Basic steps involved in JOC Program implementation include;

1. Strategic evaluation of objectives, goals, and appropriateness
2. Development of acquisition/procurement approach
3. Facility management/engineering planning
4. JOC procurement/award process
5. Work execution and contract administration
6. Monitoring
7. Ongoing training

Strategic Evaluation of Objectives, Goals, and Appropriateness

An owner’s review of the historical type and volume of work is generally the first step.  It’s generally considered that numerous and repetitive renovation, repair, maintenance, and/or sustainability work, and minor new construction with a minimum annual volume of $2M is appropriate for job order contracting.  If an owner doesn’t meet these criterial consideration of participating in JOC through a Cooperative may be also an option.

Facility management/engineering should conduct a review of work that could be done to under the support of the JOC program and develop an estimated annual volume.  Work below a $2k-$5k threshold should not be included in the analysis as this level may not be cost effective and/or may be best accomplish by in-house staff or alternative methods.  Consider what work is being accomplished, how, by whom, and where.  Also consider the urgency of tasks and other timeline elements.   JOC is particularly well suited for reducing and an existing backlog of projects/tasks.  Consideration of future requirements is also required.

Historical and planned budgets also are evaluated to assure long term, consistent execution of the JOC program.

A review of any existing related contracts is also important in order to avoid any potential conflicts or work disruption.

A review of owner staff personnel is needed to assure proper availability to support both the technical (facility management/engineering) and purchasing administrative elements of the JOC program.

Determining the source for the UPB is extremely important.  The UPB must include detailed line items including easy to understand descriptions that reflect the approximately 90% of the work to be accomplished.   Factors such as ease of use, and commonly used terms should be considered.
A market of local contractors to assure a pool of qualified and interested companies is another important task.  This should include consideration of any specific technical or service requirements association with the JOC program.

Depending upon the types and locations of work as well as service levels, there may be a need to have multiple UPBs and/or multiple coefficients.   For example, work in several locations and/or associated varied building types may require the use of various location factors or even separate unit price books.   Separate coefficients may be require for work during normal hours, or after hours, and or for specific types of buildings and/or for secure areas.

There also be a need to structure indirect costs and profit for NPP work. Consideration

A final report summarizing the results and conclusions of the strategy component of the JOC program is helpful the final decision and approval processes.

Development of acquisition/procurement approach

The process of soliciting/marketing, contractor selection, and award of a Job Order Contract involves technical and business strategies.

The facility management authority and procurement/contracting/purchasing (purchasing) meet and discuss items such as timing (JOC start and end dates), available funding, access to local contractors, as well as any and all additional resources needed to achieve quality on-time and on-budget performance.   Other authorities in the organization must participate in its development to ensure that all objectives and interests are met (examples: legal, quality assurance, small business, building users, planners)

The acquisition approach should be tailored to JOC construction services required.

The acquisition starts with the needs and feasibility study and is complete once the decision has been made to implement a JOC contract.   An acquisition timeline should be developed.

JOC Acquisition Phase                         Months

As acquisition planning is an ongoing activity, the plan continuously updated.

Components of an acquisition plan;

• Statement of Need. Results of the need analysis.
• Surrounding Conditions. All significant conditions, such as requirements for compatibility with existing laws, regulations, contracts.
• Capabilities Being Acquired. Capabilities and performance goals being sought – on-demand services, quality, expertise.
• Performance Period. Initial proposed award date, term, and option years as applicable.

Plan of Action

Sources. Research market for skilled and otherwise qualified contractors and subcontractors.

Source Selection Procedures. Method(s) for rating and selecting awardee(s).

Contracting Considerations. Discuss features of the JOC contract and any special clauses and/or requirements.

Multiple Awards. Will the JOC involve one or multiple contractors/awardees. If multiple awardees, how will selection per task order be made.

Budgeting and Funding. Assure process is in place for funding the JOC throughout its term and appropriate provisions are in place should the JOC be terminated.

Management Information System Requirements. Discuss cost estimating or other software that is to be used as well as formats for reporting.

Quality Assurance:  Discuss quality requirements and evaluation procedures and warranties.

