Serco has secured a ten-year contract to provide support services at the Royal Canadian Air Force (RCAF) 5 Wing Goose Bay base in Central Labrador.
The estimated ceiling value of the contract is $557m (C$694m).
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Serco noted that annual revenues in the opening years are expected to be between $27.7m-$41.6m, similar to the value seen in recent years on an existing agreement.
Furthermore, the deal has provisions for two five-year extensions with a potential ceiling value of around $1.2bn (C$1.5bn) over the full 20 years.
Work under the latest contract will start in September.
Serco Group CEO Rupert Soames said: “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.
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By GlobalData“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.”
The contract will involve carrying out most of the non-military operation and maintenance functions at the base.
These aviation services include air traffic control, navigational aids maintenance, fire and rescue services, electrical and airfield distribution systems and more.
Other additional services to be provided are grounds maintenance, security, water treatment, food and janitorial services, and central heating plant operations.
Since 1998, Serco has been providing services to the Canadian Department of National Defense (DND) at 5 Wing Goose Bay.
The RCAF base comprises 115 buildings across an area of 200,000m², extensive civil infrastructure, two runways and a large-scale training complex. Its primary mission is to support the North American Aerospace Defense Command (NORAD).
