Guidelines for Job Order Contracting (JOC)
Volume 4, Chapter 1, Section 1.3.8
A job order contract (JOC) is a contract for a fixed term or maximum dollar value, whichever occurs first, in which a contractor is selected based on a competitive bid to perform various separate job orders in the future, during the life of the contract. Procurement for this type of contract must still follow the requirements of California Public Contract Code sections 10500-10506; it is a contract, not a purchase order. Failure to follow the Public Contract Code provisions can result in a void contract and/or criminal penalties. Contract award is based on the bid adjustment factor which the contractor will multiply against “pre-priced” unit costs (compiled in a project task catalog) which is part of the contract. The adjustment factor represents all of the contractor’s costs (indirect and direct) and profit not included in the pre-priced unit costs. The adjustment factor is updated annually based on the Construction Cost Index published for the closest location.
II. Use of JOC
The JOC scope is exclusive to the contractor. Job order contracts are typically used for well-defined, recurring or repetitive work where quick execution is essential, not for single projects. Using the JOC should not be an option among other options in deciding how to deliver a specific improvement. The decision about whether or not to use the JOC for a particular type of improvement project should be made when the JOC is issued, and it should be clear from the JOC scope whether or not the JOC must be used (or cannot be used) for a specific improvement. The most important decision in administering the JOC is therefore the drafting of the scope. Consult with Office of the President, Design and Construction Policy and Office of the General Counsel when drafting the scope.
A. Types of Work
JOC is an appropriate delivery method for any type of repetitive work, especially small renovation jobs. It allows for a longer relationship with the selected contractor as various job orders issued under the contract are performed during the contract term. Because the contractor has been selected and the unit price is fixed (by the project task catalog and the contractor’s adjustment factor), the JOC allows contractor input prior to design, which can expedite the work.
B. Coordination with Design
JOC may be used in conjunction with UC’s Blanket EDPA. The Blanket EDPA retains a Design Professional for a specified type of work for a specified period of time. It is a flexible agreement and is similar to a PSA, in that work authorizations are issued for certain scopes of work. The design can be tailored to meet project stakeholder needs (Contractor, Client, Campus Building Official, Campus Fire Marshal, etc).
C. Due Diligence
Prior to execution and approval of each job order issued under a JOC, the contractor’s estimates of unit quantities and any other items contributing to the price must be independently verified by the project manager. Following such verification, each job order shall be submitted by the project manager to the same individual with authority to approve change orders for approval and execution on behalf of the University.
III. Contract Terms
The term of a JOC is one year, with two options to extend the term for one year each at the sole discretion of the University. Each option may be exercised after the previous term has expired or the maximum dollar value for the term has been reached, whichever first occurs. The adjustment factor is updated annually, not necessarily at the start of each new option term.
1. Maximum values: The maximum value of each contract term is $5 million. The maximum value of any job order is $1.0 million.
2. Minimum values: The guaranteed minimum value of any contract is $25,000. The minimum value of any job order is at the discretion of the campus.
C. Non-Prepriced Work
Non-prepriced work (work that is not reflected in the project task catalog) shall not exceed 10% of the total value of the job order. The cost of non-prepriced work shall be based on the lowest of three (3) written quotes, copies of which shall be provided to the project manager.
D. Bonding, Insurance and Liquidated Damages
1. Bonding: Payment and performance bonds in the amount of Maximum Contract Value for the then-current Base or Option Term, at least one-half of which must be bonded initially, with the balance of the term to be bonded when the approved Job Orders reach 90% of the bonding limit then in effect
2. Insurance: Builder’s Risk coverage based on the actual value of each job order
3. Liquidated Damages: Amount to be determined in accordance with the Facilities Manual Guidelines for Liquidated Damages in Construction Contracts.
IV. Implementation Service Providers
A. The Gordian Group
1. Systemwide Agreement
The University has entered into a systemwide agreement with The Gordian Group (pdf) for services to be provided to each campus, at the campus’ discretion, for set fees. No campus is required to work with The Gordian Group.
2. Services Provided:
a. Development of a campus-specific project task catalog (which The Gordian Group calls the Construction Task Catalog® or CTC) and updates.
b. Development of specifications that align with the CTC.
c. Training for UC staff and contractors.
d. Software implementing the CTC and updates.
e. Program support as required by UC staff.
f. Marketing and outreach to campus and contractor communities, including pre-bid seminar.
g. Provides advice, but does not manage the contract or interpret contract provisions for UC staff.
a. Payable by campus on issuance of job orders
b. UC Campuses have two (2) fee options from which to select
c. The Client License fee for the contract year will be determined by the total volume of construction procured through the JOC program system-wide in the immediately preceding year, as determined by 1) the Fee option chosen and 2) the Annual Volume Discount Table.
d. Client License fees schedule to be updated and published by UCOP on January 8th of each successive year while systemwide agreement is in effect
Client License fees for Current Year 2022:
Contractor (Split) Fee – Campus pays 1.70%; Contractor pays 1%
Campus Fee – Campus pays all fees at 2.57%
B. Canon-FOS Simplebid™
1. Systemwide Agreement - Five (5) year base term with five (5) one year options – a total of ten years.
The University has entered into a systemwide agreement with Canon-FOS Simplebid™ for services to be provided to each campus, at the campus’ discretion, for set fees. No campus is required to work with Canon-FOS Simplebid™.
2. Services Provided:
a. Unlimited user enterprise license to the UC System and all contractors for the Simplebid™ software and unit price database.
b. Pricing fee percentage includes all costs associated with the enterprise license for UC System users and contractors
c. Ongoing maintenance and support.
d. Initial platform setup for each campus.
e. Facility Condition Assessment Services
f. Assessment Management and Capital Planning Software services
g. Asset Inventory and Tagging services
h. Accessibility/ADA assessments
i. Cost Modeling and Total Cost of Ownership services
a. Fees are payable on issuance of job orders.
b. Fees are based on value of cumulative system-wide job orders issued.
c. There is no Contractor fee; fees are only paid by University.
Annual Job Order spend
$0 - $2,000,000
$2,000,001 - $5,000,000
$5,000,001 - $10,000,000
$10,000,001 - $20,000,000
$20,000,001 - $30,000,000
$30,000,001 and up
d. Client License fees for Current Year:
Any campus may choose to manage its JOC contracts in-house or to contract with a third party for such services. The process for creation of a project task catalog should be reviewed with the Associate Director of Design and Construction Policy at the Office of the President before proceeding.
V. JOC Contract Documents
Revised July 3, 2013 (Change # 13-007-C)