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Serco signs AU$135m rebid with Australian Defence Force for military base support in the Middle East

Published: 24 Aug 2018

Serco Group plc ('Serco' or 'the Group'), the international service company, has signed a contract with the Australian Defence Force’s Joint Logistics Command to continue providing Middle East Logistics and Base Support Services (MELABS).  Serco has been supporting the Australian Defence Force (ADF) in the Middle East under the existing MELABS contract since 2011. This new contract, starting in January 2019, has a three-year base period with two individual option years and a total value, based upon assumed volumes, of approximately AU$135m (equivalent to approximately £75m) if all option years are exercised.

Under the new MELABS contract, Serco will provide 21 service lines, including catering, waste disposal, facilities and ground maintenance, laundry, transport management, procurement and welfare services in support of ADF bases primarily in the United Arab Emirates.

Serco’s operational solution for the new MELABS contract was developed on a ground-up basis using our experience in meeting the high service standards required in the existing contract, and our understanding of the unique challenges of delivering these services in the Middle East region including the need to be both flexible and scalable in response to the ADF’s operational tempo. The services delivered will draw on the experience and expertise of Serco’s business in Australia supporting the ADF, and our business in the Middle East where Serco has 70 years of continuous experience delivering services.

Serco’s solution will deliver cost efficiencies and an improved service experience tailored to support the needs of ADF personnel deployed to the Middle East, using expanded shared services, better utilisation of technology, and improvements to support morale and wellbeing of ADF personnel.

Rupert Soames, Serco Group Chief Executive, said: “We are extremely pleased to be selected to continue this work in support of the Australian Defence Force in the Middle East. Serco’s successful rebid for this contract is based on our exemplary track record of delivery on the existing contract, experience of delivering defence services for customers both in Australia and internationally, as well as our 70-years’ experience of providing services in the Middle East.  We look forward to supporting our customer and meeting our commitments to deliver cost efficiencies and service improvements under this new contract.”