Carat, MindShare, Starcom, ZenithOptimedia and incumbent OMD were shortlisted for the second round of pitches in March.
Scooping the radio business will give a much-needed boost to Starcom after COI announced it was moving its £77m TV business out of Starcom into Carat.
COI originally announced plans to review its TV and radio contracts in November 2004.
The pitch was part of a statutory review at the government marketing agency, which takes place every three years.
Separately, Carat has appointed Starcom MediaVest TV buying director Kevin West to head up the recently won COI TV account.
West has a 12-year relationship with COI and decided to follow the account to Carat, despite Starcom's best attempts to keep him at the agency.
West will have an expanded role at Carat with increased billings including the Department for Transport business won in the recent pitch.
He will also have responsibility for interactive TV at Carat, following more than 30 interactive deals signed between Starcom and COI last year.
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