ATT_01_JOC_Guide_2003_Version.pdf

JANUARY 2003

Job Order Contracting Steering Committee

Assistant Chief of Army Contracting Staff for Installation Agency Management

TABLE OF CONTENTS

PREFACE.........................................…………….………vi

CHAPTER 1. INTRODUCTION

Purpose and Overview of JOC Guide........................ ………1-1

Background on JOC......................................………………. 1-2 Benefits of JOC......................................…………………… 1-2 JOC Organization, Responsibilities, and Authorities……… 1-4 Ordering Officer.................................……………………… 1-4 Contracting Officer’s Representative……………….1-4 Contracting Considerations………………………………… 1-5 Location of Contracting Office…………………….. 1-5 Contract Option Years.............................………….. 1-6 JOC Implementation.....................................………………. 1-7 Analysis of Appropriateness.......................………...1-7 Acquisition Strategy..............................……………. 1-7 DPW Planning and Contract Award……………….. 1-7 Work Execution……………………………………..1-8 Contract Administration...........................…………..1-8 JOC Limitations........................................…………………. 1-8

CHAPTER 2. ANALYSIS OF APPROPRIATENESS

Chapter Introduction...................................…………………2-1 Applicability Analysis………………………………………2-1 Feasibility Analysis………………………………………… 2-2 Appropriateness and Feasibility Report.................………… 2-4

CHAPTER 3. JOC ACQUISITION STRATEGY

Chapter Introduction……………………………………….. 3-1 Planning for Acquisition…………………………………… 3-1 Acquisition Plan……………………………………. 3-1 Figure 3.1. JOC Implementation Time Line for Acquisition 3-2 Contents of the Acquisition Plan.......................…………….3-3 Acquisition Background............................………….3-3 Plan of Action....................................……………….3-4 i

Multiple Awards…………………………………… 3-4 Government Furnished Property…………………… 3-5 Contractor Computer Equipment.....................…….. 3-6 Bonding Requirements..............................………….3-7 Contract Administration Functions………………… 3-8 Table 3-1. Plan for Acquisition Milestones……………….. 3-9

CHAPTER 4. DPW - PLANNING ACTION

Chapter Introduction...................................……………….. 4-1 The Unit Price Book and Specifications.................……….. 4-1 Unit Price Book...................................……………. 4-1 Labor only line items........................……… 4-2 Modifying after Award........................……. 4-2 Technical Specifications..........................…………. 4-3 Statement of Work for the Contract.....................………… 4-3 JOC and A-76 Contracts............................………… 4-3 Use of Government-Furnished Material..............…. 4-3 Economic Price Adjustment..............................…………… 4-4 Environmental Coordination.............................…………… 4-4 Establish a Technical Library..........................……………. 4-5 Source Selection.......................................…………………. 4-5 Source Selection Team...........................………….. 4-5 Source Selection Evaluation Plan.................. …….. 4-5 Preaward Activities...................................……………….. 4-7 Preparing for the Preproposal Conference.........….. 4-7 Base Support for the Contractor...................……… 4-8 Contractor Phase-In Plan..........................………… 4-8 Contractor Phase-Out Plan.........................……….. 4-8 Identification of Special Contract Requirements.… 4-9 Presolicitation Review............................………….. 4-9 Formal Acquisition Process.............................……………. 4-9 Contract Funding..................................……………. 4-9 Preproposal Conference...........................………….. 4-10 Proposal Evaluation...............................…………… 4-10 Competitive Range.................................……………4-10 Preaward Survey..................................…………….. 4-11 Negotiations and Source Selection.................………4-11 Debriefing Unsuccessful Offerors..................………4-11 Supporting the JOC Process............................... ………….. 4-11 Staffing..........................................………………… 4-11 Facilities........................................………………… 4-12 Training..........................................……………….. 4-12 Preaward Activities...............................…………… 4-12 Standing Operating Procedures................…. 4-12 Internal Controls............................………… 4-13 ii

