Job Order Contracting (JOC) is a firm fixed price, indefinite delivery, and indefinite quantity type contract used to execute sustainment, restoration, and modernization (SRM) projects at the installation. JOC is flexible and responsive and reduces engineering and procurement lead times. The contract includes a unit price book (UPB) that establishes a unit price to be paid for each of a multitude of construction line items including pre-priced/pre-negotiated items of work and materials. There are a number of commercial off-the-shelf systems suitable for the UPB*, as well as, the automated system that manages the pricing database. JOC projects usually do not require extensive design; if your project does, it may not be best suited to this contract method. – INCOM 2009
Job Order Contracting is a procurement method used for maintenance, repair, alteration, renovation, remediation, or minor construction of a facility when the work is of a recurring nature but the delivery times, type, and quantities of work required are indefinite. – Tex. Gov’t Code §§ 2267.401 to 2267.411
Job Order Contracting (JOC) is a way for organizations to get numerous, commonly encountered construction projects done quickly and easily through multi-year contracts. JOC reduces unnecessary levels of engineering, design, and contract procurement time along with construction project procurement costs by awarding long-term contracts for a wide variety of renovation, repair and construction projects. – Wikipedia 20140212
Job Order Contracting is a collaborative construction delivery method, a type of integrated project delivery (IPD), and an indefinite delivery, and indefinite quantity type contract (IDIQ) that specifically targets renovation, repair, sustainability, and construction.
Characteristics and/or components of JOC program include the following;
- Qualifications Based or Best Value Selection
- Some form of pricing transparency- Typically a Unit Price Book (UPB) containing preset unit prices for construction tasks. Note: Most JOC programs leverage RS Means cost data to some degree.
- Early and ongoing information-sharing among project stakeholders
- Performance-based structure – Some form of financial incentive to drive performance
- Appropriate distribution of risk
- A long term relationship (3-5 years) between Owner and Contractor/AE
- Standard specifications established in a master contract with a summary of work, also including any specific or client-driven conditions.
- Facility owner issues a request for qualifications (RFQ), evaluating firms using best-value, performance-based criteria, or an invitation to bid awarding to the lowest responsive and responsible bidder.
- A guarantee of minimum amount of work for the contractor. This is usually a small amount for consideration – a requirement in most states for contracts.
- Issuance of contractor’s work orders based on owner’s requirements.
- Costs for individual work orders are calculated by multiplying the preset unit prices by the quantities multiplied by the contractor’s coefficient.
- Open communication between facilities team and JOC contracting team, including a kick-off partnering session between everyone utilizing the contract.
Advantages typically associated with JOC – Job Order Contracting Programs:
- Fast and timely delivery of projects.
- Low overhead cost of construction procurement and delivery.
- Development of a partner relationship based on work performance.
- Virtual elimination of legal disputes.
- Reduction of change orders.
- Standard pricing and specification utilizing a published unit price book (UPB), resulting in efficient and effective estimating, design, and fixed price construction.y-indefinite quantity contract for construction services delivered on an on-call basis through firm fixed price delivery orders based on pre-established unit prices. – Center for JOC Excellence, CJE.,