Job Order Contracting Research – Current Update

National Job Order Contracting Research Study UPDATE

Job Order Contracting

 

 

 

 

 

 

 

DOWNLOAD – FINAL SURVEY QUESTIONS – Job Order Contracting Research Survey 7/1/2015

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National JOC Research Study

General Info
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Purpose of Study:

To determine the value of the Job Order Contracting (JOC) delivery system across the entire construction project lifecycle. Identifying the efficiency and value it provides to the entire industry (buyers, owners, contractors, etc.). The study also aims at defining both owner and contractor prerequisites and identifying factors required to ensure the successful delivery of a JOC program.

 

Major Goals of Study:

  • Provide data to owners and other parties involved in construction life cycle management of the built environment that identifies the specific values that JOC delivers – over other traditional methods
  • Identify savings JOC brings through administration costs, program management costs, reduced legal disputes, reduced change orders, time, and increased flexibility to achieve organizational objectives.
  • Provide an explanation for why contractors under the JOC system are able to deliver construction for a lower total program cost, and why they are motivated to deliver high quality to the owner.
  • Critical Components and best practices of a successful JOC program.
  • Utilize the study in other forms, upon completion, to increase the adoption of JOC as a construction delivery method.
  • Define both owner and contractor prerequisites and identifying factors required to ensure the successful delivery of a JOC program.

To evaluate the value (in terms of time, cost, and customer satisfaction) achieved when owners utilize JOC over other traditional construction delivery methods to complete multiple construction, renovation and infrastructure upgrade projects simultaneously. For more details on study content and objectives, please see Appendix A.

 

Outline of Study Document:

  1. Introduction and history of JOC construction delivery method
  2. Methodology and explanation of JOC’s ability to increase the efficiency and transparency of construction services
  3. Current performance of the JOC
  4. JOC best practices and lessons learned for the implementation of a successful JOC program
  5. JOC Case Studies
  6. Technology and data tools available for the JOC
  7. Acknowledgement of groups that funded, supported, and participated in the study

 

Data Collection:

PBSRG will identify targeted JOC institutions – owners, contractors, subcontractors, professional associations and oversight groups – to work with from references provided by key stakeholders involved in the study.  Additionally, PBSRG will conduct an internet search to identify additional major JOC users not previously identified by the stakeholders.

 

PBSRG will collect data from participants through a survey developed and approved by all stakeholders. PBSRG will also work individually with clients and contractors that volunteer to invest more time in analyzing their JOC participation. Any information provided to PBSRG by the stakeholders or any participant in the study will be considered confidential unless the entity gives PBSRG permission to share the information.  (No information will be published that would enable identification of any participant, without prior written approval.)

 

Appendix B identifies all the potential questions that could be asked owners to obtain the required information. Depending on the client some or all of those questions can be included.

 

Performance Metrics:

The study is focused on three categories of metrics. Some examples of metrics associated with each category are shown below. For more details on information being collected please see Appendix B.

  1. Overview of Client/Contract:
    1. Number of projects performed
    2. Total dollar amount of projects performed
    3. Average time it takes to procure a JOC project (average time for an owner to identify a project need through award, and from the issuance of the RFP to PO)
    4. Type of organization (private or public)
    5. Type of client (market segment)
    6. Customer satisfaction
    7. Focus on safety
    8. Quality of construction
    9. Supplier diversity
    10. Participation of minority contractors
    11. Flexibility of system
    12. Delivery method before using JOC
    13. JOC Project Performance:
      1. Time – number of days delayed, percent delayed (number of project/% of projects delayed)
      2. Cost – dollars over budget, percent over budget (number of projects and percentage of total project over/under budget)
      3. Customer satisfaction – scale of 1-10 (10=very satisfied, 1= very dissatisfied)
      4. Impacts of using JOC-technology vs. spreadsheets and/or generic software
      5. Administration Information:
        1. Cost savings
        2. Time savings
        3. Number of change orders as a percentage of total awards.
        4. Number of claims or formal legal disputes as a percentage against the total number of projects issued.
        5. Number of people it takes to run the JOC system on the client side (per contract/project size bracket(s)).
        6. Additional efficiencies (not needing to hire a consultant, not needing to create a design, being able to bring experts onto a project earlier).

 

Stakeholder Involvement:

Stakeholders will have the opportunity to review, provide feedback, and develop the following documents in the study:

  1. JOC industry research plan
  2. Industry survey
  3. Final report

Stakeholders will have the option in participating in a monthly teleconference call to receive an update on the status of the study and voice any concerns or questions to the stakeholder group.

