Public Sector Facilities Professionals – Reduce inefficiency, Streamline processes, Improve quality, Manage costs

Cost Visibility

Collaborative Process

Embrace the next generation of Construction and Sustainable Lifecycle Facilities Management!

Move all repair, renovation, maintenance, and new build projects forward with proactive, informed decisions.

Owners & Developers – Planners – Designers – Procurement Professionals – Builders

• Collaborate with internal and external teams to detail Scope of Work and validate local market construction costs.
• Know exactly how your request for proposals, projects, approvals, budgets, and work orders are progressing — from anywhere, anytime.
• Empower those doing the work and leverage their expertise.
• Mitigate risk and access a full audit trail.
• Dashboard and detailed reporting, as well as instant access to ALL data via upload.
• Manage IPD (integrated project delivery) and JOC (job order contracting) contracts and all activities.
• Full document management and version control.
• Exclusive locally researched granular line-item repair, renovation, maintenance, and new build cost data. (No national averaging or cost factoring)

Current, actionable information leads to better decision-making and best value outcomes.

Sustainable Facilities Management

Sustainable facilities management is the allocation of financial, environmental, and other organizational resources in the most efficient way possible.

Attainment of sustainable facilities management involves creating an environment for internal and external planning, procurement, and project delivery teams that fosters productivity, communication, collaboration, and innovation.

This requires building trust and respect among team members, a culture that promotes high performance, systems thinking, and a robust suite of processes, workflows, and tools.

People, Process, Information, and Technology are core development areas.  While they are all interrelated, People come first, then Process, and Information. Technology is last!  The role of Technology is to enable the consistent deployment and management of processes, workflows, and information to lower the cost of doing so.  Far too often Technology is viewed as a solution with the result typically being failure.

The quality of the outcome, defined by quantitative and qualitative metrics, is the measure of success.

If you are ready to provide leadership, commitment, and support to enable sustainable facilities management, let’s talk.

www.4bt.us – Sustainable FM Solutions

• Positive Culture
• Sufficient Capability, Capacity and Skills
• Equitable and Aligned Contractual Frameworks
• Fully Transparent, Shared, Common Data Environment (CDE)

Positive Culture

Adopt collaborative methods that enable the contribution and knowledge of those doing the work as well as the growing and retention of knowledge throughout internal and external planning, procurement, and project delivery teams.

Commercial Frameworks

Long-term, mutually beneficial contracts that focus all players on outcomes and are supported by operations manuals/execution guides.

Capability, Capacity Skills

A coordinated revamp of formal and professional education/training to address all aspects of lifecycle total cost of ownership asset management.  Focus upon understanding capability and capacity gaps, developing a coordinated approach to addressing knowledge gaps.

Common Data Environment

Mandated use of common terms and definitions writing in plain English without the use of confusing abbreviations and acronyms, as well as the use of tools such as locally researched current granular construction task unit price book databases to better communicate and validate cost and scope of work requirements.

A robust Construction Productivity Solution must include the ability to provide support for dealing with the conflicting interests of multiple stakeholders is CRITICAL to consistent achievement of best value construction outcomes.
The 4BT OpenJOC(TM) Solution and 4BT OpenBUILD(TM) Solution enables owners and design-builders to work collaboratively towards well-defined mutually beneficial outcomes.

Systems Enablers for Sustainable Facilities Management, Repair, Renovation, and Maintenance are critical considerations for any real property portfolio owner. In fact, they dictate how efficiently or how poorly an organization manages facilities stewardship requirements.
4BT OpenJOC and OpenBUILD solutions provide the following systems enablers:

– Greater collaboration and early engagement between all participants and stakeholders, resulting in integrated internal and external planning, procurement, and project delivery teams.
– Establish a common data environment inclusive of shared, local market granular cost data organized using expanded CSI Masterformat.
– Robust programmatic process with defined phases, workflows, approval, forms, etc., supported by a long-term multi-party agreement and integral operation manual/execution guide.
– Quantitative metrics/performance indicators.
– Mandatory initial and ongoing training for practitioners and decision-makers to ensure the necessary knowledge to be able to implement organization-wide systems thinking.

Learn more…

Systems Enablers for Sustainable Facilities Management, Repair, Renovation, and Maintenance are critical considerations for any real property portfolio owner. In fact, they dictate how efficiently or how poorly an organization manages facilities stewardship requirements.

The AECOO sector (Architecture, Engineering, Contruction, Operators, Owners) must transition for a linear to a circular system for managing the built environment.  Traditional planning, procurement, and project delivery methods are disparate and largely ‘ad hoc’.  Focus is simply upon simply accomplishing tasks (correctly or incorrectly) and passing the outcome (good or bad) to the next person/entity in line.  Little thought is given to holisitic impacts on the players or the final outcome.  In short, it’s a game of “passing the buck”.  We are aware that these practices end with extraordinarily poor results for the AECOO sector.

Systems thinking leads to the following systems enablers.

1. Greater collaboration and early engagement between all participants and stakeholders, resulting in integrated internal and external planning, procurement, and project delivery teams.
2.  Establishing a common data environment inclusive of shared, local market granular cost data organized using expanded CSI Masterformat.
3.  Robust programmatic process with defined phases, workflows, approval, forms, etc., supported by a long-term multi-party agreement and integral operation manual/execution guide.
4. Quantitative metrics/performance indicators.
5. Mandatory initial and ongoing training for practitioners and decision-makers to ensure the necessary knowledge to be able to implement organization-wide systems thinking.

A fundamental change in process and behaviors at all levels and all organizations associated with the built environment is required to acheive sustainable activities. All parties must rally behind the common goal to shift from our wasteful linear traditional methods economy towards regenerative lifecycle total cost of ownership asset management.  Many of the solutions required to deliver a sustainable methodology are available exist in today’s market and can be implemented immediately.

Army Job Order Contracts fail to meet critical AFARS requirements most of the time.

