JOB ORDER CONTRACTING (JOC) Operations Manual
STANDARD OPERATING PROCEDURES
Owner customers, tenant activities, preventive maintenance programs, and other in-house
facilities inspection programs generate requirements for sustainment, restoration, modernization work and minor new construction.
Completed Individual Job Orders (IJO), Task Order (TO), or Job Orders (JO) are submitted to the a designated office/person in accordance with regulations and standard procedures.
The appropriate work management office is responsible for assessing the validity of the work request,
checking for duplication with other requests, classifying the category of work, checking the
customer’s statement of work for sufficient detail, identifying and confirming a funding source,
and assigning a priority and project number.
The work management office also completes a desk estimate of the project cost to help determine the best method for executing the work request (in-house shops, competitively bid individual contracts or JOC).
Ordering Responsibilities
The distribution of functions associated with contract operations, including issuance of task
orders and actions required by the Procurement Authority, are planned and discussed to
ensure smooth and orderly accomplishment of functions.
Contract Administration Functions
The Facility Management / Technical Engineering Management Team (FM) is responsible for contract
administration functions; payment disputes, appeals, total or partial contract termination (including task order termination) and contract closeout. A contract administration plan is written by the
Procurement Authority with input from the FM team., and include as part of the JOC operations manual / execution standard operating procedure (SOP).
Contract Inspection Functions
FM is responsible for the contract inspection functions. Responsibilities include for the inspection, acceptance and delivery of assigned task orders to the Facilities customer in accordance with the statement of work, specifications, drawings and safety, environmental and fire department
requirements.
In-House or Contract Performance Review
FM considers the availability of in-house personnel, self-help capabilities or other means to determine whether the project should be performed inhouse or by contract. At any time during the process, the job order can be returned to the work management office for additional information. The job order request is analyzed to determine the most suitable method of accomplishing the work. In addition to these responsibilities, the Owner logs in the job order request, validates the requirement, sets priorities, and obtain appropriate approvals.
Requirements Review
If an existing eligible requirements contract totally covers the job order’s work requirement, the work may be awarded to the Contractor holding that contract. If only part of the job order requirement is covered by a requirements contract, FM must decide whether to obtain the appropriate portion from the requirements Contractor and the rest from the JOC Contractor, or to have all the work done by the JOC Contractor.
Job Order Contracting
JOC contract can be used to accomplish renovation, repair, and maintenance of buildings, structures, or other real property. JOC cannot be used to purchase supplies, services, or architect and engineer (A-E) services. FM must ensure that requests for work other than construction are not done. For example, the following items are not generally authorized for acquisition under a JOC contract task order:
• Fuels
• Utilities
• Construction equipment
• Administrative equipment
• Furnishings
• Construction materials only (lumber, concrete, etc.), for other than valid JOC projects
• Architect-Engineer Services (Brooks Act)
• Administrative services such as typing, transportation, reproduction, graphics, and
interior design services
• Housekeeping services
Job Order Routing
Upon receipt, the office responsible for JOC will review the task order request to make sure that the JOC contract is the appropriate contracting tool, and develop a preliminary statement of work, and ascertain that the job order request is a valid requirement. If found to be inappropriate for JOC, it is returned to FM for reassignment to the proper office.
Assignment of a Project Manager
Once the job order has been approved for accomplishment by the JOC contract, a project manager will
be assigned. This assignment will be based upon the scope of the project, its complexity, and the
predominant construction discipline required. The project manager will be responsible for
ensuring successful and timely completion of the job order under the JOC contract. The project
manager must become familiar with the job by visiting the construction site with the customer to
determine the relevant aspects of the project. The project manager must review the applicable
standards and regulations governing the required type of work. If the project manager determines
that JOC is not the appropriate method for completing the task, the request should be returned to the FM office so that the job order can be accomplished by some other method.
Scope Validation Meeting
When the project manager is satisfied that the task can be accomplished under the JOC contract,
they should set up a scope validation meeting with the customer and the JOC Contractor to
review the job order and to refine the scope of the project. The procurement authority and
quality assurance personnel (inspectors) may also attend this meeting. This meeting should take
place at the construction site. The project manager is responsible for developing the statement of
work. The following topics should be discussed, as appropriate:
• Existing site conditions
• Methods and alternatives for accomplishing the work
• Definitions and requirements
• Detailed statement of work
• The Contractor’s requirement for plans, sketches, shop drawings, as-builts, etc. or the
Government provided plans, sketches, drawings etc.
