A total of 47 companies have been awarded places across three value-banded lots. The winning bidders include 10 small and medium-sized enterprises, bringing diversity and competition into the market for public sector contracts.

John Kenny, CCS deputy director for workplace, said: “The launch of the FM Marketplace allows the public sector to buy a wide range of facilities management services from the very best suppliers the market has to offer, all at competitive and sustainable prices.”

Mark Fox, chief executive of the British Services Association, added: “We are pleased to work closely with the Crown Commercial Service to deliver a framework that will attract existing suppliers and new entrants alike. It is a positive step forward.”

The deal, covering expenditure of up to £12 billion over the next four years, is expected to save public bodies up to 10% on the cost of procuring facilities management services like cleaning, maintenance, security and catering.

Customers will be able to require suppliers to demonstrate social value, specifying what this means to their organisation and testing the proposals, as a key part of the awarding of contracts.

It is the first agreement to make use of the Crown Commercial Service’s new, simplified Public Sector Contract, which was designed to make it easier for businesses to apply for government contracts.

A second ‘phase’ for Workplace Services (RM6089), which includes placement of agreements in Security, Housing Maintenance and Defence FM, is being developed.