The JOCPB (JOC Price Book: reflects the current local costs in detail for construction tasks expected to be performed in the geographical area of the base contract with the primary use of developing a detailed line-item price.  (AFARS)

The above definition of a unit price book clearly notes the requirement that the JOC unit price book reflect both local and current costs for the work to be performed using JOC.   This is simply not happening and the failture to meet this requirement has cost the Government and taxpayers to waste hundreds of millions of dollars.   Most Army and DoD JOC Program specify “RS Means” cost data.  This is a national average cost book that DOES NOT REFLECT LOCAL COSTS.  Instead, the Government applies “area cost factors” or “location factors” to attempt to localized the cost information.  This practice does not work for material, labor, equipment, nor does it account for local market productivity in any effective manner.   Locally researched JOC Price Books are readily available to provide cost visibility, cost transparency, and therefore improve cost management.  Why is the Army using archaic and inefficient practices?

Army Job Order Contracts FAIL to meet AFARS requirements MOST OF THE TIME and waste millions of dollars and negatively impact mission needs.

But that’s not all, the DoD doesn’t leverage current system thinking and robust, integrated planning, procurement, and project delivery workflows to maximize utilization of resource.

Army Job Order Contracting per GENERAL SERVICES ADMINISTRATION DEPARTMENT OF THE ARMY, ARMY FEDERAL ACQUISITION REGULATION SUPPLEMENT (AFARS)

