JOB ORDER CONTRACT – Best Practices
A Job Order Contract is the basis for structuring a LEAN collaborative construction delivery method that is capable of providing major advantages to Facilities Managers, Real Property Owners, AEs, Contractors, Subcontractors, and Facility Users.
Leading Federal/County/State and Federal Government, Education, Transportation, Utilities, and Healthcare institutions leverage Job Order Contracts (JOC) to complete over 90% of their numerous renovation, repair, sustainability and minor new construction projects on-time and on-budget….and to the satisfaction of all participants!
Contractors also benefit, by developing mutually beneficial long term Owner relationships and more predictable revenue streams.
Unit Price Book
Job Order Contracting requires detailed line item unit price pricing that is locally researched for the area/region associated with the Job Contract and associated task order/project. This information is contained within the JOC Unit Price Book, UPB. The UPB is generally updated annually to account for market fluctuations and the adding of any new unit price line items as required.
All task order/ project estimates should use locally researched prevailing wage rates, and more specifically Davis-Bacon wage rages. The wage rates are combined with material and equipment costs, and the time/crew required to perform a specified task in order to create a detailed JOC construction cost task or line item.
Historically, cost data from The R.S. Means Company, LLC has been used for the majority of Job Order Contracts. There are now independent, objective, and in some cases more suitable alternatives such as the 4BT JOC Unit Price Book.
Key considerations for a JOC Unit Price Book:
- Appropriate use of prevailing wage rates / Davis-Bacon Wage Rates (Note: 4BT painstakingly researches labor rates and provides unsurpassed granularity and accuracy in this regard.)
- Bare costs (no contractor overhead and profit)
- Locally researched cost information (The use of localization factors and/or “national average” costs is not recommended due to the likelihood of associated gross inaccuracies).
- Provided by an objective and independent resource
- Organized via CSI Masterformat
- Use of line item modifiers (Line item modifiers add or deduct cost from an associated parent line item due to a variety of factors: quantity, site/location, etc.). Modifiers, on average, impact a cost estimate by +/- 30% and are therefore a very important component of a UPB)
- Appropriate number of line items (Most Job Order Contracts require fewer than 30,000 line items for common renovation, repair, and minor new construction tasks. Some vendors market the use of hundreds of thousands of line items. Excessive numbers of line items can actually increase JOC Program cost due to their maintenance and upkeep as well as confusion and errors.
- Rapidly and securely accessible via a standard browser interface.
The total for the line item is general the applied without contractor overhead and profit. Overhead and profit are accounted for within the awarded contractor’s JOC coefficient(s) as approved for the related Job Order Contract. There may be multiple co-efficients as determined by the specific Job Order Contract for example, standard hours, non-standard hours, secure areas, etc.
A Job Order Contract Operations Manual or Job Order Contract Execution Guide should be an integral component of the Job Contract. The following is a sample table of content for a JOC Operations Manual.
