1. CAPPO/NIGP CONFERENCE
WORKSHOP #4
JOB ORDER CONTRACTING

2. Agenda Overview of Job Order Contracting
Sacramento County’s JOC Program
JOC Programs in California
JOC Procurement Codes
Questions & Answers

3. Job Order Contracting Overview3

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 Relationship
Contractors Are Subjected To Different Motivations And Behaviors
Fosters a Non-Adversarial Relationship Between Public Agency & Contractor

6. Job Order Contracting Overview
Contract Documents
Construction Task Catalog
Technical Specifications
General and special conditions 6

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. 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. 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. 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 owner’s 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 10

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 11

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
Contractor’s 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 12

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 13

14. Sacramento County’s
JOC Program

15. Sacramento County Benefits
Sacramento County’s 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 15

16. Traditional Process: 9 to 15 Months
Sacramento County
Traditional Process: 9 to 15 Months
2 - 4
Months
2 – 4
Months 1
Month
4 - 6 Months
JOC Process: 3 to 5 Weeks
1 Week
1 Week
1 - 3 Weeks

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

19. Sacramento County
Sacramento’s Structure

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 administration
Additional Oversight for compliance
Challanges:
Insuring all project mangers follow the same procedures
Additional layer of overhead

21. Department of Water Resources
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. Architectural Services
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. 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. Traffic Calming

25. Traffic Calming

26. Sacramento Airport System
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. Taxiway Repair

28. Taxiway Repair

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

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. 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 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 Award
Example of why clients depend on JOC once they get it
Recurring revenue
Traditional Procurement System
JOC Complete Solution®
Projects Completed
78 in 5 years
131 in 2 years
Procurement Time
184 days/project
21 days/project
Change Orders
273
Protest/Litigation 9

34. Questions and Answers