State of Tennessee pioneers facility management outsourcing

Spotlight

Customer satisfaction exceeds 95%

Value

Cumulative cost savings of $53 million

The State of Tennessee wanted to reduce its real estate costs, while improving conditions of its workplaces through modernization of space plans and increased utilization across a 10-million-square-foot portion of its portfolio of leased and owned facilities.

The State assessed all of its owned facilities, tracking conditions, needed repairs, and energy usage. It created a capital project pre-planning process to prioritize projects and created the business case for each budget request. Among other findings, the assessments revealed potential operating expense savings that could be achieved with limited equipment upgrades and better energy management.

Perhaps most significantly, the State took the bold step of outsourcing all integrated facility management services for a 10-million-square-foot portfolio of 603 leased and owned properties –something no state had previously done. Over five years, the State has saved $52.9 million in operational and energy costs. Of the State’s facilities team members that transitioned to JLL at the initiation of the contract, the majority continue to work on State facilities.

In addition, outsourcing enabled the State to implement a comprehensive energy management program and a preventive maintenance program of all building equipment, estimated to save the State millions over time.

Service improvements include a Web-enabled work order system and around-the-clock call center so State employees can conveniently request service at any time. Vendor contracts have been renegotiated to produce estimated savings of $13.6 million over the life of the contract.

Also, the partnership identified and corrected 681 potential OSHA code violations, improving workplace safety.