What separates the two categories
A price book lists construction tasks with units of measure and unit prices. Those unit prices include direct material, labor and equipment costs, but not indirect costs or profit. A prepriced item is a task represented in that book, not simply a task whose name sounds familiar.[1][2]
Non-prepriced work, often shortened to NPP, is work not in the book. Non-prepriced items generally carry a coefficient above 1.00. The category identifies a difference in pricing basis; it does not tell you every step required to prepare, review or approve that item.
Keep the task description separate from the decision about pricing treatment. First establish what work is intended and where it belongs in the scope. Then determine whether the specified book represents it and which instructions govern the proposal.
Check the existing entries before declaring NPP
Search the specified book for the described task, then read candidate entries in full. Check the unit and task inclusions, not just the title. A close search result is not enough if it describes a different activity or omits a part of the intended work.
Check whether an associated task is already included in an entry you selected. If its treatment is unclear, identify the question for review before adding another line. Retain the actual entry reference so the reviewer can see the same description you used.
Do not choose an approximate entry merely to avoid an NPP discussion. That hides the mismatch between scope and pricing. Document what the intended task requires and why the proposed existing selection does not represent it; ask for clarification if the book instructions leave the issue unresolved.
Show both categories in the proposal
For prepriced entries, the job order calculation multiplies each selected unit price by quantity and the applicable contractor coefficient. Retain quantity support and connect each entry to a scope task. A reviewer should be able to reproduce the arithmetic and locate the work behind it.[3]
For NPP work, identify the task separately and show the pricing basis required by the solicitation. Do not assume that the normal-hours coefficient, another task’s factor or an unsupported lump sum supplies the correct treatment. Locate the instructions for the category you are proposing.
Keep both categories connected to the same written scope. A separately priced item still needs a location, work boundary and relationship to the rest of the job. Distinguish included associated work from work already represented by another selected entry.
| Category | Identify | Support to retain |
|---|---|---|
| Prepriced | Actual book entry, unit, quantity and applicable factor. | Scope reference, takeoff and calculation. |
| Non-prepriced | Task outside the book and the required pricing basis. | Scope reference, explanation of treatment and required pricing documentation. |
| Unresolved selection | The description or inclusion that needs clarification. | Candidate entry references and the question to settle. |
Make a separately priced task reviewable
Prepare documentation that lets the owner understand the task, the amount of work and the proposed pricing basis. This is a practical review objective, not a universal list of mandatory attachments. Obtain the required document list from the solicitation and contract.[2]
Identify any supporting quote or cost information the instructions request and explain which described work it covers. Keep its scope boundaries clear. A supporting amount with no task description leaves the reviewer unable to tell whether it overlaps with a book entry or omits part of the work.
Record the proposed coefficient and the instructions used to select it. Since NPP items generally carry a factor above 1.00, do not mistake that general statement for a specific approved factor. The actual proposal must follow its program’s stated treatment.
Resolve selection and approval questions separately
Because both parties use the same book, negotiation is mostly about which line items and quantities are selected. Resolve whether a task fits an existing entry before debating its treatment as NPP. Keep a selection question distinct from a request for additional pricing support.[4]
During review, record the task at issue, the supporting references and the decision needed. If the answer changes a work boundary, revise the scope and proposal together. If it changes only the pricing treatment, identify that revision without silently changing the described work.
Before issuance, locate the required review and approval process for NPP items in the solicitation. Identify the authorized decision-maker and retain the accepted supporting documents with the job package. Do not treat submission of an explanation as approval to proceed with the work.
Programs vary; check your agency’s rules, solicitation and contract for applicable requirements.
Sources
- Army Federal Acquisition Regulation Supplement (AFARS), "Subpart 5117.90 - Job Order Contracts"
- Associated Schools of Construction, "Job-Order-Contracting for Facility Owners" (2006)
- Arizona State University, "Job Order Contracting Performance" (2015 report)
- U.S. Army Corps of Engineers, Transatlantic Middle East District, "Old contracting tool leads to new successes in Kuwait"