Serco wins Canadian Forces contract extension worth up to £870m

(Sharecast News) - UK outsourcing contractor Serco has been awarded a contract extension worth a potential £870m to provide support services at the 5 Wing Canadian Forces base in Goose Bay.


The company on Wednesday said it anticipated annual revenue of £20m-£30m in the opening years of the initial £400m 10-year period. The contract has provision for two five-year extensions with a potential ceiling value to Serco over the full 20 years, including indexation, of around £870m.

Under the contract, which starts in September, Serco will continue to perform the majority of the non-military operation and maintenance functions at this base, located in Central Labrador, including aviation services such as air traffic control and maintenance of navigational aids.