Just three companies reported seeking contract for management of TN state buildings

Three companies are bidding for a contract to take over management of most state government building under a privatization plan pushed by Gov. Bill Haslam’s administration and involving a “virtually unprecedented procedure” that allow bidders to help fashion project specifications in advance, reports Cari Wade Gervin.

The company names are officially secret until the bid winner is announced. But Gervin reports that an email written by a University of Tennessee official indicates they are Aramark, Compass Group North America and Jones Lang LaSalle. JLL and Aramark already have other contracts with the state. Various officials refused to confirm or deny.

The three companies bidding on the RFP were among the top guesses of likely bidders by those paying attention. JLL, one of the largest managers of real estate in the nation (headquartered in Chicago; publicly traded and with $48 billion in assets managed), has already nabbed one outsourcing facilities management contract under Haslam’s tenure, along with a contract (now expired) to conduct building assessments for the state and to review real estate management operations; the contract was amended to also allow JLL to act as a leasing broker for the state. The state comptroller’s office found massive problems with the contracts’ implementations in 2013 and 2016. Haslam also used to have significant holdings in the company; it’s unclear whether he still does. (Although an ostensibly blind trust has been managing his financial holdings since he took office, he has refused to disclose all the details of his holdings.) 

Aramark — based in Philadelphia, publicly traded and with $14 billion annually in revenues — already manages the outsourced food services at UTK, even driving faux food trucks around campus. The company also signed a contract with the state last summer to manage food services for the Department of Corrections — despite the state of Michigan cancelling its correctional contract with Aramark 18 months early after issues like meal shortages, maggots and rodents in the food, and employees reportedly smuggling drugs into prisons and raping prisoners.

The Post was unable to determine by press time what, if any, state contracts Compass Group has. The UK multinational company had revenues of $24.6 billion last year. Its U.S. headquarters are in Charlotte, North Carolina, and it is reportedly the largest contract foodservice company in the world, with operations in over 50 countries. It manages multiple workplace vending operations in Tennessee and has lost at least one lawsuit over refusing to pay worker’s compensation.

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