The contract, running for eight years, will see Serco caring for up to 410 immigration detainees at the Bedfordshire site.
A Home Office spokesperson said: “Serco Ltd will continue to manage Yarl’s Wood Immigration Removal Centre on behalf of the Home Office after emerging as the preferred contractor following a comprehensive retendering process.
“Serco’s bid demonstrated that its offer was the best in meeting quality and cost criteria and providing value for money for the taxpayer.”
The value of the contract is £70m over eight years — just a little under the amount Serco agreed to pay back to the government as money owed on MoJ electronic monitoring and prisoner escort contracts.
The contract will start 26 April 2015.