Subpart 5117.90 – Job Order Contracts
5117.9000 Scope of subpart.
A Job Order Contract (JOC) is an indefinite-delivery, indefinite-quantity contract and an alternative contracting method to fulfill repair, maintenance, and minor construction requirements on a variety of projects ranging from sustainment, restoration, and modernization, simplified acquisition of base repair requirements, civil works operations and maintenance, small renovations, real property repair and maintenance with an estimated value more than the micro-purchase threshold
for acquisitions of construction. A JOC includes a comprehensive collection of detailed repair, maintenance, and minor construction task descriptions or specifications, units of measure, and pre-established unit prices for discrete tasks. Each JOC order is comprised of several pre-described and pre-priced tasks. In general, proposed projects valued at or below the micropurchase threshold for acquisitions of construction are considered inappropriate for ordering under a JOC because of the administrative costs associated with processing JOC orders and the simplified purchase methods available for these actions.
5117.9001 Definitions.
As used in this subpart –
“JOC Price Book” (JOCPB) means the compilation of repair, maintenance, and minor construction tasks, associated units of measure and unit prices that are used in job order solicitations and a JOC. JOC unit prices include direct material, labor and equipment costs, but not indirect costs or profits which are addressed in the coefficient(s). The use of labor-only line items is appropriate for use when proper internal controls are in place and incidental to construction. Labor line items are not to provide services, typically performed under a separate service or requirements contract. The JOCPB reflects the current local costs in detail for construction tasks expected to be performed in the geographical area of the base contract with the primary use of developing a detailed line-item price. For CONUS, the JOCPB shall be developed using commercially available pricing tools to ensure consistent and comprehensive pricing of tasks unless the contracting officer determines the use of a commercially available pricing tool is not in the best interest of the government.
“Coefficient” means a numerical factor that represents costs (generally indirect costs) not included in JOCPB unit prices (e.g., general and administrative and other overhead costs, insurance costs, bonding and alternative payment protection costs, protective clothing,
5117.9002 Applicability.
(a) A JOC may be used to execute repair, maintenance, and minor construction requirements for the requiring activity and
are subject to the requirements in other parts of the FAR, DFARS, and this regulation.
(b) A JOC must only be used for the projects covered at 5117.9000. The requiring activity’s reoccurring facilities
engineering support services, such as utility plant operation, custodial, grounds maintenance, refuse collection and disposal,
and similar work shall not be acquired using a JOC. Architect-engineer services as defined in FAR 36.102 and Design-Build
requirements as defined in FAR 36.3 shall not be acquired under a JOC. However, informal (shop) and as-built drawings,
incidental to the job, reflecting the plan of action and the completed project, are anticipated under a JOC.
5117.9003 Use of job order contracts.
5117.9003-1 Planning and coordination.
(a) A JOC should be considered when the workload is anticipated to be of such a yearly volume that benefits derived from a JOC utilization are greater than the costs of the Government resources and contractor overhead associated with establishing and using a JOC. These costs include the total Government resources required to award, use, monitor, and administer the JOC and JOC orders, and management oversight and functional support of the entire JOC process. The calculated workload for a potential JOC should exclude –
(1) Work normally reserved for 8(a) or set aside for small businesses; and
(2) Work that can be effectively and economically accomplished by in-house resources.
5117.90-1
Revised August 4, 2022
5117.9004 DOD FEDERAL ACQUISITION REGULATION SUPPLEMENT
5117.9004 Procedures.
5117.9004-1 Presolicitation.
(a) To solicit for a JOC, the Government must develop task specifications and a JOCPB tailored to the needs of the
requiring activity to be supported. Any special range pricing (to get quantity discounts) of units associated with the requirements of known JOC projects to be ordered must be specified.
5117.9004-2 Solicitation.
(a) The contracting officer must ensure that the specifications and the JOCPB have undergone technical review and validation and are tailored to meet the projected requirements of the requiring activity and local economic conditions.
(b) The JOC solicitation must include realistic and reasonable annual minimum and maximum dollar amounts for projected requirements to encourage competition and lower coefficients. Generally, the higher the minimum is, the lower the coefficient proposed will be.
(c) The solicitation must explain the make-up of the Government unit prices and specify what types of costs, as a minimum, must be covered by the coefficient. Offerors may have multiple coefficients and must specify what additional types of costs are included in their coefficients in their proposal. These additional costs may be incorporated in the contract, if appropriate, and may preclude later disagreements over non-pre-priced tasks. Multiple coefficients may be used for normal working hours and other than normal working hours.
(d) The solicitation must explain that there will be no separate repayment(s) for bond premiums because the bond premium is repaid through the coefficient, and the coefficient is paid as an indirect cost under progress payment or other standard payment provisions.
(e) JOC solicitation and contracts must use either annual coefficient adjustments or an annually updated JOCPB, but not both. Clause 5152.237-9000, Adjustments to Contractor’s Coefficient for Option Years, can be used in JOC contracts in accordance with this paragraph when annual coefficient adjustments are used.
5117.9004-3 Ordering.
(a) Except as otherwise specified in this subpart, orders must be executed in accordance with FAR 16.505(a).
(b) Statement of work.
(1) The SOW for the proposed order must contain sufficient detail to enable the Government to develop an independent government estimate (IGE), in accordance with FAR 36.203 and to ensure that the contractor can properly prepare a responsive and cost-effective proposal with a minimum of non-pre-priced tasks.
(2) The SOW must be updated before issuing the order to reflect the negotiated agreement’s details and to include significant quantities, methods of construction, quality levels, and the number of days to complete the work.
(c) Limitations.
(1) Except as provided in paragraph (2), the value of non-pre-priced work under an order must not exceed 10 percent of the value of the pre-priced work.
(i) The value of the pre-priced work must be computed by multiplying the coefficient(s) times the appropriate unit price(s) in the JOCPB.
(ii) When the contract allows, indirect costs and profit for non-pre-priced work may be attributed by the application of a solicited and pre-agreed rate to be applied to the unburdened labor, equipment, and material costs of the non-pre-priced work.
(iii) Description of non-pre-priced work must not be manipulated or forced to fit under a pre-priced line item, either
to avoid including non-pre-priced line items in the order or to reduce the value of non-pre-priced line items in an attempt to
circumvent the limitation in (c)(2).
(2) Normally, if the value of the non-pre-priced work exceeds 10 percent, then the non-pre-priced work should be
reduced, eliminated, performed in-house, or the job must be acquired using other contracting methods. However, contracting
officers may exceed the 10 percent if justified and approved in accordance with FAR 6.302. The contracting officer shall
negotiate the modification and make a determination that the price is fair and reasonable.
(d) Distribution. A copy of all JOC orders must be sent to the contracting office appointing ordering officers, the Finance
and Accounting Office, the office or individual assigned responsibility for inspection and technical administration of the
contract, and any appointed COR. The contracting officer must maintain the permanent record of each transaction, and
administration shall be done in accordance with the contracting activity procedures.
5117.90-2
Revised August 4, 2022
SUBPART 5117.90 – JOB ORDER CONTRACTS 5117.9005
5117.9005 JOC ordering officers.
(a) Appointment. A “JOC ordering officer” appointment is authorized, but is only required when the contracting officer
will not be executing all task orders. Appointments of ordering officers under each JOC must be minimized. The JOC
ordering officer shall be obtained in accordance with AFARS 5101.603-1, The contracting officer is the appointing authority
for each individual job order that is within the JOC ordering officer authorities. The requiring activity may recommend JOC
ordering officers. The JOC ordering officer shall be appointed by letter similar to that in 5153.303-2 Sample ordering officer
appointment. (see 5101.602-2-92 Ordering officer appointments.), tailored for JOC.
(b) Training. All JOC ordering officers must receive specific training and orientation from the responsible contracting
office at least annually. This training must cover policy and procedures for the operation of a JOC and shall specifically
address the ordering officer’s authority, limitations, and responsibilities, including ethics, conflict of interest, and potential
pecuniary liabilities. JOC ordering officers shall, at a minimum, meet contracting activity COR training requirements.
(c) Authorization and limitations.
(1) JOC ordering officers are authorized to sign task orders on behalf of the Government between the micro-purchase
threshold for acquisitions of construction and the Simplified Acquisition Threshold (SAT) as long as the value of the non-prepriced item(s) does not exceed five percent of the total order to include contract modifications.
(2) The HCA may authorize JOC ordering officers to sign task orders of greater value than SAT. However, the
delegated authority may not exceed the thresholds specified in 10 U.S.C. 2805(c) and may only be authorized when the HCA
determines it is necessary to realize the benefits of a JOC, and provided that –
(i) adequate management controls are in place (e.g., contracting officer oversight);
(ii) adequate training is provided;
(iii) the contracting officer approves; and
(iv) the value of any non-pre-priced item(s) does not exceed five percent.
(3) JOC ordering officers may execute modifications to existing task orders provided that –
(i) the contracting officer delegates explicitly this authority in the JOC ordering officer appointment letter;
(ii) the absolute value of the order as modified does not exceed the ordering officer’s authority; and
(iii) pricing is accomplished by using the JOCPB.
(iv) Modifications shall be limited to changing quantities of JOCPB items in the existing order unless the contracting
officer signs an in-scope determination.
(4) JOC Ordering Officers must notify the contracting officer immediately of any modifications. The contracting officer
shall execute any modification outside of paragraph 3 above.
(d) Responsibilities. JOC ordering officers–
(1) Are responsible for ensuring that all proposed JOC project descriptions and task orders express the Government’s
actual requirements, validated in accordance with the requiring activity’s procedures;
(2) Must obtain concurrence from the Contacting Officer that sufficient capacity exists on the JOC before issuing of a
task order;
(3) Must obtain a valid Purchase Request and Commitment (PR&C) from resource management to ensure that adequate
and proper funds are available for the project before issuing an order and/or modification;
(4) Must notify the contracting officer of any additional bonding requirements associated with new orders or changes in
the value of existing orders;
(5) As the principal point of contact for technical and engineering issues, must respond to requests for technical
clarification from the JOC contractor, documenting both the request and the response, and conduct the joint pre-proposal site
survey, assuring that the contractor is provided access to all required facilities, plans, and other documents required for full
knowledge of the scope and conditions of the required job;
(6) For orders estimated to exceed the JOC ordering officer’s signature authority, the JOC ordering officer shall conduct
an initial evaluation of contractor proposals; may be authorized to solicit such proposals and clarify and negotiate units and
quantities of pre-priced tasks; and shall assist the contracting officer, as requested, in negotiations, and resolution of variances
between the IGE and the contractor’s proposal;
(7) Must maintain an electroniccontract file and complete contract documentation for each order and modification
executed, including a record of all related correspondence and actions taken before award of the order and in the order
administration phase; and
(8) Is responsible, along with a COR, if appointed, for assisting the contracting officer in technical monitoring of the
contractor’s performance of orders issued under a JOC to include —
(i) Monitoring compliance with the SOW and schedule;
5117.90-3
Revised August 4, 2022
5117.9006 DOD FEDERAL ACQUISITION REGULATION SUPPLEMENT
(ii) Ensuring contractor or supplier compliance with the clause at FAR 52.225-5, Trade Agreements (Oct 2019);
(iii) Ensuring compliance with the Wage Rate Requirements (Construction) statute (40 U.S.C. Chapter 31,
Subchapter IV, formerly known as the Davis Bacon Act, subpart 22.4);
(iv) Assessment and validation of percentage of completion for progress payment purposes;
(v) Recommending to the contracting officer changes to existing orders, beyond the ordering officer’s authority;
(vi) Documenting and quickly reporting to the contracting officer systemic or recurring problems in contractor
performance;
(vii) Prioritization of orders when required (in coordination with the requiring activities), provided no increase in
cost is involved;
(viii) Submitting performance evaluation reports (see 5136.201), as applicable; and
(ix) Providing to the requiring activity documents required for continuing customer responsibilities (e.g., as-built
drawings and warranties).
5117.9006 Contracting officer responsibilities.
(a) At least once a year, the contracting officer must ensure that ordering officer files and procedures are reviewed and that
a representative sampling of orders is selected for tracking from initiation of the requirement to final payment and close-out
of the order.

via 4bt.u;s

The value of time and motion study is clear.  The process enables the accurate definition of labor, material, and equipment requirements to perform a specific task.

