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Job Order Contracting
HRE's contracting procedure that allows for the award of a competitively negotiated, firm, fixed price, indefinite quantity contract to a contractor. The contract is bid by firms based on pricing that encompasses several upcoming construction tasks in a Unit Price Book.
This allows the owner the opportunity to evaluate each contractor on performance and qualifications knowing that the fixed price has already been established. Finally, once a contractor has been accepted the contractor will be given projects in a work order format. The contractor and the owner will meet to establish the tasks associated with each project and outline the pricing in the unit price book.
The Benefits of Job Order Contracting
Quality
Partnering between the agency and contractor for the long term on several projects gives an increased incentive to the contractor for several additional projects based on quality performance. The decreased risk of having one contract for several jobs ensures the contractor of upcoming projects based on the fact that they have produced high quality work.
Responsiveness
Having already bid out the contract allows the agency to acquire the services of the JOC contractor much quicker. The usual process of soliciting and acquiring a contract, detailed plans and specifications, and approving the contractor has previously been accomplished through the procurement of a Job Order Contract.
Dependability
A long term relationship based on performance motivates the contractor to impress the owner with fast, dependable, quality service in order to receive the maximum possible amount of work.
Line by Line Approval
The initial approval of the Unit Price Book between the owner and the contractor allows for simple contract documents that contain only the specific tasks of the project.
Time and Cost Savings
The administrative and time costs born by the owner in traditional methods are eliminated with the umbrella approval of a Job Order Contract. Each work item is scoped and specific tasks are identified by the owner and the contractor together alleviating the cost of administrating bids and time for approvals in a specific project.
Owner Risk
The owner can stop the contract at any time after which the contract minimum has been reached. Also, under a performance based contract the owner can terminate the project due to lack of performance.
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