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Presentation on theme: "1 CAPPO/NIGP CONFERENCE WORKSHOP #4 JOB ORDER CONTRACTING."— Presentation transcript:


2 2 Agenda Overview of Job Order Contracting Sacramento Countys JOC Program JOC Programs in California JOC Procurement Codes Questions & Answers

3 3 Job Order Contracting Overview

4 4 Why JOC? Job Order Contracting (JOC) is all about efficiency and value. Sacramento County struggled with the need to procure quality construction, in a timely fashion, and at a competitive price for the small to medium size repair, remodel renovation work. What JOC did was enabled Sacramento County to focus on completing projects instead of getting bogged down in the procurement process. SACRAMENTO COUNTY

5 5 Job Order Contracting (JOC) Is A Firm Fixed Priced, Competitively Bid, Indefinite Quantity Procurement Process For Small To Medium Sized Construction and Repair Projects. JOC Creates a Fundamentally Different Construction Procurement Relationship Contractors Are Subjected To Different Motivations And Behaviors Fosters a Non-Adversarial Relationship Between Public Agency & Contractor Job Order Contracting Overview

6 6 Contract Documents Construction Task Catalog Technical Specifications General and special conditions

7 7 Job Order Contracting Overview Construction Task Catalog ® (CTC) Contains over 240,000 Individual Construction Tasks Represents the Scope of Work of the Contract Inclusion of Tasks Customized for The County of Sacramento Includes Specific County of Sacramento Approved Products Priced Using Local Prevailing Labor, Material, Equipment Prices

8 8 Job Order Contracting Overview Technical Specifications Customized for The County of Sacramento that Incorporate County Quality Standards Clearly Tells the Contractors What Is Required for Each Task in the CTC ® Specifications Must Be Linked to Tasks in the CTC

9 9 Job Order Contracting Overview JOC General Conditions & Bidding Documents Critical Document Must be Consistent with Procurement Laws Must Accurately Explain the JOC Process Some Standard Clauses Need to Be Modified for JOC Poorly Drafted Contract Language Increases Risks & Costs

10 10 Job Order Contracting Overview JOC Structure & Bidding Guidance County establishes a fixed initial term Typically one year May include options to extend County establishes a guaranteed minimum dollar value Some nominal amount - typically $25,000 or $50,000 County establishes a pre-established maximum value Represents the expected amount of work to be accomplished Based on owners budget Prior to bidding the County does not: Identify or commit to any specific project or location Identify or commit to any specific quantities or tasks in the catalog of construction tasks

11 11 Job Order Contracting Overview A JOC is Competitively Procured! Each bidder must bid two adjustment factors to the prices published in the unit price book Normal time & other than normal time Same two adjustment factors apply to all tasks in the unit price book Adjustment factors must include all indirect costs & profit & are fixed for one year Lowest adjustment factors (i.e. lowest bid) is the basis of award to the lowest responsive, responsible bidder A typical adjustment factor might be 1.10 or 1.20 The same adjustment factor applies to every task in the unit price book and cannot be changed

12 12 Job Order Contracting Overview How Does JOC Work? Joint Scope - County & contractor jointly develop scope of work as a team Contractor develops price using tasks & prices from the unit price book Each total task price = price book unit price x quantity x adjustment factor Prices are fixed, only scope is negotiated Also develops schedule, shop drawings, material samples Contractors price & other information is reviewed & approved County issues a lump sum job order Risk of performance remains with contractor - no adjustment of quantities after issuance of job order Average duration from joint scope to issuance of job order is ~ 28 days

13 13 Job Order Contracting Overview JOC - Why It Works The job order contract is a series of individual projects or job orders Contractor is guaranteed only a minimum amount of work If minimum value is met, no further work has to be given to a failing contractor Contractor has a continuing financial incentive to provide: Responsive services Quality work Lower cost Future job orders tied to contractor performance No obligation to give a specific project to JOC contractor Additional JOCs may be bid and awarded Key point - profit for prime JOC is a function of volume JOC is truly a performance-based contract JOC does not replace traditional methods for accomplishing work

