Serco's troubles spread to the US

The company is facing questioning over an Obamacare contract thanks to its problems in the UK.

The Government review into Serco and G4S is making waves in the US, where the former company has just been awarded a $1.2bn contract to manage key elements of Obamacare. The Washington Post's Sarah Kliff writes:

That contract, announced in late June, is among the largest Affordable Care Act grants made so far, expected to cover the hiring of 1,500 workers who will process a wave of health coverage applications…

Serco’s $1.2 billion contract with the Center for Medicare and Medicaid Services is the firm’s first health law award, Hill said. The company does, however, have experience handling large U.S. government jobs through contracts with the State Department to process visa applications and with the U.S. Patent and Trademark Office, where it oversees patent requests.

I was surprised to hear that Serco was involved in Obamacare, since the British branch was – I thought – mainly involved in areas like transport and security. But no. Their Wikipedia page lists interests in home affairs, transport, science, detention, defence, aviation, health, education, drivers' licensing, leisure, web development, it infrastructure, and waste collection.

How can one company be so good at all of these varied functions to continually win contracts? It's a broad mix, but it's not one that's completely unheard of elsewhere. General Electric is probably the most famous example in the private sector, a corporate titan which spans jet turbines to finance, through healthcare, consumer electronics and energy. As Ben Thompson writes, "the competitive advantage of such companies is usually in their management acumen and capital reserves, and the preferred employee is a generalist, able to quickly master any job with a refined set of skills."

But that doesn't fully explain companies like Serco. If it's just equivalent to General Electic, and its advantage comes from management and capital, then why doesn't GE take more government contracts, and why doesn't Serco work outside the outsourcing sector more?

In case it's not clear – and if you've read Alan White's series on the shadow state, it should be – what companies like Serco do very well is deal with Governments. That's their comparative advantage, and it's a big one. There may be very little in common between the procedures for designing a website and a running a train service – but there's a lot in common between the procedures for obtaining the contracts. Once you know how to bid for a contract, which performance targets matter, and who to take out for dinner, the difficult part is done.

That's not to say that outsourcing companies are doomed to be bad at their job. For every major scandal, there's a contract which is quietly ticking along successfully. But it exposes the contradiction at the heart of the process: if it's more important for their success that outsourcing companies be good at winning contracts than it is that they be good at fulfilling the contracts, then the justification for offering the goods up in the first place gets confused.

And so Serco moves into Obamacare, and the march of the outsourcers continues.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Meet Anne Marie Waters - the Ukip politician too extreme for Nigel Farage

In January 2016, Waters launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). 

There are few people in British political life who can be attacked from the left by Nigel Farage. Yet that is where Anne Marie Waters has found herself. And by the end of September she could well be the new leader of Ukip, a party almost synonymous with its beer-swilling, chain-smoking former leader.

Waters’s political journey is a curious one. She started out on the political left, but like Oswald Mosley before her, has since veered dramatically to the right. That, however, is where the similarities end. Waters is Irish, agnostic, a lesbian and a self-proclaimed feminist.

But it is her politics – rather than who she is – that have caused a stir among Ukip’s old guard. Former leader Paul Nuttall has said that her views make him “uncomfortable” while Farage has claimed Ukip is “finished” if, under her leadership, it becomes an anti-Islam party.

In her rhetoric, Waters echoes groups such as the English Defence League (EDL) and Britain First. She has called Islam “evil” and her leadership manifesto claims that the religion has turned Britain into a “fearful and censorious society”. Waters wants the banning of the burqa, the closure of all sharia councils and a temporary freeze on all immigration.

She started life in Dublin before moving to Germany in her teens to work as an au pair. Waters also lived in the Netherlands before returning to Britain to study journalism at Nottingham Trent University, graduating in 2003. She subsequently gained a second degree in law. It was then, she says, that she first learnt about Islam, which she claims treats women “like absolute dirt”. Now 39, Waters is a full-time campaigner who lives in Essex with her two dogs and her partner who is an accountant.

Waters’s first spell of serious activism was with the campaign group One Law for All, a secularist organisation fronted by the Iranian feminist and human rights activist Maryam Namazie. Waters resigned in November 2013 after four years with the organisation. According to Namazie, Waters left due to political disagreements over whether the group should collaborate with members of far-right groups.

In April 2014, Waters founded Sharia Watch UK and, in January 2016, she launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). The group was established as a British chapter of the German-based organisation and was set up to counter what it called the “Islamisation of our countries”. By the summer of 2016, it had petered out.

Waters twice stood unsuccessfully to become a Labour parliamentary candidate. Today, she says she could not back Labour due to its “betrayal of women” and “betrayal of the country” over Islam. After joining Ukip in 2014, she first ran for political office in the Lambeth council election, where she finished in ninth place. At the 2015 general election, Waters stood as the party’s candidate in Lewisham East, finishing third with 9.1 per cent of the vote. She was chosen to stand again in the 2016 London Assembly elections but was deselected after her role in Pegida UK became public. Waters was also prevented from standing in Lewisham East at the 2017 general election after Ukip’s then-leader Nuttall publicly intervened.

The current favourite of the 11 candidates standing to succeed Nuttall is deputy leader Peter Whittle, with Waters in second. Some had hoped the party’s top brass would ban her from standing but last week its national executive approved her campaign.

Due to an expected low turnout, the leadership contest is unpredictable. Last November, Nuttall was elected with just 9,622 votes. More than 1,000 new members reportedly joined Ukip in a two-week period earlier this year, prompting fears of far-right entryism.

Mike Hookem MEP has resigned as Ukip’s deputy whip over Waters’ candidacy, saying he would not “turn a blind eye” to extremism. By contrast, chief whip, MEP Stuart Agnew, is a supporter and has likened her to Joan of Arc. Waters is also working closely on her campaign with Jack Buckby, a former BNP activist and one of the few candidates to run against Labour in the by-election for Jo Cox’s former seat of Batley and Spen. Robinson is another backer.

Peculiarly for someone running to be the leader of a party, Waters does not appear to relish public attention. “I’m not a limelight person,” she recently told the Times. “I don’t like being phoned all the time.”

The journalist Jamie Bartlett, who was invited to the initial launch of Pegida UK in Luton in 2015, said of Waters: “She failed to remember the date of the demo. Her head lolled, her words were slurred, and she appeared to almost fall asleep while Tommy [Robinson] was speaking. After 10 minutes it all ground to an uneasy halt.”

In an age when authenticity is everything, it would be a mistake to underestimate yet another unconventional politician. But perhaps British Muslims shouldn’t panic about Anne Marie Waters just yet.

James Bloodworth is editor of Left Foot Forward

This article first appeared in the 17 August 2017 issue of the New Statesman, Trump goes nuclear