JOC Regulatory Landscape

This list is for reference only and may not be complete or current.  The JOC regulatory landscape is evolving despite its long-term use.  Any information provided is NOT intended as any form of legal guidance.   Please send us any updates to be included in the JOC Regulatory Landscape page.

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Noteworthy Judgements:

$8M Judgment for LAUSD Against Job Order Contractor Affirmed by Court of Appeal

On November 17, 2020, the Second Appellate District published its opinion in Los Angeles Unified School District v. Torres Construction Corp. (B291940) affirming the $8,000,000 trial court judgment and jury verdict following a five-week trial obtained by the firm on behalf of LAUSD.  This case is now the first published opinion in California on the job order contracting alternative procurement method for public agencies.  The opinion affirms the important right of public agencies that have determined they have been overcharged through post-project contractual audits to pursue contractors for reimbursement that have overpriced job orders.

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State References

Arizona – Note:  Arizona JOC statutes do not require a unit price book and thus do not  appear to conform with minimal requirements for a “best practice” JOC Program.

Arkansas

Introduced Session
94th General Assembly (2023 Regular)
Bill Summary
AN ACT TO AMEND THE LAW CONCERNING JOB ORDER CONTRACTING; TO INCREASE THE CAP ON JOB ORDER CONTRACTING BID AWARDS FOR INSTITUTIONS OF HIGHER EDUCATION; AND FOR OTHER PURPOSES.
Sponsors (6)
Scott Flippo (R)*, Leslie Warren (R)*, Justin Boyd (R), Bruce Cozart (R), Stephen Magie (D), Richard McGrew (R),
Last Action
House Public Health, Welfare And Labor Committee (10:00:00 10:00:00 Room 130) (on 03/14/2023)
Official Document
https://www.arkleg.state.ar.us/Bills/Detail?id=hb1582&ddBienniumSession=2023%2F2023R

2010 Arkansas Code

Title 19 – Chapter 4 – Subchapter 14 (19-4-1416)

“Job Order Contracting” means the acquisition of contracting services using a selection method that requires contractors to submit qualifications and prices based on wage rates inclusive of fringes and burden, plus a pricing matrix for mark-ups on materials and subcontractors (Arkansas Code Annotated §19-4-1416).

In accordance with Arkansas Code Annotated §22-9-203 (Appendix 21) and §19-4-1405 (Appendix 22), institutions will advertise one time each week for not less than 2 consecutive weeks for projects over $50,000 and one time each week for at least one week for projects under $50,000;  The notice shall be published in a newspaper of general circulation published in the county in which the proposed improvements are to be made or in a trade journal reaching the construction industry.  Statutory Requirements (Arkansas Code Annotated §19-4-1416 (Appendix 35))  After the scope of work documents are prepared and have achieve the appropriate reviews, the Institution shall advertise, award, and file the contract(s) for the contemplated work in accordance with Arkansas Code Annotated §§19-4-1401-19-4-1405.

California

SB 146 – Progressive Design Build, Job Order Contracting, NEPA Assignment

Authorizes Caltrans until December 31, 2033, to use job order contracting for certain transportation and public works projects, including, among others, those related to highway maintenance, installation of stormwater pollution control devices, and installation of facilities, systems, and traffic control devices needed to comply with the federal Americans with Disabilities Act of 1990.

Cal. Sts. & Hy. Code § 217 -Current through the 2023 Legislative Session.

California AB499
Los Angeles County Metropolitan Transportation Authority: job order contracting pilot program. AB 499, as introduced, Luz Rivas. Los Angeles County Metropolitan Transportation Authority: job order contracting pilot program. Existing law, the Local Agency Public Construction Act, sets forth procedures that a local agency is required to follow when procuring certain services or work. Existing law also sets forth specific public contracting requirements for certain transit districts. Existing law authorizes certain local agencies to engage in job order contracting, as prescribed. This bill would establish a pilot program to authorize the Los Angeles County Metropolitan Transportation Authority to use job order contracting as a procurement method. The bill would impose a $5,000,000 cap on awards under a single job order contract and a $1,000,000 cap on any single job order. The bill would limit the term of an initial contract to a maximum of 12 months, with extensions as prescribed. The bill would establish various additional procedures and requirements for the use of job order contracting under this authorization. The bill would require the authority, on or before January 1, 2028, to submit to the appropriate policy and fiscal committees of the Legislature a report on the use of job order contracting under the bill. These provisions would be repealed on January 1, 2029.This bill would make legislative findings and declarations as to the necessity of a special statute for the Los Angeles County Metropolitan Transportation Authority.

