Job Order Contract

JOC is a proven, collaborative construction delivery method provides major advantages to Facilities Managers, Real Property Owners, AEs, Contractors, Subcontractors, and Facility Users. Leading Federal/County/State and Federal Government, Education, Transportation, Utilities, and Healthcare institutions leverage Job Order Contracting (JOC)  to complete over 90%  of their numerous renovation, repair, sustainability and minor new construction projects on-time and on-budget….and to the satisfaction of all participants!

Contractors develop mutually beneficial long term Owner relationships  and more predictable revenue streams.
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4BT-CE Cloud Estimating Software and the 4BT JOC Unit Price Book integrate Job Order Contracting best management practices with technology to allow for faster JOC Program development, implementation, monitoring, and continuous improvement.

Job Order Contracting for Owners – allows Owners to create more thorough project scopes, completer more accurate and transparent detailed line item cost estimates and bids, compare and select contractors that can work collaboratively to provide on-demand services, and monitor and reward performance.  Job Order Contracting also encourages the use of local small and minority owned businesses. \

JOC for Contractors and AEs – Job Order Contracting helps Contractors and A/E’s to better understand and build to Owner requirements.  Job Order Contracting provides a platform to develop longer term, collaborative relationships.

4BT delivers unit price book cost data, software, services, and training to support success among Owners, Contractors, Subs, and AEs.

Our team has supported hundreds of  Owners and thousands of contractors in their use of Job Order Contracting.

While a higher level of competency,  experience, and commitment are required to implement successful Job Order Contracts, benefits outweigh any resource needs.   In fact, traditional methods of construction delivery and construction services procurement can not come close to providing the positive outcomes attainable from Job Order Contracting .

4BT is a veteran-owned small business with senior professionals having decades of experience supporting, managing, and providing services for Job Order Contracting. We believe that education, training, and support are critical to the success of any Job Order Contract, and our team thrives in these areas.

We have been involved in hundreds of Job Order Contracts performing  billions of dollars of renovation, repair, and minor new construction works.

Improve efficiency and obtain high quality outcomes through the use of independent, objective, and powerful tools and services.

 

Job Order Contracting Products and Services

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Training
Regional, on-site, and virtual hands-on training and certification for all job order contract participants.   Introductory and advanced classes are structured for all skill levels, as well as refresher courses. Training content is tailored to the participants.
Sample Topics Training Courses:
• Introduction to Job Order Contracting / LEAN Construction Delivery
– Management by Outcomes
– Key Characteristics
– Requirements
• Introduction to Line Item Estimating
• Introduction to Cost Estimating
• ESS Getting Started
• ESS Advanced
• Job Order Contract Execution / Operations Manual Development
• Marketing a JOC Program
– Internal
– External (Contractors)
• Individual Job Order Request / Request for Proposal Process
• Auditing a JOC Program
• How to Create a JOC RFI/RFP
• How to Evaluate JOC Contractors
• How to Create an Owner / Independent Government Estimate
• Job Order Contracting Best Management Practices
– Responsibilities
– Workflow
– Documentation
– Approval Process
– Audits
– Key Performance Indicators
– Small Business / MBE
• How to Create a JOC Estimate – Into & Advanced
– Appropriate level of detail
– Price versus non-prepriced items
– Hand-on Exercises
– Site visit planning
– Content/Documentation Packages
• Owner/contractor communications/documentation
– Inspection reporting
– Deficiencies/corrective actions
– Signoff
– Payment
– Owner/Contractor Negotiations
– Problem-solving principles and Tools

JOC Unit Price Book Cost Data

  • Unit Price Books (UPB) – Locally research construction tasks complete with labor, material, and equipment details, based upon Davis-Bacon wage rates. Custom line items are also available.  All data is provided using common standard term with minimal use of abbreviations.  All cost data is organized by CSI Masterformat.
  • Specifications – Industry standard commercial construction specifications can be provided as needed and are organized by CSI Masterformat. Custom specification development services are available.

Support 
Technical support for software and unit pricing is provided via telephone and email.  4BT team member have had experience with hundreds of JOC Programs, thousands of JOC Contractors, as well as Cooperatives providing JOC services (i.e. Allied States, TCPN) in terms of assisting in developing JOC programs, developing unit prices books, providing JOC project/task order line item cost estimates, providing general and detailed estimate reviews, creating and deploying client server and web-based software.

Job Order Contracting is a collaborative LEAN construction delivery method. As such it integrates core characteristics outlined as follows, as well as specified workflows, processes, data architectures, deliverables, and outcomes.

Best value development and deployment of Job Order Contracting requires multi-discipline / multi-trade knowledge, LEAN construction processes, common terms-definitions-data architectures,  leadership and program/project management, and supporting/enabling technology.

