Sodexho has retained the hotel services contract for North Devon District Hospital, worth more than £3m a year.
The contract was retendered under Best Value, which replaced compulsory competitive tendering in 1998. Sodexho has already held the contract for six years.
Initially the contract will run for seven years, with the option to extend to 10. It starts on 1 April and was awarded by the Northern Devon Healthcare NHS Trust.
Besides catering and vending, Sodexho's 220 staff will provide all housekeeping and domestic services, portering, mail room and courier services, reception, waste management and patient clothing laundry services. It will also oversee pest control, window cleaning and, for the first time, car parking.
Under Best Value, the caterer works in partnership with the trust and the results are monitored. A partnering body made up of directors from both has been set up to manage jointly the costs and services within the agreement.
Two years ago Sodexho was the first external contractor to be awarded a Best Value contract in the NHS when it took over the feeding of 1,400 patients at the Hull and East Yorkshire NHS Trust's Castlehill Hospital.