Texas A&M received $40 million in Compass Group deal, paper reports
Company fought to keep details confidential.
Nov. 19—It seems Texas A&M University, in College Station, Texas, made a very good deal—at least a $40 million one—when it decided to outsource many of its campus services.
The university system, to generate more revenue, outsourced more than a thousand staff positions in August, but it has taken months for the details of the deal to become public. The Eagle has obtained contracts between the system and Compass Group USA, Inc. for dining services, landscape management, custodial services and building maintenance services.
According to the contracts, the A&M System received $40 million of a $46.5 million signing bonus from Compass Group on Oct. 2. Chancellor John Sharp touted that amount previously and said the deal will be worth $260 million in extra revenue and cost savings over the life of the 10-year contract.