 

Milestone Schedule:

The expected duration of this study will be 1 year (Jan 2015 – Jan 2016). The following are major activities that will be performed along with estimated completion dates and time frames:

 

No.

Activity

Dates

Stakeholder Involvement

1

JOC Conference (to be held in Phoenix) (Companies will also be given the option of participating by WebEx)

1/9/2015

Optional Participation

2

Finalization of JOC Research Strategic Plan

3/6/2015

Review Strategic Plan

3

JOC Owner Research Study Webinar

3/18/2015

Optional Participation

4

Survey and data collection (from all stakeholders)

4/3/2015 – 9/18/2015

PBSRG will be working with Stakeholders to gather information on JOC projects

5

Analysis of Data and Draft JOC Report

11/20/2015

Review draft Final Report

6

Final JOC Report

1/25/2016

None

 

Final Report:

The final report will be distributed at no cost through the Internet and email. Stakeholders and participants that would like a hard copy of the study will be charged printing and shipping costs.

 

Appendices:

  1. Appendix A: List of Desired Outcomes for the JOC Research Study
  2. Appendix B: JOC Owner Survey and Interview Questions

Appendix A: List of Desired Outcomes for the JOC Research Study

 

#

Desired Outcomes of JOC Research

1

Owner participation in the study (Bests practices, examples, testimonies).

2

Time and cost comparison of JOC vs Traditional Delivery Methods (DBB, DB, CMAR, etc.).

3

Examples of successful JOC implementation.

4

Owner satisfaction comparison with Alternative Delivery methods.

5

Comparison of small and large, simple and complex, horizontal and vertical, JOC projects.

6

Demonstrate the need for transparency and accountability when using JOC.

7

Role of and key characteristics of a “Good” Unit Price Book (UPB)

8

Identify best practices in qualifying owners/ contractors for JOC projects.

9

Identify and address any objections and complaints of JOC process.

10

Overall performance of JOC projects (Time, cost, and customer satisfaction).

11

Identify value of freely competitive JOCs and if JOC process supports the development of small businesses.

12

Identify how JOC mitigates overall risk of projects and helps them to do the right action.

13

Identify JOC best practices and lessons learned (i.e. JOCs should not be a submitted list of prequalified bidders, case study of poor performing JOC projects, individual project limits, formal partnering process).

14

Recognition of high performing contractors.

15

Show that JOC is more successful when performance information is used to select the contractor.

16

Identify if JOC users would like a registry of local JOC vendors

17

How to work with designers within JOC. ( Show design performance and savings)

18

Identification of the process a new user would perform to implement JOC system.

19

Discussion and explanation of coefficients, localization factors, and potential variants.

20

Necessary requirements to increase the usage of JOC programs.

21

The value JOC provides to facility managers.

22

Correct ways to identify tasks and quantities on JOC projects.

23

Identifying JOC terminology, processes, key components, characteristics, role of IGE (independent government estimates), independent owner estimates and owners’ roles in JOC.

24

Various perceptions of JOC in the industry

25

Identifying if bidding a JOC master contract satisfies requirements for bidding above statutory thresholds and that once the bid for the master contract has been conducted, no project or order placed under the contract in excess of the statutory bid threshold needs be bid again.

26

Identify if JOC (JOC as a service, owner implemented JOC, COOPS and other deployment methods) increases transparency and accountability.

27

Case studies in various regions across the United States and Internationally. (Identifying the impact of JOC on administrative cost and time, differences in renovation and repair work.

28

Identify if the JOC Cost Book (CTC/UPB) used as a basis for bidding JOC satisfies the routine statutory provisions in most states that plans and specifications be prepared for bidding.

29

Identify if there is no fundamental difference in construction based on location beyond wage rates, material costs and equipment costs.

Appendix B: JOC Owner Survey and Interview Questions

 

Respond to the following questions as accurately as possible, estimate when needed and please give your honest opinion. All information is confidential! Use a range of 1-10 for questions requiring a rating (10=very satisfied, superior quality, or important; 5=satisfied, average quality, or don’t know; and 1= very unsatisfied, poor quality, or not important). You can put N/A if there is question that you cannot answer.

