Meeting Recap:
The First Mid-Atlantic Region Meeting & Luncheon

 

How Job Order Contracting Helps Publicly Funded Facilities
In Challenging Times

 

A JOC User Shares

Bill Kolster of Loudon County Public Schools has been using JOC for 10 years in the school district. As the user of the first JOC contract in Northern Virginia, he explained how he created an RFP to establish the JOC program and how it has helped him complete many $25,000-$50,000 projects that are the hardest to advertise and get good help.

 

“In all my years of contracting, this was the first time a contractor and owner worked together,” Kolster told the audience.

 

He also pointed out that JOC is useful for universities and other institutions that receive research grants and have to build appropriate facilities quickly, so that the research can be done before the grants expire.

 

“You save money by working together to figure out how to get things done before issuing the work order,” said Kolster.

 

Finally, Kolster encouraged potential users to experiment with JOC by riding another already-established JOC contract in their area so that they can learn what works and doesn’t work for them.
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JOC 101 - What, Why And How

CJE Member, Rick Farrag, answered key JOC questions: what is JOC?, what are the benefits?, and how do I get JOC? JOC is using long-term IDIQ contracts for construction services delivered on an on-call basis through firm, fixed price delivery orders based on pre-established unit prices. There are several benefits of JOC Programs including more dollars for project work; reduced procurement costs and time; transparency of decisions; and support of local subcontracting businesses.

 

A JOC program can be established by first determining a realistic maximum annual dollar volume expected as well as which unit price book will be used and how long the contract term will last. The owner then issues an RFP and selects a contractor using a qualifications-based selection system.

 

The success of a JOC program lies in teamwork, upfront contractor involvement, communication and customer satisfaction.
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Why JOC Makes Sense

Vince Curl of Prince George’s School District prefers JOC because it “takes the burden off my shoulders as facility administrator.” He pointed out that the most significant aspect of a successful JOC program is to develop trust and a relationship with the contractor.

 

Curl explained that contractors are selected on a set of technical criteria and a price coefficient. When preparing to issue project work orders under the contract; the owner should carefully review the contractor’s project scope and line item estimate.

 

He pointed out that it is important to identify which projects work under the JOC program and which do not. He’s completed projects such as a $10 million installation of air-conditioning units in several schools; large curtain walls; tennis courts and tracks.

 

Curl encouraged participants to educate their purchasing departments and work to dispel the misconceptions out there.

 

“My favorite way of executing a project is with JOC.”
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How JOC Saves

CJE Member Dan Cook broke down the cost of a construction project to show how a JOC program can save 8-15 percent. JOC cuts costs in four areas: procurement and overhead, design, construction and post-construction.

 

During procurement the savings are two-to-three percent. An owner goes through the procurement process once to create a master contract and can then issue hundreds of job orders from that contract.

 

The design savings are one-to-three percent. JOC eliminates the need for A/E services for the sole purpose of preparing the bid. Additionally, projects that work for JOC are often straightforward and require less design.

 

Four-to-six percent is saved during construction for a few reasons: volume discounts, reduced scope and no contingencies. Projects with worsening conditions such as a leaky roof can be repaired quicker under JOC and therefore can reduce the problem and ultimate scope of work.

 

Finally, there is a one-to-three percent savings post construction. Joint scoping reduces the number of change orders and the contractor takes responsibility for any errors.

 

Cook pointed out that these savings are not guaranteed, but said that they can be achieved when the owner understands the unit price book and how JOC works.

 

He concluded by explaining how JOC can allocate funds quickly for stimulus projects while maintaining a fully auditable paper trail.
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Q&A Panel Discussion

The morning session ended with a lively panel discussion of questions and answers. The panel was made up of owners, JOC consultant and JOC contractor. Questions from participants focused on educating their procurement departments; starting a JOC program; and how JOC meets Federal requirements. The panel answered these questions in detail, assuring participants that JOC meets state and Federal procurement requirements and, among other things, helps them achieve WBE/MBE goals. The panel noted that JOC works in so many different situations because there is not any one set way of doing JOC.
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New Regional Chapter

Workshop participants decided they’d like to establish a local CJE Chapter where they can meet to share and discuss JOC. The next meeting will be Wednesday, April 15, 2009 from 11 AM- 1 PM in Fairfax. Visit www.jocexcellence.org/midatlantic for announcements about topics and locations.
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