CHAPTER 5. WORK EXECUTION AND CONTRACT

ADMINISTRATION

Chapter Introduction..................................………………… 5-1 Job Order Execution...................................…………………5-1 Initiating and Reviewing Job Orders..............………5-1 In-House or Contract Performance.................………5-1 Methods of Contracting...........................………….. 5-2 Requirements Contract......................………….. 5-2 Job Order Contracting......................………. 5-2 Items not Authorized under JOC.........…. 5-2 Job Routing........................................ ………………5-3 Assignment of a Project Manager..................……… 5-3 Scope of Work....................................………………5-4 Scope Validation Meeting.........................…………. 5-4 Request for Contractor’s Proposal................………. 5-5 Task Order Proposal Package Contents......... 5-5 Proposal Preparation.............................……………. 5-6 Independent Government Estimate Preparation.....…5-7 Revisions to Government Estimate............… 5-7 Evaluate Contractor’s Proposal……………………. 5-8 NPP Items in Contractor’s Proposal..........… 5-8 Negotiation of Task Order........................…………. 5-8 Memorandum of Negotiations..................…. 5-9 Changes in Proposals and Scope of Work..... 5-9 When NPP Work Exceeds 10% Threshold.... 5-9 Task Order Award Package Preparation.............….. 5-9 Task Order Support Package Contents......... 5-9 Shelved Projects............................………… 5-10 Task Order File Checklist...................…….. 5-10 Placing the Order................................…………….. 5-10 Use of Notice to Proceed....................…….. 5-11 Task Order Authorities...........................………….. 5-11 Pre-Construction Meeting.........................………… 5-11 Administrative Responsibilities.......................……………. 5-12 Non-Prepriced Items..............................………….. 5-12 Use of Indirect Costs & Profit Rate.........…. 5-12 Adding NPP Items to JOC UPB................... 5-12 Contractor Performance...........................…………. 5-13 Use of DD Form 2626.........................……. 5-13 Construction Contractor Appraisal Support System............................………… 5-13 Significant Events...............................………………5-13 Task Order Close-Out.............................………….. 5-14 Payroll Review...................................……………… 5-14 Timely Accomplishment of Requirements............… 5-15 Contract Status Report...........................…………… 5-15 iii

Bonding..........................................………………… 5-15 Payments....................................……...……………. 5-15 Partial Payment.............................………… 5-15 Progress Payment........................…………. 5-16 Release of Claims Statement.................…… 5-16 Small Business Utilization Reporting.............……. 5-16 Quality Assurance................................…………… 5-17 Quality Control..................................…………….. 5-17 Task Order Modifications..............................…………….. 5-17 Equitable Adjustments............................…………. 5-17 Ordering Officers Executing Modifications........…. 5-18 Changes to T.O. Requirements.....................……… 5-18 Formal Request for Proposal Modification.... 5-19 Fiscal Year-End Planning..............................……………… 5-19 T.O.s Issued Against the Guaranteed Minimum…… 5-19 Crossing Fiscal Years.......................………. 5-19 Application of Bona Fide Needs Rule........... 5-19 T.O.s Issued After Guaranteed Minimum............…. 5-19 Application of Bona Fide Needs Rule........... 5-20 Physical On-Site Evidence................ 5-20 Documentary Evidence……………. 5-20 Use of Notice to Proceed……………………5-21 Additional DPW Functions .............................………….. 5-21 Citation of Funds................................…………….. 5-21 Task Order Status Report........................…………. 5-21 Exercising Options....................................………………… 5-22 Follow-On Contracting For A New Contract ………………5-22

APPENDICES

Appendix A. Understanding the Contractor’s Coefficient ………. A-1 Appendix B. Sample Appointment Letter................……………… B-1 Appendix C. Standing Operating Procedure Outline....…………… C-1 Appendix D. Internal Control and Review Plan.........…………….. D-1 Appendix E. Sample Scope of Work.....................……………….. E-1 Appendix F. Sample Request for Proposal..............………………. F-1 Appendix G. Sample Contractor’s Proposal.............……………… G-1 Appendix H. Sample Independent Government Estimate.... ………H-1 Appendix I. Task Order File Checklist................…………………. I-1 Appendix J. Quality Control Plan Requirements........……………. J-1 Appendix K. Job Order Contracting Training...........………………K-1 Appendix L. Adding Non-Prepriced Items to the JOC Contract…. L-1

GLOSSARY AND DEFINITIONS..............................……. …..GLOSS-1

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PREFACE

The Assistant Chief of Staff for Installation Management (ACSIM) is the proponent for the Army’s Job Order Contracting (JOC) Program. The Deputy Assistant Secretary of the Army (Policy & Procurement) (DASA{P&P}) is the proponent for the Army Federal Acquisition Regulation Supplement (AFARS). AFARS Subpart 5117.9000 pertains to Job Order Contracting.

The JOC Guide serves as working instructions for installations considering, or in the process of using a JOC contract. It is the only document that provides detailed procedures for the execution and administration of JOC contracts. It is the product of the OACSIM, the Army Contracting Agency (ACA), and the JOC Steering Committee and represents a joint effort by the engineer and procurement communities.

The JOC Steering Committee, which was originally chartered in 1992 by the Assistant Secretary of the Army for Installations, Logistics and Environment and the ASA (RDA), is composed of engineer and procurement representatives from Headquarters, Department of the Army, Army Regions and installations. The primary mission of the Committee is to support and promote sound, effective and efficient JOC utilization and continued development and enhancement of the Army JOC Program.

The JOC Guide and the AFARS coverage of JOC will be used by installations for the execution and administration of JOC contracts. The procedures in this Guide are not optional and are to have a mandatory application. This applies to Directorate of Public Works (DPW) and all variations of DPW, such as DIS, DEL, DLE, DHPW, DPWL, DPE, and DEH.