SB 1366, as amended, McGuire. Private employment. Department of General Services: job order contracting procurement procedure: pilot. The State Contract Act generally provides for a contracting process by state agencies for public works of improvement pursuant to a competitive bidding process, under which bids are awarded to the lowest responsible bidder, with specified alternative procurement procedures authorized in certain cases. Other existing law authorizes certain state and local agencies to engage in job order contracting, as prescribed. This bill, until July 1, 2027, would amend the act to authorize the Department of General Services to engage in job order contracting, as prescribed, as an alternative procurement procedure for public works projects. The bill would require the department to establish prescribed procedures, standards, and requirements relating to the bidding for, and award of, contracts. The bill would restrict such a contract to a maximum initial contract term of 24 months. The bill would impose a maximum contract amount of $10,000,000 in the first term of the contract. The bill would authorize the department to issue a single extension to each job order contract, up to an additional $5,000,000 and one additional 12-month period. The bill would require the department to submit to the Joint Legislative Budget Committee, on or before January 1, 2027, a report containing a description of the department’s utilization of job order contracting under the bill’s provisions through July 1, 2026, including prescribed information. Existing law establishes requirements that apply when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce, which requires, among other conditions, that all the workers performing work in an apprenticeable occupation, as defined, in the building and construction trades are either skilled journeypersons or registered apprentices. Existing law also authorizes a public entity to require that a bidder, contractor, or other entity use a skilled and trained workforce to complete a contract or project, regardless of whether the public entity is required to do so by a statute or regulation. This bill, with prescribed exceptions, would prohibit a contractor from being awarded a job order contract unless the contractor provides an enforceable commitment to the Director of General Services that the contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work for each job order that falls within an apprenticeable occupation in the building and construction trades, in accordance with existing law. Existing law establishes the Department of Industrial Relations within the Labor and Workforce Development Agency. Existing law requires the department to foster, promote, and develop the welfare of the wage earners of California. This bill would state the intent of the Legislature to enact legislation relating to labor and industrial relations.

AB-14 Public contracts: job order contracting.(2003-2004)

AB 1431 – Permits Job Order Contracting for K-12 Districts. – Authorizes job order contract to all K-12 school districts, that have entered into project labor agreements, for public works over $25,000.

AB-618 Local Agency Public Construction Act: job order contracting: school districts: community college districts.

AB-846 Local Agency Public Construction Act: job order contracting.(2021-2022) – This bill would change the January 1, 2022, repeal date to January 1, 2027, thereby extending authorization for job order contracting for school districts and community college districts indefinitely, and make conforming changes. By extending the operation of those provisions that expand the crime of perjury, this bill would impose a state-mandated local program.

California Code, Public Contract Code – PCC § 20128.5 Notwithstanding any other provisions of this article, the board of supervisors may award individual annual contracts, none of which shall exceed three million dollars ($3,000,000), adjusted annually to reflect the percentage change in the California Consumer Price Index, for repair, remodeling, or other repetitive work to be done according to unit prices.  No annual contracts may be awarded for any new construction.  The contracts shall be awarded to the lowest responsible bidder and shall be based on plans and specifications for typical work.  No project shall be performed under the contract except by order of the board of supervisors, or an officer acting pursuant to Section 20145 .

For purposes of this section, “unit price” means the amount paid for a single unit of an item of work, and “typical work” means a work description applicable universally or applicable to a large number of individual projects, as distinguished from work specifically described with respect to an individual project.

For purposes of this section, “repair, remodeling, or other repetitive work to be done according to unit prices” shall not include design or contract drawings.

