Serco signs new deal worth £75m with Australian military

CEO Rupert Soames noted Serco's experience in defence. Picture: Contributed
CEO Rupert Soames noted Serco's experience in defence. Picture: Contributed
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Outsourcer Serco has signed a fresh contract with the Joint Logistics Command arm of the Australian Defence Force worth £75 million.

The group, whose contracts include the Caledonian Sleeper, will continue to provide logistics and base support services in the Middle East under the terms of a new contract starting in January.

The latest deal has a three-year base period with two individual option years and boasts a total value, if all options are exercised, of about A$135m, equivalent to some £75m.

Serco will provide 21 service lines, including catering, transport management, facilities and ground maintenance in support of ADF bases primarily in the United Arab Emirates.

The firm has been supporting the force in the Middle East under an existing contract since 2011.

Chief executive Rupert Soames said: “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.”