Job Order Contracting:An Alternative Delivery Method
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Construction Industry Challenges
Only 2.5% of all global projects are
delivered on time and on budget
Only 25% of projects are completed within 10% of the original
schedule
Only 31% are completed within 10% of the original
budget
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Construction Procurement Challenges
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Lack of transparency/auditability
Staff limitations
Procurement burden
relative to job size and scope
Inclusion requirementsCost
control/change orders
TimeGreat Slides
Construction Procurement
In‐house Staff
Unit Price
Contracts
Design‐Bid‐Build
CM at Risk
Design‐Build
Job Order Contracting
Term Agreements
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Job Order Contracting
• Alternative method for procuring construction
• Works for a variety of projects
• Supplemental tool, not a replacement
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Job Order Contracting
Firm, fixed price
For alterations and repairs
A fundamentally
different relationship
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Job Order Contracting
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Promotes complete
transparency
Job Order Contracting
• Indefinite delivery/indefinite quantity process (IDIQ)• Enable contractors to complete a substantial number of individual projects with a single bid
• Tasks based on competitively‐bid, preset prices
• Saves time and money• Provides transparency and auditability
Definition
Value
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The Process
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Award Job Order & Issue NTP
Contract Documents
1. Project Manual • Form of Contract, Bid Forms, General
Conditions, etc.2. Construction Task Catalog®• Construction Tasks with Unit Prices• Unit Prices Based on Local Prevailing
Wage Rates, and Local Material and Equipment Costs
3. Technical Specifications• Standard Technical Specifications
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Who Uses Job Order Contracting?
CityGovernment
LocalGovernment Education Healthcare
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• Contra Costa County• Alameda County• Carmel‐by‐the‐Sea Public Works Dept.• Clovis• El Dorado County• Fresno (City and County)• Merced County• Monterey County• Placer County• Sacramento County• Salinas• San Joaquin County• San Mateo County
• Santa Clara County• Solano County• Sonoma County• East Bay Regional Park District • San Francisco Department of Public Works• San Francisco International Airport• San Francisco Municipal Transportation Agency• San Francisco Public Utilities Commission• San Francisco Recreation Parks• Placer County Water Agency• …plus many more!
Job Order Contracting Clients
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The Benefits
• Simplifies the procurement process
• Faster response time
• Improves the quality of work
• Increases local subcontractor participation
• Virtually eliminates defaults, terminations and claims
• Fully transparent process
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Contra Costa County: Recap on Job Order Contracting
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JOC Contractors: selected through open bid process• Outreach is done to solicit bids• Required to comply with County’s Outreach Program
Maximum Contract Value in Current JOC: $2,500,000• Subject to increase as allowed by Public Contract Code• Based on CA Consumer Price Index
Minimum Contract Value: $25,000Term of Contract: 12 Months
• After NTP on first Job Order
Partnership: Gordian Account Manager works closely with County staff/Project Managers
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Overview
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Job Order Contracts Over the Years
$15,000,000.00
$11,000,000.00 $10,000,000
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3
4
0
2
4
6
8
10
12
14
$0.00
$2,000,000.00
$4,000,000.00
$6,000,000.00
$8,000,000.00
$10,000,000.00
$12,000,000.00
$14,000,000.00
$16,000,000.00
2002‐2010 2016‐2016 2017 Onward
Contract Amount Number of Contracts
Option to Increase per
Public Contract Code
Number of Job Order Contracts: 3Contract Amount: $11,000,000Total Projects: 63
• Base – 39• Supplemental – 24
Total Approved Costs: $8,660,000• Base ‐ $8,200,000• Supplemental ‐ $460,000 (5.6%)
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Recent Contracts: 2015‐2016
Types of Projects
ADA/Security Doors
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RoofingRemodel
Types of Projects
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Paving HVACElectrical
Hookston Station Landscaping Project
July 15Joint Scope Meeting
September 13Job Order Issued
September 30Construction Started
April 13Construction Completed (Delayed – weather/soil/etc.)
Key Project FactorsGrant Funded
Good Faith Effort
Cost Control
Local Contractor Involvement
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Contractor: Mark Scott ConstructionProject Scope:
• Second paved trail adjacent to the Iron Horse Trail for pedestrians• New trees and shrubs• Historical sign which provides trail users with information on this former railroad corridor
Project Cost: $342.6K• $323.9K ‐ Initial Cost• $18.7K ‐ Supplemental
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Hookston Station Landscaping Project
San Joaquin County: Bridge Project
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Bollea Road Bridge Project
February 13Joint Scope Meeting
February 17Job Order Issued
February 17Construction Started
June 4Construction Completed
Key Project FactorsInclement Weather
Tight Timeline
Rapid Response
APWA Award Recipient
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Contractor: T&S WestProject Scope: 3 Phased Approach:
1. Stabilize existing bridge2. Create new low water crossing 3. Abutment structural repairs to the
bridgeProject Cost: $271K
1. $42K2. $75K3. $154K
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Bollea Road Bridge Project
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Questions?25