Texas A&M University has given Compass Group USA a five year contract, plus an option for another five years, to operate its dining, building maintenance, custodial and landscaping services. Compass will pay $45 million in the next 30 to 45 days, plus another $30 million for capital improvements, said Chancellor John Sharp in making the announcement. He noted that in all, Texas A&M would receive a total of $260 million in additional revenue and cost savings over the 10-year life of the contract, $125 million for dining services and the remainder for the other services.
“When I took this job, I made a commitment to get greater value out of scarce resources so we could advance our core mission of teaching and research,” said Sharp. “Today’s announcement means more money will be available to recruit, pay, and retain faculty and researchers.”
Compass also committed to retain the current university and A&M System workforce. It will hire all current employees working in the four affected areas, and will match their salaries and benefits.
The deal is expected to be finalized in time for Compass Group to assume management before the fall semester begins.