Engineering support for the 3.4 mile (5.6km) bypass will be provided by Atkins and environmental support by TACP.
The contract has been awarded on the basis of early contractor involvement and no price has been given, but previous estimates put it in the range of £40m to £55m.
Alun Griffiths will now progress the scheme through the design development stage, statutory processes and finally onto construction.
Welsh minister of transport Edwina Hart: “I am delighted to be able to award the contract for this very important project, which will improve the quality of life for the people of Newtown and improve journey times and safety along the A483 and A489.
“The contract will also include further transport improvements for the town including footway improvements and provisions of cycle ways. Once the bypass is completed, further improvements to the traffic flow through the town will be made.
“It is also encouraging to see that a Welsh company has won this tender, which will help safeguard Welsh jobs and result in money staying in the local economy.”
The next stage of the project will be the preparation of the preliminary design and publication of the draft orders, which is expected by April 2014.
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