IHMS and Serco likely to retain onshore detention centre contracts
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Version 0 of 1. International Health and Medical Services (IHMS) and Serco Australia look set to keep their lucrative immigration detention centre contracts after the immigration minister, Scott Morrison, announced both companies as preferred bidders in a new round of onshore detention tenders. IHMS holds the contract for onshore medical services in detention (including Christmas Island) worth $950m and Serco holds the onshore management contract, worth almost $3bn. Guardian Australia has been told by inside sources familiar with the tender process that three other healthcare companies, including two that are Australian owned, had bid for the healthcare contract. Two Australian-based facilities companies had also bid for the management contract. Insiders told Guardian Australia the department had actively encouraged bids from Australian companies and heavily indicated an appetite for a change in management. They added there was extreme disappointment amongst some of the rejected bidders. Serco Australia is part of the Serco Group, a British security company. IHMS is a subsidiary of the multinational private medical company International SOS. Morrison said the department called for tenders for the two contracts in April. Guardian Australia understands the window was left open for eight weeks. Morrison said the department had “undertaken a comprehensive evaluation of the tenders” and had “determined that the preferred tenderers provided the best value for money, and demonstrated a range of benefits and efficiencies”. Guardian Australia understands the IHMS bid included a number of proposed cuts to staffing levels. Morrison added: “The department will commence negotiations with the preferred tenderers shortly and depending on the success of those negotiations contracts will be entered into.” “Unsuccessful tenderers have been advised and will be offered a debrief by the department at a later date.” Both IHMS and Serco have been mired in controversy during their current contracts. In December 2013 Guardian Australia exclusively reported the contents of a 92-page letter of concern written by IHMS doctors on Christmas Island. It documented “gross departures” from medical norms in the care of asylum seekers. In July Guardian Australia published details of Serco’s proposed management plan of asylum seekers on Christmas Island, which included a military-esque tightening of security in the centre, which drew criticism from expert psychiatrists. According to contract details lodged with AusTender, Serco Australia has previously held two detention-related contracts with a combined value of $3.2bn. IHMS has held four contracts worth a total of $1.2bn. Overall, the mandatory immigration detention network is worth up to $10bn in government contracts, according to a Guardian Australia analysis. |