The Defence Department has awarded Spotless a $1.2 billion contract to manage facilities in Queensland and New South Wales.

Cleaning company Spotless has clinched a $1.2 billion contract from the Australian Department of Defence.

The six-year contract is worth about $200 million annually, with further options to renew for up to four years.

Spotless will begin managing Defence facilities in Queensland and southern New South Wales on November 1.

Spotless shares were up one cent at $1.875 at 1415 AEST.