Job Order Contracting viable for Federal Preventive Maintenance – NJDOT

 

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

Pros & Cons – Learn About Job Order Contracting

Job Order Contracting is a collaborative LEAN construction delivery method that can enable Owners to execute a higher percentage of quality facility renovation repair and renovation projects on-time and on-budget, IF implemented and management properly.

This video is important for anyone with a current Job Order Contract, or planning to participant in a JOC as an Owner, Contractor, Subcontractor, or Consultant.

 

Comprehensive Facility Maintenance Plan

Comprehensive Facility Maintenance Plan / CFMP

The cornerstone of any CFMP should be preventive maintenance.  A regularly-scheduled preventive maintenance,  mitigates the frequency of unplanned failures, extends the longevity of building systems beyond industry standards, and best suits organization needs for a safe and functional physical environment.

Commons CFMP objectives include:

1. Maintenance of the physical environment in support of the organization’s  mission
2. Extending the lifespan of building systems
3. Maintaining the asset value of the property
4. Mitigating catastrophic building system failures, fires, accidents, and other safety hazards.
5. Providing buildings that function at requisite efficiency
6. Providing continuous use of facilities without disruptions
7. Energy conservation
8. Regulatory compliance

Staffing,  delivery methodology,  standardized and timely information, and supporting technology are core aspects in the execution of;

1. Scheduled Maintenance – Description of activities that can be forecast and for which expenditures of parts and labor are based on a predictable time table or use schedule. Main components include: Preventive Maintenance, Modifications and Alterations, and Scheduled Replacement.
2. Unscheduled Maintenance – Description of activities that cannot be programmed or forecast, including emergency repairs and corrections of breakdowns.
3. Deferred Maintenance – Description of scheduled activities, delayed or postponed for reasons such as lack of funds or personnel, changes in priorities and change of use.

Staffing

Operations and maintenance departments, based upon size, may have multiple departments, each with an area of specialization, or a single department.  Examples of specialized areas include: 1. Environmental, Health, and Safety, 2. Central Maintenance Shops, 3. Cluster Maintenance Program, 4. Custodial Services, and 5. Energy and Recycling.

Tasks

Ongoing tasks associated with operations and maintenance departments vary widely, and may include:

• Preventive maintenance program execution for all facilities
• Work order service requests management
• Regular inspections of equipment and building systems, such as roofs, boilers, chillers, sprinkler systems, fire alarms, elevators, fire extinguishers…
• Repair services
• Maintain regulatory compliance for select building systems (e.g., elevators, fire suppression systems, pressure vessels)
• Computerized maintenance management system software operation.
• Administration of renovation, repair, and maintenance contracts
• General –  grounds maintenance program, custodial, etc.
• Utility-billing data collection and analysis (including electric, natural gas, heating oil, propone, water/sewer, solid waste, and recycling).
• Procurement of energy and solid waste services.
• Manage contracts associated with energy and solid waste services.
• Monitor the energy market to direct procurement decisions.
• Coordinate with State and local officials on issues associated with energy, water/sewer utilities, and solid waste management.
• Development and oversee energy reduction programs
• Manage resource reduction and recycling program
• Direct capital improvement projects related to lighting retrofits and solar power
• Provide energy audits

Key Performance Indicators

The typical key performance indicators may include the following:

• Top ten work order trouble codes
• Quantity of temperature complaints (“too hot”, “too cold”)
• Workforce productivity and utilization
• Preventive maintenance versus corrective (or “reactive”) maintenance
• Preventive maintenance schedule completion rate
• Percent of major building systems operating within industry standard lifespan
• System life-cycle performance
• Deferred maintenance backlog reduction

Execution

Best value procurement, LEAN collaborative construction delivery methods such as Job Order Contracting, standard terms, definitions, as well as standardized cost and data architectures, and a documented Operations & Maintenance Execution Guide all contribute to maximizing return-on-investment and improving outcomes.

System Life-spans

• Boilers (Steel, fire-tube) 25 years
• Boilers (Cast iron) 35 years
• Chillers (Air-cooled, reciprocating compressor) 20 years
• Chillers (Water-cooled, screw compressor) 25 years
• Chillers (Water-cooled, centrifugal compressor) 28 years •
• HVAC (Rooftop units) 20 years
• HVAC (Room unit ventilators) 25 years
• HVAC (Penthouse/Interior mounted air handlers) 40 years
• Flooring (Carpet) 15 years
• Roofs (Asphalt Built-Up Roof, sloped) 25 years
• Roofs (Metal) 30 years
• Paving 25 years

City of Long Beach Job Order Contract Audit

City Auditor shares findings of an audit which found that
” that found LB’s (City of Long Beach) Public Works Department had let some contractors receive roughly $1.9 million more than they should have under the Job Order Contracting program. The actions involved projects costing an average of $100,000 each, meaning LB taxpayers didn’t receive as many as 19 infrastructure projects that they might have. ”  (Source: LBReport.com)

