Specifications include, but are not limited to: On behalf of the 6.5 million residents of the State of Tennessee, the State is exploring ways to improve service and lower costs in its real estate operations - one of the State's largest budget expenditures. The State's Facilities Management project is an initiative to explore whether savings can be achieved through the use of a contract service provider(s) at state facilities following $10.8 million (not including energy) in cost avoidance in the first two years with such an arrangement at 10 percent of the State's properties. A team consisting of a cross section of stakeholders that included Higher Education and General Government representatives conducted analyses as part of a business justification and is seeking to engage an independent third party to objectively verify/validate certain Agreed Upon Procedures (found in Pro Forma Contract Attachment C) (“Agreed-Upon Procedures”) relating to the benchmarking cost analysis performed as part of the project's business justification analysis. The State is seeking a qualified independent third party to attest that the results of the Agreed Upon Procedures support the related results as presented in the business justification. 1.1.2 The State of Tennessee has conducted a comparison of the actual costs of operating certain state facilities against a benchmark document created by CBRE|Whitestone titled The Whitestone Facility Operations Cost Reference 2014-2015 (“Whitestone Cost Reference”). The actual costs were drawn from the Accounting Systems of the State and the Higher Education systems. These were then compared to the operating costs as calculated using the Whitestone Cost Reference. This comparison was conducted internally by individuals from General Government and Higher Education. At a high level, the process for the comparison included: 1.1.2.1 Determining appropriate mapping of square footage of State facility usage types in General Government and HEGIS categories to the 74 different Whitestone asset types in Higher Education (Office Building, College Lecture Classroom, etc.). 1.1.2.2 Determining the appropriate Whitestone Service Level (Low, Medium, High) that best describes the current level of each of the selected eight services (Custodial, Grounds, Maintenance & Repair, Management, Pest Control, Refuse Collection, Road Clearance and Security) being performed in that facility, based on the descriptions for service in that asset type in the Whitestone Cost Reference. 1.1.2.3 Based on Section 1.1.2.2 above, importing the appropriate Whitestone Cost/Square Foot and Location Index from the Whitestone Cost Reference into a spreadsheet. 1.1.2.4 Multiplying the square feet for that asset type by the Whitestone Cost/Square Foot and Location Index, and summing up all asset types within a campus to determine the total benchmark costs for that institution. 1.1.2.5 Summing up the total Gross Square Feet (“GSF”) for that institution. 1.1.2.6 Dividing the total benchmark costs by the total GSF to determine the specific Benchmark Value ($/GSF) for that institution. RFQ # 31701-16100 2 9-03-15 RFQ 1.1.2.7 Collecting the actual cost spent for all of the activities related to the eight services (Custodial, Grounds, Maintenance & Repair, Management, Pest Control, Refuse Collection, Road Clearance and Security), including overheads, cost of acquisition, etc. 1.1.2.8 Estimating the costs of activities performed on the campuses that are not covered by the Whitestone Cost Reference (e.g., utilities infrastructure between the utility company supply point and the actual building, maintenance of NCAA Division I athletics fields, etc.) and adding those costs to the total Whitestone cost estimates. 1.1.2.9 Deducting from these costs the actual costs of services performed in certain locations that exceed the selected Whitestone Service Level (See Section 1.1.2.2 above), such as uniformed security services when Low Level Security (access control only) is specified. 1.1.2.10 Dividing the actual costs (The figures from Sections 1.1.2.7 + 1.1.2.8 – 1.1.2.9) by the GSF to determine the Current Cost per gross square foot ($/GSF) for that institution. 1.1.2.11 Dividing the Benchmark Value by the Current Cost to determine a ratio – expressed as the percentage of the Whitestone Benchmark Value currently being spent. 1.1.2.12 Performing the Steps outlined in Sections 1.1.2.1-1.1.2.9 as described above against the current State properties being managed under a facilities management contract for General Government (current DGS portfolio) to determine the current ratio for those properties. 1.1.3 All statistical and fiscal information contained in this RFQ and its exhibits, including amendments and modifications thereto, are provided “as is”, without warranty as to the accuracy or adequacy of the data or information so provided, and reflect the department’s best understanding based on information or belief available to the department at the time of RFQ preparation. No inaccuracies in such data or information shall be a basis for delay in performance or a basis for legal recovery of damages, actual, consequential or punitive.
