COLLEGE STATION, Texas (AP) — Texas A&M University has already received $40 million by outsourcing 1,000 food and other service jobs to Compass Group USA, Inc. and could save millions more over the contract's 10-year life, a newspaper reported Sunday.
The Bryan Eagle (http://bit.ly/Qn7A6t ) said it received details of the contract between Texas A&M and Compass after a judge ruled it was public information. Compass had argued the details of the deal should remain confidential for competitive reasons.
The university system received $40 million of a $46.5 million signing bonus in October. Chancellor John Sharp has said the deal will be worth $260 million in extra revenue and cost savings over 10 years.
"My goal was to provide the most efficient and effective dining and facility maintenance services to our students, faculty and staff while respecting and maintaining the employment of our current members of those organizations," Sharp said in an emailed statement to the Eagle.
The contract with Compass allows the university to "better support our core functions of teaching and research," Sharp added.
North Carolina-based Compass is taking over dining services, landscape management and custodial and building maintenance services.
In its appeal to the court, Compass Group lawyer Richard Keeton called the size and scale of the incentives Compass offered unprecedented.
Under the dining contract, Texas A&M gets a 5 percent commission on retail sales, catering, conferences and meal plan sales during the first year. That rises to 10 percent for the remaining nine years of the deal.
The university is guaranteed a minimum commission of $2.6 million per year to $6.2 million over the life of the contract.
Texas A&M is also paying $6.8 million per year for landscape maintenance, $18.3 million annually for custodial services and another $25.4 million per year for building maintenance.
Information from: The Eagle, http://www.theeagle.com