Key characteristics of Job Order Contracting and LEAN Construction Delivery include:

• Collaboration
• Mutual Respect & Trust
• Financial Transparency
• Owner Leadership without excessive management & control
• Shared Risk/Reward
• Best Value Procurement
• Common Standard Terms, Definitions, & Data Architectures (UNIFORMAT, MASTERFORMAT, OMNICLASS)
• Continuous Education, Training, & Improvement
• Key Performance Indicators (KPIs) / Audits job
• Written Execution / Operations Manuals (Roles, Responsibilities, Deliverables, Workflows / Standardized Work Processes, Reporting Requirements…)

Additional Job Order Contracting Services

  • JOC Estimating Services
  • Independent Government Estimating (IGE) Services
  • 3rd Party Independent Estimating Auditing Services (formal line item estimate audit, reviews for budget reviews, change order estimate auditing, quantity takeoff, technical evaluations and estimate comparison along with our comments, conclusions and recommendations)
  • Budget Collaboration Reviews
  • Program Management

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How to Select a JOC Unit Price Book

How to Select a JOC Unit Price Book– WHITE PAPER

 

A Common Data Environment in the form of a locally researched detailed Unit Price Book, UPB, significantly improves renovation, repair, maintenance, and new construction outcomes.

 

INTRODUCTION

A Unit Price Book – UPB – is very important to the quality, integrity, productivity, and transparency of a Job Order Contract.

That said, not all JOC Unit Price Books are the same, and the selection benefits greatly from a strategic review of the goals and objectives of your JOC Program.

 

Here is a listing of initial considerations when selecting a JOC Unit Price Book.

Is the UPB locally researched for the cities, counties, states, and/or regions for the JOC area, or does it depend upon location factors? The use of location factors, even if applied separated for material, equipment, and labor, can introduced gross errors.

What labor rates are being used and how detailed is the information? All federal JOCs and a growing number of state/county/local JOCs require Davis-Bacon wage rates. Davis-Bacon wage rates are applied differently depending on the location, and the researcher. Some are dependent upon mileage from a central location, others by region, etc. The UPB should incorporate the highest level of details available and the most recent cost data. Labor generally represents 60% of the total cost of construction project, thus accurate labor information is very important.

Do crews represent real world construction practices? Many of the commonly used price books, even the “leading cost books”, do not have crews that represent current work practices. This easily leads to the wrong productivity rates and significant errors in construction costs.

Are tasks described in plain English and are terms common to the trade used? Using a UPB can be extremely difficult if tasks are not easily and fully understood. Abbreviations should be limited to units of measure, and even then, used in a consistent manner.

Is a common data architecture used for line item organization? The use of CSI Masterformat data aggregation assures efficient distribution, modification/updating, and proper use of the UPB in concert with JOC procedures and goals. The cost database and associated projects and estimates can only be cost effectively created, stored, maintained, and used within a common data environment and JOC-specific technology.

Is the size of the UPB manageable? Some UPB providers market hundreds of thousands of line items. An excessive number of UPB line items can actually be a detriment. Most JOCs involve common renovation and repair tasks and consistently use less than 30,000 line items. Excessive numbers of line items can slow productivity, introduce errors, and case confusion

Are line item modifiers used? Modifiers are important as they add or deduct costs from the “parent” line item based upon variables such as quantity, material qualities, etc. Modifiers, on average, account for 30% of the cost a a JOC task order.

Are demolition line items present? As JOC involves renovation and repair, demolition line item costs are generally an important component of a JOC estimate.

Are full training and support services available in multiple levels (introductory, advanced) and formats (on-site, regional, virtual)? Ongoing training and support by senior JOC professionals are critical to program success.

Is the UPB vendor independent from your JOC program? It is critical that any JOC consultant involved in approving individual JOC task orders be totally independent form any JOC products or services.

Learn more…

http://www.4bt.us

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Glossary and Supplementary Notes:

Collaboration – Collaboration among construction project participants and/or stakeholder is critical to assuring a proper definition of the scope of services, and thus mandatory if the estimate is to reflect the expectations of the owners, design, contractor, etc. Achieving the best possible outcome for the estimate and the overall construction project, is dependent upon the processes involved in gathering accurate information in a timely manner. Employing the actions and philosophies associated with continuous improvement and LEAN best management practices adds to the overall success as well.

Contractors – Detailed, unit price, line item estimates are used to bid jobs and also done by general contractors and construction managers to validate bids from sub-contractors.

Detailed cost estimate – A forecast of construction cost, prepared on the basis of a detailed analysis of materials and labor for all items of work.”– 13th edition of the Architect’s Handbook of Professional Practice

Material, Equipment, & Labor – A detailed, unit cost, line item construction cost estimate involves a review and understanding of the scope of work of the associated project, including all possible factors and risks. Materials, labor, and equipment costs are provided in the highest level of granularity.

