OUTSOURCING

The LCSD follows the Government's efficiency guidelines on outsourcing non-core activities to the private sector. Major services outsourced include cleaning, security, horticultural maintenance, and facility management. As at March 31, 2017, the department was managing 110 outsourced contracts for major services at a total value of $4,051 million. These contracts covered both leisure and cultural facilities.

The department's outsourcing practice continues to follow these four core principles:

• Contracts must be commercially viable;
• Service standards must not be reduced;
• Services must be cost-effective; and
• Staff should not be declared redundant.

Up to March 2017 the department had contracted out the management of the following 14 sports centres: the Jockey Club Tuen Mun Butterfly Beach Sports Centre, the Quarry Bay Sports Centre, the Chun Wah Road Sports Centre, the Cheung Sha Wan Sports Centre, the Chuk Yuen Sports Centre, the Choi Hung Road Sports Centre, the Wo Hing Sports Centre, the North Kwai Chung Tang Shiu Kin Sports Centre, the Ap Lei Chau Sports Centre, the Fa Yuen Street Sports Centre, the Wong Chuk Hang Sports Centre, the Hiu Kwong Street Sports Centre, the Yeung Uk Road Sports Centre, and the Tin Shui Wai Sports Centre.

In addition, the department contracts out the management of several of its cultural facilities, including the Hong Kong Heritage Discovery Centre, the Dr Sun Yat-sen Museum, the Fireboat Alexander Grantham Exhibition Gallery, Yau Ma Tei Theatre, Oil Street Art Space, Hong Kong Visual Arts Centre and the Ping Shan Tang Clan Gallery cum Heritage Trail Visitors Centre.

The department closely monitors the performance of its service contractors, and regular meetings are held between the department's contract management team and contractors' senior managers. Special attention is paid to safeguarding the wages and benefits of non-skilled workers, with regular reminders being made that the exploitation of non-skilled workers in any form is not condoned. The department also maintains a computerised appraisal system that provides an overview of the performance of contractors. This is valuable because it enables the department to take contractors' past performance into account when evaluating new tender offers.