Private security firm G4S will design, build and help run a police station in what is thought to be the first deal of its kind.
Although the deal with Lincolnshire Police Authority could save up to £28m, it has been criticised by the the Police Federation who warned private sector contracts could leave police officers "high and dry in times of national emergency".
Simon Reed, vice-chair of the Police Federation of England and Wales told Huff Post UK: “There are many examples of private companies supporting and providing services to the police service.
“In order to guarantee the maximum resilience of the police service we need assurances that police staff are available to support officers especially when they are working long hours and under extreme pressure during major incidents.
“Our primary concern is the impact future private contracts will have on the flexibility of the police service, we would hope that officers are not left high and dry in times of national emergency. Police officers should not have to worry about inheriting additional workloads as a result of cuts or changes to the working conditions of support staff.”
Lincolnshire Police Authority chairman Barry Young and chief constable Richard Crompton said the deal would make "significant savings".
“We are confident that our decisions will not only ensure the best possible outcomes for the communities we serve, but also that they have put us firmly in the vanguard for change in the way British policing is delivered," he said.
“Over the period of the contract this new approach will make significant savings, whilst also providing investment in key areas like IT infrastructure. The subsequent streamlining of processes will free up officer time to concentrate on operational policing.”
Kim Challis, group managing director of G4S government and outsourcing Services, said Lincolnshire was "leading the way".
"This new police station will be the first, tangible demonstration of the benefits this partnership will bring to Lincolnshire," he commented.
"But others, such as the planned shared services centre, will place Lincolnshire at the heart of Britain's policing future, generating vital additional income as well as creating new jobs.
"This is an exciting time for Lincolnshire and we are proud to be part of it."