Job Order Contract Request for Proposal

Job Order Contract Request for Proposal is a core element for successful JOC Programs.  The development of a well-constructed, successful job order contract request for proposal starts with a sound understanding of the basic principles of job order contracting.

The birth of Job Order Contracting is generally credited to the U.S. Department of the Army, European Theater in the early 1980’s.  That said,  the core characteristics of a Job Order Contract were truly perfected by the Army and the Air Force in the mid to late 1980’s in the United States.

A Job Order Contract creates an environment  better bid, procure, manage and successfully complete the numerous,  \multi-trade renovation and repair projects facing real property portfolio owners.

While most are aware that the AEC sector suffers from waste and low productivity, Job Order Contracts are the shining light.  When developed and executed properly Job Order Contracts can delivery well over 90% of renovation, repair, sustainability and minor new construction projects on-time and on-budget, and to the satisfaction of all participants and building users!

The design-bid-build method, and even design-build are relatively inefficient and inappropriate to deal renovation, repair, and deferred maintenance backlogs.

Today Job Order Contracts, after having been largely perfected by the U.S. Air Force, have moved into the broader government and public sectors, including state, county, and local government, education, healthcare, utilities, and transportation.

A Job Order Contract Request for Proposal is a BEST VALUE procurement strategy.   Rather than a low-bid approach, JOC considers, in fact, requires contractor collaboration and performance.   A JOC program can  reduce overall procurement costs and total project delivery times, as well as improve quality.

Job Order Contracting:

A competitively bid, open ended, indefinite-delivery indefinite-quantity contract and LEAN collaborative construction delivery method, providing for firm fixed pricing, based on a detailed joint scope of work, a unit price book and a predetermined coefficient for the purpose of managing and completing complex multi-trade renovation, repair, rehabilitation and minor construction projects more efficiently.

Obtaining greater earned value requires consideration of non-cost factors, and greater competency and capabilities among all participants.  Thus a Job Order Contract is NOT for everyone.

The ability to work collaboratively, transparently, on-demand, and safely defines those participating in a Job Order Contract.

As a Job Order Contract is performance-based, successful performance is a key determining factor for delivery orders issued by the owner.  A JOC contractor is thus motivate to provide greater value-added services to the owner at no additional cost. These  include project scoping during budget cycles, incidental design work and value engineering.

The real property owner and contractor to build a long-term relationship  based on collaboration and trust.  Thus when structuring a Job Order Contract is it critical to clearly define Owner and Contractor expectations.

• Unit Price Book & Transparent Costs: Detailed line item Unit Price Books allow the owner to better communicate work scope to contractors, and have complete cost visibility.  Contractors provide detailed costs estimates using the unit price book for owner review and approval.  This workflow and required documentation and approval process is clearly defined in the Job Order Contract. The Job Order Contract specifies the Unit Price Book to be used, how it will be used with respect to price and non-priced line items, and update frequency.

 

Timing:  The Job Order Contract Request for proposal clearly defines for the initial contract and option years, as well as timelines associated with individual JOC projects and/or JOC task orders.  Most Job Order Contracts are structured for one year, with up to four options years.

Job Order Contract Management System:  While not the driving factor, software is key to the collaborative implementation of a Job Order Contract.  Cloud-based software is particularly appropriate in this regard.  Both the Owner and the awarded JOC Contrators must have thee appropriate technical capabilities to use the designated JOC cost estimating and project management software.

Job Order Contract Construction Volume:  A Job Order Contract clearly specifies anticipate annual construction volume as well as minimum and maximum values for the overall contract as well as for individual JOC projects/task orders.

Type of Work: A Job Order Contract Request for Proposal clearly specifies the type of construction work to be performed, as well as work hours, and any special conditions.

Geographic Location: A Job Order Contract Request for Proposal clearly specifies the location(s) where work is to be performed.

Additional Key Items:  The  Job Order Contract Request for Proposal also highlights additional requirements such as liquidated damages, design requirements, reimbursement and self-performance requirements.

Single or Two Step Process:  Based upon applicable regulations, Job Order Contract services procurement is single-step – qualifications/evaluation criteria and the price components are combined and reviewed, or two step process – pricing  is consider only after a qualifications review and short-list selection.