The agreement will involve around 12 contractors tackling jobs worth from £30,000 to £25m and work will include planting, maintenance of green areas, putting up fencing and other boundary works and tree maintenance.
Fusion21, which promotes good public procurement, is working with the Ministry of Justice, the prison service and prison training providers. Part of the deal involves training to prisoners to improve their skills.
A spokesman said: "Work will involve ground maintenance services for neighbourhoods and open spaces including sports fields, eradication of invasive weed species such as Japanese knotweed. Drainage works and maintenance is also included in this framework.
"The Coalition government wants to change the way prisoners serve out their time in prison. Prisoners will be given the opportunity to work up to 40 hours a week in order to gain valuable work experience."