Serco Group PLC (LON:SRP) said it was awarded a contract to provide support services at the Five Wing Canadian Forces Base in Goose Bay, Central Labrador.
The FTSE 250 group said the initial 10-year period of the contract, which will commence in September this year, has an estimated ceiling value of C$694mln, or around £400mln, and that annual revenues in the opening years are expected to be between £20-£30mln, similar to the level seen in recent years on an existing agreement.
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Serco said the deal also has provisions for two five-year extensions with a potential ceiling value over the full 20 years of around C$1.5bn or around £870mln.
Under the terms of the contract, the firm said it will continue to perform the majority of the non-military operation and maintenance functions at the base including aviation services, air traffic control, maintenance of navigational aids, fire and rescue services, logistics, engineering, telecommunications/IT, electrical and airfield distribution systems, water treatment, central heating plant operations, grounds maintenance, security, food and janitorial services.
Serco has provided services to the base since 1998 and is currently one of the largest private sector employers in the area.
"Goose Bay has been operated successfully by Serco for more than 20 years and we are delighted to have been selected to continue to support the Canadian Department of National Defence on what is a vital piece of national infrastructure. I am very proud of the work we have done there, including both the service delivery to the Canadian Armed Forces and Serco's work with the local community.
The new contract will allow us to build on both of these areas", Serco chief executive Rupert Soames said in a statement.