LEAN OpenJOC(TM) Job Order Contracting has a number of distinct advantages for repetitive repair, renovation, minor new construction and maintenance projects.
It provides a capacity for on-demand construction via an on-call contractor that can be mobilized, working in a much shorter period, and far more efficiently than traditional project delivery methods. Awarded JOC contractors also provide all requisite preconstruction services.
Th long-term nature of JOC and the somewhat repetitive nature of JOC work orders enables both the owner and the awarded JOC contractor to leverage knowledge and mitigate traditional learning curves relative means and methods. Both the owner and the JOC contractor benefit from these efficiencies.
Benefits of an OpenJOC Job Order Contract implementation include an expedited procurement process, and consistent completion of quality projects on-demand, on-time, and on-budget per owners/contractor expectations.
The Origins of IDIQ and JOC
The origins of Indefinite delivery/indefinite quantity (IDIQ) contracting, of which Job Order Contacting is a form, began with the General Services Administration (GSA) Federal Property and Administrative Service Act of 1949. Subsequently initial forms of JOC were implemented by the Army in Europe in the early 1980’s. The United Stated Air Force then expanded JOC into an efficient, well-defined process and it generally regarded as by experts as one of the leading practitioners of JOC.
This history combined with the Federal Acquisition Streamlining Act (FASA) in 1994 which regulates the use of IDIQ, and availability of tools, cost data, services, and technology by more innovative JOC vendors, have made JOC more transparent, efficient, and competitive.
The Advantages of JOC
The primary advantage of JOC has historically been is the flexibility permitted in ordered quantities and delivery scheduling. A public agency can place orders with one or more contractors when the actual need appears and received on-demand services from a vetted service provider.
The Additional Benefits of LEAN OpenJOC Job Order Contracting
Not all implementations of Job Order Contracting are the same. All of the following are provided via the LEAN OpenJOC Job Order Contracting solution.
- Integration of People, Process, Information, and Technology with LEAN best management practices (BMPs)
- Locally researched detailed line items Unit Price Book(s) develop using the OpenJOC 5% Rule(TM)
- Compliance reviews on all JOC proposals via an Informal Compliance Review ICR (TM) or Formal Compliance Review FCR (TM) at owner and/or cooperative designation.
- Full financial transparency
- Co-efficients ranging in the 1.0+ range
- Long-term mutually beneficial owner/contractor relationships
- Best value procurement
- Unit Price Books developed without overhead & profit
- Quantitative Key Performance Indicators (KPIs)
- Focus upon building Owner/Contractor capability
- Supporting cloud technology – Program, Project, Estimate, & Document Management with export to PDF and spreadsheet formats.
- Supported by a team with prior experience with The R.S. Means Company, LLC, 4Clicks Solutions, LLC, USCost, LLC, VFA, Inc, and The JOC Group, LLC
In the final analysis, this study has found that IDIQ (Job Order Contracting, etc.) can be implemented with a degree of flexibility and is a mechanism to minimize procurement effort while furnishing an on-going capability fir rapid delivery of construction and maintenance projects…
Advantages of LEAN OpenJOC Job Order Contracting
- Owner technical and procurement staff is supplemented
- Flexibility in quantity and delivery scheduling
- Services are ordered when they are really needed
- Agencies commit only for a minimum or no amount of work to be ordered
- Allows contractor involvement in preconstruction activities
- Lower cost of issuance of work orders
- Useful contracting option during emergencies (hurricanes/floods/…)
- Increase quality and timeliness of delivery
- Reduce potential for fraud, graft, and corruption
- Highly competitive
- Lower bid prices
- Larger participation of small-size and disadvantaged business
Disadvantages of IDIQ and Job Order Contracting
The only true weakness of this delivery method is most evident at state, county, and city level level and is related to the lack of knowledge and experience of some/many agencies and regarding IDIQ contracting LEAN construction methods.
Additional Information…
Task Order Contracts a- IDIQ for services whose performance and delivery scheduling is determined by placing task orders with the contractor or contractors during a fixed period of time
Delivery Order Contracts – IDIQ for supplies whose performance and delivery scheduling is determined by placing delivery orders with the contractor or contractors during a fixed period of time.
Job Order Contracts – IDIQ contracts for construction services whose performance and delivery scheduling is determined by placing work orders (task, delivery and job orders) with the contractor or contractors during a fixed period of time.
Master Contracts/Master Agreements – Optional-use contracts whose purpose is to facilitate obtaining supplies and services from multiple contractors by placing competitive work orders.
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