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OECD - IOC Toolkit

Better policies for better lives

London Crossrail: delegation of procurement authority for an efficient approval process

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Crossrail Limited (CRL) was established as a special purpose vehicle for the delivery of the Crossrail Programme and is now a wholly owned subsidiary of Transport for London. In order to deliver efficient and proper decisions over procurement the CRL developed the Scheme of Delegations to record the personnel or committees to whom authority to make procurement decisions has been delegated by the CRL Board, including the financial limits in each case.

No contract or agreement was permitted to be entered into unless budget was both available and released. Financial approvals were based on best estimates of contract outturn costs including appropriate risk allowances. This ensured that unintended costs were not incurred.

Additionally, responsibly for the dissemination and application of this policy lay with senior management of CRL and with those to whom the CRL Board or Chief Executive delegated authority for the application of policies. CRL Heads of Department thus could ensure that everyone involved in the procurement cycle was aware of the policy and that there was clear definition of responsibility for specifying contract requirements and for managing expenditure within budget.

The Head of Procurement was responsible for monitoring the implementation of the Scheme of Delegations to ensure that authority was delegated and exercised appropriately in accordance with the needs of CRL and the project. The Head of Procurement also proposed any necessary revisions to the Scheme of Delegations. They were also charged with implementing an integrated policy that engaged with various stakeholder to support the CRL’s overall objectives.

Source: Crossrail Limited

Product-specific sustainability guidelines for Rio 2016

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Rio 2016 took steps to integrate sustainability criteria throughout the management cycle of the Games from design and planning to implementation, review, and post-event activities.

Rio 2016 developed specific plans for the procurement of infrastructure and related services. One such example is its “Sustainable Sports Flooring Guide” in which Rio 2016 lays out recommendations for sustainable practice and sourcing of four different floor types that are used for Games related infrastructure. As part of the broader Sustainable Supply Chain Programme, this guide aims to provide employees, partners, suppliers and affiliated organisations a road-map on how to source, construct and dispose of floors used in Games related infrastructure.

The Guide considers the environmental, social, ethical, and economic aspects that are present throughout the life cycle of the products and services that are related to the procurement and licensing processes. It has suggestions on how to use flooring materials in the post-Games context.

  • Natural Grass: Grass must adhere to standards set by the Ministry of Agriculture to ensure it is of high quality and that producers comply with relevant tax and labour policy. Additionally, the Guide calls for cut and disposed grass to be reused for compost, animal feed or production of renewable oil.
  • Synthetic Grass: The Guide states that synthetic grass should meet the standards approved by the FIFA in Quality Concept for football fields. It should be made from recyclable materials and plans put in place to direct the Grass to schools, NGOs or back to suppliers after its use in the Games.
  • Sand: as an important floor material for many Olympic events, Rio 2016 recognises that sourcing sand can have negative impacts on the environment by altering the geography and ecosystem from where it is taken. Therefore, all suppliers should have environmental licenses and perform ecological compensation to counter impacts on local environments.
  • Rubber Flooring: The Guide notes the good practice and viability of using old tires to as a source for rubber flooring. It suggests that material for flooring in Games related venues be sourced in this way and that after the Games it be placed into other venues such as schools and NGOs.

Source: Rio 2016 Organising Committee for the Olympic and Paralympic Games

Rio 2016: Sustainable Supply Chain Guide

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Rio 2016’s objective was to deliver an Olympic and Paralympic Games that promoted the global image of Brazil, based on social and urban sustainable transformation through sport. A key pillar of this project was establishing sustainability criteria throughout the Games management cycle, from design and planning to implementation, review and post-event activities, especially through the adoption of the Sustainable Supply Chain Programme.

This programme sought to integrate the sustainability criteria into the procurement of Games related goods and services, specifically aimed at Rio 2016 employees, partners participating in Rio 2016 Supply Chain management or operation, suppliers, licensees, sponsors and organisations involved in the suppliers’ development.

The Programme consisted of the following steps:

  • Establishment of requirements: definition and disclosure of the evaluation criteria and minimum requirements to be considered in the analyses.
  • Development and qualification of suppliers and licensees: anticipated and intense communication about the needs until 2016, along with the specific requirements and guides for suppliers’ assistance. At this stage, the programme includes workshops and training for suppliers, sponsors and licensees, focusing on sectors considered critical.
  • Hiring: inclusion of sustainability requirements and evaluation criteria along the goods and services procurement process, especially in the total cost acquisition and life cycle analyses. This evaluation also includes audits on the information submitted to Rio 2016 Committee.
  • Supplier and licensee contract management and compliance monitoring: inclusion of sustainability aspects in the supplier management mechanisms such as supplier record management, audit review, reporting and corrective actions. These activities will be continuously applied after implementation of each contract.
  • Dissolution and products final disposal management: planning and control of the final destination of all products, packaging and waste, through comprehensive logistics planning.