What is time and motion study? The evaluation of work performance, analysis of the time spent in going through the different motions of a job or series of jobs. Time-and-motion studies were first instituted in offices and factories in the United States in the early 20th century. These studies came to be adopted on a wide scale as a means of improving the methods of work by subdividing the different operations of a job into measurable elements. Such analyses were, in turn, used as aids to standardization of work and in checking the efficiency of people and equipment and the mode of their combination.

Locally researched construction task data uses the knowledge of both time and motion study as well as research of labor, material, and labor requirements.  When developed and kept current, locally research construction unit price book data is critical to enabling true cost visibility and cost management for any type of repair, renovation, maintenance, and new build activity.  Conversely, used alternative cost estimation techniques such as national average cost data, historical cost, building or system modeling, and/or location or economic factor are not capable of providing reliable and verifiable cost estimates or other information such as scheduling and material requirements.

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Sustainable Public Sector Facilities Management is unattainable if current practices are not fundamentally changed.

The current mindset across all public sector organizations is not conducive to sustainable facilities management from either economic or environmental perspectives.   Until this fundamental fact is altered, there is zero chance of significant improvement from the ‘status quo’ of rampant waste and mismanagement.

A change in mindset is a prerequisite to the creation and adoption of Values, Principles, Practices, Tools, and Processes that will enable sustainable public sector facilities management.  

All the tools, processes, and support services required to consistently deliver quality projects (repair, renovation, maintenance, and new builds) on time and on budget and to the satisfaction of all participants and stakeholders have been available for some time.

Required components for a robust systemic FM solution include the following:

• Robust collaborative process integrating internal and external planning, procurement, and project delivery teams on an early and ongoing basis, supported by a long-term, mutually beneficial multi-party agreements and an operations manual/execution guide.
• Common data environment (CDE) with a set of terms and definitions as well as current, locally researched granular unit price book including labor, material, equipment, and productivity datasets.
• Clearly communicated written quantitative goals and performance indicators.

Learn more if your organization is ready for significant improvement.

Sustainable Facilities Management will require a fundamental change in mindset.

Even though tools and services are readily available to consistently deliver quality, on time and on budget repair, renovation, maintenance, and new build outcomes, real property owners and facilities management professionals have yet to adopt system thinking.

What is system thinking? – Simple, it’s the process of considering the whole and how the all the associated parts, people, actions, resources interrelate, and discovering ways of improvement.

Why does it matter? – The application of system thinking to facilities management (FM) and the AECOO sector, and associated tools and support processes, can consistently ensure the delivery of quality, sustainable outcomes, on time and on budget. (AECOO = Architecture, Engineering, Construction, Owners, Operators)

What are the barriers? – System thinking requires a fundamental change in mindset for current AECOO players. While the following may sound like “common sense”, the philosophies and concepts are rarely practiced. Care of People. – Innovation and improvement require that traditional adversaries find common ground. We all know that traditional planning, procurement, and project delivery practices are adversarial, and broken, yet we fail to address this basic issue. Owners must lead a change in mindset and provide a consistently safe, welcoming, and collaborative environment. Everyone involved also must enable those doing the work, those with hands-on knowledge, to contribute to solutions in innovative ways.

Focus must shift from constantly seeking technology as a solution to the root cause of the AECOO sector’s problem, a bad process.

Examples of FM and construction philosophies, concepts, and tools that leverage system thinking? Lifecycle total cost of ownership (TCO) asset management, Alliance Contracting, Integrated Project Delivery (IPD), and LEAN Job Order Contracting all embody system thinking. While the degree to which these and other practices maximize the benefits of system thinking varies widely based upon actual implementation, significant, measurable benefit can be realized if ALL the following criteria are met. Total cost savings of 30%-40%, on time, on budget quality delivery, and satisfaction of all involved participants and stakeholders are just a few of benefits.

1. Real property owner leadership, accountability, and commitment
2. Multi-party, long term agreement with an integral operation manual and/or execution guide that clearly communicates roles, responsibilities, deliverables, processes, workflows, quantitative performance metrics, and shared risks/rewards.
3. Integrated internal and external planning, procurement, and project delivery teams that communicate and collaborate on an early and ongoing basis.
4. A common data environment (CDE) inclusive of 1. A common written set of terms and definitions using industry standards without confusing acronyms or abbreviations, and 2. a granular, line time construction task listing that is both locally researched, current, and organized using a standard data architecture (examples: expanded CSI Masterformat, expanded Uniformat).
5. Mandatory initial and ongoing training for all participants.

Even though tools and services are readily available to consistently deliver quality, on time and on budget repair, renovation, maintenance, and new build outcomes, real property owners and facilities management professionals have yet to adopt system thinking. Until this occurs, sustainable facilities management solutions will remain on the shelf.

Time for real change?

via Four BT, LLC – www.4bt.us  Sustainable FM solutions

Traditional JOC solutions focus exclusively on speeding project procurement, however, typically the result is higher overall construction costs and questionable oversight. OpenJOC(TM) LEAN Job Order Contracting is now readily available to assure the consistent delivery of quality projects on time and on budget, and with overall cost savings!

OpenJOC(TM) LEAN Job Order Contracting implements system thinking to address all aspects of planning, procurement, and project delivery.

System thinking addresses mindset in concert with processes, behaviors, tools and workflows to integrate our siloed industry into high-performing, success-oriented teams that foster collaboration between all project participants including owners, design-builders, trade partners, building users, and oversight groups.