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CHAPTER 1

THIS GUIDE IS NOT INTENDED TO SUPERSEDE OR SUPPLEMENT FAR, DFARS, OR

AFARS. IN CASE OF CONFLICTS BETWEEN THIS GUIDE AND REGULATIONS, THE

REGULATIONS SHALL GOVERN. IF THERE ARE DIFFERENCES BETWEEN THE TERMS

AND PROVISIONS OF A SPECIFIC AWARDED CONTRACT AND THE PROCEDURES

CONTAINED IN THIS GUIDE, THE CONTRACT SHALL GOVERN.

INTRODUCTION

PURPOSE

The procedures contained in this Guide shall be used in conjunction with those in the Army Federal Acquisition Regulation Supplement (AFARS) when acquiring, executing, and administering Job Order Contracting (JOC) contracts. The JOC Guide gives implementation guidance on planning, executing, and administering a JOC contract to ensure successful acquisition and work execution. The procedures in this Guide are not optional and are to have a mandatory application.

This Guide consists of five main chapters and is supplemented with samples and examples provided as appendices. The Guide is organized as follows:

- Chapter One provides an introduction to the JOC process and discusses the advantages of JOC over traditional construction contracting procedures. It also discusses the general scope of the JOC program and the responsibilities of the major program players.

- Chapter Two discusses various factors a Garrison Commander, the Directorate of Public Works (DPW) and the contracting activity should consider before deciding to implement a JOC contract.

- Chapter Three addresses acquisition planning and strategy, including an acquisition milestone plan.

- Chapter Four discusses DPW responsibilities and actions necessary to actually acquire and manage the JOC contract. It describes the unit price book (UPB) and responsibilities of the personnel involved with the JOC contract.

- Chapter Five discusses contract administration and program/project management functions. It provides guidance on the actual work execution phase of JOC, including task order negotiation, issuance, administration, and inspection. It also includes considerations for follow-on contracting.

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BACKGROUND

Job order contracting uses an indefinite-delivery/ indefinite-quantity type of contract to reduce the total lead time for accomplishing sustainment, restoration, and modernization (SRM) projects at installations. In particular, the traditional, separate, and interactive design/specifications and construction contracting actions are avoided. Prepriced units of work are used to help streamline the contracting process within the overall framework of a fixed-priced construction contract. The contracts, which are awarded by means of competitive procedures, (including awards under the 8(a) program as appropriate) provide a continuing performance incentive due to the type of contract.

The JOC contract includes a unit price book (UPB), which may be obtained commercially. Depending upon the source of database used, the UPB may contain from 25,000-95,000 line items that support the SRM activities at the installation. You must ensure that line items for tasks, either not authorized under JOC or that are included in the contractor’s coefficient (e.g., services, final clean-up, etc.), are not included in the task order or the contractor’s proposal.

Including text in the solicitation and resulting contract that indicates types of line items not authorized can accomplish this.

During task order discussions between the contractor and the government the quantities and tasks necessary to perform the scope of work are negotiated. Then the task quantities are multiplied by the respective line item unit prices in the UPB and the contractor's coefficient to establish a firm-fixed-price task order (T.O.). The signed T.O. becomes the contractor's Notice to Proceed (NTP) unless a separate NTP is specified in the task order. Each individual T.O.

becomes in effect a fixed-price lump sum contract, and is managed accordingly. The work must be performed in accordance with method and quality of construction specified in the contractor’s proposal.

(Reference “Scope of Work”, Chapter 5.) JOC also permits, as needed, the inclusion of a small percentage of non-prepriced (NPP) items (not included in the UPB at the time of contract award).

BENEFITS

The benefits of a successful JOC program include:

Improved Customer Service and Responsiveness. Job order contracting significantly reduces lead times by acquiring SRM contract work by eliminating the need to develop design specifications each time a work requirement is identified. Contracting lead-time is also shortened by eliminating the need to establish a contract or purchase order for each individual work requirement. The government contracts with a contractor(s), who may subcontract some of the work requirement. The

1-2 source selection steps required for separate contracts are also eliminated as the contract terms and conditions have already been established. These factors result in procurement cycles three to nine months shorter than those using existing procedures.

After the initial contract is awarded, task orders for individual projects can usually be estimated, scoped, negotiated and issued in three to four weeks.

Prices. Reasonable prices established in the unit price book are assured through competitive award of the initial JOC contract. The contractor's proposed price for each task order should also be reasonable, since each task order proposal is compared to an independent government estimate (for orders valued at $100K or more) or the initial desk estimate (for orders less than $100K).

Quality. With job order contracting, there is usually a noticeable improvement in the quality of the work. This improvement is partly the result of the necessary interaction between the appropriate government representative and the contractor that takes place when jointly scoping the work requirements. This fosters a cooperative and mutually beneficial climate. However, if the contractor's performance is less than satisfactory, there is no obligation to place work with that contractor after ordering the guaranteed minimum stated in the contract. This method provides a strong incentive for the contractor to provide consistently high quality construction.

