Job Order Contracting: A Procurement Success Story

Abstract : In the past 10 years, real property maintenance activities (RPMA) spending by Army installations has more than doubled in real terms while the staffs that support those efforts have remained relatively constant. The shortage of contract administration and engineering staffs has resulted in increases in the time required to obtain RPMA construction contracts and subsequent degradation of mission support. Job order contracts (JOCs), an innovative means for providing RPMA support to Army installations, are being tested by the U.S. Army Corps of Engineers as a solution to the problem. JOCs are competitively bid, firm-fixed-price, indefinite-quantity contracts that list detailed tasks, unit prices, and price multipliers that can easily be used to establish the prices and terms for RPMA projects. JOCs differ from conventional firm-fixed-price contracts in that an umbrella contract is awarded under which individual work orders are issued, eliminating the need for separate contracts and many of the detailed specifications and formal drawings for each order. Thus, work order lead times and contracting and engineering effort are significantly reduced. Experience at eight installations, where more than $57 million in JOCs have been placed, confirms that a JOC takes less time and effort than a conventional contract with no sacrifice to quality and control. Administration of JOCs is no different than that of other installation contracts. JOCs also provide new opportunities for small businesses and small disadvantaged businesses to participate in DoD construction. Furthermore, JOCs do not interfere with installation commercial activities programs.