Serco and partners seal new nuclear deal with MoD

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Outsourcing group Serco said it has agreed an extended deal worth about 1.5 billion pounds ($2.4 billion) with Britain’s Ministry of Defence to provide and maintain the country’s nuclear warheads.

The new pricing agreement for the Atomic Weapons Establishment (AWE) contract, reached together with Serco’s joint venture partners, Lockheed Martin Corp and Jacobs Engineering Group Inc will run from April 1, 2013 until March 31, 2018.

The AWE contract, which began in April 2000, covers the entire life cycle of nuclear warheads from concept and design, through to assembly, decommissioning and disposal, Reuters reports.

Serco, which runs services from London’s light rail to prisons and air traffic control centers around the world, said on Friday its annual share of the revenue would remain at around 300 million pounds, adding 1.5 billion to its order book.

Earlier this month Serco signed a customer services contract with UK retailer Shop Direct Group worth 430 million pounds and was also named preferred bidder for a 350 million pound deal to operate ferry services to the Northern Isles in Scotland.