Owner Furnished Property. A JOC acquisition may require the contractor to use or occupy owner property, including an on-site work facility, and or dedicated workspaces.

Owner Furnished Information. Owner manuals, drawings, and other data to be provided to prospective offerors and awarded contractors.

Contractor Computer Equipment. The equipment specifications to support the pricing (UPB) software must be planned for and identified in advance. The contractor must equip itself with compatible computer hardware and software so that information can be shared, as required.

Environmental Considerations. Discuss the proposed resolution of environmental issues and any environment-related requirements to be included in the solicitation and contract. Discuss whether any environmental considerations are to be separately treated when individual task orders are issued, and whether contractual coverage will be required.

Security Consideration. If the contractor’s contractual responsibilities require the use of secured areas, discuss how adequate security will be established, maintained, and monitored. Discuss how security clearances for the prime and any subcontractors will be handled and the responsibilities of both the government and the prime contractor regarding them.

Energy Considerations. Discuss energy conservation considerations, including whether specific coverage will be required in the solicitation and in selecting the unit price book.

Standardization. Discuss any standardization programs to be recognized in the contract.

Occupational Safety and Health Administration (OSHA). Discuss how OSHA requirements will be met in the solicitation and contract, including the need for special contract clauses.

Source Selection Evaluation Plan. Because the selection of a contractor is based on other factors in addition to price, the nature and structure of the source selection process should be discussed to ensure that adequate planning occurs.

Contract Structure. Discuss the initial period and option(s) structure of the contract. Discuss the responsibilities of the purchasing authority and technical JOC staff members in monitoring contractor performance.

Bonding Requirements. Discuss any bonding requirements on the part of the contractor.

Preproposal Conference. Discuss the plans for the preproposal conference, including scheduling, owner representation, location, etc.

Task Order Placement. Discuss the appointment and training of the purchasing and technical personnel. Discuss the location and schedule of training, so that it will be completed before contract activation. A JOC basic training course, followed by advanced and ongoing (annual) training is an important consideration• Assignment of Source Selection Authority. As with any solicitation of the magnitude of a JOC contract, the appointment of the source selection authority (SSA) needs to be addressed.

Assignment of Purchasing Responsibilities. Assure roles and responsibilities associated with contract operations, including issuance of task orders are planned and discussed to ensure smooth and orderly accomplishment.

Facilities Management/Engineering Planning

The facility management/engineering (technical) staff administering the program, as well as those responsible for oversight, develop the manual for the JOC program that includes all standing operating procedures (SOP).   First and foremost the facility management/engineering team must have and/or receive appropriate training to enable them to successfully manage and complete the planning process.

The responsible procurement/contracting/purchasing (purchasing) personnel are also involved, however, in most cases, serves in a support capacity during this phase

Responsibilities of the facility management/engineering staff include planning for all requirements and assuring all items necessary to actually acquire and manage the JOC contract.   For example, after acquisition planning, the technical staff is responsible for the UPB and technical specifications, and selecting and training personnel responsible for the JOC contract. The technical staff also develops the JOC statement of work, creates and maintains a technical library, and assist in the source selection evaluation plan. Purchasing is consulted as necessary throughout the process.

THE UNIT PRICE BOOK

The JOC contract includes a UPB, which may be obtained commercially. Consider the following when selecting a UPB:

Can line items be added/deleted?

Are demolition line items included for each applicable line item or is there separate demolition section?

Is support provided? Type of support? Cost?

Are specifications included or will existing organizational specifications be used (Note: If existing specifications are available and current, this is the preferable path.  There is no reason to have separate specifications for a JOC.  In fact, the latter can create confusion and complications.)

What are the computer hardware and software requirements?

Can the UPB be localized to reflect the local economy?  How?

How often is the database updated and are there associated costs?

Does the database address the current Masterformat data architecture?

Are there provisions for quantity and/or quality? ( If not, this may be addressed in the basic contract.)

The UPB is a key element of the JOC contract. When combined with existing or JOC-specific specifications, work expectations and fixed prices for the work are fully transparent.

The technical staff has primary responsibility for price review and technical sufficiency of the UPB and specifications.

Purchasing coordinates with the technical team to assure that the UPB has undergone technical review and validation and is tailored to meet the projected requirements and local economic and site conditions.