Source: Rio 2016 Organising Committee for the Olympic and Paralympic Games

Implementing the new event delivery model for Milano Cortina 2026

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Milano Cortina 2026 aims host the Olympic and Paralympic Games in a fiscally responsible, socially sustainable, and environmentally friendly manner.

A key goal of the OCOG is to maximize the use of local expertise and capabilities by involving Event Delivery Entities (EDEs). EDEs are organisations with existing experience and expertise contracted to deliver venues and sport operations for selected disciplines. Partnering with EDEs that have previously organised world-class events will allow the OCOG to leverage their specific knowledge. EDEs will be selected based primarily on their previous experience in organising specific Games events. For example, the OCOG will partner with an existing South Tyrol-based company which successfully organised the 2019 Biathlon World Cup to deliver biathlon at the Games. 

Each Games venue or zone will be planned and delivered differently depending on the most efficient solution for the specific context. The events will be delivered by the OCOG, EDEs or a combination of both. Where an EDE is not in place (e.g. in Milan), the OGOC will manage event delivery in-house, while still leveraging the expertise of venue owners and operators through extended venue use agreements. This event-centric organisation model will rely on a local management structure with an Event Director who has responsibility for the venue and event.

The strategy is underpinned by the following considerations:

  • Establish an event-driven planning process to enhance the effectiveness of venue design and development, particularly with respect to sustainability, legacy, operational excellence, and cost-efficiency.
  • Accelerate knowledge-sharing procedures to shorten the preparation time and Games delivery, thus reducing the overall resource requirement and the size of the workforce. 
  • Reduce the cost and complexity of each venue and event where possible.
  • Explore the most efficient way to deliver each sport/discipline, outsourcing the delivery to selected EDEs to leverage their expertise where appropriate. 
  • Increase the knowledge and capabilities of EDE staff regarding best practices in sustainable event management, that can be applied to future events organised by the EDEs after the Games.

Source: Information provided by Milano-Cortina Foundation

Paris 2024 is leveraging external expertise to deliver a more efficient Games

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Paris 2024 is pioneering the use of the new event delivery model for the 2024 Games.

From infrastructure to services, the model aims to leverage existing experience as much as possible in the delivery of the Games. This model has two objectives: excellence in delivery, capitalising on existing expertise while limiting the OCOG’s operational costs and creating sustainable opportunities for the sports and events sector.

The OCOG is overseeing delivery while engaging external providers for support, helping the Games benefit from a greater range of innovation and efficiency. An event platform was established where interested stakeholders could view opportunities and needs related to the Games organisation. This provides transparency for bidders and a way for Paris 2024 to assess the most optimal delivery option.

Three venues, Yves du Manoir in Colombes for field hockey, Golf National in Saint-Quentin-en-Yvelines, and the Paris La Défense Arena for swimming races, were chosen to pilot the delivery model with external stakeholders and providers. Through these pilots, the OCOG decided on two approaches to delivery: a delivery model based on the involvement of several delivery entities overseen by Paris 2024, and a delivery model handled in-house by Paris 2024 for complex events where there is limited expertise available on the market.

Source: Paris 2024 Organising Committee for the Olympic and Paralympic Games

Coordinating temporary overlays at Tokyo 2020

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Temporary overlays for Tokyo 2020 included not only simple structures such as tents, prefabricated buildings, and seats, but also buildings with heavy steel frames, light towers, and extensive utility work.

Temporary overlays were constructed in all 85 venues, including existing, new and temporary competition venues, across ten prefectures. A large number of parties were involved in the construction of the overlays, including different areas of the OCOG, the IOC, sports associations, venue owners and administrators, and local municipal entities.

To manage this challenging set of projects and help manage costs, the OCOG put in place a number of strategies:

  • Use of design-build contracts (including demolition, removal, and restoration) to reduce the number of involved parties and associated change orders. However, separate procurements were conducted where the scale and characteristics were particularly challenging for the market, for example temporary seating.
  • Where possible, overlays for multiple venues were procured together as a cluster to facilitate construction schedule control and achieve economies of scale.
  • The OCOG set standard specifications for elements that would be commonly procured, such as tents and security fences.
  • The implementation of coordination mechanisms such as an Overlay Book, which compiled the plans for all venues and was updated every six months, and a Venue Integration Group, which managed the progress of planning and construction and maintained a consolidated construction schedule.