• Tentative construction schedule
In addition, the parties should tentatively agree upon a target performance period during the
meeting. This target may be modified after the Contractor has prepared a detailed proposal.
After the meeting, the project manager should prepare a memorandum for record describing the details of the meeting. This memorandum is used later as a guide to prepare the task order package, the independent Owner estimate, as required, and refine the scope of work. The document is included in the task order support file.
Request for Contractor’s Proposal
The procurement authority are typcially the only people who have the responsibility and authority to place JOC task orders. The procurement authority may issue requests for Contractor’s proposal.
JOC personnel must adhere to the authorities delegated to them by the procurement authority.
Before issuing the request for proposal, the following conditions should be met. Once satisfied
that these conditions are met, check to see that the requirement is within the delegation of the
procurement authority.
• The requirement is within the scope of the JOC contract.
• The request for proposal and support file are complete.
• The requirement is not subject to the provisions of another existing contract.
• Once satisfied that these conditions are met, check to see that all of the following items
are included in the task order proposal package:
o Name of project
o Project number
o Statement of work
o Date of request
o Date proposal is due
o Special instructions, such as identifying work that must be performed during
other-than-normal working hours and the need for drawings, samples, etc.
o Preliminary construction schedule
o Liquidated damages assessment, if appropriate
o Number of copies of the proposal required
o Copy of the site visit memorandum.
After reviewing the material, the request for proposal can be issued to the Contractor. This
request to the Contractor shall instruct the Contractor to return the task order proposal to the
procurement authority by a specified date.
Proposal Preparation
Upon receipt of the request for task order proposal, the Contractor will prepare a detailed
proposal identifying the required construction tasks from the UPB, refine the quantities, propose
prices for NPP tasks, prepare working drawings, develop performance schedules, and prepare
the proposal document in the specified format. The Contractor’s task order proposal must be
based on the UPB, using the predetermined prices and technical specifications to the maximum
extent possible. The Contractor will separately identify work requested by the Government that must be performed during other-than-normal working hours.
Non-pre-priced (NPP) work may arise from tasks that were not included in the UPB at
contract initiation, but are within the scope of the contract. The Contractor shall develop a
detailed proposal supporting any portions of the work requirement that are NPP so that these
items can be compared with the same items in the Owner estimate. The Contractor shall
provide adequate information (e.g., at least two vendor quotes) for the procurement authority to determine the reasonableness of the cost for the NPP work requirements. The Contractor shall submit the completed task order proposal and supporting documentation to the procurement authority officer on the date stipulated.
Independent Owner Estimate Preparation / Independent Government Estimate (IGE)
While the Contractor is developing a detailed proposal, the owner project manager prepares an
independent owner estimate (IGE) for projects $150,000 or more (or as stimpulated in the contract). This owner’s estimate is in addition to the earlier gross estimate, which helped determine whether the proposed work was appropriate for JOC. A detailed analysis of all task orders is required for orders less than $150,000 in order to aid in the determination of a fair and reasonable price. The owner estimate or detailed analysis must be completed before receipt of the Contractor’s proposal and before negotiations take place. The owner estimate will be used to evaluate the reasonableness of the Contractor’s proposal and will serve as the owner’s pricing and quantity objective during negotiations. The owner should normally be prepared using the UPB so that a common basis exists to compare with the Contractor’s proposal. A lump-sum owner estimate for a total job is not acceptable. Major
significant components of work and all NPP items must be identified separately, their quantities
enumerated, and their costs estimated independently. The owner estimate must identify the source from which it was generated and the name of the preparer.
Evaluate Contractor’s Proposal
When the Contractor’s task order proposal is received, the procurement authority
records the date and forward the proposal to the project manager for review. The project
manager must perform a detailed review of the Contractor’s proposal. Simply comparing the
total cost of the task order to the total cost shown on the Government estimate is not sufficient.
