Serco, MoD settle legal dispute over firefighting contract

18 July 2019

Serco Group announced on 18 July that it has reached a settlement with the UK Ministry of Defence (MoD) to resolve a legal dispute around the Defence Fire and Rescue Project (DFRP) tender.

Serco had challenged a decision by the MoD to award the contract to rival outsourcing bidder Capita but it is now dropping the case in exchange for GBP10 million (USD12.4 million).

The agreement was described as an “amicable and constructive agreement” by Kevin Craven, chief executive officer for Serco UK & Europe. The payment will be excluded from Serco’s underlying trading profit and there will be no change to its previous financial guidance for 2019.

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