Job Order Contracting ( JOC) Job Order Contracting ( JOC) Chicago Department of AviationChicago Department of Aviation

Capital Improvement ProgramCapital Improvement Program

Panel member: Joseph S. Dote, Sr. Vice PresidentPanel member: Joseph S. Dote, Sr. Vice President

R.M. Chin & Associates, Inc. R.M. Chin & Associates, Inc. DRAFT #3: 5/27/09

FOR DISCUSSION

Introduction/RoleIntroduction/Role

R.M. Chin & Associates, Inc. is the R.M. Chin & Associates, Inc. is the Managing Partner of Joint Venture, Managing Partner of Joint Venture, Chicago Airports Resources Enterprise Chicago Airports Resources Enterprise (CARE)(CARE)

CARE is the Construction Manager for CARE is the Construction Manager for the Chicago Department of Aviation, the Chicago Department of Aviation, Capital Improvement Programs for Capital Improvement Programs for O’Hare and Midway International O’Hare and Midway International Airports. Airports.

Overview of JOCOverview of JOC

The Department of Aviation (DOA) began using JOC in The Department of Aviation (DOA) began using JOC in October, 1993October, 1993

Administered using The Gordian Group System Administered using The Gordian Group System

Total of 667 projects, averaging approximately 43 Total of 667 projects, averaging approximately 43 projects/yearprojects/year

On average the JOC program completes a total of $3.8 On average the JOC program completes a total of $3.8 million in projects per year with an average project of million in projects per year with an average project of approximately $89,334. approximately $89,334.

Currently, DOA has 12 projects utilizing JOC. Currently, DOA has 12 projects utilizing JOC.

Overview of JOC Overview of JOC

Historical Allocation of Job Order Size

Overview of JOCOverview of JOC

The City of Chicago procures a JOC Contractor through The City of Chicago procures a JOC Contractor through the competitive bid process. the competitive bid process. – Firm provides firm, fixed unit prices, for a 3-year time Firm provides firm, fixed unit prices, for a 3-year time

period period

From 1993 to 2007, the DOA awarded a total of five From 1993 to 2007, the DOA awarded a total of five (5) individual JOC Contracts.(5) individual JOC Contracts.

Today, the DOA utilizes 3 (three) JOC contractors.Today, the DOA utilizes 3 (three) JOC contractors.

Overview of JOCOverview of JOC

Advantages of using multiple JOC ContractorsAdvantages of using multiple JOC Contractors– Increased program capacity Increased program capacity – Increased areas of specialties/expertiseIncreased areas of specialties/expertise– Promotes performance Promotes performance

Contractor must meet or exceed performance standards to Contractor must meet or exceed performance standards to be assigned additional work.be assigned additional work.

Better quality of Price ProposalsBetter quality of Price Proposals Time submissions of Proposals and Final PackagesTime submissions of Proposals and Final Packages Increased M/WBE participationIncreased M/WBE participation High quality construction High quality construction

Representative JOC Representative JOC ProjectsProjects

O’Hare International AirportO’Hare International Airport

H/K Apex Food Court Exhaust Upgrades

• Replacement of roof top exhaust fans at H/K Concourse at Terminal 3.

• $632, 150

• Notice to Proceed Issued = 45 days

Emergency Roof Replacement Project

• Emergency replacement of roof areas through out main terminal areas

• $ 150,000

• Notice to Proceed Issued = 2 days

Representative JOC Representative JOC ProjectsProjects

O’Hare International AirportO’Hare International Airport

ARFF 1 & 2 Kitchen Remodel

• Upgrades to ARFF #1 & 2 Kitchen Area, includes furnishing and installation of new kitchen equipment and cabinets, and all associated plumbing and electrical

• $218,500

• Notice to Proceed Issued = 40 days

Representative JOC ProjectsRepresentative JOC ProjectsMidway International AirportMidway International Airport

Elevated Parking Structure Green Roof

• Sustainable initiative to install a green roof system on the Elevated Parking Structure at Midway Airport

• $ 127,500

• Notice to Proceed Issued = 40 days

Representative JOC ProjectsRepresentative JOC ProjectsMidway International AirportMidway International Airport

Irrigation System on Cicero Avenue

• Installation of a irrigation system in the area around Midway Airport

• $ 242,700

• Notice to Proceed Issued = 45 days

The JOC ProcessThe JOC Process

The JOC ProcessThe JOC Process

The JOC ProcessThe JOC Process

Total Time: 35-45 days

Developing a JOC Developing a JOC ProgramProgram

Develop JOC Program based on needs of the OwnerDevelop JOC Program based on needs of the Owner– Multiple vs. Single JOC ContractorMultiple vs. Single JOC Contractor– Guaranteed Minimum Amount/Potential Maximum AmountGuaranteed Minimum Amount/Potential Maximum Amount– Length of Base TermLength of Base Term– Types of Factors (Airside, Landside, etc.)Types of Factors (Airside, Landside, etc.)– M/WBE GoalsM/WBE Goals– Standards of PerformanceStandards of Performance

Establish a clear method for selection of JOC ProjectsEstablish a clear method for selection of JOC Projects– Ideal project size = $25,000 to $500,000Ideal project size = $25,000 to $500,000– Project schedule and time constraintsProject schedule and time constraints– Funding availability Funding availability

Assign a JOC Project Manager who: Assign a JOC Project Manager who: – Skilled at developing accurate estimates to ensure project stays within Skilled at developing accurate estimates to ensure project stays within

budgetbudget– Manages the procurement process so NTP’s are issued within 45 daysManages the procurement process so NTP’s are issued within 45 days– Manages the JOC contractor and oversight of construction Manages the JOC contractor and oversight of construction

Developing a JOC Developing a JOC ProgramProgram

Establish performance criteria for contractors: Establish performance criteria for contractors: – Submit quality proposals Submit quality proposals – Submit documentation on a timely basisSubmit documentation on a timely basis– Mobilize quickly for constructionMobilize quickly for construction– Manage and utilize high quality subcontractorsManage and utilize high quality subcontractors– Provide quality constructionProvide quality construction– Establish levels for self-performanceEstablish levels for self-performance

Customize the Contract DocumentsCustomize the Contract Documents– Add specific tasks to the Construction Task CatalogAdd specific tasks to the Construction Task CatalogRR

– Include contractual language for: Include contractual language for: Liquidated damagesLiquidated damages Procedure for Ordering WorkProcedure for Ordering Work Payment TermsPayment Terms Changes in the Scope Changes in the Scope