Procuring the Games

A review of LOCOG Procurement

January 2010

Tags: procurement

The report finds that after major work carried out by LOCOG over the summer of 2009, they have plans and processes in place to address sustainability in their procurement as it ramps up throughout 2010.

Key Findings

  • As a new, yet temporary, organisation LOCOG has a unique opportunity to develop its supply chain and procure sustainably
  • LOCOG faces major challenges:
    • Dealing with sponsorship rights
    • the diversity and volume of its supply chain
    • inability to offer repeat business
    • time
  • Whilst carrying out the review in summer 2009, the Commission was concerned that LOCOG was not yet ready to face these challenges. This was escalated to LOCOG senior management. By September 2009 many of our concerns had been addressed
  • Since the completion of this review, LOCOG has published the second edition of its Sustainable Sourcing Code. This has taken on board many of the comments the Commission made about the Code in the review and will assist in addressing some of our recommendations
  • LOCOG will face challenges in ensuring that all the goods and services it procures, the merchandise it licenses and the partners it brings on board all meet its sustainability standards, but the processes and plans it has put in place are set up to meet these challenges

Recommendations

  • That LOCOG review procurement activity to date and take any necessary retrospective action to ensure sustainability requirements are incorporated into contractual arrangements
  • That future iterations of the Sustainable Sourcing Code emphasise that sustainability has the same status as other business requirements and makes it clear which requirements are mandatory
  • That future iterations of the Sustainable Sourcing Code incorporate key sustainability issues, including water and air quality, and have a more explicit carbon section
  • That LOCOG strongly encourage their first tier suppliers to use CompeteFor with their addressable supply chain and that they actively encourage their commercial partners to use the system
  • That LOCOG urgently complete the Functional Sustainability Requirements for all Functional Areas and ensure they are embedded in Functional / Operational planning and tender documentation
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