Job Order Contracting JOC Introductions q Stacie Malekooti
Job Order Contracting (JOC)
Introductions q Stacie Malekooti Associate Director, Procurement Stacie. Malekooti@asu. edu q Laura Bolster Purchasing Manager, Construction Laura. Bolster@asu. eu q Joan Stockmaster Senior Buyer, Construction Joan. Stockmaster@asu. edu q Who are you? q Procurement Construction q Separate Construction Group q Operate a JOC Program q Contractor or Supplier Procurement
Agenda q q q q ASU By the Numbers What is JOC? Why JOC? CMAR vs JOC Projects JOC Process Lessons Learned Q&A Procurement
ASU by the Numbers Student Population FY 17: 98, 114 Spend Total FY 17 Construction CMAR Spend since 2014 JOC Spend since August 2014 $674 M (258 K transactions) $617 M ($273 M SDS) $131 M ASU is the largest developer in AZ due to the number of construction projects BUILDING NUMBERS # of Bldgs 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 Mc. Cain Institute 1 31, 444 Total 1068 GSFT 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 q Competitively procured, fixed-fee indefinite-quantity contract q Awarded to a contractor(s) for the accomplishment of numerous minor construction projects and emergency repairs q Under the JOC concept, the contractor furnishes management, labor, materials, and equipment needed to perform the work q Master Agreement with a warranty period of two years Procurement
Why JOC? Job Order Contracting = Efficient Construction Delivery ASU History with a JOC Program q q 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 q 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 q 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 q 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
Classroom, Lab, and Office Renovations and Upgrades Pool Replastering & Redecking Atrium & Fountain Repair Student Union Renovations and Restroom Upgrades Dance and Theater Department Renovations ROTC Exercise Station Upgrades JOC Projects q JOC projects are minor or commonly encountered construction projects q Project construction costs are less than $2 M Landscape and Signage Projects Art Department Kiln Replacement q JOC acts as General Contractor (GC) for Multi-trade Projects • Separate ASU RFP for Single Trade Contractors
JOC Process q The Numbers • 2 Construction Buyers • 42 Project Managers (PM) • 19 JOCs q PM determines the Value of Work through ASU Estimating q JOC Project Request Forms are Submitted to Purchasing • JOC are assigned by rotation within awarded range o Low-range up to $350 K 10 contractors o Mid-range $351 - $1 M 10 contractors o High-range $1. 1 M - $1. 9 M 9 contractors • Projects may roll into next range so some contractors were awarded in more than one range department/unit name
JOC Process (cont. ) q 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 v Other JOC Programs may utilize a UPB Method with a coefficient (multiplier that includes O&P) q Standard Form of Proposal • Avoid missed SOW costs • Fixed O&P o Provides separation of Insurance, Performance and Payment Bond fee calculations • Provide change order detail Procurement
4. 0 4. 5 4. 0 5. 0 2. 5 2. 0 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) Contractor performance meeting the CTQ Current Project Score 4. 5 Cooperation/responsiveness/partnership/co mmunication with all stakeholders JOC Process (cont. ) q 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 0
Lessons Learned { q Award to more low- range contractors and fewer high-range q Award based on UPB Method with Coefficient q Simplified Standard Form of Proposal q Automate Job Completion Information q Automate JOC Score Card and Publish Data Procurement
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