Source: Tokyo Organising Committee of the Olympic and Paralymic Games

Centralising risk for the construction of Heathrow T5

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In the early 2000s, the construction of Heathrow Airport Terminal 5 (T5) was the largest construction project in Europe.

The British Airports Authority (BAA), a major airport operator that was privatised in 1986, realised that if the projects were to be built on time and within budget, a unique approach would be required. 

The foundation of the BAA’s project management strategy was the T5 Agreement, a relational contract between the BAA and all the T5 first-tier suppliers. The Agreement was structured differently from traditional construction contracts. It aimed to create incentives for positive problem-solving behaviours in order to minimise the conflicts that had previously plagued major projects. 

The BAA took a different and unique approach to risk in the T5 project: it held all the risk. As such, incentives were required to encourage all other partners involved in the project to minimise risk. This was achieved through financial incentives for suppliers, rewarding successful performance. 

GBP 100 million was taken from individual projects and put into a central pot. This allowed the risk contingency to be allocated based on need. This  allowed for greater control over the financial implications of risk at a more global level and thus tighter overall budget control.

Source: UK National Audit Office

Joint management for dual purpose: the 2015 Pan Am Games Athletes’ Village

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The Athletes’ Village for the Pan American and ParaPan American Games in Toronto had two objectives.

First, it was to provide temporary residences for the athletes, staff and coaches  involved in the Pan Am Games. Second, it was to serve the needs of future residents with a mixture of affordable housing and community spaces. As the facilities would have mixed purpose and multiple stake holders, the design, construction and management of the Athletes’ Village were overseen by different partners at different times. The joint management of the facilities, between Infrastructure Ontario (a provincial government agency) and Toronto 2015 (the organising committee for the Games), allowed it to both serve the needs of the international sporting event and residents. 

In the construction phase, the project used a design-build-finance delivery mode. Infrastructure Ontario, the owner, worked with several private partners to deliver the facilities. For the purposes of the Pan Am Games, temporary infrastructure was designed and constructed under the supervision of Toronto 2015. 

During the period of the Pan Am Games (the ‘Operational Period’) private partners remained involved. They were responsible for building management and maintenance, along with maintenance of the roads and grounds within the site.  Following the end of the Operational Period, the facilities were turned over to Infrastructure Ontario, which repurposed the Village to serve the long-term residential population. This included the creation of a community centre and sports facility, a student housing complex and 253 affordable rental units. The decision to use the site for the Village expedited the area’s redevelopment by five to 10 years.  

Source: Global Infrastructure Hub, Office of the Auditor General of Ontario

Building institutional structures to connect with local communities in Los Angeles

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LA28 is establishing Working Groups and a Youth Council to provide a platform for diverse community voices to be represented in the delivery of the Games.

They will provide advice and guidance relating to community and business procurement, local hire and sustainability. Members will ensure the Games reflect Los Angeles, including those with diverse backgrounds and interests. 

Working groups set up to support the delivery of the Games include: 

  • Local Hire Working Group: will advise LA28 in its program development to ensure the  Games’ workforce represents the diversity of Los Angeles, including programs for youth and transitional workers and a volunteer program to maximize public benefit in connection with the 2028 Games. 
  • Sustainability Working Group: will advise LA28 as it develops and implements a Sustainability Plan for the 2028 Games that is consistent with the International Organization for Standardization 20121 standards and supports the advancement of the City’s applicable sustainability goals.
  • Community and Business Procurement Working Group: will advise the LA28 Games in program development that seeks to ensure small, local and underrepresented businesses have access to and can participate in contract opportunities associated with the 2028 Games. Procurement and collaboration with local LA business is critical to the success of the LA28 Games. 

Working Group members come from organisations across Los Angeles that are actively engaged in their local communities and interested in shaping the future of the city and the Games. They will be expected to have a credible track record for serving greater Los Angeles, experience with educational institutions and other community organizations, extensive networks, and significant subject matter knowledge. The Working Groups will be established more than five years before the Games, providing the opportunity to meaningfully impact delivery.

The Youth Council brings together a diverse group of young people to discuss topics critical to hosting the Games, including environmental impact, accessibility, and inclusion. Comprised of Angelenos ages 18 to 24, the Youth Council will also ensure the Games engage the next generation of fans and reflect the Los Angeles community. The inaugural Youth Council was launched in 2021 with members nominated by community-based organizations. New members will be welcomed every year leading up to the Games. 

Source: Los Angeles 2028 Organizing Committee of Olympic and Paralympic Games