Serco targets £1bn Australian immigration centre contract

Serco, the British outsourcing company, has entered the race for a £1bn contract to run offshore immigration detention centres for the Australian government.

The contract, which is due to be awarded by the end of this year, is to manage the government’s two offshore immigration detention centres on Manus Island and Nauru for five years from April 2017.

A fresh deal to run offshore detention centres in Australia would be a boost for Serco, which has been struggling to win new business since being investigated by the Serious Fraud Office for overcharging the British government on the electronic tagging of prisoners.

In the first half of 2015, Serco won contracts worth £1bn, including a three-year £6m deal to provide contact centre services for the British National Careers Service and a £34m contract with the Ministry of Justice to build and manage an extension to Thameside Prison in London.

The FTSE 250 company is competing against the current provider, Broadspectrum, operating under the name Transfield, which recently had its contract extended to March next year, while the government revises the scope of the tender....


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