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Olympic Games 2012: Contracts

Volume 496: debated on Tuesday 1 September 2009

To ask the Minister for the Olympics what proportion of contracts relating to the London 2012 Olympics had been advertised on the CompeteFor website on the latest date for which figures are available. (283902)

The Olympic Delivery Authority has directly awarded contracts to over 950 suppliers to date. The ODA was formed in April 2006, and began procurement from its inception to ensure that it was on programme. It was already working with a number of suppliers, 550 in all, by the time CompeteFor was launched in January 2008. Due to the scale and complexity of its procurements, the ODA has procured some of its contracts using established OGC frameworks to simplify the process, and a number are closed, for example, for security reasons.

As of June 2009, 2,872 contract opportunities had been advertised on CompeteFor. These break down as follows:

The ODA, its contractors, and buyers in their supply chains have advertised 2,335 opportunities

LOCOG and its supply chain have advertised 88 opportunities

Other partners, including the London Development Agency, and their supply chains have advertised 449 opportunities

It is anticipated that the ODA’s and the London Organising Committee for the Olympic Games and Paralympic Games’ direct procurement will generate around 75,000 supply chain contracts. Contractors are encouraged to place as many as possible of their unallocated contract opportunities on CompeteFor.

It is estimated that for around 80 per cent. of these contracts, contractors will rely on their existing suppliers and sub-contractors leaving around 15,000, approximately 20 per cent., of opportunities to be placed on the system. The 20 per cent. figure is an estimate based on other large projects and the way in which contractors have decided to package and procure their sub-contracts. Given that the majority of these will be private procurements, we are unable to state precisely what proportion of these have been advertised on CompeteFor.

As expected, the vast majority of CompeteFor opportunities have been posted by the ODA’s contractors and buyers in their supply chains, and the ODA continues to work with its contractors to ensure that as many as possible of their new opportunities are placed on the system. Some of the ODA’s contractors are now also beginning to use CompeteFor for some of their ‘non-Olympic’ contract opportunities, opening up further opportunities.

LOCOG is in the early stages of its procurement activity, and will start buying the majority of the goods and services required for staging the games from early 2010.

CompeteFor was established to help open up games-related opportunities to businesses across the UK and to provide a means of offering them any business support they need to win contracts. Our ambition is not only a legacy of businesses winning contracts but also one of businesses inspired to be fitter, more innovative and more competitive as a result. To date over 31,000 businesses have received business support as a result of registering on CompeteFor, and over 2,500 have received an intensive level of assistance.