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Job Order Contracting JOC

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Job Order Contracting JOC

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    2. KJayne_1/2 Center for Job Order Contracting Excellence

    3. KJayne_1/3 What is JOC? A fixed-price indefinite quantity, long term (3 - 5 years) contract for multiple construction projects delivered on an on-call basis through delivery orders. The contractor bids a “coefficient” which is applied to the customer specified Unit Price Book. These unit prices provide the basis for establishing a lump-sum fixed price for each delivery order.

    4. KJayne_1/4 What is JOC? A low contractual guarantee and a high, but realistic maximum provide a powerful incentive for the contractor to provide maximum customer satisfaction. Pre-qualified, local small businesses perform most of the in-place construction. The emphasis is on building relationships through teamwork and partnering by the Contractor, the Customer, and the subcontractors. The goal is to provide the highest possible quality and service resulting in maximum volume and favorable prices.

    5. KJayne_1/5 Why should I have a JOC? Reduce my backlog of maintenance, repair, and renovations. Respond rapidly to my customers’ needs and maintain schedules. Know costs before committing funds. Decrease up-front costs while maximizing the $ to in-place construction and local subs. Win! Win! Win! Win!

    6. KJayne_1/6 How do I get a JOC? Evaluate JOC experienced resources available on your staff. If none, consider a consultant. Establish a realistic maximum annual $ volume expected to be done annually. (usually ~ 75% of minor construction, repair, renovation, and alterations $) Determine unit price book to be used. Determine the desired contract term. (normally base term of 12 months and up to four options)

    7. KJayne_1/7 How do I get a JOC? Use a Performance Based Selection System, such as that of the Performance Based Research Group at Arizona State Select contractor who offers the best combination of demonstrated past performance, technical and management capability, experience, and cost. OR

    8. KJayne_1/8 How do I get a JOC? Use Request for Proposal (RFP) or Competitive Sealed Proposal (CSP) and provide evaluation criteria and weighting. Evaluate technical proposal independently of cost proposal and establish “short-list” of 3 to 5 “best qualified” Compare technical capability and performance of short-listed offerors to cost and determine overall “best value”

    9. KJayne_1/9 Why should I be a JOC contractor? Establish profitable long term relationships with facility owners and subcontractors. Be part of a performing team that provides construction services that you can be proud of. Stress high performance, not low bid. Develop a skill set of fast responsive, responsible, and high quality work with fair and known pricing. Win! Win! Win! Win!

    10. KJayne_1/10 How do I win a JOC? Establish a reputation for high quality, responsive, competitive construction work. Develop a thorough knowledge of the customer and his needs and desires. Identify and pre-qualify high quality subcontractors, preferably those with experience with the customer. Provide a staff of high quality customer oriented, construction experienced personnel.

    11. KJayne_1/11 How do I win a JOC? Build upon your experience in working with multiple subcontractors on multiple projects and develop “customer friendly” procedures. If responding to an RFP, identify the specific requirements, respond to all of them, and provide sufficient detail so that the selection board understands how you will operate and why. Work with local subcontractors and vendors in verifying local costs and their relation to the Unit Price Book.

    12. KJayne_1/12 How do I win a JOC? Determine the most probable volume and mix of work to be expected under the contract, IF you do everything well and become the preferred provider. Cost your organization, facilities, equipment, and other direct costs, add profit and G & A to determine an overhead multiplier. Estimate some construction jobs similar to work expected using the Unit Price Book. Determine a workable coefficient.

    13. KJayne_1/13 How can we make “our” JOC succeed? USE “BEST PRACTICES” IN: Teamwork / Partnering Upfront Contractor Involvement Communication Customer Satisfaction

    14. KJayne_1/14 Teamwork / Partnering Creates the most effective JOC process Improves relationships Encourages flow of information Resolves conflicts or problems within the process

    15. KJayne_1/15 Upfront Contractor Involvement Provides input and assistance with scoping, scheduling, budget, and constructability issues Allows contractor to be up-to-speed on customer needs Reduces the overall time necessary to complete the project Provides early opportunity for value engineering

    16. KJayne_1/16 Communication Designate a Primary POC for Each Customer JOC Project Procedures Manual Created and Distributed to Team Keep Project Schedule and Status Up-to-Date “Lessons Learned” on Project Debriefings Made Available Customer Survey Forms Distributed, Analyzed, and Acted Upon

    17. KJayne_1/17 Customer Satisfaction Customer Needs Feedback Quality Improvement

    18. KJayne_1/18 Customer Needs Quick Response Time Quality Service On-Time Completion Minimal Disruptions No Contractor Generated Change Orders Cost Reasonableness

    19. KJayne_1/19 Feedback Elicit Customer Survey Responses Develop “Lessons Learned” Transfer Knowledge to Team Include Corrective Actions into Procedures Manual Refine the Processes, Policies and Procedures Close Loop -- Provide Feedback to Customer

    20. KJayne_1/20 Quality Improvement Use “Lessons Learned” Develop Quality Improvement Committee Provide Continuous QC Feedback and Improvement Use Priority Action Teams for Quick Fixes

    21. KJayne_1/21 Bottom Line Determine needs Select best contractor Be the best contractor Partner Communicate Continually Improve Succeed!!!

    22. KJayne_1/22 Success Stories National Institutes of Health DOC Spring Branch Independent School District DOCC Others

    23. KJayne_1/23 NIH Success Summary Over 500 Delivery Orders and $50M of Work Done in 3.5 Years Over 300 Small Business Subcontractors Quality and On-Time Customer Ratings -- Both 98%

    24. KJayne_1/24 National Institutes of Health

    25. KJayne_1/25 National Institutes of Health

    26. KJayne_1/26 Spring Branch ISD Summary Over $37 Million in 3.5 Years All DOCC Projects Under Budget All Schools Opened on Time 84% To Small Business, 18% to Minority Small Business and 8% to Women-Owned Small Business -- Without Any Goals or Requirements Client Estimates Over $2 Million Savings in up-Front Costs

    27. KJayne_1/27 Spring Branch ISD

    28. Standard vs DOCC Preconstruction Timelines

    29. SBISD: Cumulative Summary of DOCC Expenditures & Savings

    30. Case Study Comparison: NEISD Elevator Projects

    31. Delivery Order Contract vs Traditional Bid Schedule

    32. KJayne_1/32 Delivery Order Examples

    33. KJayne_1/33 Delivery Order Examples (continued)

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