Small and Small Disadvantaged Businesses (SDB). Job order contracting provides more opportunity for small and small disadvantaged businesses than traditional procurement methods.

In the past, these companies have faced significant barriers from bonding requirements and other government "red tape." However, under a JOC contract, such barriers are removed because it is the prime contractor who satisfies the requirements. Experience has shown that job order contracting helps small and small disadvantaged businesses.

Year-End Funds. JOC is an effective method for using year-end migratory funds. Task orders, other than the guaranteed minimum, placed near the end of the fiscal year must comply with the bona fide need principles in DFAS 37-1, statutory requirements and other restrictions placed on year-end spending. When determined there is a high probability the requirement will not be canceled, projects can be scoped, estimated, and negotiated and then shelved to await whatever year-end funds reach the DPW. When these migratory funds become available, it is easy to prepare the shelved task order for award and ensure that the funds are used for high priority, cost effective projects. JOC contracts and year-end funds together are effective tools to help reduce an installation's maintenance backlog. Year-end funds planning is essential.

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JOC ORGANIZATION, RESPONSIBILITIES, AND AUTHORITIES

A Standing Operating Procedure (SOP) must be prepared to identify the duties and responsibilities of all participants in the JOC process.

Effective use of the JOC contract requires that the DPW have significant responsibilities and authorities for planning work and budget projections, identification/prioritization of individual job order requirements, task order proposal evaluation, and contract administration (e.g., ordering officer authority, monitoring of contractor performance, and acceptance of work products). Coordination and cooperation between the DPW and the contracting office are also essential to successful implementation of the JOC contract. The supporting contracting office may issue letters appointing ordering officers and contracting officer representatives (COR) concurrently with distribution of the contract. Appointments will be made by name and should follow the format in Appendix B and the AFARS. Authorities delegated in the appointment letter may not be redelegated to any other person.

Ordering Officer

Ordering officer’s authorities and assignments should be considered during the early planning phases, and candidates should be identified during precontract activities. JOC ordering officers should take the JOC Basic Course offered by the Installation Support Training Division, Huntsville, Alabama, prior to contract award. See Appendix K for additional information on this course and the JOC Advanced course.

The letter appointing the ordering officer(s) may also specify any special authority to execute individual task orders, as well as modifications to existing orders. Task orders or modifications to task orders in excess of that limit must be negotiated and signed by the contracting officer. Ordering officer execution limits will be consistent with limits established by the AFARS. The letter may also give the ordering officer(s) the authority to distribute and administer the orders that are placed, but changes to the terms and conditions of the basic contract shall not be permitted.

Contracting Officer’s Representative

An individual may be appointed to perform certain contract administration functions, particularly those relating to quality assurance, such as inspection, acceptance, and performance surveillance. The contracting officer (KO) may appoint a specific individual to be responsible for these functions as the representative of the contracting officer. Contracting officer’s representative (COR) duties and responsibilities are spelled out in the appointment letter.

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Frequent interaction with the contractor will require that the COR perform duties diplomatically to avoid disputes. Quality assurance requires not only inspection of finished work for defects, but also surveillance of various phases of the contractor's performance. COR duties may include:

• Monitoring work to assure timely performance.

• Advising the contracting officer of any potential problems that may affect performance (e.g. financial problems, loss of key personnel etc.)

• Evaluating the contractor's technical letters and proposals and providing technical advice/assistance as requested to the contracting officer or ordering officer.

• Assuring that the contractor complies with safety and environmental requirements.

• Assisting in negotiation of task orders.

• Reviewing and evaluating work performed by the contractor to assure conformance with the drawings and specifications.

• Accomplishing inspection and acceptance of the work. Determining corrective actions necessary to enable acceptance of the work performed, and communicating the need for these actions to the contractor.

• Monitoring receipt of data required by the contract.

• Monitoring the contractor's compliance with the Davis-Bacon Act and subcontracting plan.

CORs do not have the authority to initiate or amend requirements, specifications, or drawings or otherwise change contract requirements.

CORs must avoid obtaining informal commitments from the contractor to perform work that has not been called for by the contract and task order or issuing instructions that could be interpreted as constructive changes.

CONTRACTING CONSIDERATIONS

Location of Contracting Office

Commanders can use their Directorate of Contracting (DOC) to solicit, award, and administer the installation's JOC contract. Alternatively, they can request such services on a reimbursable basis from the installation's direct support district of the U.S. Army Corps of Engineers (USACE). Whichever is used - the installation's DOC or USACE district – the terms "contracting office" and "contracting

1-5 officers" refer to the Agency chosen. This choice needs to be made clear in the planning process to ensure that the contracting office has adequate time for internal JOC planning.

Contract Option Years

The JOC contract will normally include priced (coefficient) options (defined as a constant UPB plus coefficient as amended by an economic price adjustment) for at least two 12-month periods following the basic contract period. Surveillance of contractor performance, monitoring of prices, and adherence to the small, small disadvantaged, and women-owned business subcontracting plan are necessary to ensure sound decisions on whether to exercise the options. The contract is flexible in that it is not necessary to award work beyond the minimum requirement of the basic contract. Any work awarded to the contractor beyond the minimum is solely at the government's discretion.

