The Council is seeking to award a contract to Alpine Vending Co Ltd, for a Fully Managed Vending Service across its Leisure Facilities.

To supply and install Vending Machines at all Leisure Sites, with the purpose of improving facilities for staff, visitors and members of the public, generating an additional revenue stream.

Leisure Services did not have the budget to fund the hire and/or purchase of vending machines or the time and resource to manage the stocking and general day to day management. Therefore, a detailed specification of vending requirements was issued to Procurement colleagues, with the desire for suppliers to aid Wirral Council in the following key outcomes;-

• Provision of a reliable suite of Vending Machines at zero cost to the Council
• Increase Income / Profit Generation
• Energy Efficient Machines (particularly in light of recent utility cost increases)
• Provide a variety of Vending Solutions
• Provide a varied mix of products that include Healthy & Fair-Trade Options
• Contactless / Alternative payment facilities
• Responsive service in relation to Machine Call Out / Breakdown
• Efficient Reporting – The Provision of Management Information, including % Profit Share, Sales by Site, Proposed product changes, Call out response times, uptake re Healthy/sugar free items
• Aid the authority in their reduction of single use plastics.
• Aid income generation to the Council based on a specified % profit share of sales, paid to Wirral Council on a monthly basis.

The contract will operate on a 50/50 gross profit share basis between Wirral Borough Council (WBC) and the supplier. The value of goods sold is expected to average £141,600 per annum (£708,000 over the full contract lifetime of 3+2 years). From this, WBC and the supplier would expect to achieve an equal share of £70,800 p/a (or £354,000 over the contract term).

Resolved – That the Director of Neighbourhood Services has accepted and awarded the leisure vending contract to Alpine Vending Co Ltd, for a Fully Managed Vending Service across its Leisure Facilities.

Wirral Council (WC) Leisure Services are responsible for the management and operation of 6 Leisure Centres, 2 municipal golf courses and the West Kirby Watersports Centre. At present there is no vending provision at any of these locations.

Previous arrangements expired during the Covid pandemic, and no interim provisions had been sourced, due to the uncertainty surround the economic recovery and return to the “new normal”.

  Leisure Services have a need to generate income for the authority and to provide excellent facilities for residents and visitors alike. In order to add to the current leisure offering, Leisure Services approached Procurement, with the need to procure a vending solution across their facilities.

  The process began with Soft Market Testing (SMT), where questions were asked of the market in terms of what they could offer, the type of products supplied, payment methods and how suppliers could aid WC in delivering targets against the Wirral Plan. Suppliers were also asked to provide indicative costing if WC decided to purchase the necessary machines and facilitate the management ‘in house’.

Leisure Services did not have the budget to fund the hire and/or purchase of vending machines or the time and resource to manage the stocking and general day to day management. Therefore, the SMT responses received, helped to shape the subsequent Invitation to Tender (ITT) documentation / specification, that was eventually issued to the Market.

The ITT was issued to the market and included within that, was the specification clearly outlining WC’s current position and the fact that a Fully Managed Service was required with vending machines provided on a free loan basis and the successful supplier would be expected to provide Leisure Services, with a percentage of the gross profits from all machines. The IIT contained 7 questions and bids were scored on these key needs.

  The Most Economically Advantageous Tender submission, was received from Alpine Vending Co Ltd, who it is proposed, will provide the authority with a 50% share of all gross profits, to be paid in monthly instalments.

  Do not progress with awarding the contract: At present there are no vending facilities at any of the leisure facilities for customers, therefore reducing income opportunities.

  Leisure Services to rent or purchase vending machines and operate the management internally. Leisure Services did not have the budget to fund the hire and/or purchase of vending machines or the time and resource to manage the stocking and general day to day management.

Operate via an alternative internal department, the Hospitality team looked at the option to operate on behalf of Leisure Services, but they could not offer the same benefits as the supplier ranked in first place, post tender evaluation.