Serviceteam, which was originally set up by a group of Lewisham Labour councillors, pipped lead tenderer SITA (GB) and Onyx to win the£35m-a- year contract, which is scheduled to run for seven years with an additional three-year option. It starts next month
Prior to the decision, there had been indications that SITA would consider a legal challenge if it was defeated but a company spokesman would only say that the firm was considering its position.
Serviceteam, which currently operates from Hertfordshire, is to move its national headquarters into a former direct services building in the south London borough.
The council has established a special committee to oversee the contract and insists it will retain democratic control through the use of a 'golden share' in the new joint company it is forming with Serviceteam.
The share gives representation on the board and interventionary powers.
Political representation in Lambeth is 25 Liberal Democrat, 24 Labour, 14 Conservative and 1 Independent.