The health and social care minister says the decision to offer some child care contracts on the Island to a new provider was reasonable, fair and equitable.
Howard Quayle has given more detail on the choice of St Christopher's Fellowship at the expense of the Children's Centre.
He says the department has secured high quality services which offer good value for public money.
The minister has also indicated there will be opportunities with the new provider for some Children's Centre staff who stand to lose their jobs.
The current round of contract awards for children and families services has proved controversial since news the Children's Centre had lost some of its government work emerged before Christmas.
The department says it has held constructive discussions with both parties to ensure continuity of care for youngsters when the residential service is transferred to St Christopher's in February.
Mr Quayle says the bid by St Christopher's, which saw the charity retain one service and win two more, was the strongest on the table.
He says the department understands the disappointment felt by the Children's Centre but 21 job opportunities will be ring-fenced for its staff to express an interest in.
Overall, 38 staff could be affected by the change.
The value of contracts retained by the Children's Centre, including contracts to provide fostering, adoption and supervised contact, is put at ?2.2 million per year.