Tennessee engages JLL for state building maintenance program

Program expected to deliver service improvements and cost savings for taxpayers

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May 26, 2017, 12:28 ET

NASHVILLE, Tenn., May 26, 2017 /PRNewswire/ -- JLL (NYSE: JLL) has entered into a new contract with the State of Tennessee to manage state-owned properties, including public colleges and universities that choose to leverage Tennessee's innovative facilities management program.

Success of Tennessee's facilities management outsourcing program, initiated in 2013, drove the state's decision to include more state properties for professional management and maintenance. Results of the initial project, which included 10 percent of state properties, yielded better service and more than $26 million in savings through fiscal year 2016 (including $6 million in utility savings). It is on track for $40 million in savings by the end of 2017 and $50 million in five-year taxpayer savings by June 30, 2018.

"World-class professional management of state-owned properties is proving transformative for Tennessee – improving the quality of service in facilities and generating substantial financial savings for the citizens of our state," said Tennessee Department of General Services Commissioner Bob Oglesby. "We are excited that Tennessee has become a national model that other states desire to emulate, and has been celebrated with innovation awards from major organizations that recognize Tennessee as a leader in facilities management. We look forward to continuing our relationship with JLL and driving the same kinds of efficiencies to other branches of Tennessee government."

Tennessee's facilities management outsourcing program has gained national recognition for efficiency and innovation. The National Association of State Chief Administrators (NASCA) and the National Association of State Procurement Officers have presented major innovation awards to Tennessee in 2014 and 2016. On May 3-4, NASCA hosted officials from 15 states that are considering replicating Tennessee's program to improve quality of facilities maintenance while lowering overall costs to taxpayers.

JLL has achieved savings at State of Tennessee facilities by creating efficiencies for maintenance, security, janitorial and landscaping services; implementing preventive maintenance; and adding technology systems that reduce energy costs.

"Since 2013, JLL has worked alongside the Tennessee Department of General Services to realize efficiencies and improvements in building management, maintenance and energy savings," said Tom Foster, JLL executive vice president. "Through this program, we have demonstrated a consistent commitment to providing State of Tennessee employees the opportunity to improve their careers and compensation potential by joining our team and gaining a higher level of professional training."

According to the new contract, Tennessee can direct certain state departments to outsource facilities management. State-owned colleges and universities will have the option to leverage JLL services and are encouraged to explore the opportunity to improve facilities management and lower costs.

Under new contract terms, JLL is required to keep all current employees in newly managed JLL facilities. State employees begin that process by completing a questionnaire, drug screening and background check. Employees that transition to JLL will have a compensation package, including benefits, equitable to their state compensation. Employees who transitioned from the State of Tennessee to JLL under the 2013 contract today earn, on average, approximately 38 percent more than when they were employed by Tennessee.

JLL serves as the prime service provider with contract service partners Diversified Maintenance and BrightView Landscapes, LLC. JLL has had a longtime Tennessee presence providing commercial real estate services. JLL today has offices in Memphis and Nashville and employs more than 300 Tennesseans. Diversified Maintenance employs more than 325 Tennesseans and has offices in Memphis and Nashville. BrightView Landscape Services, with Nashville and Memphis branches, employs more than 200 Tennesseans and serves clients that include Williamson County Schools and some of the nation's largest companies.

The trend on higher education campuses to utilize private professionals is decades old and now commonplace. Many higher education institutions outsource to specialized professional firms for services that includes building management and maintenance, food services, landscaping and grounds, campus bookstores and retail, security, parking and special event ticketing. Outsourcing has proven effective to increase quality, reduce costs and enable schools to focus on their education mission.

Combined, JLL, Diversified Maintenance and BrightView Landscapes have dozens of service contracts with both public and private institutes of higher education. Those include Harvard University, Arizona State University, Samford University, Auburn University, Louisiana State University, Vanderbilt University, Tennessee State University and University of Tennessee College of Veterinary Sciences.

JLL is annually recognized for national and international awards for workplace environment, diversity and ethics. In 2016-17 those awards include "World's Most Admired Companies" by Fortune magazine; "World's Most Ethical Companies" by the Ethisphere Institute for the 10^th consecutive year; "One of the 50 Out Front Companies for Diversity Leadership" and "Best Places for Diverse Managers to Work" by Diversity MBA Journal; and perfect scores on the Human Rights Campaign Foundation's Corporate Equality Index.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $136 billion. At the end of the first quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of more than 78,000. As of March 31, 2017, LaSalle Investment Management had $58.0 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.

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SOURCE JLL