Serco Group has been awarded contracts by the UK Home Office Visas and Immigration department for two regions of the new Asylum Accommodation and Support Services Contract (AASC), being the North West of England and the Midlands & East of England.
For the two regions in aggregate the total contract value is estimated to be around £1.9 billion over a 10-year term.
AASC is the successor framework for the current COMPASS (Commercial and Operational Managers Procuring of Asylum Support Services) contracts, which were awarded in 2012. Under AASC, Serco will be responsible for the provision of properties for initial and dispersed accommodation requirements, for transportation to and from properties, and for a range of other services to support the welfare of asylum seekers.
In the two regions for which Serco has been selected, there are currently approximately 20,000 asylum seekers living in more than 5,000 properties.
In 2020, the first full financial year of Serco’s new AASC contracts, the annual revenue is anticipated to be approximately £150 million.
Commenting on the award of the contracts to Serco, Rupert Soames, Serco Group Chief Executive, said: “We are very pleased to have been awarded contracts for two large regions by the Home Office; together these will be the largest contracts by value ever awarded to Serco.
“This award vindicates our decision to continue to invest in building our capability and expertise in what is an extremely sensitive, complex and nationally important area of public service delivery.”