ARTICLE 41.5. Job Order Contracting for Community College Districts [20665.20 – 20665.33]

 Article 41.5 added by Stats. 2017, Ch. 296, Sec. 1. 

Santa Clara

Introduced by Assembly Member Kalra

February 18, 2022

An act to add Article 4.5 (commencing with Section 100157) to Chapter 5 of Part 12 of Division 10 of the Public Utilities Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

AB 2763, as introduced, Kalra. Santa Clara Valley Transportation Authority: job order contracting.
Existing law creates the Santa Clara Valley Transportation Authority with various powers and duties relative to transportation projects and services and the operation of public transit in the County of Santa Clara. Existing law authorizes the authority to make contracts, enter into stipulations, and use a Construction Manager/General Contractor project delivery method for public transit projects.
This bill would authorize the authority to enter into job order contracts, defined as indefinite-quantity contracts for repair, remodeling, or other repetitive work to be done according to unit price, with the lowest responsible and responsive bidders. The bill would prohibit a single job order contract from exceeding $5,000,000 in its first term and, if extended or renewed, from exceeding $10,000,000 over the maximum of 2 extended terms, as specified.
DIGEST KEY
Vote: majority Appropriation: no Fiscal Committee: no Local Program: no
BILL TEXT
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. (a) The Legislature finds and declares all of the following:
(1) The maintenance of public transit and transportation facilities, including roads, bus systems and facilities, rail systems and facilities, maintenance facilities, and administrative offices and facilities, is a compelling government interest and a matter of regional and statewide concern.
(2) The awarding of contracts by the Santa Clara Valley Transportation Authority for repair, remodeling, or other repetitive work under traditional design-bid-build procedures may not be feasible or economical for purposes of maintaining the authority’s facilities in a state of good repair or returning them to a state of good repair in a timely manner.
(3) It is in the public interest to consider the broadest possible range of procurement methods for repair, remodeling, or other repetitive work to enable the authority to maintain its facilities in, or return its facilities to, a state of good repair in a timely manner, including through job order contracts.
(4) The authority should be authorized to use cost-effective options for the delivery of public works projects, in accordance with the national trend, which include authorizations in California, to allow public entities to use job order contracting as a project delivery method.
(5) The benefits of job order contracting include accelerated completion of projects, cost savings, and reduction of construction contracting complexity for the authority.
(6) The job order contracting should be used to reduce project costs and expedite project completion.
(7) The availability of job order contracting as a project delivery method will not preclude the use of traditional methods of project delivery if a traditional method results in higher cost savings.
(b) It is the intent of the Legislature that this act demonstrate an alternative and optional procedure for the bidding of public works projects that is applicable only to the authority.
SEC. 2. Article 4.5 (commencing with Section 100157) is added to Chapter 5 of Part 12 of Division 10 of the Public Utilities Code, to read:
Article 4.5. Job Order Contracting
100157. For purposes of this article, the following definitions apply:
(a) “Job order contract” means an indefinite-quantity contract for repair, remodeling, or other repetitive work to be done according to unit price.
(b) “Typical work” means a work description applicable universally or applicable to a large number of individual projects, as distinguished from work specifically described with respect to an individual project.
(c) “Unit price” means the amount paid for a single unit of an item of work.
100157.5. (a) Notwithstanding any other law, the authority may enter into a job order contract.
(b) The authority shall not enter into a job order contract for new construction.
(c) The authority shall only enter into a job order contract with the lowest responsible and responsive bidder, based on the bidder’s plans and specifications for typical work.
(d) (1) A single job order contract shall not exceed five million dollars ($5,000,000) in the first term of the job order contract and, if extended or renewed, ten million dollars ($10,000,000) over the maximum of two extended terms of the job order contract.
(2) Beginning January 1, 2024, the dollar-value limits specified in this subdivision shall be annually adjusted to reflect the percentage change in the California Consumer Price Index.
(e) (1) The authority may execute a job order contract for an initial contract term of no more than 12 months, with the option of extending or renewing the job order contract for two additional 12-month periods. An extension or renewal shall be priced as provided in the invitation for bids. An extension or renewal shall be mutually agreed to by the authority and the contractor pursuant to the job order contract.
(2) The job order contract shall specify that its term will not exceed the contract term or the date that the maximum value of the contract is achieved, whichever is earlier.