Each option year in a JOC contract should be considered to be the equivalent of a separate contract. This means that minimum and maximum amounts will apply to each option year. The minimum and maximum amounts applicable to the option years must be specified in the solicitation. As part of this requirement, a new minimum guarantee must be obligated upon exercise of an option year. This minimum guarantee need not be the same amount that was used to secure the award of the basic contract. However, it must be more than a token amount so that adequate consideration exists. This minimum guarantee will show the intention of the government to award additional work so as to retain the JOC contractor's interest and commitment to the additional time period. The annual maximum is connected with the bonding requirement. (See Chapter 5 for information on bonding.)

To provide maximum flexibility to the JOC a "maximum" will be established for the total estimated amount/value of the contract, including all options. Estimates will be provided for the basic contract and each option year but in no event will the sum of the estimates from the basic contract and each option period exceed the "maximum". For example, a contract has an estimate of $3M per year for the base year and two option years and an overall maximum of $9M over the life of the contract. An installation may order $5M in the first year, $3M in the second year and $1M in the final year or it may order $6M in the first year, $3M in the second year and never exercise the final option year.

The current Davis-Bacon Wage Determination must be incorporated into the contract at the time the option year is exercised in accordance with FAR 22.404-12(b). Adjustments to contract price due to any increases or decreases to wages and benefits as a result of a new wage determination, will be made utilizing the economic price adjustment described in AFARS 5152.237-9000. Exception to the use of

1-6 this clause includes contracts utilizing an annually updated UPB such as R.S. Means.

JOC IMPLEMENTATION

Implementation of a JOC contract requires five basic steps:

analyzing the appropriateness of using a JOC contract, planning an acquisition strategy, DPW planning and JOC award activities, work execution, and contract administration. Each step is discussed in the following chapters of this Guide.

Analysis of Appropriateness

In this first step, the DPW's historical workload is reviewed to determine the potential for JOC type projects. The threshold for efficient use of a JOC contract has been established at approximately $2 million minimum annual work of the variety suitable for job order contracting. Two or more installations may join efforts under a single contract in order to meet this threshold. If the minimum workload exists, the review should then determine whether potential contractors are available to perform the work. After approval by the Garrison Commander, this review becomes the basis for initiating JOC acquisition planning. Chapter 2 has additional information on analysis of appropriateness.

Acquisition Strategy

In this phase, the plans required to conduct the JOC acquisition are prepared. The DPW needs to get involved with contracting authorities to plan potential contractor sources, JOC start date, and funding available to support the program. Factors such as timing of contract placement and annual funding implications also need to be considered. In addition, the DPW needs to be involved in deciding what special provisions - if any - will be required in the contract in order to achieve the desired results while maintaining fundamental performance and quality features.

DPW Planning and Contract Award

This step includes selecting personnel from the DPW staff who will be administering and executing the JOC contract. It also includes joint development (engineering and procurement) of the installation’s standing operating procedures (SOP). Training the DPW and contracting personnel and planning for ordering work should be done during this phase. The step also includes the preparation of the statement of work, selection of the installation's UPB with technical specifications, coordination of environmental requirements, creation of a technical library, and all other actions necessary to prepare and forward the DA Form 3953 to the contracting office so the acquisition process can begin.

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Contracting personnel serve in advisory roles during the feasibility planning process, and the DPW should participate in developing the JOC solicitation, developing the Source Selection Evaluation Plan (SSEP), and discussions concerning small business set-asides that must be made before release of the solicitation. The solicitation is then issued; proposals are received, evaluated, and negotiated; the offeror is selected; and award is made.

Work Execution

This is the operational phase of the JOC contract. The DPW generates individual job orders (IJOs) from customer requests and site inspections. If the IJO is appropriate for accomplishment by JOC, a project manager may initiate a request for proposal package, which is approved by the contracting officer/ordering officer. The contractor prepares a detailed proposal for accomplishing the required work.

Simultaneously, the project manager prepares an Independent Government Estimate (IGE) for orders valued at $100,000 or more. The contracting officer/ordering officer reviews the contractor's proposal and negotiates to arrive at a fair and reasonable price for the order.

The contracting officer/ordering officer issues a task order after any necessary reviews. Quality assurance, inspection, and acceptance procedures are essentially the same for a JOC task order as for other construction contracts and task orders.

Contract Administration

After contract award, the contracting office has the primary responsibility for administration and execution throughout the life of the contract. The separate responsibilities between the contracting office and the DPW must be clearly defined. Contract administration by both the DPW staff and contracting office will be required for surveillance of the contract. Additionally, both the DPW and contracting office will need to monitor the contractor's performance and other conditions to determine whether exercising contract options is in the government's best interest.

LIMITATIONS

The JOC program has great potential but it also has limitations.