Owners – Real property owners and/or facilities managers responsible for life-cycle management of the built environment. Detailed, unit price, line time estimates are required by public agencies for most JOC/IDIQ construction projects. If the project exceeds a specified dollar threshold, an independent owner estimate must also be created (also called an independent government estimate – IGE). Line item estimates are also used to create and validate construction budgets.

Productivity – Earned value work accomplished, generally represented as a percentage. Construction productivity can be affected by multiple variables; labor composition, skill level, weather, work flow, site access, materials availability, etc.

Required Skills – Field experience at construction sites is extremely important, as is the only way to gain a true appreciation of processes, risk factors, and other variables that can impact a construction project. The ability to review and interpret construction drawings, work with cost estimating formulas and technologies, and the ability to communicate information to disparate disciplines and audiences are also vital.

Process Tasks – Processes associated with creating a line item construction cost estimate include the following:

Full definition of the scope of services requires several considerations, such as:

  • Estimate preparation
  • Validation of contents and assumptions
  • Estimate reconciliation (if multiple estimates are required for a project)
  • Documenting and presenting the estimate
  • Identifying inclusions and exclusions
  • Defining the basis to be used for pricing (construction cost databases and/or unit price books – UPB, unit price guides, subcontractor quotes)
  • Presentation of line items as bare costs or inclusive of overhead and profit
  • Classification system to be used, i.e. CSI MasterFormat, Uniformat II, WBS, etc.
  • Format of the estimate (summary level, detailed level, price vs. non pre-priced items, associated formulas, source of each line item).

The above information is via Four BT, LLC – Best value provider of JOC solutions: Unit Price Books, Technology, support, training, and professional JOC servcies – 4BT.US

Learn more…

4BT.US

 

Job Order Contract Digital Management

Job Order Contract Digital Management

The 7 basic steps of job order contract program implementation

Real Property Owners, Contractors, and Subcontractors,

Sign up for a one-on-one web session to learn more about independent, objective, transparent, compliant, and best value Job Order Contract Program Management supported by digital technology.

The content of the session will be up to you, but include any of the following ….

JOC workflows,  documentation, unit price books, resource requirements, key performance indicators (KPIs) and  of course technology implementation tools.

Focus will be upon new opportunities to improve productivity, resulting in a higher number quality projects delivered on-time and on-budget.

Learn more…

Connect, Share, Learn, Solve, Lead

job order contracting case study

• Simplify JOC management activities

• Maintain Job Order RFPs, Job Orders, Estimates, Reviews, and Documents… all in one place

• Comply with JOC best practices and audit requirements

• Assure you are always using the right coefficient and unit price book (UPB)

• Always use the most current information

 

OpenJOC is a Trademark of Four BT, LLC. Building in Cloud is a Trade mark of Lemsys S.r.l
Four BT, LLC
5430 LBJ Fwy Ste. 1200
Dallas, TX 75240
Mail: info@4BT.US
Website: http://www.4BT.US

 

OpenJOC – Job Order Contracting the Way it’s Supposed to be!

OpenJOC is a standardized, independent, objective, and defensible method for organizing, describing, pricing, procuring, and managing renovation, repair, and minor new construction activitivies.

OpenJOC, a LEAN construction delivery method  associated levels of higher productivity,  requires an OPEN common data environment (CDE).     A locally researched unit price book, UPB,  provides a common data environment for JOC and other LEAN construction delivery methods.

standardized cost data

The 4BT OpenJOC Unit Price Book (approximately 60,000 line items) provides a significant benefits to owners, contractors, and subcontractors in the following ways…

  1. Davis-Bacon labor data, locally research and properly applied, providing 30%+ greateer accuracy than traditional sources.
  2. Locally researched labor, material, and equipment – cost localization factors are not used (Cost localization factors introduce gross error)
  3. Line item modifiers for quantity, material, and location – Line item modifiers can significantly (10$-50%) impact cost.
  4. Fraction of the cost of alternative sources.
  5. Standard data architecture – CSI Masterformat is the North American standard data format for construction.
  6. Description in plain English using industry standard terms with limited use of abbreviations – Promotes higher levels of productivity, collaboration, and communication , and mitigates errors and omissions.

The 4BT OpenJOC Unit Price Book provides transparent, locally research, detailed construction cost estimates for repair, renovation, repair, maintenance, sustainability, and/or new construction projects.

The use of standardized data formats and descriptions which can easily be understood by project participants is central to any successful construction project, and currently an industry void.

Construction cost unit price books should provide consistent clear descriptions of each line item in common terms that all parties can easily understand.  Abbreviations should be avoided whenever possible.

Each line item task, in addition to being clearly defined in “plain English” should include any associated details such as material, equipment, and labor requirements.