“In April (entering the campaign cycle for the sales tax increase portrayed as for infrastructure), Mayor Garcia agendized an item seeking changes in the Public Works Dept. program without disclosing Audit findings of which the Auditor had made him aware. On May 24, the Council approved City Attorney office-drafted changes to the Job Order Contracting program without disclosing the Audit-based underlying reasons for them. On May 25 (after vote by mail ballots had been circulating since roughly May 9), the Auditor’s office released its findings. The Auditor’s office has told LBREPORT.com that its timeline for releasing its Audit findings was coincidental.” – LBReport.com

Learn more

Proper oversight, education, and training are required for developing and implementing a Job Order Contract.

Improving Construction Productivity = Collaboration & Alternative Project Delivery

 

Eight Steps Toward Improving Construction Productivity

Partnering and collaboration must be a key performance metric by which real property owners and facility management professionals are measured.  Until this occurs, there is little hope for construction sector productivity improvement.

 

1. Owners Foster and Mandate Collaborative Construction
2. Best Value versus Lowest Bidder Procurement
3.  Full Financial Transparency
4.  Shared Risk / Reward
5.  Mutual Goals & Trust
6.  Common Terms, Definitions, and Data Architectures
7.  Continuous Education, Improvement and Monitoring
8. Adoption of LEAN Alternative Construction Delivery Methods – Job Order Contracting, JOC & Integrated Project Delivery (IPD)

BIM has stagnated, and the construction industry (Architecture, Engineering, Construction, Operations, and Real Property Owners) as a whole remains unproductive due lack of focus upon process change management.

While most of us are aware that early and ongoing communication among all renovation, repair, or new construction stakeholders is the path to success, its rare that a team is established that is both clear on objectives and working towards common objectives.

Successful outcomes should be the objectives of ALL participants and partnering must not only be encouraged but mandated by real property owners.

Partnering is can not be accomplished solely through the implementation of technology. Nor is excessive management and control the path to success.  Adopting and fostering of LEAN best management practices, specifically developed for construction and which focus upon outcomes, is the path to productivity improvement.

Job order contracting and integrated project delivery are two examples of LEAN construction delivery methods that share decades of successful implementation and enable higher quality and a higher percentage of projects to be completed on-time and on-budget.

The most important element to successful project delivery is an educated and capable Owner.  An Owner that understands collaborative construction delivery and is focused upon successful outcomes for ALL project participants and stakeholders.

Technology will do little to solving the construction industry’s productivity issues. Despite the marketing of software vendors, technology is simply an enabler for faster and lower cost consistent deployment.  The key to success is the best management practices and processes embedded within technology.

Real property owners required training and ongoing professional development.  This includes real property executives, facility management, technical/engineering teams, cost estimators, purchasing/procurement, and facility users.   Educational institutions must also alter their programs.   Examples of competencies and content include; life-cycle management of the built environment, total cost of ownership practices, LEAN best management practices, and collaborative and/or alternative construction delivery methods.

Mandatory Partnering

While mandatory partnering may seem contradictory, it is not.   All construction contracts, projects, and programs should include a operational manual.  The manual describes the roles, responsibilities, deliverables, and outcomes for all parties.  While each manual can, and should be tailored to each owner’s requirements, common components of the core framework are ever present.  The operations manual spells out all requirements, terms, etc., associated with the collaborative construction delivery process.  An example of a job order contracting process is shown below.

Common elements to any LEAN Collaborative Construction Delivery Method

Common elements to implementing a productive LEAN construction delivery methods include the following:

 

Owner Leadership of Team Collaboration

Best Value Procurement

Mutually Beneficial Goals and Outcomes

Performance-based Reward System

Shared Risk/Reward

Common Terms, Definitions, and Data Archtectures

Outcome-based Key Performance Metrics – KPIs

Continuous Monitoring, Improvement, and Education/Training

Global Oversight with Local Implementation

 

” Great care is taken to establish an IPD team where participants can work together as a collaborative unit. Team formation considers capability, team dynamics, compatibility, communication, trust building and commitment to an integrated process….Once a team is formed, it’s important to create a team atmosphere where collaboration and open communication can flourish.” – AIA

 

One of the most important life lesson that I have learned is that success or failure is generally not determined by a problem, issue, or even an opportunity, but rather by how we react and deal with the situation.   Whether it’s a construction project, or other situation,  if we react and act as a team versus as individuals, outcomes are ultimately improved.

“The goal of everyone in the industry should be better, faster, more capable project delivery created by fully integrated, collaborative teams. Owners must be the ones to drive this change, by leading the creation or collaborative, cross-functional teams comprised of design, construction, and facility management professionals.” – CURT