Job Order Contracting FAQs are provided to assist in understanding JOC processes and procedures as well as improve the final outcomes for all participants.
How JOC Contracts do Owners bid?
Owners may bid a single contract or bid several contracts base upon geographic area and/or type of work required (roofing, paving, electrical, etc.)
Are JOCs awarded via lowers bidder or best value?
Owners may elect to award JOCs to the prescribed number of responsible and eligible bidders bidding the lowest coefficients per solicitation.
We, however, suggest that a best value approach be used. This considers the bidders previous work history as well as the coefficient.
How is are JOC contracts priced, since it the amount of work is open-ended?
Actual projects are not identified at the time of bid. Pricing for individual projects are based upon the 4BT OpenJOC Unit Price Book and the applied contractor JOC coefficient. The coefficient (or multiple coefficients), serve as a modifier or adjustment factor, to the applicable unit price book(s) approved for the JOC. For instance, a coefficient of 1.20 would represent a 20% markup. The coefficient generally must include all project general conditions as described in the contract, including but not limited to supervision, overhead and profit. It represents the total cost for an installed unit. Projects, considered Job Orders under a a JOC contract are generally scoped and priced as part of the process described in the contract. Once a Job Order is approved, the price becomes a lump sum price for the project.
How do I, as a contractor, develop a coefficient? What is a typical coefficient?
Contractors may develop the coefficients that they choose to bid by any means they desire based on their own experience. Some contractors develop coefficients by analyzing the unit prices in the Unit Price Books and comparing them to historic and anticipated actual costs, plus overhead and profit. They may not analyze all unit price line items (generally 30,000-40,000) but may focus on key commonly used tasks. If a contractor maintains good job costing information, they can select corresponding line items out of the Unit Price Books and compare actual costs including general conditions, overhead and profit. Historic project analysis, where you take a historic project where costs are known, and then generate a line item estimate based on the applicable Unit Price Book would provide a differential The differential (including overhead and profit) could provide a reasonable basis for the coefficient is an appropriate cross section of tasks is selected. Projects selected should be similar in size, general condition requirements, and possible distribution of work items.
Is the 4BT OpenJOC Unit Price Book similar to a national average price book and the associate used of location factors?
No. The 4BT OpenJOC Unit Price Book has been locally researched for the specified JOC area(s). We do not recommend the use of commercial and/or national average price books.
What are prevailing wage requirements?
Prevailing wage rate requirements of the contract will be imposed by the Job Order Contract. Davis-Bacon Wage Rates are required for federal government projects and/or those using federal funds. They also generally provide a reasonble approximation of local prevailing wage rates. It is critical that labor is locally researched and that national average data not be used.
How may the Job Order Contracts support Minority and Women-owned businesses?
Studies of JOC in the federal government have shown that JOC increases opportunity for small and disadvantaged businesses. The type of work performed under a JOC should provide provide opportunities for emerging businesses, whether they serve as prime contractors or a trade subcontractors. Note that not all JOCs allow for subcontractors.
What is overview of your company and what differentiates your products and services from your competitors ? We founded 4BT in 2016 upon seeing a clear need to Rethink, Reshape, and Rebuild JOC. Basically, to assure that 1. LEAN planning, procurement, and project delivery processes were deployed in a manner that is mutually beneficial to all participants and stakeholders….2. Full transparency and compliance was provided… 3. That solutions did not burden users with excessive fees and costs.and 4. Cost data was truly reflective of local market conditions.
