A total 7,000 direct contracts ­ including for ICT supply ­ are up for grabs at the London 2012 Olympics and Paralympics, making up a supply chain of around 75,000 opportunities worth £6bn, according to the Olympic Development Authority (ODA).

It is not known exactly what percentage of those 7,000 contracts will be IT-related, but many such opportunities are arising. August’s tenders included areas as diverse as software, e-learning, servers, monitors, Juniper networking and technology for visitor passes.

The ODA says technology will play a larger part than ever before. “It will be central to the way we capture scores,
timings and performance. Technology will feed information to officials, spectators, venue staff and volunteers. And it will help with all levels of decision making, from separating a photo finish to managing the flow of people,” says the organisation.

Business technology deployments will support all aspects of Games planning, procurement and business activities in the runup to 2012. Digital communications, including online and mobile technology, will help stakeholders not only receive but also respond to information.

ODA chairman John Armitt says smaller businesses are definitely in the running. “They have the largest benefit so far as well as being in pole position to compete.”

More than 18,000 companies have registered on the ODA’s CompeteFor web site, which will send out email alerts of London 2012-related opportunities. Some 90 per cent of those registering are SMEs, of which 78 per cent have fewer than 50 staff, he says.

Paul Deighton, chief executive at the London Organising Committee for the Olympic Games (LOCOG), says serious procurement starts in earnest next year.

“So many UK businesses have registered on the CompeteFor system so they can be well placed to make the most of this once-in-a-lifetime business opportunity,” says Deighton.
ODA and LOCOG advertise direct contract opportunities through CompeteFor, and direct London 2012 contractors may advertise their supply chain opportunities through the system, according to the ODA.

Business profiles of registrants are automatically tested against minimum health and safety standards, for example, and if they do not meet these they are referred to support services such as Business Link.
Suppliers are then emailed about opportunities for which they can apply, after which the contractor makes a shortlist of those invited to tender.

One contract winner is networking vendor Nortel, which is providing BT with WANs, wireless LANs, call centres and fixed-telephony gear.
Rival 3Com’s H3C division worked on Beijing 2008 and is aiming to win networking support contracts for 2012, according to UK country manager Gary Newbold.

“H3C worked on several projects including modernising the Beijing public transportation system, construction of Beijing Capital Airport’s Terminal 3, and powering video on demand for an official Olympic news site,” says Newbold.

Experience at networking other sports stadia and fielding the right channel partners to deliver best price and performance solutions helped strengthen the company’s bid, he says.

“The opportunity for partners is that it is a very, very profitable event,” says Newbold. “We are not allowed to have a sign in the background on TV during the Games, but we can still pitch ourselves and look for other business accordingly.”
LOCOG’s procurement guide outlines tough restrictions on benefiting from the Games in terms of marketing.

“The supplier agrees it shall not attempt any marketing campaign associated with LOCOG, London2012 or the Games,” it reads. “The supplier has no rights to use any of LOCOG’s intellectual property rights and shall not represent that it has been endorsed by LOCOG or that any of its products or services are in any way associated with LOCOG or the Games.”

Where relevant, the supplier must deliver the goods and services without branding.
That said, Newbold stresses that the infrastructure requirements for each Games are getting higher and higher. Any company that successfully supplies to a modern Olympiad gains unparalleled experience, expertise and credibility.

In China, H3C worked with Beijing Public Transportation to build an IP-based 10,000 location monitoring system for thousands of buses and 500 car parks.

H3C added on the ability to monitor vehicle dispatch, arrivals, departures, voice over IP access, office automation, automatic ticket examination, touch-integrated query equipment, route information and station billboards. Wireless anti-terrorism cameras were installed on buses.

The system integrated media terminal monitoring, network access monitoring, IP storage and system management software. “By basing it on Ethernet passive optical networks (EPON), the H3C solution allows multiple terminals to share the same line of optical fibre, reducing operational and engineering costs,” says Newbold.

“We offer a much better proposition to the market as a result of having been involved in the Games,” says Newbold.
A further 10 IT providers that have won London 2012 deals were contacted by CRN but only three replied ­ consultancy Strategic Thought, online reseller Misco, and IT security consultancy NTA Monitor. They confirm they are involved, but add that they are not available for comment.

A spokesperson for Strategic Thought says that Games organisers are strict about how suppliers communicate with news media, but agreed the Games is a good opportunity for ICT providers.

According to the ODA, both EU and UK laws apply to the tendering process for suppliers. “This means that the ODA will buy things in different ways depending upon the total contract value.”
All contracts where the estimated value is expected to exceed £3,497,313 for works and £139,893 for goods and services must be advertised in the Official Journal of the European Union (OJEU).

“Works” means mostly relating to the construction of Game venues and infrastructure. “Goods” means products bought directly, such as construction materials, stationery and computer equipment. “Services” refers to offerings such as accounting and design.

Guidance on accessing OJEUcontract advertisements is available from the Office of Government Commerce (OGC).
Only 20 per cent of London 2012 supply chain opportunities are expected to go through the CompeteFor system, so with some 500 companies signing up each week since the site launched in January, competition is likely to be hot.

“The ODA will publish all direct opportunities through CompeteFor, except contracts procured through a framework agreement, and some opportunities valued at less than £3k. OJEU opportunities will be advertised on CompeteFor with a
link to the ODA eTendering system,” the ODA suppliers’ guide says.

For contracts of up to £25k, at least three quotation documents must be sought through existing frameworks or advertised on www.london2012.com/business, which also provides further information about 2012 opportunities and business events.
For deals of £25k and up to the regularly reviewed EU thresholds, competitive open tenders of up to five bids will be held.

Suppliers that have already qualified and been approved for other government frameworks are eligible for automatic
selection and shortlisting under the ODA.

Supplier liability under the contract is capped at 125 per cent of the value of the goods and services provided.
But not all IT providers believe the ODA’s procurement process results in a level playing field.

Christos Papakyriacou, managing director of Hampshire distributor Alpha Micro Components, says he was discouraged by the complicated registration system from trying to win a contract.

He spent five months tackling a long list of requirements, but has given up. Smaller companies simply do not have the resources to jump through so many hoops, so all the large deals will be won by large business, predicts Papakyriacou.
He believes the best chance for smaller firms is to work with another, more experienced partner or vendor. “They have
whole teams that are geared up and know the right people,” he says.

The Federation for Small Businesses (FSB), conversely, believes SMEs across the UK will win Games contracts.
FSB 2012 coordinator Nick Winch says SMEs have to win 2012 contracts on their own merits, making sure they have the
necessary policies in place and a record of delivering projects successfully.

“This means that small businesses have to move quickly,” Winch says.
If the FSB is right, Olympic opportunities are there, but winning them may not be easy.