Job Order Contract Standard Operating Procedures – SOP

By peter.cholakis@verizon.netUncategorized

Documented procedures, workflows, internal and external control procedures and other requirements associated with a JOB ORDER CONTRACT (JOC) are critical to assuring compliance and a successful program.

job order contracting services

Multiple JOC audits performance by public agencies are available on the Internet.  In virtually all cases, any reported issues could have been averted with well-developed internal controls procedures in place.

A written JOC Operations Manual, Execution Plan, or Standard Operations Procedure should ALWAYS be a component of any Job Order Contract.

This practice helps to clarify all roles, responsibilities, procedures, and reporting requirements.

While the potential for fraud, waste or abuse exists, it can be significantly mitigated if reasonable measures are taken and JOC best management practices are implemented:

  1. Personnel to be assigned to work with JOC will be carefully screened to ensure only competent individuals with a high degree of integrity are assigned.
  2. Managers at all appropriate levels will:
    1. Ensure JOC personnel are properly trained to do their jobs.
    2. Ensure JOC personnel are familiar with and understand the terms of the contract they are executing.
    3. Ensure that the procedures established are followed for processing JOC actions from start of job to finish of contract administration.
    4. Ensure all JOC personnel read and adhere to established standards of ethical conduct for Owner employees (public and/or private sector guidelines)
    5. Ensure JOC personnel seek assistance and guidance before proceeding on unclear or borderline issues.
  3. Meaningful quarterly reviews of JOC operations will be made jointly by Technical/Engineering/DPW management staff and contracting/purchasing staff.
  4. All personnel concerned will ensure work scopes, owner estimates, contractor’s proposals, awarded task orders, and contractor invoices are logically progressive, consistent and clear.
  5. Project scoping and project quality control/acceptance activities will be kept separate. Individuals involved with project scoping and development as well as proposal negotiations with the contractor will not be the same individual responsible for monitoring quality assurance. Although project engineers may be required during the construction phase to clarify scope of work or recommend modifications for changes or unforeseen conditions, the responsibility for recommending acceptance of completed work will remain with separate quality assurance personnel. This principle of separation should also allow for effective coordination between project engineers and quality assurance persons so that problems occurring during the construction phase do not cause contractor delays and potential claims to the owner.
  6. The senior authority for the location with responsibility for JOC will:
    1. Ensure contract administration documentation activities are kept current, complete and correct.
    2. Ensure periodic sessions are held regularly among JOC personnel to discuss their work activities, procedures and problems.
    3. Complete at least annually, the JOC internal control checklist (sample below)
    4. The appropriate authority will complete any of the items on the internal control checklist that pertain to his area of responsibility.

STANDING OPERATING PROCEDURE

SAMPLE OUTLINE

The following is example is for generic educational purposes.  A job order contracting SOP should be tailored for each individual situation.

SOP OUTLINE

  • Introduction
    • Purpose
    • Glossary of Terms
      • Job Order Contracting Task Order
      • Location Factor
      • Priced / Nonprepriced Items
      • Unit Price Book
      • Coefficient
        • Normal Hours
        • Other Hours
  • Contract Award & Execution Authority
    • Appointment of JOC Purchasing Authority
      • How
      • When
      • Limits
      • Training
    • Task Order Authority
      • Prepriced limits
      • NPP limits
  • Execution Procedures
    • Work Coordination
      • In House
      • Contract
    • Request for Task Order
      • Task Order Modification
        • Differing Site Conditions
        • Change Clause
  • Reporting Requirements
    • Contractors
    • Purchasing
    • Technical
  • Payments
  •  Attachments
    • Sample Appointment Letters
    • Task Order Checklist
    • Request for Proposal
    • Internal Control Procedures
    • Contractor Proposal-Sample
    • QA Plan
    • Workflow Diagrams
    • Required Forms

 

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