14 14 Sacramento Countys JOC Program

15 15 Sacramento County Benefits Sacramento Countys JOC Program provides significant and measurable benefits over the more Traditional Design-Bid- Construct process Significant time savings - upwards of 90% Lower overall construction costs of an estimated 8% to 15% Lower Soft costs Higher quality work Virtual elimination of change orders, claims, defaults and terminations Greater control over contractors whose future hiring is dependent upon job outcomes Increased transparency at all levels Enhanced opportunities for Small, Local, Minority and Women-owned Business Enterprises Enables Sacramento County to more effectively manage multiple construction locations from a single vantage point through the use of web based software and administration

16 16 Sacramento County Traditional Process: 9 to 15 Months JOC Process: 3 to 5 Weeks Months Months 2 – 4 Months 1 Month Weeks 1 Week

17 17 Sacramento County JOC Program Initiated in 2002 Over 400 Projects have been completed using JOC Total Value of projects in excess of One Hundred Million Dollars No Claims filed No litigation filed

18 18 Sacramento County Departments that use JOC Architectural Services General Services Sacramento Airport System Water Resources Department of Transportation

19 19 Sacramento County Sacramentos Structure

20 20 Sacramento County Advantages: Insure consistancy in procedures throughout all county departments using JOC. Provides control of projects that my include hazardous materials. One point of contact for contract administration Additional Oversight for compliance Challanges: Insuring all project mangers follow the same procedures Additional layer of overhead

21 21 Sacramento County Department of Water Resources The department has an annual budget of $3,000,000 for upgrading existing storm water drainage system. JOC is typically used to repair and upgrade the system. By using JOC the county can control the costs of unforseen conditions. Price out projects during the winter months and begin work in spring without delay. Pre priced Change Orders Issuing Job Orders for exploratory excavation.

22 22 Sacramento County Architectural Services Typical projects are multi traded projects with an average cost between $75,000 and $100,000. Specialty projects that require a signicant amount of phasing. Projects with a high likelyhood of change orders if bid in the traditional design bid build process. Fast track projects Repair, remodel and renovation projects.

23 23 Sacramento County DOT Sacramento County Department of Transportation using JOC to install traffic calming devices on existing road ways. JOC has drastically reduced the procurement time and costs for the Sacramento County Traffic Calming program. The following is an example Project

24 24 Traffic Calming

25 25 Traffic Calming

26 26 Sacramento County Sacramento Airport System Uses JOC to accomplish time sensative projects. JOC Allows the airport an on call contractor with all the appropriate security clearances. Used as a support contract to the "Big Build" Terminal Modernization Project.

27 27 Taxiway Repair

28 28 Taxiway Repair

29 29 California JOC Programs County of Sacramento County of Solano County of Contra Costa County of Sonoma County of Alameda County of San Francisco County of San Mateo County of Santa Clara County of Ventura County of Los Angels County of Riverside County of San Diego County of Fresno County of Kern County of Tulare County of San Luis Obispo

30 30 California JOC Programs UC System California University System Los Angeles Unified School District SANDAG City of Long Beach City of San Diego

31 31 Procurement Authority Counties Issue JOC Contracts Under The Annual Contract Code Attorney General Opined That JOC Was A Form Of Annual Contract CSU System And LAUSD Wrote Special JOC Legislation Charter Cities Are Able To Issue JOC Contracts Under Charter Non-charter Cities Have Two Potential Options Under The Uniform Cost Accounting Procedures Issue JOC Contracts Only For Project Under $125,000 Issue A General Requirements Contract Follow The Principals And Structure Of JOC List All Of The Potential Projects To Be Accomplished

32 32 Procurement Authority State of California Open discussion point Nothing prohibits JOC JOC is Competively bid Section authorizes contracting on 'a unit basis' Other Jurisdictions Califronia Government Code Title 1, Division 7, Chapter 5, Article 1, Joint Powers Agreements. National Joint Powers Alliance has compitively bid "JOC Type" contracts in accordance with California Public Contract Code NJPA Members can purchase off of these contracts. for more information on this

33 33 JOC Awards In 2005, the City of Miami Beach won the prestigious Robin J. Zee Presentation for Excellence and Outstanding Achievement Award by utilizing TGGs JOC Complete Solution ®. The award, which referred to the Citys use the JOC Complete Solution as the Best of the Best, was awarded by the National Institute of Governmental Purchasing (NIGP). Measurable Results Leading to the NIGP Award Traditional Procurement System JOC Complete Solution ® Projects Completed78 in 5 years131 in 2 years Procurement Time184 days/project21 days/project Change Orders2730 Protest/Litigation90

34 34 Questions and Answers


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