Together we can empower everyone in our industry to create more efficient, safe, collaborative, innovative and more successful work.

So, if you…

• Care for People
• Want to Fix the Process, and
• Advance Our Industry,

reach out to learn more!

LEAN Job Order Contracting integrates system thinking within organizations to drive best value outcomes.

Construction costs increased an average of 8%-10% from 2022 to 2023

via Four BT, LLC – Verifiable, locally researched unit price cost data for repair, renovation, maintenance, and new builds.

4bt.us

In today’s economic environment it may be time to rethink Preventive Maintenance, lower costs 30%-40%, and extend system life up to 10x.

While most facilities management teams have a preventive maintenance program, there is only one source for PM tasks, checklists, AND locally researched costs for EVERY FREQUENCY (daily, weekly, monthly, annually….), and that is Four BT, LCC (4BT)!

January 2023 two climate requirements for new construction entered into force in the Building Regulations. If you are going to build a new heated building, you are responsible for complying with the requirements.

1. The climate impacts of new construction must be documented with a climate calculation (i.e. a life cycle assessment, LCA) in connection with the completion notification of the construction
2. New construction over 1000 m2 must comply with a limit value of 12.0 kg CO2 equivalent/m2/year.

Where is the United States?

via 4bt.us

Facilities Management Lacks a Body of Knowledge

Facilities Management and the full AECOO community have a fundamental flaw that is solely responsible for rampant economic and environmental waste; the lack of body of knowledge (BOK or BoK), the complete set of concepts, terms and activities that make up a professional domain.

Contact to learn more…

#facilitiesmanagement #environmental #community #aecoo #lean #leanconstruction #tco #totalcostofownership

Facilities management activities such as quality, on time and on budget repair, renovation, maintenance, and new construction require STAKEHOLDER CONTINUOUS PARTICIPATION AND INVOLVEMENT.

Who are the stakeholders?   Owners, design-builders, building users…

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Uncertainty –  The inability to foretell consequences or outcomes because of a lack knowledge or basis on
which to make any predictions

Uncertainty fuels risk, excessive costs, and project failure.

Many real property owners are reluctant or incapable of qualifying and quantifying uncertainty, resulting in financial and environmental waste.

Learn more about robust processes for managing uncertainty. 

Leadership must be supportive and directly involved. LACK OF LEADERSHIP has led to rampant waste endemic to the AECOO sector (architecture, engineering, construction, owner, operator).

The FACT that real property owners have not taken responsibility for the DEVELOPMENT of their staff and external service providers has proven an impenetrable barrier to measurable improvement in economic and environmental outcomes.

LEADERS must ENABLE people doing the work to leverage their expertise to contribute to problem solving and continuously improve daily activities and processes.

It’s CRITCAL for people and organizations to understand that robust, integrated planning, procurement, and project delivery, so necessary for facilities management is not a project centric approach.  Measurable improvement requires a fundamental change in thinking and interacting with others daily. LEADERS must ENABLE people doing the work to leverage their expertise to contribute to problem solving and continuously improve daily activities and processes.

A robust facilities sustainment solution is critical to any real property owner.

#1. A current real property inventory of all critical facilities systems – Foundations, Floors, Exterior Walls, Exterior Windows, Exterior Doors, Roof Coverings, Interior Construction, Casework, Doors, Partitions, Interior Windows, Stairs, Wall Finishes, Floor Finishes, Ceilings, Elevators/Lifts/Conveying Systems, Plumbing, Domestic Water Equipment, Sanitary Waste, Specialty Piping Systems, Gas Monitors, Flow Monitors, Liquid Oxygen Source, Evacuation Systems, Compressors, Compressed Air Systems, Plumbing Fixtures, Surgical Vacuum Systems, Dust Evacuation Systems, Energy Supply Systems, HVAC, Terminal and Package, Solar Energy Systems, Generators, Steam Distribution Systems, Cooling Systems, Distribution Systems, Energy Supply Systems, Heating Systems, Controls and Instrumentation, Fire Suppression Systems, Fire Detection and Alarm Systems, Standpipes, Electrical Service and Distribution, Lighting, Communications and Security Systems, Institutional Equipment, Landscaping and Sitework…. to name a few.

#2. Implement a robust physical asset facilities maintenance process integrating scheduled, unscheduled repairs, and preventive maintenance tasks.

#3. Validate costs and operations using a current, locally researched line-item maintenance and repair cost database for all tasks and associated frequencies.

#4. Build and support collaborative internal and external planning, procurement, and project delivery terms.

#5. Monitor and continuously improve.

For All things JOC – Job Order Contracting click here….

Structuring a best value JOC Program requires far more than getting a certification, buying software, or hiring a ‘JOC consultant”.  

Few JOC Programs, especially within non-DOD Federal applications, are structured to provide BEST VALUE to Owners and Design-Builders.  They have been set up to simply procure construction/maintenance services faster, and in manner cases without traditional or proper oversight.  The net result, as shown by several independent third-party audits, has been problematic, including such poor outcomes as excessive costs, lack of cost transparency, and even fraud.

The benefits of a LEAN JOC Program are significant; however, owners must provide LEADERSHIP, COMMITMENT, and COMPETENCY.

Click here, or contact us, to begin to learn…

1.  What is a LEAN JOC Program
2.  How measure success (From Owner and Design-builder perspectives)
3.  How to integrate internal and external planning, procurement, and project delivery teams
4.  How to create an RFP for JOC software and support services (JOC Vendors)
5.  How to create an RFP for JOC contractors
6.  How to evaluate JOC vendors
7.  How to evaluate JOC contractors
8.  When to set up a JOC Program
9.  How to evaluate if a project is suitable for JOC
10.  The importance of locally researched cost data versus using factors or economic indexes
11.  How to evaluate a JOC Unit Price Book (UPB)
12.  How to line-time estimate
13.  How to evaluate contractor proposals
14.  How to create an independent government estimate (IGE) in JOC
15.  How to compare an IGE to a Contractor estimate
16.  How to “negotiate” with a Contractor
17.  When to use a JOC Cooperative
18.  JOC quantitative metrics / key performance indicators (KPIs)
19.  JOC Lessons learned
20.  ….

