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Olympic Games 2012: Consultants

Volume 496: debated on Wednesday 9 September 2009

To ask the Minister for the Olympics how many contracts have been granted to consultants in relation to London 2012 in each year since 2004; to whom the contract was granted in each case; what each project was; and how much each contract was worth. (277458)

The procurement of consultancy services by both GOE and ODA is a planned response to the need to deliver the Government’s commitments and guarantees to deliver the London 2012 games on time and within a budget of £9.325 billion.

The consultants provide valuable short term support or key specialist skills and expertise not otherwise readily available.

The use of consultants has enabled us to make excellent progress across the many facets of the Olympic programme and in particular in the construction of the Olympic venues and development of legacy planning. As well as rapid progress we have seen significant savings across the venues and infrastructure construction programme, whose anticipated final cost (AFC) fell by £179 million from £7,413 million when we published the London 2012 Olympic and Paralympic Games Annual Report in January 2009 to £7,234 million when we published our Quarterly Economic Report in May 2009.

As the IOC recently recognised, inputs such as these are continuing to transform the Lower Lea Valley and provide a lasting legacy for the people of London and the UK.

Spending by the Olympic Delivery Authority on consultancy fees reduced from £19.8 million (3.7 per cent. of total ODA spend) in 2007-08 to £16 million (1.2 per cent.) in 2008-09.

This reduction reflects the shift from the planning, design and preparation phase of the programme, where consultancy costs are traditionally concentrated, to the development phase.

Spending by the Government Olympic Executive (GOE) on consultancy was £0.4 million in 2007-08 and £0.3 million in 2008-09, 4.6 per cent. and 3.4 per cent. respectively of GOE’s total budget.

Details for contracts let by the Government Olympic Executive (GOE), the former Olympic Programme Support Unit and the Olympic Delivery Authority (ODA) to July 2008 were set out in the answer that I gave to the hon. Member on 4 November 2008, Official Report, column 292W. I have placed in the Libraries of both Houses tables which set out in the following:

the details of contracts let by the GOE from 1 April 2008 to 31 March 2009.

The value of payments during the whole of 2008-09 to consultants who were contracted by the ODA during earlier years and remained engaged during 2008-09 and to those who were newly contracted during 2008-09. The table for ODA contractors excludes those listed in my earlier answer whose services ended before 2008-09 began. The information is, therefore, presented differently to that in my earlier answer, which listed the names of ODA’s consultants by the year in which they were first contracted together with, in the case of each consultant, a cumulative figure for the value of ODA consultancy spend to July 2008.