Serco signs new $200m contract to support US Pension Benefit Guaranty Corporation
8 March 2019
Serco Group plc
LEI: 549300PT2CIHYN5GWJ21
Serco Group plc ('Serco' or 'the Group'), the international service company, has signed a new contract to provide field office support services to the US Pension Benefit Guaranty Corporation (PBGC). The single award, indefinite delivery indefinite quantity (IDIQ) contract has a one-year base period and four option years with a total potential value of $200m if all option years are exercised. The first task order has already been issued with a five-year value of up to $112m.
Under the contract, Serco will support PBGC Field Offices to manage documents and records, build databases, administer benefits, analyse data, automate data processes and provide customer support, such as operating PBGC's contact centre and locating participants in pension plans. Serco's bid has drawn upon our range of Citizen Services capabilities including processing, contact and case management solutions, and the strong references of our support to the Federal Retirement Thrift Investment Board (FRTIB) and Centers for Medicare and Medicaid Services (CMS) contracts.
PBGC is a federal agency that protects the retirement incomes of nearly 37 million US workers in private sector defined benefit pension plans and is currently responsible for the benefits of about 1.5 million people in failed pension plans. PBGC receives no support from the US taxpayer. Its operations are financed by insurance premiums, investment income and assets and recoveries from failed employer plans.
Commenting on the contract award, Rupert Soames, Serco Group Chief Executive, said: "We are delighted to have been selected for this new contract by the US Pension Benefit Guaranty Corporation. The award strengthens Serco's Citizen Services capabilities in the US and internationally and, in particular, builds on our experience and past performance supporting the FRTIB and CMS contracts."
Ends
For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 7738 894 788
Marcus De Ville, Head of Media Relations T +44 (0) 7738 898 550
About Serco
Serco is a leading provider of public services. Our customers are governments or others operating in the public sector. We gain scale, expertise and diversification by operating internationally across five sectors and four geographies: Defence, Justice & Immigration, Transport, Health and Citizen Services, delivered in UK & Europe, North America, Asia Pacific and the Middle East.
More information can be found at www.serco.com
Forward looking statements
This announcement contains statements which are, or may be deemed to be, "forward looking statements" which are prospective in nature. All statements other than statements of historical fact are forward looking statements. Generally, words such as "expect", "anticipate", "may", "should", "will", "aspire", "aim", "plan", "target", "goal", "ambition" and similar expressions identify forward looking statements. By their nature, these forward looking statements are subject to a number of known and unknown risks, uncertainties and contingencies, and actual results and events could differ materially from those currently being anticipated as reflected in such statements. Factors which may cause future outcomes to differ from those foreseen or implied in forward looking statements include, but are not limited to: general economic conditions and business conditions in Serco's markets; contracts awarded to Serco; customers' acceptance of Serco's products and services; operational problems; the actions of competitors, trading partners, creditors, rating agencies and others; the success or otherwise of partnering; changes in laws and governmental regulations; regulatory or legal actions, including the types of enforcement action pursued and the nature of remedies sought or imposed; the receipt of relevant third party and/or regulatory approvals; exchange rate fluctuations; the development and use of new technology; changes in public expectations and other changes to business conditions; wars and acts of terrorism; and cyber-attacks. Many of these factors are beyond Serco's control or influence. These forward looking statements speak only as of the date of this announcement and have not been audited or otherwise independently verified. Past performance should not be taken as an indication or guarantee of future results and no representation or warranty, express or implied, is made regarding future performance. Except as required by any applicable law or regulation, Serco expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statements contained in this announcement to reflect any change in Serco's expectations or any change in events, conditions or circumstances on which any such statement is based after the date of this announcement, or to keep current any other information contained in this announcement. Accordingly, undue reliance should not be placed on the forward looking statements.
