How to use job order contracting is an important lesson for all public sector facilities operations and management professionals.
#1 Job Order Contracting (JOC) is suitable for a wide range of facilities and horizonal physical infrastructure construction projects, including repairs, renovations, maintenance, sustainment, and new construction. (Note: New construction is best limited to “minor” new construction requiring minimal design.)
#2 Maximum benefit for JOC can attained when it is used a a method to integrate “construction” planning, procurement, and project delivery incorporating robust LEAN practices to reach best value outcomes for all participants and stakeholders.
#3 Direct collaboration between owner and design-builder teams is a principle of JOC. Using an intermediary, such as a “JOC consultant” is a good method for some owners “stand up” a JOC project is they lack internal skills/capabilities, however, the long term impact is excessive JOC administration cost and loss of critical knowledge and inability to achieve maximum JOC benefit.
#4 Independent third-party JOC program audits and monitoring of key performance indicators (KPIs) are needed to further assure JOC program efficiency, compliance, and continuous improvement.
In summary, JOC can consistently drive quality, on-time, on-budget outcomes with maximum efficiency if implemented and managed properly. Never use JOC to simply “speed procurement” or approve projects that otherwise would not be approved via traditional procurement oversight. And never pay a percentage of construction value for JOC services or a “JOC consultant”.
via www.4bt.us
