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History of Jones Lang Lasalle Contract

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Here is the summary of events that led to Jones Lang Lasalle receiving a $330 million, five-year contract to manage all buildings of Tennessee state government:

Sept. 8, 2011: The State Building Commission (SBC) approves a request by the Department of General Services (DGS) "to develop a comprehensive statewide capital improvements master plan that encompasses the needs of State facilities and programs throughout Tennessee."

Oct. 19, 2011: DGS issues a broader Request for Proposals (RFP) for "facility assessment, master planning and facility management services."  The RFP selection committee is composed of five career employees with experience managing the state's buildings.

Dec. 13, 2011: CBRE Inc. files a protest of the anticipated award of the contract to Jones Lang Lasalle, saying that it would have been the winning and lowest bidder had it not been for a mathematical error in its submission.

Jan. 15, 2012: DGS Commissioner Steve Cates rejects CBRE's request that it be allowed to correct its math and be awarded the contract.

Jan. 23, 2012: SBC Executive Committee approves award of $1 million contract to Jones Lang Lasalle for "comprehensive statewide capital improvements master plan."

March 7, 2012: DGS signs $1 million, four-year contract with Jones Lang Lasalle for facility assessment, master planning and facility management services.

April 24, 2012: DGS photo shows dinner meeting with JLL executives hosted by Gov. Bill Haslam at the Executive Residence. Among those attending: DGS Commissioner Steve Cates, Chief of Staff Mark Cate and governor's legal counsel Herb Slatery.

May 16, 2012: Email from Comptroller Justin Wilson states that "Herb Slatery and Mark Cate of the Governor's office came to see me this afternoon. They wanted to amend the existing contract with JLL on state real property to cover the preplanning that is in this year's budget and some evaluations of the existing state real estate. They describe it as a continuation of the existing contract that was generally within its scope. I said that it sounded a little like a sole source but that they may well have good justification."

June 14, 2012: SBC approves DGS request to amend JLL contract "to perform necessary services and leadership for the implementation of the T3 [Transforming Tennessee for Tomorrow office modernization] Project. Services to include development of business case studies in support of the office modernization and related efforts."

According to the meeting minutes, DGS official Peter Heimbach agreed "that the amendment to the contract was an exception to the normal process and not the new norm in that process." State Treasurer David Lillard made a motion to approve … with the understanding that the approval of the first amendment was an exception to the State Building Commission competitive procurement policy for the first amendment only." Secretary of State Trey Hargett "said he understood that there will be a large facilities management component of this project coming forward at some point and wanted to confirm that it will be competitively bid … and the scope of this contract is limited to the scope of the project approved by the SBC. Commissioner Cates responded that he was correct." Commission members insisted that the facility management portion of the contract be removed and put out for competitive bidding.

June 14, 2012: Amendment #1 increases contract from $1 million to $4.5 million to include "T3 Leadership Services" and pre-planning for agency capital requests.

Nov. 15, 2012: SBC approves DGS amendment that "recognizes that JLL may receive commissions from third parties in procuring and processing leases for the State."

Nov. 19, 2012: Amendment #2 allows JLL to ask for commissions on leases.

Nov. 27-28, 2012: Commissioner Cates flies to Chicago. According to travel records, he met with JLL client Motorola "regarding how they structure their facilities maintenance and, in detail, they process and procedures they used to procure, implement and manage outsourcing their facilities operations."

Nov. 30, 2012: In Chicago, Commissioner Cates "met with senior executives from Jones, Lang and LaSalle (JLL) to discussion issues related to the Facilities Management contract. Meetings were with the CEO of Public Institutions and others from their executive team, concerning areas of the services contract that needed immediate attention." 

Nov. 13, 2012: SBC approves DGS request to extend JLL contract -- from $4.5 million -- to $6.5 million for "FY 12/13 funding for the Capital Improvements Master Plan, Phase 2 and additional operating funds for pre-planning."

Dec. 17, 2012: SBC Executive Committee approves Amendment #3 that "adds DGS operating funds for preplanning. Amendment #4 adds FY 12/13 line-item funding for the capital improvements master plan, phase 2 and removes the Facilities Management items as per SBC request on 6/14/2012."

Dec. 17, 2012: Amendment #3 increases contract from $4.5 million to $5.65 million to add calendar year 2013 to "pre-planning tasks." Amendment #4 deletes facility management from contract and increases contract -- from $5.65 million -- to $6.65 million to include "compensation for Office Modernization Leadership Services." Authorized services: "State desires to authorize Contractor to perform Facility Assessment and Master Planning Services on additional properties owned by the State."

March 14, 2013: SBC approves DGS request to increase maximum liability of JLL contract -- from $6.65 million -- to $10.75 million.  Note says that "Amendment #5 expands the maximum liability of the contract and allows services already agreed upon in the existing contract and amendments to be procured on a task order basis."

April 1, 2013: Amendment #5 expands scope of Project T3 and increases contract to $7.65 million.

Jan. 22, 2013: DGS issues Request for Proposals (RFP) for a facilities management company to manage the state's buildings.  The selection committee is composed of procurement officer Mike Perry, along with Haslam chief of staff Mark Cate and special assistant to the governor Larry Martin.

March 28, 2013: DGS signs $330 million, five-year contract with JLL to management the state's facilities.

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