21 July 2010 | Lindsay Clark
The Olympic Delivery Authority (ODA) is to make £27 million in procurement savings to help it respond to the UK’s public sector deficit.
Following the emergency budget on 22 June, the ODA agreed to deliver further efficiency savings of £27 million and consequently had its government grant reduced by the same amount.
Hugh Robertson, minister for sport and the Olympics, said the cuts could be achieved by greater efficiency, not by reducing scope. “The ODA has found the £27 million of savings by driving a better deal in some of its procurement exercises and through continued efficient delivery,” he said. “In doing so we have kept our promise to do nothing that will affect the successful delivery of the London Olympic and Paralympic Games.”
Procurement savings for this year include £13 million on security for site construction, £11 million on the international broadcast and main press centre, with the remainder coming from the velodrome and the temporary basketball arena.
Beyond this financial year, a potential reduction in costs of £17 million on the Olympic stadium has been earmarked through efficiency and procurement gains as the project moves towards completion in the first half of 2011. The ODA is also seeking £9 million further savings on security for park construction through procurement beyond 2010-11.
Overall spending on the Olympics is, however, set to absorb some increases. Cost of material and soil processing on the site could increase by £31 million, while the aquatic centre could cost £7 million more than anticipated. In addition, the rise in VAT to 20 per cent announced in the emergency budget would increase the overall anticipated final costs of the games by £45 million to £7.26 billion, the Department for Culture, Media and Sport (DCMS) said.
Meanwhile, the government said more than 6,500 contract opportunities have been made available through the CompeteFor tendering portal. Of the 1,360 ODA suppliers, 98 per cent are from the UK, the DCMS said.