Florida

City of Coral Gables

Georgia

Georgia State Purchasing Division

SWC-90818 Indefinite Quantity Construction Services SPD-CP031b

Louisianna

New Orleans – New Orleans PM-No-113-(R)-Procurement-of-Public-Works-and-Construction

Massachusetts

SECTION 7

Section 7 Job Order Contracting

Minnesota

Minnesota Statutes 2017

Minnesota Statutes 2015

16C.35

Service Cooperatives

New Mexico

BDR S-400) – Creates a pilot program to gather data on the use of job order contracts for certain public works.

New York

The New York State Senate Senate Bill S6618

(11) Job Order Contracting.
(A) The division may award JOC for the maintenance, construction, repair, rehabilitation, renovation or alteration of a facility if the work is of a recurring nature but the delivery times are indefinite and indefinite quantities and orders are awarded substantially on the basis of pre-described and prepriced tasks.
(B) The division may establish contractual unit prices for a JOC by:
1. Specifying one (1) or more published construction unit price books and the applicable divisions or line items; or
2. Providing a list of work items and requiring the offerors to bid or propose one (1) or more coefficients or multipliers to be applied to the price book or work items as the price proposal.
(C) The division shall advertise for, receive, and publicly open sealed proposals
for JOC.
(D) The division may require offerors to submit additional information besides rates,
including experience, past performance, and proposed personnel and methodology.
(E) The division may award JOC to one (1) or more contractors in connection with each
solicitation of bids or proposals.
(F) An order for a job or project under the JOC must be signed by the division’s representative and the contractor. The order may be a fixed price, lump-sum contract based on contractual unit pricing applied to estimated quantities or may be a unit price order based on the quantities and line items delivered.
(G) The contractor shall provide payment and performance bonds, if required by law,
based on the amount or estimated amount of any order.
(H) The base term of a JOC is for the period and with any renewal options that the division sets forth in the request for proposals. The base term may not exceed two (2) years and is not renewable without further advertisement and solicitation of proposals.
(I) If a JOC or an order issued under the contract requires engineering or architectural services that constitute the practice of engineering or the practice of architecture, those services shall be provided in accordance with
applicable law.
AUTHORITY: section 8.250, RSMo Supp. 2007.* Original rule filed Nov. 5, 2007, effective June 30, 2008   (Source)

A08757 Memo:
NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)

BILL NUMBER: A8757A

SPONSOR: Abbate

TITLE OF BILL: An act to amend the labor law, the state finance law
and the general municipal law, in relation to labor performed under
certain public work contracts

PURPOSE OR GENERAL IDEA OF BILL:

To regulate the practice of job order contracting in relation to public
work projects.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends subdivision 5 of section 220 of the Labor Law by
adding a new paragraph m which defines the term “job order contract” and

requires that such contracts be available for review by the Department
of Labor and also to the public through a Freedom of Information Law
(FOIL) request.

Section 2: Amends the State Finance Law by adding a new section 148
which specifies requirements and limitations on job order contracts.
Certain requirements will be removed if the public owner requires inclu-
sion of a project labor agreement to ensure that proper wages and clas-
sifications are utilized under the contract.

Section 3: Amends the General Municipal Law by adding a new section
103-h which specifies requirements and limitations on job order
contracts. Certain requirements will be removed if the public owner
requires inclusion of a project labor agreement to ensure that proper
wages and classifications are utilized under the contract.

Section 4: Effective date.

EXISTING LAW:

Currently there is no provision of New York State Law that specifically
mentions job order contracting.

