Have you recently reviewed your JOC Program Value?
The Problem: It is a consistent finding in audits and expert analysis that a lack of robust oversight by public agencies is a persistent and systemic issue in the management of Job Order Contracting (JOC) programs. (see listing of independent JOC audits)
Assuming the above is the case, the JOC model as implemented with volume-based fees (“JOC Consultant Model” or “JOC Services” Model) and effectively outsourcing of key services that should be owner-provided, is fundamentally high-risk and potentially unviable for responsible public procurement.
Solution – If you accept that JOC can work: JOC is intended to be a compliant project planning, procurement and project delivery method that provides efficiency while still adhering to public procurement laws and ensuring fiduciary responsibility on the part of owners. Robust oversight is a legal necessity for any public contract.
#1 Owners can/must manage their own JOC programs and depend upon vendors to provide adequate training and tools for self-management and eliminate third-party conflict of interest.
#2 Owners must prioritize building the internal capacity and independent controls necessary to manage the JOC program, potentially adopting models that remove third-party conflicts of interest.
#3 The documented history of audit findings suggests that simply relying on a third-party vendor’s “expertise” without the public agency investing in its own rigorous, independent oversight is an insufficient risk mitigation strategy.
Food for thought: The effectiveness of any JOC Program is entirely dependent on the foundational frameworks and cultural practices surrounding its use. That said, a sole focus upon speeding procurement, or simply accelerationg and digitizing existing, broken processes with technology provides limited value and in fact can be a source of significant waste.
Genuine, measurably industry improvement and sustainability requires real property owner leadership, capacity, and accountability.
The documented history of audit findings suggests that simply relying on a third-party vendor’s “expertise” without the public agency investing in its own rigorous, independent oversight is an insufficient risk mitigation strategy.
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- Estimate project costs comprehensively – Ensure budgets reflect the actual current local market labor, material, and equipment costs for successful project delivery.
- Create detailed and realistic project timelines – Identify key milestones, task dependencies, and critical paths.
- Minimize risks associated with delays and budget overruns – Provide a clear project roadmap and cost control mechanisms.
- Enhance resource allocation and utilization – Align resources and scheduling with budget constraints.
