Capita, which in September was named as preferred bidder on the 12-year contract, said it had been unable to reach a mutually acceptable commercial agreement with the council and the planned partnership had been abandoned as a result. No further details were given.
The planned deal covered a range of information systems and business process services. Some 350 Lincolnshire council employees were expected to transfer to a Capita-run joint venture that would be responsible for delivering the services.
Losing the deal is a setback for Capita, which has secured a number of major UK public sector contracts already this year. In August, the company inked a 10-year deal worth 290m pounds ($600m) with Southampton City Council, while in May it clinched a 10-year agreement with Birmingham City Council worth 475m pounds ($983m).
