A few things you might be wondering.
Direct answers about job orders, scope and pricing. Programs vary; check your solicitation and contract.
What is Job Order Contracting in plain language?
JOC is a competitively bid, firm-fixed-price IDIQ construction delivery method for repair, maintenance, renovation and minor construction. Individual job orders use a shared price book and the contractor’s coefficient to price the selected work.[2][3]
Read the guideWhat does IDIQ mean?
IDIQ stands for indefinite delivery / indefinite quantity. It describes JOC’s contract framework, within which individual job orders identify particular work.[2][3]
Read the guideHow is a job order price calculated?
Multiply each selected item’s book unit price by its quantity and the applicable contractor coefficient. Add the calculated line amounts to obtain the job order total. Check the task selection and quantity support as well as the arithmetic.[3]
Read the guideWhat is included in a unit price book?
A price book lists tasks, units of measure and unit prices. Those prices include direct material, labor and equipment costs, but not indirect costs or profit. Read the full entry description before deciding whether it represents the scope.[1]
Read the guideWhat is a coefficient?
A coefficient covers costs outside book unit prices, such as general and administrative and other overhead, insurance and bonding. Contractors bid their coefficient or coefficients. The factor is applied to unit price multiplied by quantity.[1][3]
Read the guideDoes holiday work automatically use a different coefficient?
Solicitations may distinguish normal from other than normal working hours, and outside-normal work is generally expected to carry a higher coefficient. A holiday break alone does not identify the category. Compare the proposed work hours with the solicitation’s definitions.[1][4]
Read the guideWhat happens when work is not in the price book?
Work outside the book is non-prepriced work. Non-prepriced items generally carry a coefficient above 1.00. Describe that work separately and assemble the supporting information required by the pricing instructions.[4]
Read the guideWhat do owners and contractors negotiate?
Because both parties price from the same book, negotiation is mostly about selected line items and quantities. Compare the selected tasks with the written scope and trace quantities to their measurements. Resolve an unclear work boundary before revising the total.[5]
Read the guideWhere did JOC originate?
JOC was developed by U.S. Army engineers at SHAPE in the early 1980s and is credited to Harry Mellon. It addressed a backlog of small, recurring facility projects. The Army tested it from 1985 to 1989 and approved it for general Army use; the Navy and Air Force developed their own programs.[5][4]
Read the guideWhat should I do before getting started?
Owners should identify facility needs, scope and proposal reviewers, and issuance authority. Contractors should locate the specified book, requested coefficients and scope, proposal and work-authorization instructions. Record questions against the document passages that need clarification.
Read the guideHow is JOC different from traditional bidding?
JOC uses a competitively bid IDIQ framework with individual job orders priced from a shared book and contractor coefficient. In the traditional design-bid-build comparison used here, each project is designed and bid through a separate solicitation. Compare the work and your agency’s rules before choosing a method.[2][3]
Read the guideWhat is a joint scope meeting?
A joint scope meeting brings the owner, contractor and relevant participants together to define the work before the written scope and proposal are finalized. Walk the affected locations, record measurements and conditions, and settle access and working-hours questions. Turn the decisions into a scope someone who missed the meeting can understand.
Read the guideWhat is a non-prepriced item?
A non-prepriced item is work not in the price book. Such items generally carry a coefficient above 1.00. Identify the task separately and follow the solicitation’s pricing, documentation and approval instructions.[4]
Read the guideSources
- Army Federal Acquisition Regulation Supplement (AFARS), "Subpart 5117.90 - Job Order Contracts"
- Cassell and Gilday, "Improving the Army's Job Order Contracting Program" (1997)
- Arizona State University, "Job Order Contracting Performance" (2015 report)
- Associated Schools of Construction, "Job-Order-Contracting for Facility Owners" (2006)
- U.S. Army Corps of Engineers, Transatlantic Middle East District, "Old contracting tool leads to new successes in Kuwait"
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