JOC TASK ORDER Process Overview – USACE

The following is a JOC TASK ORDER Process Overview as defined by the USACE.

A Job Order Contract involved Projects and/or Task Orders. Each Project requires at least one Task Order. Entities/people involved in a JOC Program at a Project or Task Order levels include client/building user, project managers, awarded JOC contractor, contracting officer/contracting officer representative, others as required.

USACE JOC Participants

Multiple stages are involved for each JOC task order.

JOC TASK ORDER Process Overview

Each stage in the JOC task order process is designed to assure collaboration on an early and ongoing basis, clearly communicate a detailed scope of work, and manage all aspects of construction planning, procurement, and project delivery.

A detailed line item, and preferably locally researched (no use of cost factors) is used by the JOC contractor to prepare a propsal/bid for review by the USACE.

Sample Task Order Proposal – Overview (not showing detailed unit price line items)

When prices for lines are used that are not derived from the unit price book, they are noted and referred to as non-prepriced line items (NPP). When NPP items are negotiated and incorporated in a task order, this does not incorporate the item in the UPB for subsequent use as a priced item. To permit subsequent use under the UPB as a pre-priced item, repetitive NPP items must be incorporated by supplemental agreement to the JOC contract and typically down on a annual basis, and/or as appropriate.

Non pre-priced (NPP) items: NPP items cannot exceed 10% of the pre-priced total of the task order unless approved by the Contracting Officer. Only the contracting officer can negotiate/approve non-pre-priced item(s) in the task order.

The government is responsible for developing the scope of work. The government will not provide the contractor with detailed Task Order drawings for projects that do not require a design. For Projects that require actual design, the government will provide the contractor with the minimum design documents and drawings considered necessary to estimate, propose and construct these projects.

The Government will review the contractor’s task order proposal for completeness. The Government will negotiate with the contractor on the methods of construction, non-pre-priced items (as applicable), performance times, and quantities. The contractor shall provide an individual present at all negotiations that have full authority to act for the contractor.

Before commencement of work under an individual task order, the Contractor shall confer with the Contracting Officer or the Contracting Officer’s Representative and agree on a sequence of procedures; means of access to premises and building; space for storage of materials and equipment; delivery of materials and use of approaches; use of corridors, stairways, elevators, and similar means of communications, etc.

Delivery of materials and equipment shall be made with a minimum of interference to Government operations and personnel.

Contractor should confirm task order requirements with the Government as needed:

  1. Confirm scope of work and quantities
  2. Review any qualifications and assumptions
  3. Review the scope as necessary
  4. Review the schedule
  5. Confirm start and completion dates
  6. Understand and mitigate impacts on existing operations and facilities
  7. Review safety concerns and requirements

Contractor holds regular progress meetings with the Government on:

  1. Safety
  2. Schedule
  3. Construction issues
  4. Submittals
  5. RFI’s

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Terms and Definitions

Programmed Amount (PA): The Programmed Amount represents the total funds, excluding design, which are available for the project. The PA is for cost of construction in place, cost of supervision and administration during construction, contingencies, cost of communications over and above the basic contract, cost of as-built drawings, cost of energy monitoring and control system connections and other costs required to complete the construction scope of work. The PA is set by law for most projects and cannot be changed except by Congress (except for O&M). However, the Office of Chief of Engineers and the Secretary of the Army, Air Force, or DLA have limited authority to fund projects in excess of the PA provided funds are available in their departments.

Current Working Estimate (CWE): In accordance with ER 1110-3-1300, the CWE is the latest construction cost estimate, which includes the estimated contract cost (i.e. NOT ECC as defined below), construction contingency, and S&A costs. The CWE shall not exceed the PA.

Construction Cost Limit (CCL): The maximum cost of construction allowable within appropriated fund amounts for a complete and usable project.

Estimated Construction Cost (ECC): The ECC is defined as the expected cost to construct a project inclusive of all construction labor, materials, and equipment, site development, utility fees, permits, design fees, design or estimating contingency, escalation, contractor markups and other costs directly associated with the construction of the project that a reasonable and prudent contractor would incur during construction. The ECC does not include real estate, other appropriations, S&A (or SIOH) or construction contingency and thus is directly comparable to contractor’s proposal or bid. The ECC shall not exceed the CCL.

Independent Government Estimate (IGE): The construction cost estimate prepared by the government for cost control and bid evaluation. The IGE is comprised of two parts: 1) The government estimate (Title and signature pages, and bid schedule) routed through multiple levels of approval and signature and 2) detailed estimate reports that comprise its basis. An estimate does not comprise the IGE without both components of the document. The term “fair and reasonable cost estimate” is used when referring to the IGE. Access to the IGE shall be limited to government personnel who require knowledge of the subject and the IGE preparer shall mark the IGE “For Official Use Only.”

Construction Contingency: An estimated amount or cost to account for unforeseen problems beyond interpretation at the time of or after contract award. This is typically added as a markup along with S&A (or SIOH) to a project estimate to form the project cost. For MILCON projects, new construction contingency is typically 5% and for renovation is 10%, however the project manager determines the appropriate contingency.

Design Contingency: An amount or cost added to a project estimate that covers costs that will be incurred but are not precisely known or designed at the time of estimation. Typically, this is applied during the initial stages of project and is reduced or eliminated as the project develops. This amount is determined by the estimator based on his prior experience and judgment.