The use of labor only line items in a JOC UPB is generally acceptable provided proper internal controls are in place and that the method for using labor line items is specifically outlined in the JOC solicitation and contract.

Labor line items should be identified as a modifier or as a new task, such as by LF, SF, EA, etc., and be used only when incidental to construction. Generally, labor line items are not used (at least in the Federal sector) to provide services, which could normally be performed under a separate service or requirements contract.

The unit prices should be thoroughly reviewed by all bidders and the government prior to award. In order to preserve the integrity of the competitive procurement process, post-award changes in unit prices can and should only be made if errors are found, or if new line items should be added.    Any revised pricing or line items should be fair and reasonable and fully supported by appropriate documentation.

Technical Specifications

As noted, the technical will utilize established specifications and revise them as necessary, or develop new specifications. The technical specifications will be included or referenced in the JOC solicitation.

STATEMENT OF WORK – SOW

The technical team’s responsibility is to review all existing renovation, repair, and minor new construction constracts , as well as expected activities contracts before determining the statement of work for the JOC contract.  Factors to be considered in preparation of the SOW include;

• Capabilities that the JOC contract will provide.
• Relationship with other contracts
• Average value and type of typical task orders
• Contractor use of owner equipment, material, or space (Note- JOC contracts typically require that the contractor furnish the labor, materials, and equipment needed to perform the work. Limited use of owner-furnished material or equipment may be necessary and allowed.
• Clear, concise, and standard terms, definitions, language, and task ordres (Note – Clear and explicit requirements elicit quality proposals and quality work performance and mitigate disagreements/issues.
• Inclusion of sustainment, restoration, and modernization of buildings, structures, other real property, or minor new construction only.

ECONOMIC PRICE ADJUSTMENT

JOC solicitations and contracts should make annual updates to the UPB, and even provide for quarter economic adjustments via a pre-established method.   Updating the base year coefficient using pre-established and industry standard and/or regulated criteria via predetermined formulas is also a method for economic adjustment.

Adjustments to the base year coefficient are traditionally made using a publicized and accepted economic index that reflect weighted aggregate of changes to construction costs.  The economic index used is generally the based upon the near location in order to provide appropriate granularity.

ENVIRONMENTAL COORDINATION

Usually environmental assessments are not required for a JOC contract,  however, appropriate regulations and specific issues should be addressed.

ESTABLISH TECHNICAL LIBRARY

A technical library is provides potential offerors with access to operating regulations, construction guides, drawings, and various site specifics that applicable to contract performance.  A thorough review of the contract specifications should be made prior to the issuance of the solicitation to ensure that all required references are available.

SOURCE SELECTION

Source Selection Team

A key to performing a successful source selection is the early identification of team members. It is important to train personnel who are not familiar with their responsibilities.  Functional representatives to be involved in the JOC contract shoulbe included on the source selection evaluation team – technical, purchasing, etc.   Senior and highly skilled individuals should be selected.

Selection Evaluation Plan

The objective of source selection is to select the offeror whose proposal provides the BEST VALUE to the owner. Evaluation of proposals and selection should be done following an accepted selection evaluation plan.   The awarded contractor(s) should afford the highest likelihood of delivering contract requirements at a reasonable cost. Ths process may result in an award being made to a higher rated, higher priced offeror.  In this case, it has been determined that the technical superiority and/or overall business approach, potentially including superior past performance outweighs the initial cost variables.

Detailed requirements as identified in the Request for Proposal (RFP), and/or solicitation should communicate how evaluation of objective performance requirements will be accomplished and how the offeror will be credited for such performance.

Lowest price, technically acceptable source selection process is generally not appropriate for JOC or other LEAN construction methods.   Overall best value is not as likely to result from a selection that depends exclusively upon technical factors and lowest price. Past experience, and a thorough evaluation of other nontechnical factors afford greater visibility into total capabilities of an offeror.

Use of detailed technical and non-technical evaluation criteria that reflect the requirements of the JOC program enable the owner to emphasize technical ability, management abilities, quality, and past performance in reaching the best possible source selection decision.

