In line with the Government’s efficiency guidelines, the LCSD outsources a number of its non-core services to the private sector, including cleansing, security, horticultural maintenance, and venue management services. As at March 31, 2018, the department was managing 113 outsourced contracts for major services for both leisure and cultural facilities, at a total value of $4,217 million.

The department's outsourcing practice remains in line with four core principles:

• contracts must be commercially viable;
• service standards must not be lowered;
• services must be cost-effective; and
• staff should not be made redundant.

Up to March 2018 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;
• the Hong Kong Visual Arts Centre; and
• the Ping Shan Tang Clan Gallery cum Heritage Trail Visitors Centre.

Contract Management

The department monitors the performance of its service contractors closely. Regular meetings are held between our contract management team and the senior managers of our contractors. As part of this monitoring process, we pay close attention to the wages and benefits paid by contractors to non-skilled workers, and remind contractors regularly that any form of exploitation of non-skilled workers is unacceptable. The department also maintains a computerised appraisal system that provides an overview of the performance of contractors and enables the department to consider contractors' past performance when evaluating new tender offers.