News Update 5
Date : 13 December 2007
Smaller and medium-sized contracts are fundamental to Serco and this release is to update analysts and investors on just some of the wins, rebids and extensions to scope and scale in recent months.
The contracts listed here are collectively valued at more than £235m and are spread across our markets. We aim to issue further updates from time to time.
Traffic signal maintenance – Transport for London
Serco has successfully rebid its contract with Transport for London to maintain traffic signal control equipment and provide related services. The contract is valued at around £60m over five years, with the potential for a further two-year extension. Serco will provide cover for all traffic control equipment including traffic signals, crossings, automatic number plate recognition cameras and traffic information signs. The services cover Central London and the City, including important transport link points for the 2012 Olympics.
Traffic systems – BAA
Serco has won its first contract with BAA. Under a three-year agreement valued at up to £1m, Serco will maintain, repair and modify traffic signals and road traffic equipment at more than 40 sites within the perimeter of Heathrow Airport.
Nuclear support services – Washington Group
The Nuclear Decommissioning Authority has appointed a consortium led by the US company Washington Group as preferred bidder to manage the UK’s low-level radioactive waste repository, which is situated at Drigg in West Cumbria. Serco Technical and Assurance Services is an integrated sub-contractor and will provide regulatory, safety and environmental technical support to the consortium. The ten-year contract can be extended to up to 17 years.
IT services – Regione Lombardia, Italy
Serco successfully rebid its contract with Regione Lombardia, one of the largest local authorities in Europe, to provide outsourced services for its IT infrastructure, including helpdesk, server administration, technical support to end-users and the supply and technological upgrading of all equipment including desktop computers, notebooks and servers. The initial contract is valued at around £14m over six years, with additional services identified expected to expand this.
IT partnership – West Sussex County Council
West Sussex County Council has named Serco as preferred bidder for an IT partnership. Serco will introduce new processes, tools and techniques to manage desktop services more effectively, delivering improved service at a lower cost, whilst also offering access to its wider IT and business process capabilities. The contract forms part of a broader change and transformation initiative that sees the Council streamlining processes, integrating services and fundamentally changing its delivery to residents and partners. The contract is valued at around £14m over seven years. West Sussex is a new customer for Serco.
SAP upgrade – West Sussex County Council
Serco has been awarded a second contract with West Sussex, via the Catalist framework, to undertake an upgrade of its SAP environment. In addition, Serco will work with the Council to introduce improved functionality in business intelligence and procurement and to support the council’s wider application rationalisation strategy. The contract is valued at around £0.5m.
IT support – European Parliament
The European Parliament has renewed Serco’s contract to provide IT support to MEPs. Services provided under this contract are support to end users for the resolution of technical problems and assistance in the use of MS Office systems, server management, user administration and system migrations of hardware and software. The contract is valued at more than £4m over six years.
Consultancy services – Ministry of Defence
Serco has won a place on the MoD’s “Catalogue” consultancy framework, the main procurement route for the MoD to acquire consultancy services. Services covered by the framework include business planning and corporate strategy development, business process and change management, information and knowledge management and customer relationship management. Ten suppliers have qualified for the framework, giving them a chance to compete for a share of up to £100m of work over four years.
Consultancy services – Department for Environment, Food and Rural Affairs
Serco has qualified as one of only four providers to deliver project and programme management resources to DEFRA. The potential value of the framework to all the qualified suppliers is £80m over four years.
Anti-terrorism systems – US Space and Naval Warfare SystemsCenter
Serco has won another contract from the US Space and Naval Warfare Systems Center to design and deploy advanced anti-terrorism systems for ships and infrastructure at Navy ports and federal facilities. The contract is valued at around $62m over three years, and could reach $115m if all five of the six-month award options are exercised. Serco will provide engineering, technical, logistical and management services for a range of government agencies.
Operational support – Ministry of Defence
Serco has been awarded a contract to provide a range of services at RAF Lyneham, home to the UK’s tactical Air Transport force of Hercules aircraft, and one of the largest and busiest operational stations in the RAF. In addition to providing base support, facilities management and logistics services, Serco will support the No1 Air Mobility Wing, Tactical Medical Wing and No 4 Force Protection Wing. This important win will further strengthen Serco’s relationships with Air Command and key equipment manufacturers such as Rolls Royce. The contract is for four years with three option years and is valued at around £34m over the full seven years.
Testing equipment – BAE Systems
Serco has won a contract valued at £2.6m over 18 months to design, integrate, manufacture and deliver equipment for testing Tornado aircraft. The integration element of Serco’s design enables the equipment to replace a number of independent testing systems.
Apache helicopter engineering – AgustaWestland
Serco has been awarded the Apache helicopter Interim Support Arrangement contract by AgustaWestland, the prime contractor for Apache ‘depth’ maintenance at Wattisham in the UK. Depth maintenance involves stripping the aircraft down and reassembling with repaired or new parts as necessary. The contract is valued at around £15m to Serco over three years.
Sea King helicopter engineering – AgustaWestland
Serco has stepped up its role in sustaining the Ministry of Defence's helicopter fleet with a two-year, £3m contract supporting the UK military's Sea King helicopters. The contract, awarded by AgustaWestland, involves Serco staff operating six modification lines at RNAS Culdrose and Yeovilton. The modifications will enhance navigation and communication capabilities.
Support services – BlueScope Steel
BlueScope Steel has extended Serco’s contract at Port Kembla for three years, with two additional one-year options. Over the full five years, the contract is valued at around Aus$50m. Serco will provide transport, training and protective services.