 

1

Type of organization (private or public):

2

What Role do you play in your JOC? (Contracting or Procurement, Engineering, PM, Estimator, Manager or others)

3

Types of most clients (e.g. University, Business, Local Gov., Fed. Gov.):

4

Delivery methods used other than JOC:

5

How do you deploy JOC (Coop, Self-Performed, Outsourced or N/A)

6

Delivery methods currently being used: (DB, DBB, CMAR, etc.)
Performance Criteria

Unit

Rating

7

Do you maintain facilities? Yes/No

8

Would you recommend JOC to another facility manager? Yes/No

9

Number of years owner has been using JOCs: #

10

% of JOC work by your agency that you are dissatisfied with? %

11

Total number of current JOC contracts: #

12

Number of task orders to date: #

13

Total award amount to date: $

14

Average time it takes to procure a JOC contract: Days

15

Average maximum duration of JOC contracts: Years

16

Average number of contractors per contract/solicitation? #

17

Average number of delivery orders a contract handles at once: #

18

Do you use JOCs for horizontal or vertical construction: &/

19

Do the contractors get involved in the contracting process much earlier under JOC delivery method? Yes/No

20

Do you have any “good” or “bad” case study examples of successful JOC contracts or delivery orders that you would like to share? Yes/No
21 Would you like to have a registry of local JOC contractors? Yes/No
22 Do you use a JOC specific software application? Yes/No

23

If the answer to question 22 was yes, what applications?

24

How important is technology to your JOC program? (1-10)

 

Administration Information:

Performance Criteria

Unit

Savings

Average % cost savings on Administration due to using JOC:  %

 

Comparison of persons needed to administer alternate delivery systems:

#

JOC

Design-Bid-Build

Design Build

CMAR

# of people it takes to administer the delivery system

 

For each JOC contract please identify the following for each contract:

Contracts

1

 2

3

1

Type of JOC contract (Renovations, HVAC, etc.):

2

Number of Personnel Required to Administer the JOC:

3

Number of contractors per contract: #

4

Number of task orders performed: #

5

Total dollar amount of task orders performed: $

6

Maximum Dollar amount allowed per Task Order

7

Maximum duration (base year & optional year): Years

8

Quality of construction: (1-10) (1-10)

9

What percentage of delivery orders on your JOC contract are you dissatisfied with? %

10

Number of delivery orders being dealt with at once: #

11

Customer satisfaction: (1-10) (1-10)

 

JOC Project Performance:

1. Client satisfaction comparison with alternatives:

Rating: (1-10)

JOC

Design-Bid-Build

Design Build

Other: __________
Overall Satisfaction rating
Quality of Construction
Quality of Design Services
Quality of Design Drawings
Level of Transparency
Level of Flexibility
Allows the achievement of organizational goals
# of Legal Disputes # # # #
% Projects on budget

%

%

%

%

% Projects on time

%

%

%

%

 

2. Project speed comparison of JOC vs alternative delivery methods (days):

Average days per project

Design

Procurement / Response time to Task Order

Construction

Total average time needed

JOC
Design-bid-build
Design-build
Other:
Other:

 

3. Average cost comparison of JOC vs Design-bid-build, alternative methods: (Units cost per project)

Average Cost

Procurement Administration

Construction

Design

Consulting

Project Management

Total

JOC $ $ $ $ $ $
DB $ $ $ $ $ $
DBB $ $ $ $ $ $
_________ $ $ $ $ $ $

 

4. Average response time:

Average days

Cost estimates

“basic” drawings on “routine” delivery orders

“basic” drawings on “emergency or urgent” delivery orders

Average Response Time

 

Short answer and other questions:

1. What major areas do JOC contracts help you to save costs in? (Please list in order of greatest savings)

1)

2)

3)

2. Are there any other areas that JOC contracts help you increase efficiency that is not related to cost?

 

3. How do you use designers in JOCs?

 

 

4. How do you select JOC contractors? Do you use performance information to select? If yes, please identify what type of performance information?

1)

2)

3)

4)

5)

5. What major tasks are required for performing JOC system? (List tasks in order of importance)

1)

2)

3)

4)

5)

6. What should be the roles for contractors, subcontractors and owners (procurement/contracting, engineering, budgeting, management) in successful JOCs?

Contractors:

Subcontractors:

Owners:
7. What are your main motivations for using the JOC method? (List in order of importance)

1)

2)

3)

4)

5)

8. Do JOCs create more transparency? How?

 

9. Have you experienced any issues with using JOC contracts? (List in order of the most occurring issue)

1)

2)

3)

4)

5)

10. Identify the role of and key characteristics of a “Good” Unit Price Book (UPB).

 

11. How important is it to link specifications with Unit Price Book (Construction Task Catalogue)?

 

12. As an owner, what program requirements are important for an owner to provide to ensure a successful JOC program? (List in order of importance)

1)

2)

3)

4)

5)

13. As an owner, what program requirements does the contractor need to be able to provide to ensure a value-added and successful JOC program? (List in order of importance)

1)

2)

3)

4)

5)

14. Identify your experience with project safety using a JOC?

 

15. Can you identify the position and skill sets of the people needed to run JOC program? (Please list in order of importance)

1)

2)

3)

4)

5)