The Ministry of Justice has awarded GEOAmey PECS Ltd (GEOAmey), three contracts to provide prison escort and custody services across three regions of the UK, in an agreement worth up to £900 million over a period of up to 10 years.
The joint venture company comprises GEO – a global provider of prison and escorting services with a portfolio of 118 correctional, detention and treatment facilities – and Amey, one of the UK’s leading public services providers, with more than nine years’ experience of working in secure environments for Central Government departments such as the Home Office and the MoD. Amey also brings a wealth of experience in delivering critical public services across the UK.
Government tendered four contracts to provide prisoner escort and custodial services. GEOAmey was successful in all three contracts it bid for and will now deliver a wide range of services across all of England and Wales, except in London and the East region. This will include escorting people between courts and prisons, carrying out transfers between prisons and managing court custody suites and dock areas.
The contracts will last for an initial period of seven years with an option to extend by up to three further years, and are worth a total of £90 million per annum.
Innovative solution
GEOAmey’s entrance into the criminal justice market will bring innovation and maximise efficiencies to services. New solutions include using pioneering secure light-weight plastic cells inside prison vehicles which will significantly reduce overall fuel consumption and implementing leading technologies to ensure vehicles use the most efficient routes on all journeys.
Mel Ewell, Chief Executive of Amey said: “GEOAmey has shown that it has a compelling proposition for the UK market, driving efficiencies and innovative thinking at a lower cost to the public purse; so we are delighted to be awarded these contracts by the Ministry of Justice.
“By combining GEO’s extensive experience of delivering criminal justice services, with Amey’s innovative approach to public service delivery in the UK, we have developed a market leading solution for delivering prison escorting and custodial services. Together, we can achieve efficiencies through economies of scale, as well as bringing innovation and fresh thinking to the sector. We look forward to building upon our existing experience, and working with the Ministry of Justice to develop a safe, flexible, efficient and innovative service.”
George C. Zoley, Chairman and Chief Executive Officer of GEO, said, “The selection of our newly formed joint venture, GeoAmey, as preferred bidder for the provision of prison escort and court services in three of the four lots that had been procured, marks a very important milestone for our company and is indicative of the high quality of our newly formed joint venture with Amey. We look forward to building a successful partnership with the Ministry of Justice in the United Kingdom.”
Notes to Editors:
GeoAmey is joint venture between GEO and Amey, which is a leading UK public services provider in the transportation, infrastructure, waste and FM markets in the UK. The GeoAmey joint venture is expected to employ approximately 3,000 professionals who will be responsible for approximately 460 vehicles and approximately 2,600 daily prisoner movements. TUPE transfer legislation will apply.
The contracts are due to begin in August 2011 and will cover all of the UK and Wales with the exception of the East of the UK and London.
Amey
Amey is a leading UK public services provider with more than 11,000 staff. The company works across three main markets - Inter Urban, Local Government and Built Environment, which are supported by our award-winning consultancy capability. Amey delivers services in the highways, roads, schools, passenger transportation, waste, rail, fleet solutions, workspace, street lighting, housing and aviation sectors. By offering a complete life-cycle solution for services, we maximise efficiencies for the public sector.
GEO Group
The GEO Group is a leader in the delivery of correctional, detention, and residential treatment services to federal, state, and local government agencies around the globe. GEO offers a turnkey approach that includes design, construction, financing, and operations. GEO represents government clients in the United States, Australia, South Africa, and the United Kingdom. GEO’s worldwide operations include the management and/or ownership of approximately 81,000 beds at 118 correctional, detention and residential treatment facilities, including projects under development.
This press release contains forward-looking statements regarding future events and future performance of GEO that involve risks and uncertainties that could materially affect actual results, including statements regarding estimated earnings, revenues and costs and our ability to maintain growth and strengthen contract relationships. Factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release include, but are not limited to: (1) GEO’s ability to successfully pursue further growth and continue to enhance shareholder value; (2) GEO’s ability to access the capital markets in the future on satisfactory terms or at all; (3) risks associated with GEO’s ability to control operating costs associated with contract start-ups; (4) GEO’s ability to timely open facilities as planned, profitably manage such facilities and successfully integrate such facilities into GEO’s operations without substantial costs; (5) GEO’s ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (6) GEO’s ability to obtain future financing on acceptable terms; (7) GEO’s ability to sustain company-wide occupancy rates at its facilities; and (8) other factors contained in GEO’s Securities and Exchange Commission filings, including the forms 10-K, 10-Q and 8-K reports.