Here are a few considerations for structuring a job order contract and implementation.
A JOC contract includes one or more coefficients, a JOC unit price book, UPB, (which is typically updated annually for pricing and potentially new line items, and for greatest value is locally researched), and has a duration ranging from one year to five years. The JOC contract is generally issued with a 12-month term followed by up to four option years.
Monitoring of contractor, team, and overall JOC contract performance is necessary. This includes task order pricing, adherence to the UPB, and meeting any small, small disadvantaged, and women-owned business contracting or subcontracting requirements.
Any work awarded to the contractor beyond the minimum per the contact is solely determined by the owner.
Option years, if included, are generally considered separate contracts, and all minimum/maximum values noted and awarded.
Structuring a Job Order Contract for optimal performance and best value required implementation of best management practices, BMPs, and appropriate tools.
When structuring a job order contract, the maximum value should be specific for the total value of the contract, including all option years. The maximum value may not be exceeded. For example, if a JOC states that the maximum is $20M over 5 years with an estimate of $5M per year, $8M could be awarded the first year.
Current Davis-Bacon Wage Determination must be used for all Federal JOC Programs and may be required in other public sectors. (Note… all cost data providers do not research these rates with equal due diligence, Four BT, LLC is follows best practices guidelines in this regard.)
Basic steps involved in Structuring a Job Order Contract and associated implementation include;
1. Strategic evaluation of objectives, goals, and appropriateness
2. Development of acquisition/procurement approach
3. Facility management/engineering planning
4. JOC procurement/award process
5. Work execution and contract administration
6. Monitoring
JOC and JOC UPB Implementations such as those based upon Four BT, LLC cost data and similar sources, as well as best management practices (BMPs) are acceptable in terms of being independent, objectives, and providing best value.
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