JUSTIFICATION:

A job order contract (“JOC”) is an indefinite quantity contract for
the-performance of construction, renovation, alteration and repair
tasks. A JOC is generally a multi-year contract that includes a base
year with multiple renewal options. A contractor bidding for a JOC does
not submit a fixed dollar figure as a contract. Rather, a contractor
submits an adjustment factor, known as a “multiplier,” which is a
percentage above or below prices for tasks that are set forth in a unit
price book. For example, a bid of 1.25 indicates that the bidder would
perform work at 125% of the price for each task in the unit price book
that the bidder performs. The bidder who submits the lowest “multiplier”
is awarded the JOC. The bidders are bidding on a range of tasks that may
or may not be performed over the course of the contract.

Because of the indefinite nature of these contracts, many contractors

are unable to bid on such a complicated process. Those that do submit
bids, do not know the specifics of the work they will perform and,
therefore, cannot properly ascertain how much the project will cost
them. If the unit bid is too low and they turn out to be underpaid,
cost-saving measures could become necessary; corners might be cut on
these projects which would negate the very purpose of public work. It is
has been wall founded by New York courts that imprecise bid specifica-
tions violate the competitive bidding law because they frustrate
bidders’ ability to set the lowest possible bid and discourage persons
from bidding {Matter of Sagamore Auto Body v. County of Nassau, 104
AD.2d 818, 821, 2nd Dept 1964).

Job order contracting is traditionally appropriate for small
construction projects and this legislation would properly regulate the
practice as such.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect 120 after it becomes law and apply to all job
order contracts solicited or renewed on or after such effective date.

North Carolina

Job Order Contracting Method

South Carolina

Job Order Contracting Blog Legislation for Job Order Contracting March 20, 2009

Texas

A job order contract is used for minor construction, remediation, or repair of a facility when the work is of a recurring nature, but the delivery times, type, and quantities of the required work are indefinite. Tex. Gov’t Code § 2269.401. If a job order project requires architectural or engineering services, the district must have an architect or engineer prepare the construction documents. Tex. Gov’t Code § 2269.408(a). An exception applies for work performed on portable buildings, as long as the contractor employs the services of an architect or engineer who approves the documents for the project. Tex. Gov’t Code § 2269.408(b).

Job Order Contracting – Legal vs. Operational Perspective 

EDUCATION CODE TITLE 3. HIGHER EDUCATION CHAPTER 51 Sec. 51.784

Attorney General of Texas

Opinion No. GA-1028

Texas Education Agency Guide

Virginia

HB 1113 Virginia Public Procurement Act; job order contracting, limitations.
Introduced by: Betsy B. Carr | all patrons … notes | add to my profiles

SUMMARY AS PASSED HOUSE: (all summaries)
Virginia Public Procurement Act; job order contracting; limitations. Increases from $6 million to $10 million the maximum threshold above which the sum of all jobs performed in a one-year job order contract term shall not exceed. The bill also increases the maximum threshold amount for any individual job order from $500,000 to $1 million. Finally, the bill increases from two to three the number of additional one-year terms for which job order contracts may be renewable, and the bill only applies to contracts entered into on or after the bill’s effective date.

Current through the 2021 2nd Special Legislative Session
Section 2.2-4303.2 – Job Order Contracting; Limitations
A. A job order contract may be awarded by a public body for multiple jobs, provided (i) the jobs require similar experience and expertise, (ii) the nature of the jobs 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 in this section, whichever occurs first. Contractors may be selected through either competitive sealed bidding or competitive negotiation.
B. Such contracts may be renewable for two additional one-year terms at the option of the public body. The fair and reasonable prices as negotiated shall be used in determining the cost of each job performed, and the sum of all jobs performed in a one-year contract term shall not exceed the maximum threshold amount.
Beginning on July 1, 2019, the maximum threshold amount shall be $6 million.

Subject to the maximum threshold amount, no individual job order shall exceed $500,000.

