Oxfordshire County Council has outsourced its school meals service to Carillion as part of a new £500m property and facilities management (FM) deal.
Carillion, best known for its construction and FM capabilities, will run the service as part of the first deal of its kind in the UK.
The 10-year contract, with an option to extend for a further 10 years, will see the private firm take on the council's schools catering business (Food with Thought) and in-house cleaning service (QUEST Cleaning Services), with the transfer of over 700 staff.
Both services are a key focus of Carillion's growth plans going forward, the company said.
A framework agreement has also been put in place through which other local councils and bodies within Oxfordshire can procure services that could increase Carillion's revenue by an additional £200m over the 10-year contract period.
Carillion chief executive Richard Howson commented: "This builds upon Carillion's strong track record in delivering integrated service solutions to local and central government customers.
"We will continue to work closely with Oxfordshire County Council to ensure we deliver high quality, value for money services to the people of the county."
Carillion will also be responsible for routine property management, facilities management, energy management and capital works services.
This is the first time that the council has grouped all of its property services into one contract and is the first local authority contract of this kind in the UK, Carillion said.
The council is expected to achieve revenue savings of at least £550,000 per year.
Huw Jones, director for environment & economy, added: "The council has taken advantage of the opportunity to combine a number of contracts that had previously operated independently of each other to provide comprehensive high quality services that also operate more cost effectively, not only improving consistency and resilience, but making financial common sense."
By Janie Manzoori-Stamford
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