A Relationship-based Approach to Sustainable Facilities Management is needed to meet current and emerging economic and environmental requirements.

Traditional methods for planning, procuring, and delivery repair, renovation, maintenance, and new construction are incapable of consistently delivery of quality outcomes on time and on time.

Internal and external planning, procurement, and project delivery teams need to be integrated on an early and ongoing basis with a robust programmatic framework.  Existing tools and support services to mitigate waste/rework and enable consistent quality outcomes on time and on budget are readily available.

Contractual collaboration commitment from all parties

Realistic, valid cost and technical requirement planning

Initial and ongoing training

Quantitative metrics

Empowerment of those doing the work

How can you integrate internal and external teams?

PROVEN FORMULA FOR EFFICIENT FACILITIES Repair, Renovation, Maintenance, and New Construction

Robust Process Integration + Common Shared Cost/Technical Information + Supporting Tech = Measurably Improved Cost Management

Integrating People, Process, Information, and Technology with proven industry best practices and organization-specific requirements into a proven cost management solution.  Create estimates, deploy project workflows and controls, inclusive of timelines, approval stages, appropriate information access, and more.

Put an end to poor traditional planning, cost estimating, procurement, and project delivery practices!

Manage costs of all types: Effort (labor, crews, timelines), quantities, materials, and equipment. Create verifiable cost requirements and performance baselines based upon current, locally researched, granular line-time cost data.

1. 84% gain in higher-quality construction

2. 41%-74% reduction in project schedules

3. 43%-77% increase in productivity

4. An 80% improvement in customer satisfaction

Exclusively from 4BT! (Four BT, LLC) – www.4bt.us

1) Specify and fully communicate tasks, processes, and costs among internal and external teams.

2) Empower those on-site who are doing the work.

3) Assure full visibility at all levels…. Program, Project, Estimate, Document, Work Order, Owner, Contractor Subcontractor

4) Manage all changes and approvals before moving to the next phase/stage

5) Measure performance – KPIs

6) Continuously Improve

7) Enable real-time information availability and sharing with collaborative cloud technology

Physical asset management optimization requires the integration of People, Processes, Information, and Technology.

People come first.  Integrating internal and external Planning, Procurement, and Project Delivery Team under supportive and committed leadership is step one.  Any failure in this area severely restricts any subsequent efforts or investments made to achieve significant improvements in efficiency.

Robust Processes. Leverage of existing and emerging robust processes such as lifecycle asset total cost of ownership management, integrated project delivery, and LEAN job order contracting.  A robust process, implemented as an integrated solution, and continuously monitored and improved upon is the goal of every real property owner, facilities management professional, and their partnered design-builders.

Information.  Actionable, current information that supports decision-making.  Information must be clearly presented using common terms and definitions.  Tasks presented in terms of a standardized and locally researched granular unit price book, organized by CSI Masterformat.

Technology. Technology supporting a shared, sole source of truth with full version control.

• Overcome poor data quality
• Establish trust in your information
• Set quantitative performance targets and manage workflows and initiatives
• Engage everyone in a culture of continuous improvement 

The below diagram clearly shows what’s wrong with LEAN construction.

(Source: 2014, Wandahl, S. Lean Construction with or without Lean – Challenges of Implementing Lean Construction

Learn more?

LEAN Job Order Contracting – LEAN Job Order Contracting is the process of integrating planning, procurement, and project delivery for physical infrastructure repair, renovation, maintenance, or new builds, across disparate internal and external teams, within a common data environment (CDE) to consistently enable quality, on time and on budget outcomes.

Requisite tools and support services are readily available and include but are not limited to the following.

• JOC Program Development
• JOC Program Management Technology
• Locally Researched Detailed Line Items Unit Price Book (Local market component costs with labor, material, and equipment details.)
• JOC Program Support Services
• Independent Third-party Audits

View Information

An introduction to a LEAN Construction Framework – A Robust Solution fully supported by tools and services.

Efficient, balanced, and collaborative

• Integrated internal and external planning, procurement, and project delivery teams
• Project team members are selected through value-based proposals and associated rankings/metrics
• Written long-term multi-party agreement with integral operations manual/execution guide
• Focus upon mutually beneficial outcomes
• Defined workflows, stages/phases, documentation, approvals
• Cost estimating and budgeting a continuous process, accomplished through intimate collaboration between internal and external planning, procurement, and project team members using locally researched, granular (line item) market data organized using standard data
• Mandatory initial and ongoing multi-level and multi-format training
• Regular third-party audits

Target and actual cost visibility and breakdown need major attention, mainly through the development of specific inter-organizational cost management system and granular, local market researched data.

Interested in a discussion?

