Job Order Contracting (JOC)
Introductions Procurement Stacie Malekooti Associate Director, Procurement Stacie.Malekooti@asu.edu Laura Bolster Purchasing Manager, Construction Laura.Bolster@asu.eu Joan Stockmaster Senior Buyer, Construction Joan.Stockmaster@asu.edu Who are you? Procurement Construction Separate Construction Group Operate a JOC Program Contractor or Supplier Procurement
Agenda ASU By the Numbers What is JOC? Why JOC? CMAR vs JOC JOC Projects JOC Process Lessons Learned Q&A Procurement
ASU by the Numbers Student Population FY17: 98,114 Spend Total FY17 $674M (258K transactions) Construction CMAR Spend since 2014 $617M ($273M SDS) JOC Spend since August 2014 $131M ASU is the largest developer in AZ due to the number of construction projects BUILDING NUMBERS # of Bldgs GSFT Tempe Main Campus 285 18,542,599 Downtown Phoenix 21 2,102,980 West Campus 30 1,139,969 Polytechnic 673 2,271,362 Lake Havasu 17 78,020 Thunderbird School of Global Mgt 42 529,789 The McCain Institute 1 31,444 Total 1068 24,696,163
What is JOC? Job order contracting is a collaborative construction project delivery method that enables organizations to complete numerous, commonly encountered construction projects quickly and easily Competitively procured, fixed-fee indefinite-quantity contract Awarded to a contractor(s) for the accomplishment of numerous minor construction projects and emergency repairs Under the JOC concept, the contractor furnishes management, labor, materials, and equipment needed to perform the work Master Agreement with a warranty period of two years Procurement
Job Order Contracting = Efficient Construction Delivery Why JOC? Job Order Contracting = Efficient Construction Delivery ASU History with a JOC Program Prior JOC Program expired in 2006 Leveraged other Government entity's JOC program ASU workload pulled resources Do your own! Benefits of a JOC Program Quality is typically equal to or greater than that of other project delivery methods for consistent high quality work is essential to the longevity of the relationship Cost is typically equal to or less than those of other project delivery methods because contractor overhead costs can be spread out over numerous projects providing better budget adherence Quick turn project time is typically required and JOC contractors are able to support with "on call" construction services from concept to close-out Procurement
CMAR vs JOC Procurement
JOC Projects Classroom, Lab, and Office Renovations and Upgrades Dance and Theater Department Renovations Pool Replastering & Redecking ROTC Exercise Station Upgrades Atrium & Fountain Repair JOC Projects Student Union Renovations and Restroom Upgrades JOC projects are minor or commonly encountered construction projects Project construction costs are less than $2M JOC acts as General Contractor (GC) for Multi-trade Projects Separate ASU RFP for Single Trade Contractors Landscape and Signage Projects Art Department Kiln Replacement
JOC Process The Numbers 2 Construction Buyers 42 Project Managers (PM) 19 JOCs PM determines the Value of Work through ASU Estimating JOC Project Request Forms are Submitted to Purchasing JOC are assigned by rotation within awarded range Low-range up to $350K 10 contractors Mid-range $351 - $1M 10 contractors High-range $1.1M - $1.9M 9 contractors Projects may roll into next range so some contractors were awarded in more than one range department/unit name
JOC Process (cont.) Procurement Contractor Proposal Can Utilize Unit Price Book (UPB) Method Three Bid Method (can include self-performing work) Combination of the above Plus Assigned Overhead and Profit (O&P) Percentage Other JOC Programs may utilize a UPB Method with a coefficient (multiplier that includes O&P) Standard Form of Proposal Avoid missed SOW costs Fixed O&P Provides separation of Insurance, Performance and Payment Bond fee calculations Provide change order detail Procurement
Contractor performance meeting the CTQ JOC Process (cont.) Job Completion is Manually Tracked by Purchasing JOC Score Card issued to Project Manager for input regarding criteria considered Critical to Quality (CTQ); Scoring is weighted 4.5 4.0 5.0 2.5 2.0 Cooperation/responsiveness/partnership/communication with all stakeholders Management of activities (competent and effective supervision) Planning of work and utilization of resources Site control (safety and cleanliness) Scheduling (adequacy, adherence) Document compliance and handling (submittals, as-builts, quality of workmanship, materials compliance Change orders (frequency, level of pricing, promptness of response) Budget adherence/accuracy of estimates Punch list/adherence to guidelines, codes Project closeout (timely submission of closeout documents) Current Project Score Contractor performance meeting the CTQ
{ Lessons Learned Procurement Award to more low- range contractors and fewer high-range Award based on UPB Method with Coefficient Simplified Standard Form of Proposal Automate Job Completion Information Automate JOC Score Card and Publish Data Lessons Learned Procurement