The proposal will be checked for scope completeness, method of construction, proper
identification of tasks and quantities and NPP pricing data as applicable. The project manager
should also review the Contractor’s specifications and drawings for acceptability. The
Contracting Officer/ordering officer and the technical personnel will evaluate and determine the
reasonableness of the Contractor’s proposal by comparing it with the IGE or detailed analysis,
the scope validation visit and the detailed statement of work. Each proposed construction task
must be reviewed in detail by the project manager. The review of items found in the UPB will
determine whether they are required and whether the proposed quantities are accurate,
reasonable, and consistent with the statement of work. The project manager will review any
additions to the statement of work beyond that which was requested and approved. The review
of all NPP items will verify the need for the items and the accuracy of the proposed quantities
and will determine if the proposed direct cost for the items is fair and reasonable. The project
manager will ensure that the Contractor’s performance schedule is realistic and meets the
requirements of the job order.
If the Contractor’s proposal is completely unacceptable, it can either be returned to the
Contractor with supporting documentation for revision or be determined inappropriate for a
JOC contract. A transmittal letter will explain why the proposal is being returned and what
changes are needed to make the proposal acceptable, or why the proposal is no longer
required. If the project manager and Contracting Officer/ordering officer agree that the
proposal is not only unacceptable but also inappropriate for job order contracting, the JOC
project file will be closed and the require returned to FM for accomplishment by some other means.
Negotiation of Task Order
Following the detailed review of a proposed task order, the procurement authority
conducts a negotiations meeting with the Contractor to reconcile differences in the performance schedule, construction tasks quantities, and/or method of performance for prepriced
tasks. If necessary, the Owner and Contractor must also negotiate the NPP tasks to
include quantities, methods of performance, and costs. A memorandum of negotiations shall be
prepared by the procurement authority at the conclusion of the negotiations and be
included in the project file to support the Owner’s position. Differences between the
statement of work, the independent owner estimate and the Contractor’s proposal shall be reconciled and documented.
If changes are required, the Contractor must modify his proposal to incorporate them and
resubmit it to signify concurrence with those changes. The statement of work will also be
revised to incorporate any changes as a result of negotiations. Normally, if the value of the
non-pre-priced work exceeds 10 percent, then the non-pre-priced work should be reduced,
eliminated or performed in-house or the job must be acquired using other contracting
methods. However, the procurement authority may exceed 10 percent if the non-pre-priced portion
of the order involves urgent or emergency situations or if the procurement authority determines
it is a good business decision. The procurement authority shall negotiate the task order and make
a determination that the price is fair and reasonable.
Task Order Award Package Preparation
Following successful completion of negotiations with the Contractor, the project
manager/contract administrator prepares an appropriate Order for Supplies or Services, and includes it in the job order/task order package for review and approval by the procurement authority. The task order support package generally includes the following:
• Approved Work Request
• Scope validation site visit memorandum for record
• Preliminary and final statement of work
• Request for task order proposal
• Contractor’s signed proposal
• Memorandum of Negotiations
• Determination and findings, if applicable
• Independent Owner estimate, if applicable
•Purchase Request and Commitment
• Other documentation appropriate to the order (e.g., documentation regarding owner -furnished property)
• The procurement authority places the order
If funding is not available at this time, the task order and support file can be held until funding
becomes available or the project is canceled. Projects held for available funding may be good
candidates for year-end funding and should be prioritized so that the year-end funds can be
applied most effectively. If projects are put on hold for an extended period, it may be
necessary to go back to the Contractor for application of a new option year coefficient, All valid task orders and support files shall be sent to the procurement authority for final review, award, and distribution in accordance with the JOC procedures. A task order file checklist is useful to ensure
all components of the task order package are included and properly executed.
Placing the Order
After negotiation and prior to the procurement authority signing the task order, appropriate forms are distributed electronically to the Contractor who formally accepts the task order, as mutually agreed during negotiations.
The task order is then signed by the procurement authority and issued to the Contractor. The signed, issued task order constitutes the Contractor’s notice to proceed unless a separate Notice to Proceed (NTP) is specified in the task order.
Preconstruction Meeting
The project manager conducts a preconstruction meeting with the customer and the
Contractor for final project coordination. This meeting follows receipt of the signed task
order and/or the Contractor’s Notice to Proceed. Construction should begin as specified in the
task order.
CONTRACT ADMINISTRATIVE RESPONSIBILITIES
The contract administrator responsibilities will be accomplished in accordance with all associated regulations/statues. Designated personnel oversee contract administration functions and quality assurance inspection and acceptance as delegated by the procurement authority.
