In a statement, G4S said it entering the final stages of an extremely complex workforce supply contract, which is on an unprecedented scale. The statement continued: "We have recently encountered significant difficulties in processing applicants in sufficient numbers through the necessary training, vetting and accreditation procedures. As a result, we will be unable to deliver all of the necessary workforce numbers.
"We have worked very closely with LOCOG throughout the build up. At the point we felt that we could no longer assure the scale of the security workforce we had committed to, we advised them of the situation. The Government has therefore decided to increase the number of military personnel who will work at the Games. "We are grateful for the additional military support. We do not underestimate the impact on the military personnel and their families and express our appreciation to them. "
G4S has accepted responsibility for the additional cost of the increased military deployment resulting from the shortfall in workforce delivery. The company is also incurring other significant costs as it endeavours to meet the contract challenges. Whilst it is not possible to gauge the precise financial impact, it is estimated that the Company will incur a loss on the contract in the range of £35 million - £50 million, all of which will fall in the current financial year.
The statement added: "The Company deeply regrets that, despite the relentless efforts of so many of its people, it is unlikely to deliver in full its obligations to LOCOG, to the Government and to everyone with an interest in these Games. "Our immediate priority is to work with LOCOG and the military to ensure the necessary workforce delivery. When the Games are finished, the Board will conduct a full review of our performance on delivering this contract."
In the statement, Nick Buckles, G4S CEO said: "We are deeply disappointed that we have not been able to fully deliver against our contract with LOCOG and that it has been necessary to call upon the additional military personnel. In partnership with the military and LOCOG, we are working flat out around the clock to resolve the situation.
"We are determined that together we will deliver a successful and secure Games. I would like to thank the members of the current security workforce who are already on the ground securing many of the Olympic sites across the country."
But speaking this morning to BBC Breakfast Buckles said the company accepted it had "underestimated the task of supplying staff to the Olympics".
He said: "We deeply regret that and we are deeply disappointed. It was a daunting task to supply that number of staff in a short time scale. I began to know it was going wrong eight or nine days ago... Basically we are recruiting a large number of people and they are all working through a process of interview, two or three different degrees of training, licensing and accreditation."
G4S signed the contract with LOCOG in 2010 to supply 2,000 security staff to work at Olympic venues.
In December 2011, the Games organisers asked the company to provide some 8,000 more, bringing the total to approximately 10,000 staff.
The value of the contract is £284 million but the company has predicted costs will reach approximately £330 million.
Buckles confirmed 4,000 staff were "ready to go", having already been trained and a further 9,000 applicants were " being scheduled", meaning they had been trained and have security clearance, but had not yet been deployed.
He told the BBC "It is only when you get closer to the Games, you realise that the number is not as high as you expect."
