Canadian DND Support Services Contract
The Canadian Department of National Defense has awarded Serco a contract to provide support services at the 5 Wing Canadian Forces Base in Goose Bay following a competitive tender.
The initial 10-year period has an estimated ceiling value of C$694 million or approximately £400 million, and will generate between £20 million and £30 million in annual revenue in the opening years, which is a level similar to that of the existing agreement.
The contract has provision for two further 5-year extensions with a potential ceiling value to Serco over the full 20 years, including indexation, of approximately C$1.5 billion (around £870 million).
Under the contract, the company will continue to perform the majority of the non-military operation and maintenance functions at the base which is located in Central Labrador. These services include aviation support (air traffic control and maintenance of navigational aids; fire and rescue services), logistics (warehouse operations, snow and ice removal), environmental protection, hazardous waste management and inventory management, and facilities management services – including engineering, telecommunications/IT, electrical and airfield distribution systems, water treatment, central heating plant operations, grounds maintenance, security, food services and janitorial services.
Serco has been providing services to the Canadian Department of National Defense at 5 Wing Goose Bay since 1998 and is one of the largest private sector employers in the area. The base consists of 115 buildings across 200,000 square meters, extensive civil infrastructure, and two runways along with a large-scale training complex. Serco supports a wide variety of community activities in the area and has a specific focus on indigenous skill development and training.
Rupert Soames, Serco Group Chief Executive, comments: “Goose Bay has been operated successfully by Serco for more than 20 years and we are delighted to have been selected to continue to support the Canadian Department of National Defence on what is a vital piece of national infrastructure. I am very proud of the work we have done there, including both the service delivery to the Canadian Armed Forces and Serco’s work with the local community.
“The new contract will allow us to build on both of these areas.”