LA City Council Raises Concerns Over LA28's Procurement Plans for 2028 Olympics

As preparations for the 2028 Los Angeles Olympics progress, the LA28 organizing committee has faced significant scrutiny from the Los Angeles City Council. Council members have expressed dissatisfaction with the lack of specific plans regarding the protection of taxpayer interests and support for local businesses. Despite LA28's projections of billions of dollars in economic benefits for Southern California, city officials are demanding clearer commitments to prioritize Los Angeles businesses over those from the broader region.

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Councilmember Monica Rodriguez criticized the procurement plan presented by LA28, stating, "This is a whole new Olympiad in trying to end-run our own procedures in the city of LA. (It) doesn’t feel like much of a partnership, and it’s disappointing." City Council President Marqueece Harris-Dawson echoed these sentiments, emphasizing the need for local businesses to be prioritized, saying, "I can’t imagine if I’m a business owner, and I’m competing to do business with someone in Barstow or in Yucaipa."

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LA28 aims to allocate 75% of its spending on goods and services to local businesses, with 25% specifically directed to small businesses. However, city officials have noted that the procurement plan lacks the necessary specifics and guarantees to ensure that Los Angeles businesses are adequately represented. The LA28 committee has engaged with small business owners to facilitate their participation in the procurement process, but concerns remain about the complexity and intimidation of the bidding process.

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Greg Plummer, owner of Concord Collective, acknowledged the outreach efforts by LA28 but highlighted the challenges faced by many companies in navigating the bidding landscape. He stated, "They have made a very concerted intentional effort about outreach to the small business community."

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LA28 CEO Reynold Hoover addressed the city council, asserting the need for fiscal responsibility in delivering the games. He remarked, "I have to deliver these games in a fiscally responsible way, and if every single bidder in the city of LA charges premium Olympic prices, then we will go into the backstop." As of now, a formal services agreement between LA28 and the city has not been finalized, despite expectations for a contract to be signed in October.

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Councilmember Rodriguez raised concerns about the outstanding expenses and their implications for local businesses, stating, "The ball's in LA28's court, so we're waiting on a response from LA28 at this juncture." According to Hoover, approximately $4 billion is projected to flow to local businesses, including $1 billion earmarked for small businesses.

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• "This is a whole new Olympiad in trying to end-run our own procedures in the city of LA. (It) doesn’t feel like much of a partnership, and it’s disappointing." — Monica Rodriguez, LA City Councilmember

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• "I can’t imagine if I’m a business owner, and I’m competing to do business with someone in Barstow or in Yucaipa." — Marqueece Harris-Dawson, City Council President

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• "They have made a very concerted intentional effort about outreach to the small business community." — Greg Plummer, Owner of Concord Collective

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• "I have to deliver these games in a fiscally responsible way, and if every single bidder in the city of LA charges premium Olympic prices, then we will go into the backstop." — Reynold Hoover, CEO of LA28

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The ongoing dialogue between LA28 and the Los Angeles City Council will be crucial in shaping the economic landscape for local businesses as the city prepares for the upcoming Olympic Games.

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