C. For the purposes of this section, any unused amounts from one contract term shall not be carried forward to any additional term.
D. Order splitting with the intent of keeping a job order under the maximum dollar amounts prescribed in subsection B is prohibited.
E. No public body shall issue or use a job order, under a job order contract, solely for the purpose of receiving professional architectural or engineering services that constitute the practice of architecture or the practice of engineering as those terms are defined in § 54.1-400.H however, 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, (ii) do not exceed $25,000 per job order, and (iii) do not exceed $75,000 per contract term.
F. Job order contracting shall not be used for construction, maintenance, or asset management services for a highway, bridge, tunnel, or overpass. However, job order contracting may be used for safety improvements or traffic calming measures for individual job orders up to $250,000, subject to the maximum annual threshold amount established in this section.
Va. Code § 2.2-4303.2

Amended by Acts 2019 No. 286, § 1, eff. 7/1/2019.
Amended by Acts 2019 No. 171, § 1, eff. 7/1/2019.
Added by Acts 2015 No. 776, § 1, eff. 7/1/2015.
Added by Acts 2015 No. 760, § 1, eff. 7/1/2015.

Associated General Contractors of Virginia Legislative Reports

HB 1835

General Assembly of Virginia Virginia Public Procurement Act

General Assembly of Virginia

Washington

Job Order Contracting:  . Job order contracts have a much wider scope than unit-priced contracts, encompassing all conceivable construction tasks/projects, and have a more rigorous solicitation process.
Job order contracts also require at least 90% of the work to be subcontracted, making them less suitable for small public works projects

Removed 70,000 population threshold; any city may now use job order contracting (SHB 1295).

A “job order contract” is a contract between a city and a registered or licensed contractor through which the contractor agrees to provide services of an indefinite quantity for work anticipated to arise over a fixed period
of time, not to exceed two years, with an additional one-year option.
Job order contracting is a quite different process from the traditional design-bid-build method of performing public works projects. Job order contracting provides a method of obtaining construction services for smaller projects using an indefinite quantity delivery order contract over a fixed time. Using this method, a city selects a contractor
based on the evaluation factors established in the request for proposals (RFP), which must include price and the ability of the proposer to perform the job order contract. The contractor’s bid is known as the contractor’s coefficient and is a percentage markup or markdown of the prices included in the identified price book the city intends to use.
The primary advantage to job order contracting is its speed. A city can complete smaller projects more quickly than through the traditional method of contracting. Complete plans and specifications are
not always required, although they must be sufficiently clear so that a contractor understands the project clearly enough so that he or she can price it. Some criticize job order contracting as being more expensive than would be possible under competitive bidding. Unless extended through legislative action, the job order process is scheduled for repeal on June 30, 2021 (see RCW 43.131.407 – .408)

Alternative Project Delivery – Public Works – Alternative Project Delivery – SB 50325032 SBR APS 21 SB 5032  SB 5032

SHB 1295 has opened its use to all public agencies (Job order procedure—Which public bodies may use—Authorized use (RCW 39.10.420).

Maximum amount that awarded under job-order contracting is $4 million per year for up to three years and carry over of any unused capacity to the immediately following year’s limit (the latter is not considered a best management practice by 4BT).

An agency is limited to three (3) job order contracts at any time (Exception: Department of Enterprise Services is limited to six (6) job order contracts.)

Work order limits are $500,000.

House Bill Analysis Job Order Contracting HB 2412

HB 1240

Washington State Legislature RCW 39.10.440

SHB 1295   –  Job Order Contracting  is available to any public entity. Request for proposal evaluation factors must include past performance on approved subcontractor inclusion plans.

Restrictions for JOCs are amended to

• exclude sales tax from the total amount allowed per year;
• allow unused capacity to be transferred to the next year;
• increase the maximum amount for a work order from $350,000 to $500,000 excluding sales tax, and
• increase the number of contracts allowed by a public entity at any one time to three.

Bonding requirements for specialty contractors are limited and apprenticeship utilization is required for any work order over $350,000 with over 600 hours in a single trade.

Removed – The requirement for review by CPARB’s Project Review Committee (PRC) of projects between $2 million and $10 million.

The bill passed the House 96-1 and the Senate 48-0.  It is expected to be signed by the Governor.

Effective July 28, 2019, ESSB 5418 authorizes counties with a purchasing department, transit districts, and water-sewer districts to use unit priced contracting and makes changes to the prevailing wage requirements for public utility district (PUD) unit priced contracts.