REFERENCES
Ansari, S.; Bell, J.; Swenson, D. (2006). “A template for implementing target costing”.
Cost Management, ABI/INFORM Global, New York, 20 (5) 20-27.
Ballard, G.; Reiser, P. (2004). “The St. Olaf College fieldhouse project: a case study in
designing to target cost”. Proceedings… of the 12th Annual Conference on Lean
Construction, Denmark.
Ballard, G. (2006). “Rethinking Project definition in terms of Target Costing”.
Proceedings… of the 14th Annual Conference on Lean Construction, Santiago, Chile.
Broome, J.; Perry, J. (2002). “How practitioners set share fractions in target cost
contracts”. International Journal of Project Management, Elsevier, New York, 20 (1)
59-66.
Cooper, R.; Slagmulder, R. (1997). Target costing and value engineering. Productivity
Press, Portland, 379 p.
Cooper, R.; Slagmulder, R. (1999). Supply chain development for the lean enterprise:
interorganizational cost management. Productivity Press, Portland, 510 p.
Dekker, H.; Smidt, P. (2003). “A survey of the adoption and use of target costing in
Dutch firms”. International Journal of Production Economics, Elsevier, New York, 84
(3) 293-305.
Formiga, A. dos S. (2005). “Target costing implementation for cost estimating in
construction firms of Porto Alegre/RS, Brazil”. “Implantação do uso do Target
Costing na elaboração de orçamentos de obras em empresa de construção civil de
Porto Alegre-RS”. Master. Diss., Civil Eng., Federal University of Rio Grande do
Sul, Porto Alegre-RS, Brazil, 105 p. (in portuguese).
Granja, A. D.; Picchi, F. A.; Robert, G. T. (2005). “Target and Kaizen Costing in
Construction”. Proceedings… of the 13th Annual Conference on Lean Construction,
Sidney, Australia.
Ibusuki, U.; Kaminski, P. C. (2007). “Product development process with focus on value
engineering and target-costing: A case study in an automotive company”.
International Journal of Production Economics, Elsevier, New York, 105 (2) 459-474.
Kern, A.P.; Soares, A.C.; Formoso, C.T. (2006) “Target costing in cost planning and
control of construction projects”. “Custo-meta no planejamento e controle de custos
de empreendimentos de construção”. Proceedings… of the 11th Encontro Nacional de
tecnologia do ambiente construído (ENTAC), Florianópolis, Santa Catarina, Brasil (in
portuguese).
Lin, T. W.; Merchant, K. A.; Yang, Y.; Yu, Z. (2005). “Target Costing and Incentive
Compensation”. Cost Management, ABI/INFORM Global, New York, 19 (2) 29-42.
McNair, C. J.; Polutnik, L.; Silvi, R. (2006). “Customer-driven lean cost management”.
Cost Management, ABI/INFORM Global, New York, 20 (6) 9-21.
Monden, Y. (1995). “Target costing and kaizen costing”, Productivity press, Portland,
Oregon, 373 p.
Nicolini, D.; Tomkins, C.; Holti, R.; Oldman, A.; Smalley, M. (2000). “Can target costing
and whole life costing be applied in the construction industry?: evidence from two
case studies”. British Journal of Management, Blackwell Synergy Publishing,
London, UK, 11 (4) 303-324.
Robert, G. T.; Granja, A. D. (2006). “Target and Kaizen Costing Implementation in
Construction”. Proceedings… of the 14th Annual Conference on Lean Construction,
Santiago, Chile.
Williamson, A. (1997). “Target and Kaizen costing”. Manufacturing Engineer, IET,
Stevenage, UK, 76 (1) 22-24.
Yook, K.; Kim, I.; Yoshikawa, T. (2005). “Target costing in the construction industry:
evidence from Japan”. Construction Accounting & Taxation, ABI/INFORM Global,
New York, 15 (3) 5-18.

The lack of a basic framework for the construction of facilities is the fundamental cause of rampant environmental and economic waste.

The term “construction” in this case is used for any repair, renovation, maintenance, or new building activity associated with a built structure (buildings, roadways, airports, bridges, dams, ….).

Any construction “project” can be defined as any number of more granular tasks that are performed in sequence or in parallel.  While every project may have its own unique characteristics, the overall planning, procurement, and project delivery process should follow a defined process across all participants and stakeholders.   The fundamental problem is that a robust programmatic process is rarely if ever applied to all projects by real property owners and their service partners.

Two robust programmatic processes that can integrate internal and external construction planning, procurement, and project delivery teams are LEAN integrated project delivery (IPD) and LEAN job order contracting (JOC).   Both programmatic processes are capable of consistently delivering quality projects on time and on budget, however, both are poorly understood and rarely implemented or managed correctly.

The ISO 50001-based energy management system is too little too late and fails to address the fundamental issue of rampant economic and environmental waste associated with facilities repair, renovation, maintenance, and new buildings.

Key problems.

#1 The program is self-paced.  No timelines.

#2 The program is no-cost.  Since when does no cost associate with value?

#3 There is no requirement for third party audits.  History has taught us to “trust but measure”, failure to learn from our past is a sure fire way to fail.

way for organizations to build a culture of structured energy improvement that leads to deeper and sustained savings that does not require any external audits or certifications.

The is only one proven way for facilities portfolio owners to…

• Cut operational costs,
• Achieve continuous improvement and
• Improve risk management.

That “way” is a  process that involves implementing an organization wide robust programmatic process to all decisions and projects.  A programmatic process that mandates early and ongoing collaboration between all internal and external planning, procurement, and project delivery teams invovles i facilities management, inclusive of complete technical and cost visibility, long-term multi-party agreements, a written operations manual/execution guide, a common data environment (example: locally researched granular cost data for repair, renovation, maintenance, and new builds organized with a standard standard data architecture-MasterFormat, Uniformat, etc.), all focus upon mutually beneficial, clearly defined outcomes.

WBS-Work Breakdown Structure Matters for every repair, renovation, maintenance, and new builds.

Terms and hierarchy are critical. WBS is significantly enhanced by CSI MasterFormat line-item tasks in terms of cost and labor quantification, especially when data is available in a locally researched database.

(more…)

Current Construction Cost Data CSI Masterformat is now more important than ever.

4BT exclusively offers CSI Masterformat locally researched construction cost data that is updated quarterly

1. Granular line-item construction cost data with labor, material, equipment, and productivity information
2. Organized using expanded CSI Masterformat
3. Over 65,000 line-items- repair, renovation, maintenance, and new build
4. Locally researched without the use of cost factors or economic indexes. (Note: The use of localization factors (CCI, ACI, etc.) or economic factors (ENR, CPI, etc.) to create or update a cost database has been shown via independent researched to introduced gross cost errors.)
5. Local preventive maintenance databases are also available including all frequencies and checklists, organized by expanded Triservices UNIFORMAT.

What is the CSI MasterFormat?

MasterFormat is critical to organizing and communicating building and construction cost and technical information.  It representents the basic elements required for detailed line-item construction cost estimating, the most valid form of costing.   Referred to as “the Dewey Decimal System” of repair, renovation, and construction, CSI MasterFormat is a series of coding systems, broken down and categorized within fifty (50) Divisions.

4BT offers cost data in expanded CSI Masterformat.  We leverage the CSI Masterformat structure and provide an even higher level of granularity.  CSI Masteformat contains eight (8) digits, for example, 23 22 23.23 Pressure-Powered Steam Condensate Pumps.  4BT coding contains 16 digits to allow for specific components/tasks.

Every area of construction and manufacturing for the construction industry is covered under the CSI MasterFormat. This is true for commercial, industrial, and residential buildings.

Current Construction Cost Data CSI Masterformat is critical to cost visibility and cost management for both owners and design-builders throughout the repair, renovation, maintenance, and new build planning, procurement, and project delivery life-cycle.

www.4bt.us

Integrity in Public Sector Procurement of Facilities Repair, Renovation, Maintenance, and Construction Services is essential to minimizing costs and ensuring quality and safety.

