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Contract News Update 9

Date: 12 Nov 2009

Smaller and medium-sized contract wins are fundamental to Serco's growth and value creation, and this release updates on a selection, valued in aggregate at around £350m, of our £1bn of awards so far in the second half of 2009.

GSTS Pathology preferred bidder for contract with Bedford Hospitals NHS Trust

GSTS Pathology, the joint venture between Guy's and St Thomas' NHS Foundation Trust and Serco, has been selected as the preferred bidder by Bedford Hospitals NHS Trust for a contract to operate its pathology services. The contract, which is expected to be worth around £30m to Serco over its ten year term, will enable GSTS Pathology to establish a hub in Eastern England, an area with a number of NHS Trusts and hospitals that are seeking to modernise their pathology services.

Peterborough City Council service transformation

Serco has been awarded a new contract by Peterborough City Council to transform its information, communications and technology (ICT) services. Under the contract, which is valued at around £44m over 11 years, Serco will act as a strategic partner to the Council, advising on procurement and transforming existing processes and services, which will provide flexible working for staff and a reduced environmental impact through lower ICT energy consumption and greener working practices.

Travel services contract at AWE

Serco has been appointed as preferred bidder to renew its contract to provide travel services to the Atomic Weapons Establishment (AWE) at Aldermaston, Berkshire. The contract, which will provide a one-stop-shop booking service for air travel, hotels, car rental and taxis, is for an initial term of 2 years with an option for a further 3 years, and is valued at approximately £17m over its full term.

Contract wins in Germany
In Germany, Serco has secured £34m of new business and growth to existing contracts since the end of June. Wins have included contracts with the German Ministry of Defence to provide a mobile military hospital valued at £14m and to provide technical logistic services valued at £3.5m, and a £4m IT services contract with the Nordrhein-Westfalen Ministry of State.

Two IDIQ wins for the US Navy
Serco has been awarded two indefinite delivery, indefinite quantity (IDIQ) contracts by the US Navy. The first, for the Commander, Naval Installations Command (CNIC), which has a ceiling value for Serco of US$70m over a five-year period, will enable Serco to compete for US Navy task orders in the areas of program management, logistics, financial management and administrative support services. The second is for the provision of services that directly support the US Navy's personnel and training decision support tools, and among the three awardees has an estimated value of around US$30m over 5 years.

US Navy logistics support task order
Serco has been awarded a task order on the SeaPort-e contract with the US Navy's Fleet and Industrial Supply Center San Diego operations to provide logistical support for acquisition, management, issuance and disposal of hazardous material products and chemicals. Serco will support 15 geographically dispersed installations throughout the US Navy's Southwest Region. The task order has a one year base period with four one-year option periods and is valued at approximately US$66m, inclusive of the options.

US Navy Global Medical Systems Support
Serco has been awarded the Navy Expeditionary Medical Support Command Deployable Medical Systems contract. Under the contract, Serco will provide mobile hospitals which are used for military, humanitarian and disaster relief operations around the world. This new contract has a one-year base period plus four one-year option periods, and is valued at US$15m if all option years are exercised.

Marine Corps Psychological Health Outreach Services
Serco has been awarded a new contract to provide psychological health outreach and referral services for Marine Reservists returning from combat zones or other assignments, and their families. The contract is valued at US$9m over three years.

US Army HR Solutions task orders
Under its US Army HR Solutions IDIQ, Serco has been awarded 20 task orders, valued in total at US$46m, of which US$24m comprise new orders. These include a task order on its existing HR Solutions IDIQ contract with the US Army Installation Management Command Family and Morale, Welfare and Recreation Command. Under this task order, Serco will assist soldiers and their families who are geographically dispersed make connections with services and support located back at home. This task order has a one year term and is valued at approximately US$17m.

US Air Force data migration task order
Serco has been awarded the Air Force Data Preparation for the Expeditionary Combat Support System Data Preparation task order under the Department of Defense Logistics, Maintenance, and Supply Support contract. Serco will support the US Air Force Materiel Command with data migration from legacy systems into an integrated environment, using its experience in Air Force logistics, information technology and support tools to deliver a data preparation center. The new task order has a six month base period plus a one year option and is valued at approximately US$25m over its full term.

Significant increase in US Air Force Space Command task orders
In the last 60 days, Serco has been awarded 90 task orders valued at around US$70 million to be performed over the next couple of years.

Transport information contract in New South Wales, Australia
Serco, in partnership with mdv, a leader in the development of transport technology solutions, has signed a contract with New South Wales Transport and Infrastructure to transform the way residents access transport information. Under the contract, Serco will provide transport journey planning information services in NSW through a variety of channels, including a call centre and website. The contract has a value to Serco of AUS$27m over its 5 year term.

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Last Updated: 12 Nov 2009