Effective July 28, 2019, SHB 1295 authorizes all public agencies to use job order contracts.

Unit-Priced (“On-Call”) Public Works Contracts: New statutory authority
to enter into unit-priced contracts (ESSB 6143).
• The Bid Decision: Updated lowest responsible bidder requirements
to include public works and prevailing wage training/experience
requirements (ESSHB 1673).

39.10.420	Job order procedure—Public bodies may authorize and use.
HTMLPDF	39.10.430	Job order procedure—Contract award process.
HTMLPDF	39.10.440	Job order procedure—Contract requirements.
HTMLPDF	39.10.450	Job order procedure—Work orders.
HTMLPDF	39.10.460	Job order procedure—Required information.

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Federal References

Office of Federal Contract Compliance Programs

AFARS

Job Order Contracting. AFARS Subpart 5117.90. See Schnorr-Stafford Constr.,
Inc., B-227323, Aug. 12, 1987, 87-2 CPD ¶ 153; Salmon & Assoc., B-227079,
Aug. 12, 1987, 87-2 CPD ¶ 152.
1. A job order contract (JOC) is an indefinite-delivery, indefinite-quantity
contract used to acquire real property maintenance/repair and minor
construction at the installation level.
2. The government develops task specifications and a unit price book. The
contractor then multiplies the government’s unit price by its own
coefficient (e.g., profit + overhead) to arrive at its bid/proposal price.
3. After contract award, the parties enter into bilateral task orders for
individual projects based on the tasks and prices specified in the JOC.6
4. JOC Limitations.
a. The government should not use a JOC for projects with an
estimated value less than $2,000, or greater than $750,000.
AFARS 5117.9000(a).
b. The government cannot use a JOC to acquire installation facilities
engineering support services (e.g., custodial or ground
maintenance services). AFARS 5117.9002(b).
c. The government cannot use a JOC to acquire architect-engineer
services. AFARS 5117.9002(b).
d. An IGE is required for orders of $100,000 or more. AFARS
5117.9004-3(c).
e. The government should not use a JOC to acquire work:  (1) Normally set aside for small and disadvantaged businesses.

(2) Traditionally covered by requirements contracts (e.g.,
painting, roofing, etc.);
(3) Covered by contracts awarded under the Commercial
Activities Program; or
(4) The government can effectively and economically
accomplish in-house.
AFARS 5117.9003-3(a)

Federal Highway Administration (FHWA), U.S. Department of Transportation (DOT)  On November 16, 2020, FHWA published an interim final rule (IFR) amending FHWA’s regulations to allow States the ability to use the Indefinite Delivery and Indefinite Quantity (ID/IQ) method of contracting, including job order contracting (JOC), on Federal-aid highway projects, under certain circumstances, on a permanent basis. This action adopts the IFR with a few minor changes and technical amendments. Most provisions from the IFR remain unchanged. This action also restores a missing provision inadvertently removed during an earlier, unrelated rulemaking. This final rule is effective December 9, 2022.

SABER

Simplified Acquisition of Base Engineer Requirements (SABER) Program,
AFFARS IG5336.9201-ch3.
1. Similar in scope and nature to the Army’s JOC program, SABER is an
ID/IQ contract vehicle to expedite the execution of non-complex minor
construction and maintenance & repair projects. IG5336.9201-ch3, para.
3.2.1.
2. The process of using the SABER is similar to the JOC. An established
Unit Price Book and coefficients are combined to price each specific
project. IG5336.9201-ch3, para. 3.2.1.1 and 3.2.1.2.
3. SABER Limitations.
a. SABER should not be used to replace a traditional construction
program, or for large, complex construction projects. SABER
should also not be used for projects that are traditionally single
skill/materials projects that are more appropriate for competitively
bid contracts or single trade ID/IQs. IG5336.9201-ch3, para. 3.4.1.
b. Saber shall not be used to acquire architect-engineering (A-E)
services. IG5336.9201-ch3, para. 3.4.2.1.
c. SABER may not be used to perform non-personal services subject
to the Service Contract Act. IG5336.9201-ch3, para. 3.4.2.2.