A concise list of JOC limitations is provided below; more specific information is provided throughout the Guide.

Task Order Limits. Task orders should have an estimated minimum value of $2,000 and not exceed the amount of SRM authority delegated to the installation by HQDA. See Chapter 5 for additional information on task order limits.

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Non-Prepriced ( ) Limits.NPP The percentage of NPP items used per task order should not exceed 10% of the total value of prepriced items.

Exceptions are clarified in Chapter 5.

Work Limits. JOC cannot be used to purchase supplies, services or architect and engineer (A-E) services. Department of Labor guidance provides that services such as carpet installation, landscaping, asbestos removal, and building demolition may be performed as construction when the work is incidental to a construction project. See Chapter 5 for specific items not authorized for acquisition under a JOC contract.

Ordering Officer Limits. JOC ordering officers may not sign task orders with a value exceeding $500,000. They may sign task orders where the value of any non-prepriced item(s) does not exceed $2,500. They may issue modifications to existing task orders as long as they don’t exceed their established authorities. The ordering officer(s) authorities and limitations are discussed in detail in Chapter 5.

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CHAPTER 2

ANALYSIS OF APPROPRIATENESS

CHAPTER INTRODUCTION

The initial action for the Garrison Commander, the DPW and the DOC is to determine whether a JOC contract would be beneficial to the installation. Many factors should be considered during the analysis.

The basic factors are set forth in this chapter, but this list is by no means exhaustive. The installation's DPW is free to include additional factors as appropriate to meet local needs.

APPLICABILITY ANALYSIS

The DPW should start by defining the work that could be done under a JOC contract at the installation and identify the types of SRM and customer-funded work to support a JOC contract. An estimate of the annual volume of work susceptible to performance in a job order contracting environment is required. The annual work plan, budget, and other anticipated workload should be examined.

The recommended minimum level of activity for an effective JOC contract is approximately $2 million annually, and amount of work that will result in a favorable coefficient, considering the contractor's overhead. Task orders below $2,000 should not be included in the analysis, since orders that small are not cost-effective under a JOC contract. The historical database maintained by the DPW can be used as a starting point to forecast the potential annual work volume, considering the following:

• What work is being accomplished.

• How the work is presently being accomplished.

• Who is currently performing the work.

• Why the work is necessary.

• When the work is being accomplished.

• Where the work is being accomplished.

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The current backlog of work, planned stationing actions, and other master planning for the installation must be considered, including any changes foreseen in the installation's mission. After the benefits assessment is completed, future requirements and annual minimum and maximum workloads should be estimated. If current and historical contract work of this type exceeds $2 million per year, it is likely that a JOC contract is appropriate. If analysis indicates potential benefits from a JOC contract, then its feasibility should be examined.

If the workload at your installation is not significant enough to warrant a JOC contract, consider partnering with another installation to award a single contract for both. If several installations are located in close proximity to one another, a JOC contract to service all sites is also feasible.

FEASIBILITY ANALYSIS

Funds budgeted and programmed for recent years should be evaluated to determine consistency of historical benefits data with forecasted needs. Additionally, the DPW should consider whether funds budgeted will currently support a JOC contract and will continue to support it for the anticipated term of the contract. Meaningful minimum and maximum workload requirements must be established.

Remember that the minimum will obligate the government to place orders totaling at least that amount in the contract and the annual maximum is connected with bonding requirements.

Current commercial contract support should be reviewed to ensure that a JOC contract will not produce conflicts with and between existing contractors that could result in disruptions to work and/or protests. Existing DPW support contracts need to be checked to determine whether potential contractors and subcontractors are working in the same location under both cost-reimbursement and fixed-price contracts, so that conflicts can be avoided. Having such contracts in operation at the same location could present cost-control and potential conflict-of-interest problems. Conflicts between an existing or planned commercial activity (CA) contract and the JOC contract scope of work must be avoided. The DPW should review existing requirements contracts and their interface with planned JOC actions. All existing DPW contracts should be considered in this analysis.

Enough qualified personnel should be available in the DPW organization to manage and execute a JOC contract. The DPW and the contracting office may have to realign existing personnel to handle day-to-day execution and contract administration responsibilities.

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As a next series of steps, the following actions should be taken:

• Determine the ability of the DOC to establish and support a JOC contract. If the DOC cannot provide the initial or post award contracting support, determine whether the supporting USACE district can place the initial contract and provide the needed services, on a reimbursable basis.

• Determine the source for the UPB.

• Conduct a market survey (i.e., FedBizOpps Synopsis) to determine whether there are enough qualified and interested prime contractors to ensure meaningful competition for the JOC contract.

• Identify any topographic considerations. Is the installation serviced by more than one local area and market? Determine whether there are any geographic distances that would result in multiple labor or supply sources. Also, surface, subsurface, and climate differences should be identified for the feasibility analysis, with appropriate consideration in the selection of the

UPB.

