UTC, UTK won't outsource campus maintenance
Both the University of Tennessee at Chattanooga, along with the University of Tennessee in Knoxville, say they won't outsource campus facilities maintenance services.
Both the University of Tennessee at Chattanooga, along with the University of Tennessee in Knoxville, say they won't outsource campus facilities maintenance services with Jones Lang LaSalle Americas, Inc. (JLL).
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.
Leadership of each campus in the UT system was asked to review the proposals and determine the best interests of the campus by UT President Joe DiPietro.
Each campus will present their decision to the Board of Trustees and UT System Administration at the upcoming Board meeting Friday. UTC Chancellor Steven R. Angle will explain the university’s decision.
"JLL made a sincere presentation and their ongoing conversations with us were specific and thorough,” Angle reported. “Our decision is to not participate based on the higher cost of services. Our data indicates our campus operates effectively and efficiently. I want to personally thank JLL for their candor and efforts in this matter where it has related to our university.”
UTK's Chancellor Beverly Davenport announced Tuesday her decision to opt out of the proposed plan to outsource facilities management jobs on campus.
"This decision was reached after considerable analysis of proposed savings and a close examination of our current and future operations," Davenport said in a letter to the campus. "I am deeply indebted to our staff, led by Senior Vice Chancellor for Finance and Administration Chris Cimino, who has worked diligently since 2015 to evaluate outsourcing on the Knoxville campus."
JLL’s business case presented to the University of Tennessee campuses earlier this year followed campus site tours and data studies by the Chicago-based commercial services company. The specific proposal for facilities management services at UTC was developed over many months.
The analysis in the Chattanooga proposal did not add up to a cost savings, according to UTC's Chuck Cantrell.
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 the business case presentation JLL submitted to UTC, the company said: “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.”
NBC affiliate WBIR in Knoxville contributed to this story.