Serco receives contract worth up to 1.25bn dollars with US Dept. of Health

2nd Jul 2013 15:11

Outsourcing specialist Serco Group has confirmed that it may potentially have been awarded a contract by the United States Department of Health and Human Services' Centers for Medicare and Medicaid Services. Under the terms of the same it would support the federally-facilitated marketplace and state-based marketplaces for the eligibility support tasks under the Patient Protection and Affordable Care Act of 2010.Serco will provide a further update and relevant detail at the appropriate time, the company added. According to the US Federal Business Opportunities website the total amount of the contract - including all option periods and optional tasks - is of $1.25bn.For the base period required tasks the contract has a value of $114.31m, according to that same source. The contract is of a cost plus fixed-fee nature running for twelve months starting on October 1st, with an option for four more 12-month periods. Shares of Serco are now rising by 6.48% to 665.5p.AB