safety and Safeguarding

Renewal Options

The Council reserves the right to engage the next placed highest scoring Supplier (ranked 2nd) to deliver the Concession Contract in the event that any of the following events occur during the award, mobilisation and delivery of the services during the term of the contract: • The Council is unable to agree and execute terms of Concession Contract with the preferred Supplier identified through evaluation of the submitted tenders • The preferred Supplier identified through evaluation of the submitted tenders fails to mobilise and commence the services in line with the agreed programme, or is significantly delayed in meeting programme milestones and is highly likely to not commence services in line with the agreed programme • The Concession Contract with the preferred Supplier identified through evaluation of the submitted tenders is terminated due to: o Material breach. o Non-material persistent breach. o Failure to meet service levels and KPIs. o Not meeting Conditions of Participation - Exclusion grounds, insurance, financial standing, accreditations, etc. o Inability to agree price increases in line with terms. o Inability to agree price changes, Specification changes, event in the event of materialisation of identified known risks. The next placed supplier will only be engaged in accordance with PA 2023 and subject to the supplier evidencing ability to: • Meet all Conditions of Participation. • Deliver the requirements as set out in the Specification including for any updates made by the Council. • Honour the terms & conditions included within the original procurement. • Deliver the service delivery proposals included within their original tender submission as a minimum. • Honour the pricing elements included for within their original tender submission, subject to reasonable application of relevant CPI indices, as a minimum with a requirement to mitigate any increases where possible.

Award Criteria

CPV Codes

• 45212170 - Entertainment building construction work
• 45212310 - Construction work for buildings relating to exhibitions
• 45212350 - Buildings of particular historical or architectural interest
• 45212421 - Restaurant construction work
• 45212423 - Cafeteria construction work
• 45212500 - Kitchen or restaurant conversion
• 45213112 - Shop units construction work
• 45262700 - Building alteration work
• 45330000 - Plumbing and sanitary works
• 45350000 - Mechanical installations
• 45420000 - Joinery and carpentry installation work
• 45432100 - Floor laying and covering work
• 45442110 - Painting work of buildings
• 45442121 - Painting work of structures
• 45442180 - Repainting work
• 45442300 - Surface-protection work
• 45443000 - Facade work
• 45451000 - Decoration work
• 45452000 - Exterior cleaning work for buildings
• 45453100 - Refurbishment work
• 50750000 - Lift-maintenance services
• 50850000 - Repair and maintenance services of furniture
• 50882000 - Repair and maintenance services of restaurant equipment
• 51100000 - Installation services of electrical and mechanical equipment
• 55300000 - Restaurant and food-serving services
• 55400000 - Beverage-serving services
• 55900000 - Retail trade services
• 63513000 - Tourist information services
• 63514000 - Tourist guide services
• 70332200 - Commercial property management services
• 79340000 - Advertising and marketing services
• 90911200 - Building-cleaning services
• 90911300 - Window-cleaning services
• 92000000 - Recreational, cultural and sporting services
• 98350000 - Civic-amenity services

Indicators

• This is a recurring contract.
• Options are available.

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. ** NB: Following receipt of request for clarification feedback received from multiple suppliers during the procurement process to date, Council has made the following modifications to its requirements and procurement process, which are summarised below and detailed within the revised Invitation to Tender V1.4 and other revised associated Procurement documents accessible via In-tend: SCOPE PROCUREMENT DESCRIPTION • Lift Responsibilities Removal of obligation on Operator to undertake upgrading / major refurbishment / replacements works for the Tower lift. Such works will now be the responsibility of the Council although the Operator will retain responsibility for servicing & general maintenance of the Lift. • Target Commercials Express allowance for Suppliers to submit bids which do not include for any rental payment to the Council for the initial 3 years of the contract, although Suppliers are still incentivised to offer a level of payment through the application of the tender evaluation model. From year 4 of the contract the Council is now targeting a total guaranteed rental payment of ideally approx. £275k per annum. This target value can also be provided through the addition of optional revenue share payments, although achievement of the target should predominantly (ideally 90% / £247k) be through the value of the fixed rental payment. Removal of mandated revenue share requirement. It is now at the sole discretion of Suppliers on whether to include for a revenue share element within their proposals, although Suppliers are still incentivised to do so through application of the tender evaluation model. As the revenue share element is optional no minimum revenue share percentage shall apply, however the proposed percentage must not exceed 10%. The revenue share proposed by the Operator may vary over the term of the agreement but must always be no more than 10%. PROCEDURE - COMPETITIVE FLEXIBLE PROCEDURE DESCRIPTION • Procurement Process & Programme In consideration of the modifications to the Council's commercial targets and allocation of lift upgrade / major refurbishment / replacement responsibilities the Council has issued a revised Tender Notice, Invitation to Tender and associated revisions to other Procurement documents as required to comply with Section 31 (5) of the Procurement Act 2023. To enable suppliers who may now wish to participate in the procurement process, and those that are currently participating time to make changes to the proposals they may be preparing, the Council has extended the tender return deadline to Friday 5th June 2026 @12:00 in order to address the general guiding principles for setting time limits set out within Section 54 (1) (d) of the Procurement Act 2023. In order to provide for fair & equal treatment between suppliers who are currently participating in the procurement and those that may wish to do so following issue of the modifications, the Council has also allowed for a further Site Tour/s on Wednesday 13th May @10:00 & Friday 15th May @10:00, Further Bidder Briefing on Tuesday 12th May 13:30 and Further 1-1 Dialogue Meetings between 19th May - 21st May. In order to provide for the additional time for preparation of tender submissions and further site tour, briefing, 1-1 meetings, etc., and still allow sufficient time for evaluation, award, mobilisation and commencement of services on 10th October 2026, the Council has now removed the option of undertaking negotiation with and invitation of Best & Final Tenders from the 3 highest scoring tenderers. The Council will now run the competitive tendering process in line with the option to award following assessment of tender submissions and not open a further round of competitive tendering. Following issue of the Assessment Summaries, Contract Award Notice and observation of the mandatory standstill period, the Council will still have the ability to negotiate with the preferred bidder / winning supplier on the basis that such negotiations are to optimize, clarify or confirm the winning suppliers tender proposals without altering their fundamental nature. The revised procurement programme is detailed within this PROCEDURE section of this Tender Notice. AWARD CRITERIA Removal of reference to option of alteration and refinement prior to inviting 2nd stage tenders due to removal of 2nd round of competitive tendering option from process. SUBMISSION Enquiry Deadline: Extended to 26th May 2026 23:59. Tender Submission Deadline: Extended to 5th June 2026 12:00.