Best Value Job Order Contracting Solutions

Job Order Contracting viable for Federal Preventive Maintenance – NJDOT

job order contracting case study

 

Based on the evaluation conducted, NJDOT believes Job Order Contracting is a viable alternative to the established, standard Federal Preventive Maintenance Contracting method. The quicker procurement process in general for JOC Contracts, as well as allowing for the addition of new structures throughout the term of the JOC Contract without the need for procuring additional contracts, are time and cost saving qualities beneficial to the Department. In addition, the increase in efficiency of the JOC Contracts does not compromise the quality of work or direct cost of work within the Contracts, as both are comparable to that of the established standard Federal Preventive Maintenance Contracts.
It is believed that for every new contractor that is awarded a JOC contract, there may be a learning curve in getting acquainted with new software and pricing methodology. However, once learned, NJDOT anticipates receiving from new contractors the same expediency and responsiveness of current JOC contractors.
NJDOT sees JOC as an efficient and effective procurement method that should be employed further.

Via http://www.4BT.US – Best Value, Independent, and Objective Job Order Contracting Solutions

Source – www.fhwa.dot.gov/programadmin/contracts/sep14nj2015eval.pdf

The 7 Basic Steps of Job Order Contract Program Implementation

The 7 basic steps involved in Job Order Contract Program implementation include;

  1. Strategic evaluation of objectives, goals, and appropriateness
  2. Development of an acquisition/procurement approach
  3. Facility management/engineering/technical planning
  4. JOC procurement/award process
  5. Work execution and contract administration
  6. Monitoring
  7. Ongoing training/improvement

For independent, objective, and best value Training, Education, & Tools, visit http://www.4BT.US

The 7 basic steps of job order contract program implementation

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History of Job Order Contracting – JOC, The LEAN Collaborative Construction Delivery Method

Early 1980’s – U.S. Military Academy, West Point, facility engineers realized the disadvantages of the design-bid-build construction delivery system, and implemented an a new indefinite delivery- indefinite quantity (IDIQ) facility maintenance contract which was first used by the Supreme Headquarters Allied Powers Europe (SHAPE) in Belgium.

West Point managed to accomplish the following:

  1. Minimized the response time for facility construction.
  2. Reduced the workload on in-house design staff.
  3. Enhanced quality control.
  4. Lowered the contract administration costs.
  5. Reduced construction costs.
  6. Reduced the backlog of maintenance and repair.

[1999, Journal of Construction Education, Development of the Job Order Contracting (JOC) Process for the 21st Century, Dean T. Kashiwagi and Ziad Al Sharmani, Arizona State University, Tempe, Arizona]

Timeline (please comment/suggest additions and/or modifications)

1981  -“ Existing in federal procurement since 1981, and only recently making its way down to state and municipal levels, Indefinite Delivery (ID) contracting is a procurement mechanism designed to streamline the competitive bidding process for governmental owners. Invented by the Department of Defense for use by the North Atlantic Treaty Organization, ID contracts have been used routinely and effectively by the DOD for installation maintenance, minor repair, and construction projects since its inception in 1981.” “Whether classified as an ID, JOC, or TOC contract, each shares certain similarities.” (2006, IDIQ Contracts, Denise Farris | March 30, 2006 | Construction)

1985 – West Point Academy

1986 – Air Force bases – SABER

1987 – Navy JOC

1988 – JOC  Implemented Army-wide (1997 – Improving the Army’s Job Order Contracting ProgramCE704R1, September 1997, Jordan W. Cassell, Linda T. Gilday)

1988 – When job order contracting was first developed in 1988, MCACES was the only estimating system available to JOC users. Since that time, the JOC concept has changed somewhat; contracting officers now have a choice of estimating systems. Current Army policy requires that all Army installations use the MCACES UPB as the estimating system under JOC. The Air Force uses the R.S. Means estimating system. The Navy uses both the R.S. Means and the MCACES UPB estimating systems.  (Improving the Army’s Job Order Contracting Program CE704R1 September 1997)

1990 – U.S. Navy publishes Job Order Contracting P068B, September 1990

1992 – Assistant Secretary of the Army for Installations, Logistics, and Environment, and the Assistant Secretary of the Army for Research, Development, and Acquisition establish a Job Order Contracting Steering Committee to develop recommendations for policies, guidance, procedures, and training for the U.S . Army JOC Program

1995 – Army’s JOC policy manual, Job Order Contracting Guide, is published.

1996 – U.S. Army’s Center for Public Works (USACPW) Humphreys Engineer Center published the Job Order Contracting Directory (October 1996), and  supports a telephone hotline for JOC installations through a private contractor, U.S. Cost, Inc., and publishes a newsletter called “JOCkey”.