• Decide how many different UPBs or coefficients will be needed at the installation. For example, some installations may have different Davis-Bacon wage rates that will require separate UPBs or coefficients for those areas. Since residential construction generally has much lower Davis-Bacon rates than building construction, consideration may be given to a separate coefficient for family housing. Consideration may also be given to a preagreed rate for indirect costs and profit for nonprepriced work. (See page 5-12 for additional information.)

• Determine whether any specified activities should be added (e.g., non-appropriated funds (NAF), etc.) or omitted from the JOC contract and the impact on the feasibility analysis.

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APPROPRIATENESS AND FEASIBILITY REPORT

At the conclusion of the appropriateness and feasibility analysis, the DPW should issue a report summarizing the results and conclusions.

The report should be coordinated with the appropriate staff offices (including the supporting contracting office) and approved by the Garrison Commander, who cannot re-delegate this authority. Following approval, coordination between the contracting office and legal office is required to establish a JOC contract at the installation.

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CHAPTER 3

JOC ACQUISITION STRATEGY

This chapter discusses the planning required, ultimately leading to solicitation issuance, contractor selection, and JOC contract award. Both technical and business strategies must be developed, and the basic considerations included in the solicitation and contract must be documented.

PLANNING FOR ACQUISITION

Acquisition Plan

Effective acquisition planning is required for all JOC contracts regardless of size. A formal acquisition plan is required when the dollar value is estimated to exceed $15M for any fiscal year/$30M for all years including options. The acquisition plan should be tailored to the needs of a JOC construction services contract. The plan should be written to allow the contracting activity the flexibility of accomplishing requirements that are unknown at the time of basic JOC contract award. All necessary organizations must participate in its development to ensure that objectives and interests of all government activities involved have been accommodated.

A plan for acquisition starts with the needs and feasibility study and is complete once the decision has been made to implement a JOC contract. Planning should be initiated well in advance of the fiscal year in which the contract is to be awarded. This planning should avoid awarding the basic contract in the 4th quarter of the fiscal year. Figure 3-1 shows a time line for the acquisition planning process.

The contracting office has overall responsibility for acquisition planning and must be supported by the DPW in preparing and maintaining the plan. The contracting office will be aided by other functional staff personnel (e.g. DPW, legal, quality assurance, small business), as required. The plans should be prepared for both initial and follow-on contracts and will be filed with, and become a part of, the contract support file. Additionally, a copy of the plan will be given to the ordering officer to provide the background of the acquisition and the

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Activity

Contract Months Award -9 -8 -7 -6 -5 -4 -3 -2 -1 | +1 +2

Needs and feasibility analysis

Develop plan for acquisition

Produce technical documentation

Produce solicitation

Develop source selection plan

Staffing

Conduct solicitation

Training

Award Contract

Contract award activities

Mobilization

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O---------------O |

O---------------O |

O----------O |

O---------------O |

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O O O---------------O

FIG 3.1 JOC IMPLEMENTATION TIME LINE FOR ACQUISITION PLANNING

(Avoid 4th qtr award)

3-2 process for issuing orders. Since the acquisition planning is an ongoing activity, the plan must be updated as elements are changed.

CONTENTS OF THE ACQUISITION PLAN

The contents of a suggested plan for job order contracting are described below. It should include "Acquisition Background" and "Plan of Action" sections. The Federal Acquisition Regulation (FAR) and the DOD FAR Supplement (DFARS) contain additional guidance for this purpose. Existing guidelines at the Department of the Army (DA) contracting region, and installation should also be followed.

Acquisition Background

The following are necessary components of the plan's background portion:

• Statement of Need. A summary of the appropriateness analysis should be incorporated here, together with a reference to the study and its location in the files. For follow-on contracts the statement of need should include a discussion of the technical and contractual history of the acquisition, plus any acquisition alternatives and any related contractual or in-house efforts.

• Surrounding Conditions. This action should include all significant conditions, such as requirements for compatibility with existing contracts.

• Capabilities Being Acquired. Discuss any required capabilities and performance goals being sought, such as contractor response time, and JOC support requirements.

• Performance Period. Describe the performance period for the

JOC contract, including both the initial contract award and option periods.

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Plan of Action

The following components are necessary and should be considered as part of the plan of action.

• Sources. Part of the plan for acquisition requires that surveys be conducted so that full and open competition can be obtained.

The plan of action will address the market survey, and its results, including any effect these results will have on other elements of the plan for acquisition. The discussion sources should include what, if any, consideration was given to small business participation. Unrestricted acquisitions will require a subcontracting plan if awardee is a large firm.

• Competition. Describe how competition will be sought, promoted, and sustained.

• Source Selection Procedures. Discuss the source selection procedures. This discussion should include the timing for development of the source selection evaluation plan (SSEP). It should reflect that the SSEP will be available before the solicitation is released, so that it can be used in developing Section M of the solicitation addressing source selection.

• Contracting Considerations. For each contract contemplated, discuss the unique features of a JOC contract and how they are to be accommodated in the acquisition. Discuss any special contract clauses contemplated, or special solicitation provisions.