Examples of evaluation criteria that have been effectively used in JOC source selections include:

(1) Project management ability, including key project management staff, technical support staff, the quality control plan, and financial resources;

(2) Subcontracting support capability and subcontract management, including identification of key subcontractors, purchasing system/level of subcontracting.

(3) Past and present performance information which will demonstrate ability to perform the proposed effort;

(4) Project execution, including sample project preparation/submission; and

(5) Price, including completeness, reasonableness.

PREAWARD ACTIVITIES

After the JOC Program RFP is advertised/solicited the owner technical and purchased team generally conducts various marketing and awareness events/conferences.  These meetings/events/publications help education the pool of potential JOC contractors and allow interested parties to ask questions.  The information sharing aspect of this process is very beneficial to improving the quality of the JOC selection process, as well as the overall success of the program.

Owner Support for the Contractor

Space and/or other items may be provided by the owner for the contractor.  Since the JOC contractor’s coefficient is based on the items in the solicitation document; the owners must decide before the solicitation is issued what, if any, space, equipment, or materials will be provided directly by the Owner for contractor use.

For example the owner may provide facilities and utilities for use by the contractor.

Factors to consider in this regard include the location of the contractor work facility, anyu contractor use of shop facilities, and any charge-backs (rate for utilities use, etc.).

The contractor’s computer hardware and software must be compatible with the owner system to ensure that information can be transferred between the contractor and the owner, and to support the operation of specified JOC software program.  The use of a common JOC software program is typically preferred for larger, and/or multi-location JOC scenarios.

Contractor Phase-In Plan

The key to orderly and timely implementation of JOC operations is the contractors activation and/or implementation plan.  The solicitation should require the offerors to submit a phase-in plan. The contractor’s proposal should demonstrate a full understanding of the UPB, how it operates, how a proposal for a scope of work becomes a task order for tasks contained in the UPB, and how to establish and document/differentiate prices for NPP line items/requirements.

Contractor Phase-Out Plan

The requirement for a contractor phase-out plan should also be included. For example, one JOC contract may expire and another one subsequently awarded.  In these instances, there are typically task orders outstanding from the initial contract.  Should this occur, there may be two different contractors on site simultaneously for a period of time.  There also may be warranty work, etc.   This period of “overlap” can range for one month to several months.  The contractor should clarify how warranties will be managed and how operations at the owner site(s) will be phased out.

Identification of Special Contract Requirements

The technical team must consider special contract requirements before the solicitation is issued. These contract requirements are expressed in site/owner unique JOC statements of work and specifications. For example, the quality control operations expected from the contractor might be appropriate for inclusion. The owner technical and purchasing teams  should work jointly to identify and develop any special requirements of the contract.

Pre-RFP Review

Owner technical and purchasing staff must work together during any pres-RFP reviews. Each functional activity should review and comment on the RFP to ensure that it meets basic requirements:

• Clearly defines owner’s justification, objectives and goals,
• Conforms to existing regulations and laws.
• Implements procurement objectives in conformance with policies and regulations.

FORMAL ACQUISITION PROCESS

Contract Funding

The technical documents (i.e., UPB, technical specifications, and SOW) that the technical staff needs to prepare for the RFP and contract must be submitted to the purchasing activity. Committed for the guaranteed minimum must be available, as well as a strong likelihood of funding for anticipated first year, and following years.

Preproposal Conference

Any potential offerors should be notified of a preproposal conference date in the RFP.  The conference should be scheduled no sooner than 2 weeks following release of the RFP and no later than 20 days before the proposal submission date. This conference enables potential contractors to receive clarifications to any sections of the RFP.   When and if time allows, purchasing should ask prospective offerors to submit written questions in advance so that prepared answers can then be delivered during the conference. Technical, purchasing, and legal personnel attend the conference. Purchasing generally chairs the session and furnishes all prospective offerors information concerning the proposed acquisition, makes a complete record of the conference, and promptly furnishes a copy of the minutes to all prospective offerors.

The owner technical staff should conduct a tour of the facilities to familiarize offerors with local conditions, since they need knowledge of these conditions in order to formulate realistic offers. Remarks and explanations at the conference do not change the requirements; the only way to change the RFP should be by means of amendments issued by purchasing to all the offerors.

