Serco secures extension to Australian detention services contract


WEBWIRE – Friday, December 27, 2013

Serco Group plc (Serco), the international service company, today announces that it has secured a six-month extension to its contract with the Australian Government Department of Immigration and Border Protection (DIBP) for the provision of detention services at Immigration Detention Centres (IDC) and Alternative Places of Detention (APOD) on mainland Australia and Christmas Island.

Commencing in June 2009, the five-year contract has two, two-year extension options. Under the contract Serco manages 17 facilities, providing a comprehensive range of services including: reception and induction; transfer and discharge; individual management planning; programmes and activities; education; transport and escort; security; facilities management; and catering.

Serco has a second contract for detention services with the DIBP for Immigration Residential Housing (IRH) and Immigration Transit Accommodation (ITA), covering a further six sites. This contract is also a five-year contract, with two, two-year extension options and commenced on 11 December 2009. The IDC and APOD contract extension makes the two contracts with the DIBP concurrent until 10 December 2014, after which both contracts may be subject to a rebid or additional extensions.

The DIBP contracts are our largest operation in the Group, employing more than 3,000 people across Australia. The current level of revenue is also the largest within the Group as a result of the growth in the number of people in our care since the contract began. We currently have more than 6,000 people in our care; however, the level of future activity continues to be unpredictable. As noted in our Group Annual Report, activity in these contracts is likely to fluctuate depending on a number of factors, including those which affect how many people are received into Australian immigration detention, and the length of time that they remain there.

David Campbell, Chief Executive Officer of Serco AMEAA, said: “We are delighted by the Australian Government Department of Immigration and Border Protection’s decision to extend our contract. This decision is testament to the extraordinary work our people are doing every day to deliver high quality services, providing safe and secure centres, where the people in our care are treated humanely, with dignity and respect. In 2013, we have built on our achievements, maintaining consistently high performance against the contract Key Performance Indicators, averaging over 99% compliance. Importantly, the contract extension is also a testament to the strong partnership we have forged with the Department. Jointly, we have successfully managed the high demands on the immigration detention network, maintaining stability and working to ensure the wellbeing of people in our care.”

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