Non-Pre-priced Items
Non-pre-priced (NPP) work may arise from tasks that were not included in the UPB at
contract initiation, but are within the scope of the contract. To streamline the negotiation
of non-pre-priced items during task order negotiations with the Contractor, an “indirect
costs and profit rate” may be used, if the contract allows. This rate is solicited
during the solicitation phase of the basic JOC contract. Indirect costs and profit is
defined as all costs associated with performing the tasks, other than direct labor,
equipment and material costs. NPP proposals shall be supported with verifiable
documentation supporting competitive quotes (minimum of two), catalog price, etc., for
all NPP work. NPP items shall be proposed in bare costs only (material, equipment and
labor) multiplied by the quantity and the NPP indirect costs and profit rate (if applicable)
to arrive at the total price for the NPP work.
When prices for NPP items are negotiated and incorporated in a task order, this does not
incorporate the item in the UPB for subsequent use as a priced item. To permit
subsequent use under the UPB as a pre-priced item, repetitive NPP items will be
incorporated by supplemental agreement to the JOC contract. Also, a contract provision
will be developed to permit regular (such as quarterly or annually) incorporation of
negotiated NPP items into the UPB. NPP items may be added as a modifier to an existing
line item or as a new line item.
Contractor Performance
Owner JOC personnel create and maintain a Contractor performance file that is used
to support the owner decisions as to whether or not to exercise options for the
following year. Evaluation of the Contractor’s performance issupported in writing
based on observations made by the owner FM team and procurement/contracting personnel, and/or
customers. FM meets with the procurement authority no later than six months before the option exercise date to review Contractor performance and recommend whether or not to exercise the option. Procurement also should evaluate Contractor performance and prepare a performance report for each construction contract over a specified value, for example $100,000.00.
Performance Evaluation
Specified detailed forms are used for reporting performance evaluations, and should be maintained in an automated database. Before awarding a JOC contract, Owners should retrieve all performance evaluations as applicable.
Significant Events
JOC personnel document all significant events. A significant event is defined as anything that occurs pertaining to a contract that has a material impact on cost, quality or delivery. Significant events can be caused by the Owner or by Contractors. Some examples include:
• Completion schedule changes
• Changes in method or sequence of work
• Late or defective owner-furnished property or information
• Delays in owner actions such as processing engineering change proposals and review of technical data
When a significant event occurs, it is analyzed and documented immediately.
Information to be generated for each significant event should include, as a minimum:
• The nature and pertinent circumstance of the event;
• The date of the event and the identification of Owner and Contractor personnel involved, including name and function of the respective individuals;
• Identification of any relevant documents involved;
• The substance of any oral communications;
• A statement concerning the possible consequences or effects of the event described upon the contract cost, schedule, or technical performance, including manner or sequence of performance.
Task Order Close Out
Task orders will be closed out within a reasonable amount of time. A task order will be
closed out upon receipt of warranty information, O&M manuals, release of claims,
training documentation, approved payrolls, as-built drawings and after final payment is
made. FM will close out task orders as part of contract administration if
the responsibility for close out was delegated procurement authority. If not, the
task order will be closed out by the procurement authority.
Payroll Review
The procurement authority is responsible for ensuring that the Contractor complies with the
Davis-Bacon Act (for most public sector work) as part of contract administration responsibilities. The Contractor is required to submit weekly payroll records to the procurement authortiy, who may require support from FM personnel to review these reports. The procurement authority
will be given a report of deficiencies, if any, for transmittal to the Contractor and will
decide whether corrective actions are needed. When withholdings must be made from
payments to the Contractor, the cognizant labor relation’s personnel must be contacted.
The procurement authority is responsible for conducting labor interviews, or he can
delegate the duties to Facilities Managgement JOC TEAM.
Timely Accomplishment of Requirements
The project manager will ensure that the schedule requirements are met and that the
procurement authority is notified if it appears that the Contractor will not complete the
requirement on time. If the task order package includes a liquidated damages clause, the
Owner, in coordination with legal counsel, begins the required actions as appropriate.
Contract Status Report
A contract status report is be used to track fund obligations under the JOC contract and
to make sure orders do not exceed performance and payment bonding or the annual
maximum amount. The JOC ordering authority will maintain the contract status report, if
delegated, to show the original funds obligated and the task orders issued against the
funds. As orders are received, the report balance will be checked to make sure funds are
still available.
Bonding
The solicitation clearly notifies offerors of initial and continuing bonding
requirements. Initial bonding must be sufficient to cover the stated estimated annual
maximum contract value. No JOC contract cites the total estimated maximum value
of the contract (including option periods) as the estimated annual maximum value.