Proposal Evaluation

Selected personnel will participate when proposals are evaluated in accordance with the source selection evaluation plan. This will be a joint effort involving owner purchasing, technical, and legal staff.

Competitive Range

The technical team should participate in establishing solicitation evaluation factors and as a member of the evaluation committee. All proposals shall be evaluated based solely on the factors and sub-factors contained in the RFP, price, and other factors. If discussions are to be conducted, the purchasing shall establish a competitive range comprised of all the most highly rated proposals, unless the range is further reduced for the purposes of efficiency. Purchasing’s competitive range decision is based on the summary report, prepared by the evaluation commttiee, for each proposal that includes the evaluated price; the final rating for each factor and sub-factor; and a discussion of the associated strengths, weaknesses, deficiencies, and risks.

Preaward Survey

Preaward surveys are important when the puchasing considers that the information on hand is not sufficient to make a determination of an offeror’s responsibility. If a preaward survey is needed, the technical team should also participate.

Evaluation of Contractor Performance

Before awarding a JOC contract, purchasing must retrieve all contractor past performance evaluations.  Awards may denied should unsatisfactory past performant be discovered.

Negotiations and Source Selection

Owner technical personnel participate in contract negotiations as members of purchasing’s technical team. When factors other than price are considered, members of the cognizant technical team are responsible for the technical elements of the evaluation. They will document their decisions and the and these documents will be included as part of the contract files and will be subject to subsequent review.

Debriefing Unsuccessful Offerors

Offerors requesting a debriefing in writing should be debriefed by the purchasing and supported by technical, legal and other functional activities if necessary. Debriefing is an important step in avoiding legal disputes and results in better proposals for future requirements.

SUPPORTING THE JOC PROCESS

Staffing

The initial planning for JOC staffing occurs during the JOC feasibility study. The minimum skills required to support the JOC process include managerial, contract administration, construction management, project management, and quality assurance.

The JOC staffing will change to meet the workload to be managed/performed by using JOC.  Quality assurance personnel  should work in close relation to those preparing task orders to facilitate communications, scheduling, and coordination.

Generally, $2 million to $5 million in annual JOC workload will require the primary or partial responsibilities of four or five staff members. It is recommended that one position be primarily responsible for JOC for purchasing, and that a peer from the technical team also lead that function.  Experienced, competent and credible personnel should be involved in the JOC process.  All personnel assigned JOC responsibilities must be trained to properly perform their job functions. JOC training courses are offered various owner, professional, and educational groups.

Training should begin a minimum of 5 or 6 months before the planned JOC award.  Personnel involved with the JOC contract from both the technical and purchasing teams should visit other locations that are currently executing a JOC contract to gain a working perspective.

Facilities

Adequate office space, equipment, and telephones are necessary for a productive environment.

Preaward Activities

The owner technical team personnel assume responsibility for selecting, reviewing and revising the UPB.  They, and purchasing personnel jointly develop an SOP guide for the JOC.

The SOP guide must identify the roles, responsibilities, workflows, and reporting requirements for the JOC, including identifying all requirements, verifying the validity of acquisition under the contract, establishing task orders, (including negotiation of work unit requirements as required), a contract administration plan, and negotiating NPP work requirements.

Sample JOB ORDER CONTRACT SOP

STANDING OPERATING PROCEDURE OUTLINE

The following is a generic example only. A unique job order contracting SOP must be developed for each contract.

SOP OUTLINE

1. Introduction
2. Purpose

• Definitions
  1. Job Order Contracting IX. Reporting Requirements
  2. Task Order
  3. Coefficient
     1. Normal Hours
     2. Other Hours
  4. Contract Award & Execution Authority
  5. Appointment of JOC Purchasing Authority
     1. How
     2. When
     3. Limits
     4. Training
  6. Task Order Authority
     1. Prepriced limits
     2. NPP limits

• Execution Procedures
  1. Work Coordination
     1. In House
     2. Contract
  2. JOC Execution
  3. Request for Task Order
• Task Order Modification
  1. Differing Site Conditions
  2. Change Clause

1. Reporting Requirements
   1. Contractors
   2. Purchasing
   3. Technical
2. Payments
3. List of SOP Attachments
   1. Sample Appointment Letters
      1. Purchasing Officer
      2. Purchasing Officer Representative
   2. Task Order Checklist
   3. Request for Proposal-Sample
   4. Internal Control Procedures
   5. Contractor Proposal-Sample
   6. QA Plan
   7. Workflow Diagrams
   8. Price List Changes-Sample
   9. Required Forms

A good internal control procedure and compliance with it is critical.   Multiple JOC audits performance by public agencies are available on the Internet.  In virtually all cases, any reported issues could have been averted with good internal controls procedures in place.