• Multiple Awards. The FAR provides for multiple or single award of delivery and task order contracts. Consideration must be given to several factors before making multiple awards for a JOC contract. A few things to consider are: the affordability of providing facilities for two or more contractors; the resources required to properly administer more than one contract; and the impact on the subcontractor pool. If an installation has multiple JOC contracts, each task order must be competed among all JOC contractors.

• Budgeting and Funding. Describe how budget estimates were derived, and discuss the schedule for obtaining adequate funds at the initial contract award for the guaranteed minimum, plus the process of obtaining funds before issuing individual task orders after the guaranteed minimum has been

3-4 ordered. This section should also include a discussion of responsibilities for funds management for the contracting officer/ordering officer(s), resource management personnel and other DPW JOC personnel.

• Management Information System Requirements. Discuss what management information system, if any, will be used to monitor the contractor's performance. Discuss any automated data processing interface considered between the government and the contractor.

• Logistics Consideration. Describe the quality assurance requirements, including any planned use of warranties of contractor-installed equipment. Describe the requirements for contractor technical or procurement data.

• Government Furnished Property. The contemplated JOC acquisition will generally require the contractor to use or occupy government property. This requirement leads to the possibility of an on-site work facility or space for a work facility on-site. This required action may vary from providing a location for the contractor to installing a trailer or similar temporary facility, to providing an existing building or space in a building that can be converted to usable offices. It may also mean availability of shop facilities or space in shops, which the contractor will operate, or facilities that the contractor will have access to on a "space available" basis. The contractor may be granted limited access to government property as necessary to accomplish work called for in the individual task orders.

Each of the possibilities will require different pricing consideration for the contractor and must be fully explained in the solicitation. Information should also be provided on the extent to which the contractor may consume government utilities - heat, light, and power - for use at on-site facilities and work locations. The plan will also include the planning and scheduling considerations necessary to ensure the availability of government-furnished property required to support contractor needs without work disruption.

• Government Furnished Information. Discuss availability of government manuals, drawings, and other data to be provided to prospective offerors and contractors. Include a discussion of the availability of specifications and the source of specifications, for both priced work (from the UPB) and non-prepriced work.

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Contractor Computer Equipment. The equipment specifications to support the pricing (UPB) software must be planned for and identified in advance. The contractor must equip itself with compatible computer hardware and software so that information can be shared, as required.

• Environmental Considerations. Discuss the proposed resolution of environmental issues and any environment-related requirements to be included in the solicitation and contract.

Discuss whether any environmental considerations are to be separately treated when individual task orders are issued, and whether contractual coverage will be required.

• Security Consideration. If the contractor's contractual responsibilities require the use of secured areas, discuss how adequate security will be established, maintained, and monitored. Discuss how security clearances for the prime and any subcontractors will be handled and the responsibilities of both the government and the prime contractor regarding them.

• Energy Considerations. Discuss energy conservation considerations, including whether specific coverage will be required in the solicitation and in selecting the unit price book.

• Standardization. Discuss any standardization programs to be recognized in the contract. Standardization programs, if any, must be limited to those that have been appropriately directed and approved through Region channels.

• Occupational Safety and Health Administration (OSHA).

Discuss how OSHA requirements will be met in the solicitation and contract, including the need for special contract clauses.

• Source Selection Evaluation Plan (SSEP). Because the selection of a contractor is based on other factors in addition to price, the nature and structure of the source selection process should be discussed to ensure that adequate planning occurs.

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Contract Structure. Discuss the initial period and option(s) structure of the contract. Discuss the responsibilities of the contracting office, COR, ordering officer and other DPW JOC staff members in monitoring contractor performance.

• Bonding Requirements. Discuss any bonding requirements to which the contractor and subcontractors will be expected to adhere to (see FAR 28.1). Chapter 5 has additional guidance on anticipated bonding requirements and limits.

• Preproposal Conference. Discuss the plans for the preproposal conference, including scheduling, government representation, location, etc.

• Determination of Contracting Support. Either the DOC or servicing USACE district will be chosen to award/administer the JOC contract. The planning considerations necessary for either activity making the procurement must be discussed. If district assistance is required, discuss the timing requirements, the office to be contacted, memorandums of agreement (MOA) contemplated, etc., necessary to ensure a smooth and well-coordinated contract.

• Task Order Placement. Discuss the appointment and training of the ordering officer(s) within the DPW. Discuss the location and schedule of training, so that it will be completed before contract activation. Ordering officer(s) should attend the JOC Basic training course. JOC training is available through the US Army Corps of Engineers Installation Support Training Division, Huntsville, Alabama. Discuss the working agreements needed, MOAs etc., to ensure coordinated interaction between the ordering officer and the contracting officer.

• Assignment of Source Selection Authority. As with any solicitation of the magnitude of a JOC contract, the appointment of the source selection authority (SSA) needs to be addressed.

• Assignment of Ordering Officer…