The chosen construction company will make improvements to the existing facility including building a 150m slipway, a new race-boat parking area and new race-boat moorings sheltered by a wave protection structure.
With construction expected to start early next year, the facility will be the first venue to be ready for the 2012 Games and will leave a lasting legacy for the sport after the Games.
The tender announcement coincided with a trip by Olympics Minister Tessa Jowell to the Academy.
Tessa Jowell said: "Visitors will see world class sailing and world class facilities and I congratulate the Academy on the way in which they have promoted the involvement of the community and young people.
"Sailing will be at the heart of the south west in the Olympics but there are also great opportunities for tourism and culture."
19 June 2007