Compass Signs Preferred Supplier Agreement with ChevronTexaco

ChevronTexaco Corp. and Compass Group finalized a 10-year "Preferred Supplier" agreement believed to be the largest ever negotiated in the catering industry. The agreement, valued initially at more than $200 million a year, covers catering and facilities management for most ChevronTexaco facilities, offshore platforms, refineries and office locations worldwide.

A Compass subsidiary, Eurest Support Services (ESS), will begin expanding significantly its current business with ChevronTexaco later this quarter at the ChevronTexaco-affiliated Tengiz Field in Kazakhstan when it assumes operation of four food facilities that prepare more than 10,000 meals a day, as well as building maintenance, transportation and other janitorial and office services. ESS will use Kazakh-sourced food products and goods as well as Kazakh subcontractors to a maximum extent.

The agreement anticipates that in the next two years most operations of ChevronTexaco in North America, Latin America, Australasia, Middle East, Asia, Europe, Eurasia and Africa will come under the scope of the "Preferred Supplier" agreement, sharply reducing the current number of vendors. Compass will make widespread use of local suppliers in support of ChevronTexaco's pledge to maintain partnerships in communities where it operates.

Helmut Porkert, Chief Procurement Officer of ChevronTexaco said : "We expect to maintain or enhance quality standards and locally-sourced content while saving at least $20 million a year compared with current spending. This is another step in our company’s efforts to buy smarter in support of our company goals of operational excellence and capital stewardship."


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