FOREWARD 5
INTRODUCTION 6
Purpose 6
History of Job Order Contracting (JOC) 7
Benefits of aJob Order Contact9
JOC Organization, Responsibilities, and Authorities 11
JOC Implementation Considerations 13
Strategic Evaluation of Objectives, Goals, and Appropriateness 14
JOB ORDER CONTRACT ACQUISITION/PROCUREMENT STRATEGY 15
Facility Management/Engineering Planning 18
The Job Order Contract Unit Price Book 18
Technical Specifications 20
Statement of Work for the Job Order Contract 20
Economic Price Adjustments 20
Environmental Coordination 21
Technical / Document Library 21
Source Selection Team 21
Selection Evaluation Plan 22
Pre-award Activities 22
Contractor Phase-In Plan 23
Contractor Phase-Out Plan 23
Pre-RFP Review 24
Contract Funding 24
Preproposal Conference 24
Proposal Evaluation 25
Competitive Range 25
Preaward Survey 25
Evaluation of Contractor Performance 25
Negotiations and Source Selection 26
Debriefing Unsuccessful Offerors 26
Staffing 26
Facilities 27
Preaward Activities 27
Sample JOB ORDER CONTRACT SOP – Standard Operating Procedure – Operations Manual – Execution Manual 27
Sample – Job Order Contracting Internal Control Checklist 30
JOC Procurement/Award Process 31
Identification of Participants 31
Limitations 32
WORK EXECUTION AND CONTRACT ADMINISTRATION 33
Contract Clauses 34
Subcontracting Plan Regarding Small, Small Disadvantaged and Women-Owned Small Business 34
Job Order Execution 34
Initiating and Reviewing Job Orders 34
In-House or Contract Performance 35
Methods of Contracting 35
Job Order Contracting 35
Job Order / Task Order Routing 36
Assignment of a Project Manager 36
Scope Validation Meeting 37
Request for Contractor’s Proposal 38
Proposal Preparation 39
Independent Owner Estimate Preparation 39
Protection of Owner Estimate 40
Evaluate Contractor’s Proposal 40
Negotiation of Job Order / Task Order 41
Job Order / Task Order Award Package Preparation 42
Placing the Order 42
Preconstruction Meeting 43
Administrative Responsibilities 43
Non-Prepriced Items 44
Contractor Performance 44
Significant Events 45
Task Order Close Out 45
Payroll Review 46
Timely Accomplishment of Requirements 46
Contract Status Report 46
Bonding 47
Payments 47
Small Business Utilization Reporting 47
Quality Assurance/Quality Control 48
Task Order Modifications 48
Changes to T.O. Requirements 49
FISCAL YEAR-END PLANNING 50
Execution of Task Orders Against the Guaranteed Minimum 50
Execution of Task Orders Issued After Guaranteed Minimum 50
ADDTIONAL ENGINEERING/TECHNICAL/DPW RESPONSIBILITIES 51
Citation of Funds 51
Task Order Status Report 52
Exercising Options 52
FOLLOW-ON CONTRACTING FOR A NEW CONTRACT 52
APPENDIX 53
UNDERSTANDING THE CONTRACTOR’S COEFFICIENT 54
ROLE OF JOC ADMINSTRATOR 55
INTERNAL CONTROL AND REVIEW PLAN 55
Job Order Contracting Internal Control Checklist 56
SAMPLE SCOPE OF WORK 58
SAMPLE REQUEST FOR PROPOSAL 60
SAMPLE CONTRACTOR’S PROPOSAL 61
SAMPLE INDEPENDENT OWNER/GOVERNMENT ESTIMATE 67
TAKE OFF NOTES: 67
COST ESTIMATE 68
TASK ORDER FILE CHECKLIST 71
QUALITY CONTROL PLAN REQUIREMENTS 73
JOB ORDER CONTRACTING TRAINING 75
ADDING NON-PREPRICED ITEMS TO YOUR JOC CONTRACTS 77
ABBREVIATIONS 79
DEFINITIONS 82
References / White Papers 83
4BT-CE Cloud Estimating Software and the 4BT JOC Unit Price Book integrate Job Order Contract best management practices with technology to allow for faster JOC Program development, implementation, monitoring, and continuous improvement.
Job Order Contracts allows Owners to create more thorough project scopes, completer more accurate and transparent detailed line item cost estimates and bids, compare and select contractors that can work collaboratively to provide on-demand services, and monitor and reward performance. Job Order Contracting also encourages the use of local small and minority owned businesses. \
Job Order Contracts allow Contractors to better understand and build to Owner requirements. Job Order Contracting provides a platform to develop longer term, collaborative relationships.
4BT delivers unit price book cost data, software, services, and training to support success among Owners, Contractors, Subs, and AEs.
Our team has supported hundreds of Owners and thousands of contractors in their use of Job Order Contracting.
While a higher level of competency, experience, and commitment are required to implement successful Job Order Contracts, benefits outweigh any resource needs. In fact, traditional methods of construction delivery and construction services procurement can not come close to providing the positive outcomes attainable from Job Order Contracting .
4BT is a veteran-owned small business with senior professionals having decades of experience supporting, managing, and providing services for Job Order Contracting. We believe that education, training, and support are critical to the success of any Job Order Contract, and our team thrives in these areas.
