This Friday, at the University of Tennessee Board of Trustees meeting in Knoxville, I will make a presentation that will explain UTC’s decision to not outsource campus facilities maintenance services to Jones Lang LaSalle Americas, Inc. (JLL).
In 2015, the University of Tennessee System was invited to participate in a process to identify possible opportunities to reduce costs for the operation of all state facilities, including higher education. UT President Joe DiPietro asked the leadership of each campus to work with JLL to enable them to make proposals for facilities operations and determine what is in the best interests of the campus. Each campus will present their decision to the Board of Trustees Friday.
JLL’s business case that was presented to the University of Tennessee campuses earlier this year came following campus site tours and data studies by the Chicago-based company. The specific proposal for facilities management services at UTC was developed over many months.
The JLL proposal for UTC did not provide a cost savings. JLL’s proposal was higher than UTC’s annual costs for custodial, grounds keep and maintenance services by $263,217, with their estimate of costs coming to $6,959.799. The university’s yearly budget for these services is $6,696.581.
In their business case analysis, JLL reported: “based on our site tours, and other data provided to JLL, and available scope limitations, we have not identified cost reduction opportunities within the (UTC) main campus.”
My decision is based on the higher cost we would incur. All data indicates our campus operates effectively and efficiently.
Throughout 2017, recommendations, resolutions and letters came to my office opposing outsourcing, including resolutions from UTC’s Exempt Staff Council, Faculty Senate, Student Government Association, Employee Relations Committee, Young Democratic Socialists of America, the University Planning and Resources Advisory Council and the Chattanooga City Council, along with letters or emails of opposition from numerous students, faculty, staff and alumni. Thank you for expressing your opinion in this matter and for your patience with the decision-making process.
Steven R. Angle
Chancellor