Job Order Contract Fraud Prevention

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In order to prevent fraud, waste, and abuse, an organization adopting job order contracting should do ALL of the following:

(a) Prepare for each individual job order developed under a job order contract an independent owner estimate for every instance, or for job orders at, or above, a set dollar threshold.  The independent owner estimate should be  prepared prior to the receipt of the contractor’s offer to perform work and associated contractor prepared estimate,  and be compared to the contractor’s proposed estimate on a detailed line item by item bases to determine the reasonableness of that price before issuance of any job order.

The basis for any adjustments to the owner’s estimate and the contractor’s estimate should be documented on a line item bases with associated notations per each line item.   If the contractor’s proposal for a given job order is found to be unreasonable, not cost-effective, or undesirable, the owner is under no obligation to issue the job order to the job order contractor, and may instead elect to ask the contractor to revise the contractor estimate accordingly, cancel the procurement, and/or utilize any other available procurement procedures.

(b) The owner shall not issue a job order until the job order has been reviewed and approved by the appropriate level of management.

(c) Once a job order has been issued, all documents pertaining to preparation and approval of the job order, including the independent owner estimate, and the Notice to Proceed, NTP, shall be available for public review.