We have been involved in hundreds of Job Order Contracts performing billions of dollars of renovation, repair, and minor new construction works.
Improve efficiency and obtain high quality outcomes through the use of independent, objective, and powerful tools and services.
Job Order Contract Products and Services
Training
Regional, on-site, and virtual hands-on training and certification for all job order contract participants. Introductory and advanced classes are structured for all skill levels, as well as refresher courses. Training content is tailored to the participants.
Sample Topics Training Courses:
• Introduction to Job Order Contracting / LEAN Construction Delivery
– Management by Outcomes
– Key Characteristics
– Requirements
• Introduction to Line Item Estimating
• Introduction to Cost Estimating
• ESS Getting Started
• ESS Advanced
• Job Order Contract Execution / Operations Manual Development
• Marketing a JOC Program
– Internal
– External (Contractors)
• Individual Job Order Request / Request for Proposal Process
• Auditing a JOC Program
• How to Create a JOC RFI/RFP
• How to Evaluate JOC Contractors
• How to Create an Owner / Independent Government Estimate
• Job Order Contracting Best Management Practices
– Responsibilities
– Workflow
– Documentation
– Approval Process
– Audits
– Key Performance Indicators
– Small Business / MBE
• How to Create a JOC Estimate – Into & Advanced
– Appropriate level of detail
– Price versus non-prepriced items
– Hand-on Exercises
– Site visit planning
– Content/Documentation Packages
• Owner/contractor communications/documentation
– Inspection reporting
– Deficiencies/corrective actions
– Signoff
– Payment
– Owner/Contractor Negotiations
– Problem-solving principles and Tools
JOC Unit Price Book Cost Data
- Unit Price Books (UPB) – Locally research construction tasks complete with labor, material, and equipment details, based upon Davis-Bacon wage rates. Custom line items are also available. All data is provided using common standard term with minimal use of abbreviations. All cost data is organized by CSI Masterformat.
- Specifications – Industry standard commercial construction specifications can be provided as needed and are organized by CSI Masterformat. Custom specification development services are available.
JOC Techology
- 4BT- CE Cloud Estimating – Easy-to-use, powerful Job Order Contract cloud estimating and job order contract management techology.
Support
Technical support for software and unit pricing is provided via telephone and email. 4BT team member have had experience with hundreds of JOC Programs, thousands of JOC Contractors, as well as Cooperatives providing JOC services (i.e. Allied States, TCPN) in terms of assisting in developing JOC programs, developing unit prices books, providing JOC project/task order line item cost estimates, providing general and detailed estimate reviews, creating and deploying client server and web-based software.
Job Order Contracting is a collaborative LEAN construction delivery method. As such it integrates core characteristics outlined as follows, as well as specified workflows, processes, data architectures, deliverables, and outcomes.
Best value development and deployment of Job Order Contracting requires multi-discipline / multi-trade knowledge, LEAN construction processes, common terms-definitions-data architectures, leadership and program/project management, and supporting/enabling technology.
Key characteristics of Job Order Contracting and LEAN Construction Delivery include:
• Collaboration
• Mutual Respect & Trust
• Financial Transparency
• Owner Leadership without excessive management & control
• Shared Risk/Reward
• Best Value Procurement
• Common Standard Terms, Definitions, & Data Architectures (UNIFORMAT, MASTERFORMAT, OMNICLASS)
• Continuous Education, Training, & Improvement
• Key Performance Indicators (KPIs) / Audits job
• Written Execution / Operations Manuals (Roles, Responsibilities, Deliverables, Workflows / Standardized Work Processes, Reporting Requirements…)
Additional Job Order Contracting Services
- JOC Estimating Services
- Independent Government Estimating (IGE) Services
- 3rd Party Independent Estimating Auditing Services (formal line item estimate audit, reviews for budget reviews, change order estimate auditing, quantity takeoff, technical evaluations and estimate comparison along with our comments, conclusions and recommendations)
- Budget Collaboration Reviews
- Program Management
www.4BT.us – Independent, Objective, Job Order Contract Solutions
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