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Serco signs £370m contract extension in Western Australia

Serco Group through its Australian subsidiary has signed a six-year contract extension with the Government of Western Australia to continue delivering support services at the Fiona Stanley Hospital in the city of Perth.

The contract extension has an estimated value to Serco of approximately AU$730 million (£370 million).

The extension will commence in August 2021, at the completion of the first 10-year term of the contract. The first term incorporated the transition and commissioning of the 783-bed public hospital and the first seven years of operation. The original contract also allowed for a further extension of up to four years.

Serco and the Government of Western Australia have agreed that three service lines currently delivered by Serco – cleaning, catering and internal logistics (primarily portering services) – will be delivered by the State from August 2021, with the financial scale of Serco’s contract reducing from that point to reflect this.

Serco will continue to deliver 21 service lines, including facilities and asset management, electronic records management and ICT management across the hospital estate.

Rupert Soames, Serco Group Chief Executive, said: “Fiona Stanley Hospital is an outstanding facility delivering a world-class service. I am very proud of the work we have done to initially stand up a greenfield site into the State’s leading public health facility and then to support clinical services over the hospital’s first seven years. 

“We are pleased the State has recognised the importance of Serco’s ongoing support with this contract extension for the next stage of the hospital’s development, and we will continue to work incredibly hard to deliver our services and ensure the transition is efficiently delivered.”

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