While the potential for fraud, waste or abuse exists, it can be significantly mitigated if reasonable measures are taken such as the following:

1. Personnel to be assigned to work with JOC will be carefully screened to ensure only competent individuals with a high degree of integrity are assigned.
2. Managers at all appropriate levels will:
   1. Ensure JOC personnel are properly trained to do their jobs.
   2. Ensure JOC personnel are familiar with and understand the terms of the contract they are executing.
   3. Ensure that the procedures established are followed for processing JOC actions from start of job to finish of contract administration.
   4. Ensure all JOC personnel read and adhere to established standards of ethical conduct for Owner employees (public and/or private sector guidelines)
   5. Ensure JOC personnel seek assistance and guidance before proceeding on unclear or borderline issues.
3. Meaningful quarterly reviews of JOC operations will be made by DPW manageme staff and contracting officer’s staff.
4. All personnel concerned will ensure work scopes, owner estimates, contractor’s proposals, awarded task orders, and contractor invoices are logically progressive, consistent and clear.
5. Project scoping and project quality control/acceptance activities will be kept separate. Individuals involved with project scoping and development as well as proposal negotiations with the contractor will 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 responsibilityfor 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 to the owner.
6. The senior authority for the location with responsibility for JOC will:
   1. Ensure contract administration documentation activities are kept current, complete and correct.
   2. Ensure periodic sessions are held regularly among JOCpersonnel to discuss their work activities, procedures and problems.
   3. Complete at least annually, the JOC internal control checklist (sample below)
   4. The appropriate authority will complete any of the items on the internal control checklist that pertain to his area of responsibility.

Sample  – Job Order Contracting Internal Control Checklist

1. Is there an SOP for JOC, signed by both the DPW and contracting officer, that identifies authorities, limitations, and responsibilities of all DPW and contracting office personnel involved in the JOC contract?

Response: YES ______ NO ______

REMARKS:

2. Was the JOC unit price book sufficiently reviewed and changed

before contract award, when required, in order to meet the specific

needs of the installation and the requirements of job order

contracting?

Response: YES ______ NO ______

REMARKS:

3. Have JOC ordering officers received training and orientation

regarding policy and procedures for operation of the JOC contract

which specifically addresses their authorities, limitations and

responsibilities?

Response: YES ______ NO ______

REMARKS:

4. Were JOC duties of project negotiating and inspection performed by

different personnel?

Response: YES ______ NO ______

REMARKS:

5. Do statements of work for proposed task orders under a JOC

contract contain sufficient detail to assure that the government can

properly develop an IGE and that the contractor can properly prepare

responsive and cost-effective proposals with a minimum of nonprepriced

work?

Response: YES ______ NO ______

REMARKS:

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6. Was the Independent Government Estimate (IGE) prepared prior to

evaluation of the task order?

Response: YES ______ NO ______

REMARKS:

7. If there were significant differences between government estimates

and contractor proposals, were they evaluated to determine

reasonableness of bids or accuracy of government estimates and

documented in the task order file?

Response: YES ______ NO ______

REMARKS

8. Were projects developed near the end of the fiscal year based on

bona fide needs?

Response: YES ______ NO ______

REMARKS

9. Does contractor notify government quality assurance representative

at critical construction points (hold points)?

Response: YES ______ NO ______

REMARKS

10. Does contractor provide payrolls weekly on each task order?

Response: YES ______ NO ______

In preparation for awarding the contract, the Engineering/Technical/DPW should identify potential projects that will be performed under the JOC contract and announce the pending award of the contract to tenant activities on the installation. Upon receipt of requirements from potential customers, the work requirements should be reviewed.

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