Serco's U.S. arm gets key $948M CMS extension

Serco Group’s North American subsidiary has received a new potential five-year, $948 million contract to continue its health insurance eligibility processing services for the Center for Medicare and Medicaid Services.

The current contract for Reston, Virginia-based Serco Inc. ends on June 30 and the business was required to rebid for the work. Revenue over the past 12 months for the work totaled $210 million, the Serco Group parent said Wednesday.

This extension clears away a major headwind for Serco Inc. given the rebid requirement and concentration of sales for the subsidiary in a single contract. The prior contract represented 30 percent of Serco Inc.’s total $890 million in revenue last year.

CMS’ renewal of the contract also comes after a long period of uncertainty over whether the Affordable Care Act of 2011 also known as Obamacare would be repealed under a Republican-controlled Congress and White House with the election of Donald Trump to president.

Trump and other GOP congressional leaders fought hard to repeal ACA last year but did not succeed.

CMS awarded the new contract as a task order under the Alliant 1 Unrestricted contract. The order covers one base year followed by four one-year option periods.

About the Author

Ross Wilkers is a senior staff writer for Washington Technology. He can be reached at Follow him on Twitter: @rosswilkers. Also find and connect with him on LinkedIn.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here


  • POWER TRAINING: How to engage your customers

    Don't miss our Aug. 2 Washington Technology Power Training session on Mastering Stakeholder Engagement, where you'll learned the critical skills you need to more fully connect with your customers and win more business. Read More


    In our latest Project 38 Podcast, editor Nick Wakeman interviews Tom Romeo, the leader of Maximus Federal about how it has zoomed up the 2019 Top 100. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.