Pennsylvania awarded Aramark Correctional Industries LLC a three-year food-procurement and management contract for 26 state correctional facilities, state officials said Wednesday.

The contract is worth an estimated $154 million and is expect to save the state an estimated $16.6 million, the state said.

Under the arrangement, Philadelphia-based Aramark will manage food purchasing, logistics, and inventory, but the Department of Corrections will control the menus and maintain staff to prepare and serve the food. The state's goal is to use Aramark's purchasing power and technology to improve its operations.

Aramark does not break out revenues for its corrections division, but the company said it has contracts with about 500 state and county facilities in the United States.