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News Update 6

Date : 13 May 2008

Smaller and medium-sized contracts are fundamental to Serco’s growth and value creation, and this release updates on a selection of our wins so far in 2008.

Al Safooh transit system - Dubai Government Roads & Transport Authority (RTA)
The RTA has awarded the ABS Consortium, of which Serco is part, Preferred Bidder status for the delivery of the Al Safooh tramway transit system in Dubai. The consortium consists of Serco, Alstom and Besix, and will be responsible for the design, build, operation and maintenance of Phase 1 of the £400m tramway which is scheduled to enter into commercial service by 2011. Serco will provide pre-launch consultancy and planning starting in mid-2008, and the operation and maintenance element of the contract, for which Serco is responsible, is valued at over £120m and will run for 18 years from 2011.

Bus operations management - Dubai Government RTA
The RTA has awarded Serco an Operations Management Office contract to review Dubai's Bus Strategic Plan, implement the Plan, and advise on industry best practice. The contract is currently valued at in excess of £3m over 21 months. 

Journey planner – Dubai Government RTA
The RTA has awarded Serco a contract valued at around US$6m (£3m) to provide a journey planner for the Dubai RTA. The new system will provide a complete solution to plan journeys in Dubai on the public transport network, delivering real-time information on all modes of transport through the internet, mobile technology and a call centre. 

Technical support partnership – British Energy
British Energy has announced Serco as one of a team of four partners which will provide engineering and technical support to British Energy’s nuclear power stations. The strategic alliance is a renewal of a previous arrangement which now includes Serco for the first time. The alliance’s total value is up to £20m per annum over the next five years.

Facilities management - Office of Public Works, Republic of Ireland
S
erco, as part of a consortium also including Macquarie and Pierse Group, has won a contract to provide facilities management services to the Office of Public Works Decentralisation PPP project in the Republic of Ireland. The project involves the design, construction, financing and maintenance of three new government office buildings. The contract will involve Serco managing the maintenance and support service delivery of the new offices, and is valued at approximately £20m over 15 years.

Technical and support services - Wyeth Pharmaceuticals
Serco has been awarded a contract to provide facilities support services to Wyeth Medica Ireland’s biotech campus at Grange Castle in Dublin, Ireland. This is the largest biotech campus in the world which employs over 1,250 people. The five year contract is valued at over Euro 20m (£16m).

Headquarters facilities management - The Coca-Cola Company
Serco has been awarded a contract for the delivery of support services to Coca-Cola’s UK headquarters in Hammersmith, London. The services will be provided to some 300 staff at these offices, and is valued at £10m over five years.

Integrated services – DML, Devonport
Serco has won a 1 year contract extension at DML, Devonport, to provide estates maintenance services. The extension is valued at £7m.

Educational, technical and support services – Volkswagen
Serco has been appointed to provide a wide range of new services to Volkswagen, valued at £16m per annum, including the VW Group Learning Services Centre, technical services, audit and a range of other support functions.

Operational support – Royal Navy Fleet Air Arm 
Serco has been awarded a contract to deliver a range of services to the Royal Navy’s Fleet Air Arm, including flying the Fleet Requirements Air Direction Unit (FRADU) Hawk aircraft as part of the Royal Navy’s combat training at sea, delivering helicopter underwater escape training, providing engineering support and training on a number of naval aircraft, and providing airfield support services. The contract is now valued at over £8m per year for up to ten years.

Royal Air Force operational support – UK Ministry of Defence
The UK Ministry of Defence has selected Serco as preferred bidder on a ten year contract with its Defence Equipment and Support organisation to provide “surface finish” services for the RAF across sixteen sites, including the Falkland Islands. The contract, worth around £68m, involves the provision of painting and finishing services for a range of aircraft, ground-based vehicles and support equipment.

Aircraft operational support – BAE Systems 
BAE Systems has awarded Serco a contract to support the VC-10 aircraft fleet based at Brize Norton, where Serco already supports 216 Squadron’s Tristar aircraft. The contract, which aims to improve efficiency and aircraft availability, and includes “off aircraft” depth maintenance and supply services, is valued at around £8m over five years.

Garrison support services - Australian Defence Organisation
The Australian Defence Organisation has renewed a contract with Serco Sodexho Defence Services, a Serco joint venture, to provide garrison support services at six defence bases in the Northern Territory. The contract’s value to Serco is up to A$175m (approximately £85m) over 9 years.

IT services - Italian Space Agency
The Italian Space Agency (ASI) has awarded a two year service contract to Serco to deliver IT services to 330 users over four sites in Italy. This contract is initially worth Euro 1.2m (£1m) over two years. 

IT services – European Space Agency
Serco has been made preferred bidder to continue operating and maintaining the operational ICT infrastructure at the European Space Operations Centre in Germany, which controls all European spacecraft. This ICT infrastructure is used in the preparation, control and exploitation of the spacecraft under the responsibility of the Director of Operations and Infrastructure at the European Space Agency The contract, which is for three years with the option for two one year extensions, is valued at more than Euro 15m (£12m).

Operational support – EUMETSAT
Serco has been awarded a contract by EUMETSAT for the provision of the Meteosat Operations Controller Team. Meteosat is the series of geostationary satellites that provide imagery to European Meteorological Services for use in weather forecasting and other applications. Serco has provided this service to EUMETSAT since 1995. The contract is for five years, with the option of two one year extensions and has an approximate value of Euro 10m (£8m).

Nursing in state run prisons – Doncaster Primary Care Trust
Doncaster Primary Care Trust has awarded Serco a contract to provide nursing and related services in Doncaster for HMP Lindholm, Lindholm Immigration Removal Centre and HMP Moorlands. Serco now provides health services to sixteen prisons and immigration removal centres across both the public and private sectors. The new contract is valued at over £4m over three years with options for two additional years.

UK small business support – business.gov
The Government's Comprehensive Spending Review has confirmed additional funding, valued at £14m to Serco, for the business.gov programme to further develop the provision of business support online. Serco has been responsible for developing and delivering the programme since 2005.

Freedom Team Salute Program Management and Outreach support services – US Army
The US army has awarded Serco, with its partner Summit Marketing, two Freedom Team Salute (FTS) contracts. Serco will provide support for a number of commendation, awareness and recognition programs, and operate and maintain the FTS Website. These two contracts are valued at over $21m (£10.5m) to Serco for a base year plus one option year.

Licensed clinical social workers – US Army Medical Command Europe
Serco has won its first contract with US Army Medical Command Europe to place 25 licensed clinical social workers at US Army Medical Treatment Facilities at seven installations in Germany, as well as in Italy and in Belgium. The contract is valued at approximately $18.9m (£9.5m) over five years.

Program Management Support Services (PMSS-2) – US Army
The US Army has awarded a team including Serco contracts under the PMSS-2 program. Of the program’s nine functional areas, Serco has the lead for Integrated Logistics Support, Human Resource Information Systems, Information Assurance and support for Business Process Reengineering, Information System Security and IT Related Systems (including Biometrics). The value for Serco is estimated at $25m (£12.5m) over five years.

Fort Gordon Military Personnel Division (MPD) augmentation - US Army Installation Command (IMCOM)
An Akima Infrastructure/Serco team has been declared the winner of the Fort Gordon Georgia Adjutant General Military Personnel Division contract. Serco has held this contract for more than five years and teamed with Akima, a native Alaskan owned business, to support their qualification for this contract, which is awarded as a small business set-aside. The contract value to Serco is approximately $30m (£15m) over five years.

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Last Updated: 22 May 2008