4 Why JOC? SACRAMENTO COUNTY 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.
5 Job Order Contracting Overview 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 RelationshipContractors Are Subjected To Different Motivations And BehaviorsFosters a Non-Adversarial Relationship Between Public Agency & Contractor
6 Job Order Contracting Overview Contract DocumentsConstruction Task CatalogTechnical SpecificationsGeneral and special conditions6
7 Job Order Contracting Overview Construction Task Catalog® (CTC)Contains over 240,000 Individual Construction TasksRepresents the “Scope of Work” of the ContractInclusion of Tasks Customized for The County of SacramentoIncludes Specific County of Sacramento Approved ProductsPriced Using Local Prevailing Labor, Material, Equipment Prices
8 Job Order Contracting Overview Technical SpecificationsCustomized for The County of Sacramento that Incorporate County Quality StandardsClearly Tells the Contractors What Is Required for Each Task in the CTC®Specifications Must Be Linked to Tasks in the CTC
9 Job Order Contracting Overview JOC General Conditions & Bidding DocumentsCritical DocumentMust be Consistent with Procurement LawsMust Accurately Explain the JOC ProcessSome Standard Clauses Need to Be Modified for JOCPoorly Drafted Contract Language Increases Risks & Costs
10 Job Order Contracting Overview JOC Structure & Bidding GuidanceCounty establishes a fixed initial termTypically one yearMay include options to extendCounty establishes a guaranteed minimum dollar valueSome nominal amount - typically $25,000 or $50,000County establishes a pre-established maximum valueRepresents the expected amount of work to be accomplishedBased on owner’s budgetPrior to bidding the County does not:Identify or commit to any specific project or locationIdentify or commit to any specific quantities or tasks in the catalog of construction tasks10
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 bookNormal time & other than normal timeSame two adjustment factors apply to all tasks in the unit price bookAdjustment factors must include all indirect costs & profit & are fixed for one yearLowest adjustment factors (i.e. lowest bid) is the basis of award to the lowest responsive, responsible bidderA typical adjustment factor might be 1.10 or 1.20The same adjustment factor applies to every task in the unit price book and cannot be changed11
12 Job Order Contracting Overview How Does JOC Work?Joint Scope - County & contractor jointly develop scope of work as a teamContractor develops price using tasks & prices from the unit price bookEach total task price = price book unit price x quantity x adjustment factorPrices are fixed, only scope is negotiatedAlso develops schedule, shop drawings, material samplesContractor’s price & other information is reviewed & approvedCounty issues a lump sum job orderRisk of performance remains with contractor - no adjustment of quantities after issuance of job orderAverage duration from joint scope to issuance of job order is ~ 28 days12
13 Job Order Contracting Overview JOC - Why It WorksThe job order contract is a series of individual projects or job ordersContractor is guaranteed only a minimum amount of workIf minimum value is met, no further work has to be given to a failing contractorContractor has a continuing financial incentive to provide:Responsive servicesQuality workLower costFuture job orders tied to contractor performanceNo obligation to give a specific project to JOC contractorAdditional JOCs may be bid and awardedKey point - profit for prime JOC is a function of volumeJOC is truly a performance-based contractJOC does not replace traditional methods for accomplishing work13
15 Sacramento County Benefits Sacramento County’s JOC Program provides significant and measurable benefits over the more Traditional Design-Bid- Construct processSignificant time savings - upwards of 90%Lower overall construction costs of an estimated 8% to 15%Lower Soft costsHigher quality workVirtual elimination of change orders, claims, defaults and terminationsGreater control over contractors whose future hiring is dependent upon job outcomesIncreased transparency at all levelsEnhanced opportunities for Small, Local, Minority and Women-owned Business EnterprisesEnables Sacramento County to more effectively manage multiple construction locations from a single vantage point through the use of web based software and administration15
16 Traditional Process: 9 to 15 Months Sacramento CountyTraditional Process: 9 to 15 Months2 - 4Months2 – 4Months1Month4 - 6 MonthsJOC Process: 3 to 5 Weeks1 Week1 Week1 - 3 Weeks
17 Sacramento County JOC Program Initiated in 2002 Over 400 Projects have been completed using JOCTotal Value of projects in excess of One Hundred Million DollarsNo Claims filedNo litigation filed
18 Departments that use JOC Sacramento CountyDepartments that use JOCArchitectural ServicesGeneral ServicesSacramento Airport SystemWater ResourcesDepartment of Transportation
20 Sacramento County Advantages: Challanges: 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 administrationAdditional Oversight for complianceChallanges:Insuring all project mangers follow the same proceduresAdditional layer of overhead
21 Department of Water Resources Sacramento CountyDepartment of Water ResourcesThe 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 OrdersIssuing Job Orders for exploratory excavation.
22 Architectural Services Sacramento CountyArchitectural ServicesTypical 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 projectsRepair, remodel and renovation projects.
23 Sacramento CountyDOTSacramento 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
26 Sacramento Airport System Sacramento CountySacramento Airport SystemUses 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.
29 California JOC Programs County of SacramentoCounty of SolanoCounty of Contra CostaCounty of SonomaCounty of AlamedaCounty of San FranciscoCounty of San MateoCounty of Santa ClaraCounty of VenturaCounty of Los AngelsCounty of RiversideCounty of San DiegoCounty of FresnoCounty of KernCounty of TulareCounty of San Luis Obispo
30 California JOC Programs UC SystemCalifornia University SystemLos Angeles Unified School DistrictSANDAGCity of Long BeachCity of San Diego
31 Procurement Authority Counties Issue JOC Contracts Under The Annual Contract CodeAttorney General Opined That JOC Was A Form Of Annual ContractCSU System And LAUSD Wrote Special JOC LegislationCharter Cities Are Able To Issue JOC Contracts Under CharterNon-charter Cities Have Two Potential OptionsUnder The Uniform Cost Accounting Procedures Issue JOC Contracts Only For Project Under $125,000Issue A General Requirements ContractFollow The Principals And Structure Of JOCList All Of The Potential Projects To Be Accomplished
32 Procurement Authority State of CaliforniaOpen discussion pointNothing prohibits JOCJOC is Competively bidSection authorizes contracting on 'a unit basis'Other JurisdictionsCalifronia 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 CodeNJPA Members can purchase off of these contracts.for more information on this system
33 JOC Awards Measurable Results Leading to the NIGP Award In 2005, the City of Miami Beach won the prestigious Robin J. Zee Presentation for Excellence and Outstanding Achievement Award by utilizing TGG’s JOC Complete Solution®.The award, which referred to the City’s 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 AwardExample of why clients depend on JOC once they get itRecurring revenueTraditional Procurement SystemJOC Complete Solution®Projects Completed78 in 5 years131 in 2 yearsProcurement Time184 days/project21 days/projectChange Orders273Protest/Litigation9