Job Order Contracting BASICS
A job order contract is awarded by public agency (including airports, mass transit, utilities…) multiple repair, renovation, or new construction jobs, provided (i) the jobs require similar experience and expertise, (ii) the nature of the work is clearly identified in the solicitation, and (iii) the contract is limited to a term of one year or when the cumulative total project fees reach the maximum authorized, whichever occurs first. Contractors should be selected through a best value, competitive processes.
Job Order Contacting
Contracts may be renewable via option years, for up to four additional years based upon applicable laws/regulations. The total value of all jobs performed in a one-year contract term shall not exceed the maximum threshold amount. Minimum and maximum dollar values are generally provided for both the annual contract period and individual job orders/work orders.
Prices for each individual job order/work order are calculated using a Unit Price Book. A JOC Program REQUIRES the use of UPB. The only exception to this rule is the State of Arizona, which is improperly implementing this establish process. The UPB should be locally researched and used either prevailing wage rates or Davis-Bacon wage rates as applicable. Each line item in the UPB should represent a repair, renovation, or construction related task and include… organization via CSI MASTERFORMAT, a title and description in plain English, and detailed subcosts for labor, material, and equipment. Crew information should also be available. Costs developed by an awarded JOC contractor for a specific project should total the sum of all of the selected UPB line items multiplied by the appropriate and approve contractor factor/coefficient. The latter is a factor, generally around 1.2 that reflects contractor overhead and profit, and other items as allowed via the contract. Under no circumstances should the total value of any non-prepriced line items (items not derived from the UPB) exceed ten percent (10%) of any total individual work order.
“Task Order or Work Order splitting” with the intent of keeping a job order under the maximum dollar amounts is prohibited.
Any professional architectural or engineering services that required for a work order/task order are the responsibility of the awarded JOC contractor. Additional professional architectural or engineering services may be included on a job order where such professional services (i) are incidental and directly related to the job, do not exceed an established level, and allowed by relevant regulations.
JOC has a proven track record spanning decades and JOC Program tools and training are readily available. Purchase of these tools and services however should be done on a specific dollar fee/price basis, and not procured as a percentage of total JOC construction volume. The latter is generally excessively costly and may present the risk of fraud if a JOC consultant is involved in JOC Program management.