Contractors shall be clearly notified of their responsibility for ensuring sufficient bond
coverage necessary to protect the Owner’s interests during the course of the
contract. All costs associated with bonding (specifically including bond premiums) are
be included in the coefficient.
Contractor Payments based on Schedule of values
Progress payment are based Contractor’s approved scheduled of values.
Progress payments are paid on the basis of costs incurred or the state of completion
during performance of the contract before final delivery. The Owner neither takes
title nor beneficial occupancy (unless otherwise specified in the contract) and the
Contractor remains Liable, not only for the completion of the work, but also for any risk
of loss.
Progress payments are authorized under a JOC contract in accordance with existing regulations/requirments. The procurement authority reviews and approves requests for
progress payments in accordance. When the work is certified complete
and a proper invoice has been received, the procurement authority processes the invoice for payment through the appropriate finance and accounting office.
Each task order is considered a mini-construction contract; therefore, a release of
claims statement should be obtained prior to making final payment, in accordance
with regulations/requirements.
Quality Assurance/Quality Control
The quality assurance reviews and inspection and acceptance are made by Owner
personnel and are the same as those for any other construction contract. Quality
Assurance (QA) is the responsibility of the Owner. Contract quality assurance
means the various functions including inspection, performed by the Owner to
determine whether a Contractor has fulfilled the contract obligations pertaining to quality
and quantity.
Policies and procedures to assure that supplies and services procured by the Owner conform to the quality and quantity set forth in the contract.
The Owner determines the type and extent of Owner quality assurance based upon the particular acquisition.
Quality Control (QC)
The Contractor is responsible for quality control, carrying out the obligations as set forth in the
contract terms and conditions, product quality, and for offering to the Owner only those supplies and services conforming to contract requirements.
The Contractor establishes and maintain a Quality Control Plan (QCP) that has
been reviewed and accepted by the Owner for compliance with contract
requirements. The Contractor’s QCP shall explain the manner in which the Contractor
will assure all contract requirements are being accomplished in an acceptable manner.
A JOC Contractor’s coefficient includes the costs associated with quality control.
TASK ORDER (T.O.) MODIFICATIONS
If at any time during the execution of a T.O., a modification to the order is required, an appropriate documentation and signatures/approvals msut be executed. Typical circumstances that may require a T.O. modification are differing site conditions and changes to proposed requirements in the statement of work, including time extensions, termination of work, or changes in methods of work performance. The procurement authority executes modifications to existing task orders, Pricing for the modification is accomplished using the unit price book. The amount of the modification will not exceed the owner manager’s authority to include the total value of non-pre-priced items. Modifications affecting termination actions or work suspensions shall be executed by the procurement authority because of legal consideration and the potential fiscal issues involved.
Every attempt should be made to identify the site conditions properly during the initial site visit
and scope validation meeting before the T.O. is placed so that the accurate site conditions
will be priced before the work begins.
An administrative change is a unilateral contract change, in writing, that does not affect the
substantive rights of the parties, e.g., correction of typographical errors, and change in
paying office, and accounting and appropriations data. An administrative change does not
include time extensions for work completion, additions/deletions of quantities, or suspension
of work in progress.
Changes to Task Order Requirements
Task Order changes require specific procedures, documentation, and approvals, which
provide for an equitable adjustment in price as the result of any change. Authorized
changes are limited to those within the scope of the contract. They generally include:
• Changes to the specifications, drawings, and designs
• Changes to the method or manner of performance of the work directed by theOwner.
• Changes in the Owner-furnished facilities, equipment, materials, services, or site
• Directed acceleration in the performance of work
• Time extensions due to delays caused by weather, Owner requirements, or delivery of equipment, and terminations of work..
Modifications to requirements following issuance of a Task Order are made in accordance with requirements per appropriate contract clauses. A formal request for
proposal modification is forwarded to the Contractor whenever the complexity of
the changes or the dollar amount requires it.
Task Order Status Report
Fort Hood JOC personnel submit to the procurement authority a monthly report on the status of all
Task Orders. This report is submitted no later per a date specified in the JOC, and includes the following information:
• A list of the subject and dollar amount of all T.O.s issued during the month
• A list of the subject and dollar amount of all T.O.s completed during the month
• The status of all incomplete T.O.s