The Economic Impact of the Arts Sector in Liverpool

Invitation to Tender

1.Introduction

As part of its Liverpool Thrive! programme, Liverpool Arts Regeneration Consortium (LARC) wishes to commission an economic impact study of the arts sector in Liverpool in the financial year 2010/11.

LARC is a partnership of eight organisations including the Bluecoat, FACT, Liverpool Biennial, Liverpool Everyman & Playhouse, National Museums Liverpool, Royal Liverpool Philharmonic, Tate Liverpool and the Unity Theatre. LARC aims to increase the role of the cultural sector in civic leadership, and to the economic and social regeneration of the Liverpool City Region.For more information see This commission follows on from a scoping study undertaken by Burns Collett for LARC which addresses many the issues and complexities inherent in undertaking and economic impact of the arts study. The scoping study is available at information.

This commission will be part of an exciting and dynamic process that contributes to LARC’s wider research agenda and which seeks not only to measure the economic impact of the arts in Liverpool but also to devise a model that delivers a widely credible figure and explanation for the economic impact of the arts sector

Thisdocument sets out the requirements for the contract, provides background information and asks for appropriate responses from interested parties. We hope that it will provide you with all necessary information on which to base your tender.

Should you have any questions about the brief or the application process, please contact Ruth Melville ( / 01206 825450).

2.economic Impact study

The objectives for the study are:

  • To develop improved intelligence about the arts sector and its value to the local and regional economy
  • To develop a robust methodology for assessing the economic impact of the artssector that has credibility within both the arts sector and elsewhere.To produce a transparent and replicable methodology and primary research processes that will enable comparable studies to be undertaken in the future
  • To develop improved market intelligence for the LARC partners through primary research with the consortium partners’ audiences and visitors

Methodology

We have not prescribed a methodology for this work, but the recently completed scoping study has identified a number of key considerations for an economic impact study of the arts sector which should be taken into account in the development of your methodology.

Firstly, our preference is for a study that considers the economic impact of the eight LARC partner organisations as a proxy for the arts sector in Liverpool. (See for details of the eight organisations). We are concerned with the impact these organisations generate in terms of, Direct employment; Indirect and induced employment; Supply chain benefits; and in particular, this study will be expected to develop a more detailed understanding of Additional Visitor Spend (AVS) generated by the consortium and its impact on indirect and induced employment in the study locale.

Within the budget for the work we hope to achieve some primary research. In this respect, any tender proposals will need to set out the amount of primary research amongst the partner’s audiences/visitors that is deliverable, the means of capturing AVS through survey work and any additional benefits for the LARC partners that can accrue from an audience research survey.

The successful consultantshould demonstrate the research credibility and statistical robustness of the sample used for primary research.

Prospective studies will be in a position to benefit from parallel audience profiling that is undertaken by the Liverpool Biennial and byseveral other LARC members in 2010.

Area of Benefit

The study should consider and delineate the impact of the organisations on Liverpool, Liverpool City Region and England’s Northwest.

Modelling

In developing an economic impact model, the study should note and consider the issues set out by Burns Collett in the scoping study in relation to:

  • Multipliers
  • Displacement and Deadweight
  • Attribution of visitor spend
  • Double counting

The study partners would like the process to produce a ‘step by step’ guide as to how different elements of economic impact measurement are applied and the outcomes achieved through the study.

Return on Investment

The study should include an analysis of the return on investment generated by the arts sector against investment from the local, regional and national public sector.

Partnership working

The successful research team will need to work closely with the LARC consortium members and in particular to liaise with Heads of Marketing (for primary research work) and with the organisations’ finance departments (employment and supply chain data), although key contacts for each organisation will be named in order to effect speedy responses to data requests.

Study Management and Reporting

The successful research consultants will report directly to LARC’s Research Adviser, Ruth Melville, who will project manage the contract on a day-to-day basis. The project will be overseen by the LARC Thrive Steering Group,who will receive updates, provide feedback and add value to the work of the consultant.

A wider Advisory Group will be convened by LARC’s Research Advisor to bring together academics and sector practitioners, to support the study and bring a wider sphere of learning to the project.

Timeline

The exact timeline for the study is flexible to fit with the approach of the successful consultant however there are some fixed dates as belowand it is also expected that the consultant will send regular brief updates including information on any findings as they arise:

End July 2010:Research team appointed. Inception Meeting held

Mid August:Research team provide detailed Project Inception Document to agree the detail for the delivery of the project

SeptemberPrimary Research must commence

FebruaryDraft report

MarchFinal Report

3.OUtputs

The outputs from the study should be:

  • A model methodology for assessing the economic impact of the arts sector of a city
  • A set of primary data on audience/visitor spending habits, presented in a format that is useable by the Consortium
  • A full report on the economic impact of the arts sector in Liverpool
  • An Executive Summary of the economic impact of the arts sector in Liverpool
  • A Return on Investment analysis

4.Costs

Tenders should be within a limit of £30,000 including expenses but exclusive of VAT.

Tenders should include a detailed breakdown of costs by day rate and number of days, any data purchase costs, survey costs, etc. In the case of anypartnership or sub-contracting, the tenders should outline clearly the roles of individual partners and any management arrangements.

5. SELECTION CRITERIA

Bids will be judged on the following criteria:

  • Experience in undertaking economic impact studies
  • Experience of work within the arts and cultural sector
  • Experience of undertaking economic and valuation studies within the arts and cultural sector
  • Experience of undertaking work with a national impact
  • Knowledge of the current policy setting and issues around economic impact and cultural value
  • Knowledge of the specific issues associated with gathering primary data in the arts and museums sector
  • Ability and experience to advocate for the model, methodology and resulting evidence at a national level, within and outside the arts sector.
  • Ability to deliver high quality and creative solutions to problems
  • Ability to deliver to time and budget

6.Insurances

Consultancies tendering for this work should be able to demonstrate an appropriate level of professional insurances including Professional Indemnity, Public Liability and (where appropriate) Employers Liability insurances.

7.MANAGEMENT

The project will be managed on LARC’s behalf by Ruth Melville, who is LARC’s Research Advisor. Ruth was previously Programme Manager for Impacts 08 and is now honorary research fellow at the Institute for Cultural Economics at Liverpool University and Liverpool John Moores University. A steering group will also be established to support the consultancy, as well as a wider advisory group.

The consultant will be expected to provide monthly update reports to the steering group.

8.Submissions

Tenders should set out the following:

  • Your understanding of the brief
  • Relevant experience in undertaking economic impact studies including case studies where relevant
  • Brief CVs of each team member and a précis of team members’ roles in the study
  • Details of any contractors and/or associates that you plan to use on the study
  • An outline methodology and timeline for completing the study
  • Detailed costs for completing the study
  • Details of two referees

Proposals should be submitted electronically by email to y 12 noon on 14th July.

Please ensure that you send your tender in one document, and that it is saved with the name of your consultancy practice as the first word of the file name.

Interviews will be held on the 26th July in Liverpool.

For an informal discussion about this brief please contact Ruth Melville on (/ 01206 825450 / 07771776063).

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