UTC, UTK Reject Outsourcing

Tuesday, October 31, 2017

UTC will announce to the UT board of trustees at their annual meeting on Friday in Knoxville that UTC will not participate in the outsourcing of campus facilities maintenance services with 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.

Upon the identification of proposed costs for services by JLL, UT President Joe DiPietro asked the leadership of each campus to review the proposals and determine what is in the best interests of the campus. Each campus will present their decision to UT System Administration and the Board of trustees at the upcoming board meeting on FridayUTC 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,” Dr. 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.”

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. 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.”

Also, UT-Knoxville Chancellor Beverly J. Davenport decided to reject outsourcing.

She wrote:

"I write to inform you that I have decided to opt out of the proposed plan to outsource facilities management. This decision was reached after considerable analysis of proposed savings and a close examination of our current and future operations.

"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.

"The goal of the proposed outsourcing plan was to improve efficiencies and determine what is in the best interest of our campus. We thank the state and the UT System administration for challenging us to engage in extensive cost analyses and an evaluation of our practices, which have led to cost-saving operational changes in keeping with the outsourcing goals.

"My decision to opt out was based on the extensive analyses of the financial considerations, the complexity of the work done on our research-intensive campus, and our commitment to the East Tennessee economy and our workforce. It is for these reasons that I have decided outsourcing facilities management is not the best option for our campus.

"Since the approval of the 2011 campus master plan, we have invested heavily in our facilities and infrastructure. In fact, we have increased the space we enhance and the buildings we maintain by more than 100 acres and one and a half million square feet.

"During this historic period of growth, we have reduced operating expenses, become more efficient, avoided costs and subsequently reallocated savings to the academic mission. In fact, we rank among the lowest in the SEC in administrative and maintenance costs per square foot. Five-year projections indicate an additional $3.3 million in savings.

"I want to thank the numerous people who have spent countless hours evaluating the outsourcing option. I have had dozens of meetings, received volumes of mail, and had detailed conversations with a wide range of constituents. I value all of this input and appreciate the opportunity to make a decision based on the best interests of our campus."

Most sincerely,

Beverly J. Davenport
Chancellor


Police Blotter: Possible Stolen Car Flees From Police; Fired Live-In Aide Won't Move Out

Latest Hamilton County Arrest Report

Police Blotter: Man Tells BP Employee He's Going To Blow Up Her And The Store; Woman Thinks Son-In-Law Is Trying To Break Into Her House


An officer was sitting in a patrol car at 801 Pine St. at the Westin Hotel when two black males exited the front entrance of the hotel. The two men then entered the valet parking garage on foot. ... (click for more)

Here is the latest Hamilton County arrest report: ADAMS, GEORGE ANTHONY 727 E 11TH ST HAMILTON, 37402 Age at Arrest: 51 years old Arresting Agency: East Ridge THEFT OF IDENTITY POSSESSION ... (click for more)

An employee at the BP, 100 West 20th St., told police she was at the register when a man walked into the store and was being "mouthy" with her. She said she asked him to leave and he complied ... (click for more)



Breaking News

Police Blotter: Possible Stolen Car Flees From Police; Fired Live-In Aide Won't Move Out

An officer was sitting in a patrol car at 801 Pine St. at the Westin Hotel when two black males exited the front entrance of the hotel. The two men then entered the valet parking garage on foot. The officer noticed a possible black 2009-2012 Chevrolet Malibu pull out of the parking garage. The officer attempted to make contact with the suspicious car and it evaded police at a high ... (click for more)

Latest Hamilton County Arrest Report

Here is the latest Hamilton County arrest report: ADAMS, GEORGE ANTHONY 727 E 11TH ST HAMILTON, 37402 Age at Arrest: 51 years old Arresting Agency: East Ridge THEFT OF IDENTITY POSSESSION OF DRUG PARAPHERNALIA TAMPERING WITH OR FABRICATING EVIDENCE FORGERY CRIMINAL SIMULATION ALI, HUNTER ALEXANDER 5245 OLD HIXSON PIKE HIXSON, 37343 Age at Arrest: 23 years ... (click for more)

Opinion

The Plight Of The Homeless

I work very closely with the homeless population in our Chattanooga area. My son and I take around 50 meals a week to our friends living in the tent cities. On Wednesday at 9 a.m. I witnessed first hand the Tennessee Department of Transportation destroying everything - my friends' homes and all of their possessions. My friends in the tent cities have always told me that TDOT ... (click for more)

Roy Exum: 4,200+ Shot In Chicago

Between the Christmas parade massacre in Wisconsin and the unfathomable school shooting by a 15-year-old in Michigan, what might be America’s greater horror continues to gnaw on Chicago like a vicious cancer. With a month remaining in the year, Cook County, Ill., has recorded over 1,000 homicides in 2021. Not just that; a whopping 81 percent of the murdered have been black and another ... (click for more)

Sports

Chandler’s 27 Lead #13 Vols To Win At Colorado, 69-54

Freshman Kennedy Chandler scored a career-high 27 points and No. 13 Tennessee defeated Colorado on the road Saturday, 69-54. The Volunteers snapped Colorado's nine-game home win streak at CU Events Center. The Buffaloes also saw their six-game home win streak against top-25 opponents come to a halt. Chandler shot 13-for-20 from the field in 36 minutes of action, leading the ... (click for more)

UTC Women To Host Alabama On Sunday

The Chattanooga women’s basketball team will return home Sunday afternoon to host SEC foe Alabama at The McKenzie Arena. All fans are encouraged to show their support for the Mocs by wearing blue and the first 100 fans through the gate will receive a “CODE BLUE” t-shirt. CHATTANOOGA vs. ALABAMA Chattanooga and Alabama have met 11 times since 1981 with UTC holding a slight ... (click for more)