UTM Opts Not To Outsource

 

 

Martin, Tenn. – The University of Tennessee at Martin is opting not to outsource its facilities management services. The decision comes following a campus visit by Jones Lang LaSalle Americas, Inc. as a facilities management service provider recently contracted by the state of Tennessee.

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 at the UT Board of Trustees meeting Nov. 3 in Knoxville.

The master contract allows authorized entities such as University of Tennessee institutions to utilize the JLL contract, which primarily provides for custodial, grounds and repair and maintenance facilities management services using a cost-plus fees service model.

Following the site tour, JLL submitted a proposal for providing services to UT Martin with cost- reduction opportunities of $93,366 annually. Most projected savings were within the university’s housing auxiliary operations. Upon further examination of the proposal, it was determined that the estimated cost reduction in the JLL proposal would be less than $14,000 annually. The adjustment is due to the duplication of $80,000 in both the housing grounds and maintenance budgets when providing data to JLL.

The university is electing not to utilize JLL’s services because the adjusted proposed savings to UT Martin with the JLL contract are not significant. UT Martin will further increase savings and efficiencies in the physical plant and housing maintenance operations through incorporation of opportunities JLL outlined as observations and insights from its site tour.

UT Martin’s center locations in Jackson, Parsons, Ripley, Selmer and Somerville are not owned by the university and were not included in outsourcing considerations.

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