Concession Agreement for the Operation of Retail Spaces (Shop, Coffee Shop and Pharmacy) on Beaumont Hospital's Campus

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1. At a glance

2. Scope of Work

This tender seeks a concessionaire to develop and operate three distinct retail outlets on Beaumont Hospital's campus: an existing Patient Shop, an existing Patient Coffee Shop, and a new Retail Pharmacy. The contract has a maximum potential duration of eight years, comprising an initial six-year term with a discretionary two-year extension. The successful bidder will be responsible for the redevelopment of the combined footprint of the existing Patient Shop, existing Patient Coffee Shop, the Bank, and the Post Room into these three modern retail destinations.

The scope of work includes:

• Development and Operation: The concessionaire will redevelop the available space, which includes the existing Patient Shop, existing Patient Coffee Shop, the Bank, and the Post Room. The specific subdivision of this space into three distinct outlets (Shop, Coffee Shop, Pharmacy) is at the concessionaire's discretion, aiming for attractive, spacious, and well-designed environments.
• Retail Pharmacy Operation: Establishment and operation of a new retail pharmacy on the hospital campus. This operation must adhere to specific pharmacy regulations and standards.
• Patient Shop Operation: Continued operation of the existing Patient Shop, located on the main concourse.
• Patient Coffee Shop Operation: Continued operation of the existing Patient Coffee Shop, also located on the main concourse, opposite the Patient Shop.
• Potential Fourth Outlet: The concessionaire may, by mutual agreement with Beaumont Hospital, operate a fourth retail space, envisioned as a patient-focused food or beverage outlet, such as a takeaway coffee stand.
• Commercial Risk: The concessionaire bears full economic risk in operating the retail outlets.
• Concession Fee: The concessionaire will pay a concession fee to Beaumont Hospital, calculated as a percentage of the gross turnover from all retail outlets.
• Transfer of Undertakings (TUPE): Compliance with S.I. 131 of 2003 (European Communities [Protection of Employees on Transfer of Undertakings] Regulations 2003) is mandatory. The concessionaire must assume all obligations related to existing staff from the incumbent service provider.
• Product Standards:
• Pre-packed sandwiches must have a minimum shelf life of three days.
• Frozen food products must have a minimum of half of their shelf life remaining.
• Specific products (not detailed in this extract) must have a minimum shelf life of 28 days.
• Cheese must have a minimum shelf life of 14 days.
• Temperature Monitoring: Dated temperature logs must be maintained for a minimum of one year for facilities. Recording instruments must be validated to EN 12830, EN 13485, and EN 13486 standards.
• National Lottery Sales: National lottery sales are handled separately, with no concession fee applied to this specific revenue stream.

The contract is awarded as a single concession agreement for all retail premises, not divided into lots.

3. Background & buyer context

Beaumont Hospital is procuring this concession agreement to redevelop and operate essential retail services on its campus. The existing concession agreements for the Patient Shop and Patient Coffee Shop are due to expire in Quarter One, 2027, necessitating a new procurement. This initiative aligns with the hospital's objective to enhance its campus facilities and provide improved amenities for patients, staff, and visitors. The procurement is being conducted under Directive 2014/23/EU, which governs service concessions, allowing Beaumont Hospital discretion in the award procedure. The hospital is the principal teaching hospital for the Royal College of Surgeons in Ireland and has strong links with Dublin City University. The successful concessionaire will be responsible for assuming existing staff under Transfer of Undertakings (TUPE) regulations.

4. Eligibility & selection criteria

Bidders must meet the following criteria to be considered:

• Turnover requirement: Not specified for this tender.
• Insurance:
• Employer’s Liability Insurance: €13 million minimum limit of liability.
• Public/Product Liability Insurance: €6.5 million minimum limit of liability.
• Professional Indemnity Insurance: €6.5 million minimum limit of liability.
• The contractor must carry adequate insurance for all work on site.
• Certifications: Not specified for this tender.
• Past experience: Not specified for this tender.
• Personnel: Not specified for this tender.
• Geographic / facility constraints: Not specified for this tender.

5. Award criteria & scoring

Criterion Weight (%) Sub-criteria