Obtaining the maximum projected value for each dollar of expenditure and ensuring that all purchasing transactions follow all state, local and federal regulations are, however, goals rarely met when it comes to the numerous repair, renovation, maintenance, and construction projects encountered by Federal, County, State, and Local Governments.

Robust policies and practices exist that support and facilitate optimal acquisition of goods and services by applying best methods and business practices to garner public confidence.  A professional, efficient procurement system begins with sound policies implemented through systematic, programmatic procedures. Internal controls, careful planning, and cost-efficient practices which provide the framework for the efficient planning, procurement, and project of repair, renovation, maintenance, and new construction services.

The following are fundamental characteristics and requirements for assuring integrity in Public Sector Procurement of Facilities Repair, Renovation, Maintenance, and Construction Services.

• Integration of and mandatory collaboration between internal and external Planning, Procurement, and Project Delivery Teams on an early and ongoing basis, following a predefined workflow (EXAMPLE:  4BT OpenJOC Framework™)
• Cost visibility and transparency via a detailed line item (not assemblies) current and locally researched unit price book
• Multi-party long-term mutually beneficial contract with design-builders, inclusive of an Operations Manual / Execution Guide
• No payments to software/services vendors based upon a percentage of construction value that would inflate costs and/or create a potential for a conflict of interest.

The role of procurement in measurably improving construction productivity is clear.  Procurement must be part of a collaborative and integrated team that involves owner planning and project delivery staff members.

Tools are services are readily available that can reduce overall costs by 30%+ while also improving quality and shortening project delivery times, IF implemented, and managed properly.  A robust tool is Job Order Contracting (JOC).

The role of procurement in measurably improving construction productivity is critical to achieving best value outcomes.

However, most procurement teams view JOC simply as a way to speed projects through the planning, procurement, and project delivery cycle. There is little thought given to the cost of the program, collaboration, or best value.
Cost visibility, transparency, and accountability are virtually nonexistent. Also, trust and true collaboration with design-builders is rare. Most traditional JOC Programs lack ✅ Urgency ✅ Accountability ✅ Communication and ✅ Empathy.

Implementing a best value JOC Program is a skill that requires owner leadership, commitment, and accountability.

A few comments to consider…

#1. If you are paying a percentage of total JOC construction value for JOC tools and services, you are more than likely wasting significant taxpayer funds.

#2 Best value JOC Programs require strong teams with independent thinkers. “Command and control” techniques simply won’t work and simply result in push back from participants and poor performance. You JOC Program must encourage buy-in to a mutually beneficial long term way of working. The team must win, not just the owner. While the owner provides leadership, each team member must have the ability to shape the course of action without micromanagement in order to yield more robust outcomes.

#3 A collaborative best value JOC Program takes time and progresses through incremental stages. Unfortunately, many existing programs have never been set up properly from day one.

Procurement professionals need to be able to pivot to taking a more collaborative approach to getting things done.

Learn more…

#collaboration #leadership #jobordercontracting #jobordercontracting #jocexcellence #bestpractices
#JOCconsultant #facilitiesmangement #productivity #contractmanagement #team #contractors #design #job #planning #projects #empathy #communication

Design-Bid-Build (DBB), Design-Build (DB), Construction Management (CM), Design-Build-Operate (DBO), Design-Build-Finance-Operate (DBFO), Integrated Project Delivery (IPD), Project Alliancing (PA), Cost Led Procurement (CLP), Integrated Project Insurance (IPI), Two Stage Open Book and Early BIM Partnering (EBP}, LEAN Job Order Contracting (4BT-OpenJOC System)

Of all the above, only Integrated Project Delivery (IPD) and LEAN Job Order Contracting (4BT-OpenJOC System) integrate planning, procurement, and project delivery to an extent that can consistently drive 30%-40% cost savings over “traditional methods”, decreased total procurement and project time, and improve both quality and the overall satisfaction levels of all participants/stakeholders…. if designed and implemented properly.

Requirements:

• Public Construction Planning, Procurement, and Project Delivery Teams must provide leadership and commitment to defining and supporting clearly defined requirements and mutually beneficial goals.
• A robust programmatic approach must be applied to ALL projects.
• A common data environment, including granular, current, locally researched line-item cost data at the core (organized using CSI Masterformat)
• Integrated internal and external planning, procurement, and project delivery teams
• A multi-party long-term contract with an integral Operations Manual/Execution Guide
• …..

Learn more…

4BT, founded in 2016, is a certified veteran-owned small business (VOSB), and was founded by JOC program management, technology, and cost data experts with decades of experience with industry sector leading organization including the RS Means Company, LLC, 4Clicks Solutions, LLC, and VFA, Inc.

4BT provides a complete range of JOC tools and services, including but not limited to,

1. enterprise JOC knowledge management technology,
2. locally researched facilities repair, maintenance, and construction cost data inclusive of line-item modifiers,
3. technical specifications, and full training,
4. consulting, and
5. support services.

4BT tools and services were specifically developed to provide a lower cost, higher performing Job Order Contracting Solution. Instead of a sole focus upon faster procurement we enable on time, on budget, quality outcomes. We of an alternative to a monopolized JOC market with excessive administration costs based on percentage fees of total JOC construction volume.  Multiple audits of JOC Programs clearly support the need for better performing JOC solutions (JOC Program audits can be found here or via internet search.)

JOC (JOB ORDER CONTRACTING) Programs, however, can fail if they….

• do not abide by core JOC and LEAN and principles,
• do not focus upon building and keeping public sector owner and contractor capabilities and knowledge via a collaborative robust process,
• require reliance upon full-time “JOC consultants”,
• require payment associating fees based upon a percentage (%) of JOC construction value, resulting in an average 10x cost liability versus simple procurement of software, cost data, and support services. Based upon best management practices and readily available tools and support services, there should never be need for a long-term and/or perpetual “JOC consultant” to “manage” a JOC Program. A best value JOC Program outcome can only be reached by continuous improvement enabled, per LEAN principles, whereby all participants are being fully informed and enabled to contribute to problem solving and driving mutually beneficial best value outcomes without the barrier of a third parties.
• lack of robust ongoing evaluation procedures to assure consistent, compliant program execution.

www.4bt.us