Started in Europe in the early 1980 s Developed & tested by the U.S. Military s Mainstream U.S.A.!!!
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1 Job Order Contracting One Answer to Several Public Works Dilemmas 2009 APWA International Public Works Congress & Exposition Columbus, Ohio Charlie D. Bowers Operations Manager Parsons Commercial Technology Group Barbara C. Hummell Contracting Officer, Arizona Agenda Introductions History of JOC How the Delivery Works Procurement Process JOC History Summary & Results for Lessons Learned Question & Answer Engineering and Architectural Services 2 History of JOC Started in Europe in the early 1980 s Developed & tested by the U.S. Military 1985 West Point Academy 1986 Air Force Bases Widespread military use by s Mainstream U.S.A.!!! City of Chicago Baltimore Housing Authority Many other public agencies Engineering and Architectural Services 3 1
2 History of JOC - Continued 2000 widespread use in U.S. public sector The secret is getting out States started working on their legislation Purchasing Co-ops started offering it 2000 JOC arrived in the state of Arizona 1 of 3 alternative project delivery methods Originally capped at $750,000 per project Current cap is $1,000,000 per project or as determined by the contracting agency Engineering and Architectural Services 4 JOC Market $1 billion per year for large regional markets $2.5 to $3 billion per year for small projects or 8a JOC programs Potential market: unlimited! By 2011, every public university could have access to a JOC program Information provided by the Center for Job Order Contracting Excellence (CJE) Engineering and Architectural Services 5 JOC Terms IDIQ = Indefinite Delivery Indefinite Quantity JOC TOC SABER are all same concept Task or Delivery Order = an individual construction project delivered under a JOC contract UPB = unit price book Coefficient = Contractor s multiplier on a UPB Engineering and Architectural Services 6 2
3 How JOC Works End user calls JOC for work Site visit by JOC and end user JOC prepares scope and end user approves JOC prepares formal proposal w/ estimate and submits to end user for review End user reviews and negotiates the proposal with JOC End user issues job order to JOC Engineering and Architectural Services 7 How the Procurement Works Purchasing agency procures a contract Single trade scope or general construction Single award or award to multiple firms Contract outlines whole process for doing work Similar to blanket order or on-call contract Targeted for projects under $1M each One award for all projects ~ usually long-term Performance based selection not price alone Engineering and Architectural Services 8 Key Discriminators Saves procurement time & money Faster project delivery start to finish Contractors are selected on qualifications Delivery process is collaborative Longer term contract fosters relationships Non-adversarial with predictable success Provides high motivation for contractors Engineering and Architectural Services 9 3
4 JOC History Engineering and Architectural Services 10 Job Order Contracts Qualifications Based & Best Value Project Organization Specifically for small projects repair/renovation Projects designed and constructed as needed Separate designer or JOC Typical Project Timeline Select Award Design & Construct Designer (optional) CITY Job Order Contractor* Engineering and Architectural Services 11 Procurement Process Advertise Contract Identify Selection Criteria Pre-Submittal Meeting (optional) Review Statements of Qualifications Interviews (optional) Price Proposal (for 2-step) Final Selection and Award Process takes 3 to 6 months Engineering and Architectural Services 12 4
5 Agreement Process Project is identified Submitted to Contracts Specialist JOC Firm is contacted Scope of work is reviewed Site visit (optional) Fee proposal submitted and negotiated Notice to Proceed issued Process takes 5 to 9 weeks Engineering and Architectural Services 13 JOC History (Since Inception in 2000) Number of JOC Solicitations Total Contracts Issued Total Contract Capacity ($M) Value of Agreements Issued ($M) Aviation Department Street Transportation Department Water Services Department Citywide $1.0B $429 Engineering and Architectural Services 14 City s JOC Contracts Since inception in firms 32 repeat firms 3337 agreements written $429 million agreements issued $2 million cap per agreement Up to 5 years per state statutes Engineering and Architectural Services 15 5
6 Trend chart from 2001 to 2008 showing Value Completed JOC Trends $120 $100 s $ Million $80 $60 $40 $20 $ $Value Completed Street Transportation JOCs Street General Maintenance Right-of-Way Landscaping Bridge Repair Guardrail & Fence Repair/Replacement Sidewalk Ramp Retrofit Streetlight Maintenance & Installation Fire Hydrant Replacement Water Service Replacement Engineering and Architectural Services 17 Water Services JOCs Water/Wastewater Treatment Facilities General Construction Small Diameter Sanitary Sewer Rehabilitation Lift Stations, Metering Stations, & Sewer Rehabilitation Water & Wastewater Process Control Improvements Water & Sewer Repair/Replacement Large Valve Repair/Replacement Engineering and Architectural Services 18 6
7 Citywide JOCs General Construction Sports Field Lighting Electrical Plumbing/Mechanical Asbestos & Lead-Based Paint Abatement Demolition Paving, Concrete, & Storm Drain Interior & Exterior Signage Aquatic Maintenance Job Order Agreements Desert West Skate Bowl Papago Park Playground Deer Valley Sports Field Lighting Phoenix Theatre Signage Phoenix Convention Center Solar Panels Watkins Homeless Shelter Remodel Light Rail Projects (Cut & Reface of Buildings, Fencing, Sidewalks, Relocation of Signs) Steele Indian School Historic Buildings Preservation Steele Indian School Historic Buildings Preservation Dining Hall Roof Replacement and Exterior Rehabilitation Grammar School Window Replacement and Exterior Rehabilitation 7
8 Fire Station Emergency Door Repair Summary & Results for Utilized ASU to facilitate the process for alternative delivery methods More responsive contractors and better quality of work JOC is a relationship-based process Compete JOCs on case by case basis Federal work for Residential Sound Mitigation Services Engineering and Architectural Services 23 Summary & Results for Helps us find diversity in our work Flexibility in Arizona law for our pricing Knowledge of city buildings Necessary delivery method for City work Changing internal work force Engineering and Architectural Services 24 8
9 Lessons Learned Engineering and Architectural Services 25 JOC Advantages Ability to pick Best Qualified contractor Involvement of contractor in scope of work Enhanced project communications Better relationships among all project team members Fewer change orders Engineering and Architectural Services 26 JOC Advantages More certain completion dates Better quality project from better subs Smoother project close out Better contractor performance, want repeat business Faster work approach Engineering and Architectural Services 27 9
10 JOC Disadvantages Difficult to change business processes New contractors competing for City work New procedures for setting M/W/SBE goals Increased importance of selection process Evaluation of RFQ critical Due Diligence Engineering and Architectural Services 28 JOC Disadvantages Increased effort in negotiation process when price book isn t established Fees higher on smaller projects In recession times, it appears that the low bid process has better costs Identify scopes and contract intent before advertising Communication between wrong parties Engineering and Architectural Services 29 Education Alliance for Construction Excellence (ACE) Tempe, AZ Center for Job Order Contracting Excellence (CJE) Washington, DC Engineering and Architectural Services 30 10
11 Questions? Charlie D. Bowers, Operations Manager Parsons Commercial Technology Group Barbara C. Hummell, Contracting Officer Engineering and Architectural Services 31 11
Started in Europe in the early 1980 s Developed & tested by the U.S. Military s Mainstream U.S.A.!!!
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