The application of LEAN methods and best management practices can significantly improve your job order contract.
The potential for fraud, waste or abuse exists for Job Order Contracting as it does for any other construction delivery method. A review of completed Job Order Contract Audits provides ample evidence of this fact.
Proper selection of a JOC consultant and tools, professional JOC Program set-up, internal controls, and education/training improve your job order contract.
It is important and necessary to be alert to the potential for fraud, waste, and abuse, and to take reasonable, prudent, efficient actions and implement appropriate safeguards. Personnel to be assigned to work with JOC should be carefully screened to ensure the selective use of competent individuals with a high degree of integrity
- JOC management authorities must require…
- JOC personnel are properly trained to do their jobs.
- JOC personnel are familiar with and understand the terms of the contract they are executing.
- Procedures established are followed for processing JOC actions from start of job to finish of contract administration.
- JOC personnel read and adhere to standard for ethical conduct.
- JOC personnel seek assistance and guidance before proceeding on unclear or borderline issues.
- Meaningful quarterly reviews of JOC operations are done by technical/engineering/ facility management staff and contracting/purchasing/procurement staff.
- Work scopes, government estimates, contractor’s proposals, awarded task orders, and contractor invoices are logically progressive, consistent and clear.
- Project scoping and project quality control/acceptance activities are kept separate. Individuals involved with project scoping and development as well as proposal negotiations with the contractor must not be the same individual responsible for monitoring quality assurance. Although project engineers may be required during the construction phase to clarify scope of work or recommend modifications for changes or unforeseen conditions, the responsibility for recommending acceptance of completed work will remain with separate quality assurance personnel. This principle of separation should also allow for effective coordination between project engineers and quality assurance persons so that problems occurring during the construction phase do not cause contractor delays and potential claims.
IMPROVE YOUR JOB ORDER CONTRACT
The head of the team or division with responsibility for the Job Order Contract should ..
- Make certain contract administration documentation activities are kept current, complete and correct.
- Conduct periodic sessions among JOC personnel to discuss their work activities, procedures and problems.
- Complete a JOC internal control checklist and/or audit annually.
- Assure all aspects of the JOC SOP (Standard Operating Procedure) properly identify authorities, limitations, and responsibilities of all technical and contracting/purchasing personnel involved in the JOC contract, and that processes are being followed.
- Review the JOC unit price book to assure it is sufficient to meet JOC requirements and updated per changed to meet the specific needs on an annual basis.
- Require all JOC participants (internal and contractor) receive training and orientation regarding policy and procedures for operation of the JOC contract which specifically addresses their authorities, limitations and responsibilities.
- Assure statements of work for proposed task orders under a JOC contract contain sufficient detail to assure that the owner can properly develop an estimate and that the contractor can properly prepare responsive and cost-effective proposals with a minimum of non-prepriced work.
- Review any significant differences between owner estimates and contractor proposals and determine reasonableness of bids and/or accuracy of estimates.
IMPROVE YOUR JOB ORDER CONTRACT