RC108 SeptOct2023 - Magazine - Page 42
CLOSING SHOT
FORWARDTHINKING
PROCUREMENT
By Maureen Sullivan
I
What is JOC?
Although this construction procurement model has a
lengthy track record of success in the United States, JOC is
a new term for many in the Canadian public sector. An easy
although simplistic way to understand JOC is to view it as
essentially a Request for Standing Offers (RFSO) process on
steroids. Most suitable for straightforward new construction, repairs and renovations, and alteration projects as
well as emergency work, JOC utilizes a single-procurement
process to establish a catalogue of competitive, pre-set prices
for everything from construction commodities through to
general contractor and specialized sub-trades like mechanical contractors. Bid prices are evaluated by the contractor’s
adjustment factor against thoroughly researched and validated baselined local cost data to ensure value for money.
Rather than conducting multiple procurement processes
to create many Standing Offer Agreements for various as-
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RENEW CANADA – SEPTEMBER/OCTOBER 2023
Job Order Contracting allows a variety of projects
to be completed through a single, competitively
awarded contract with established prices.
pects of your projects, JOC allows a variety of projects to be
completed through a single, competitively awarded contract
with established prices. This one-bid process also makes
it attractive for contractors who are loathe to use valuable
resources responding to a seemingly endless series of RFPs
and RFSOs.
How can I confirm the benefits?
A recent detailed report prepared by NIGP (National Institute of Government Purchasing) provides statistical analysis
demonstrating that JOC enables projects to start faster,
requires less internal resources, can save time and money,
provides transparency and auditability, and creates higher
supplier trust with less supplier opportunism.
How can we access JOC?
There are two ways to access JOC: directly through a
third-party service provider or through a cooperative
purchasing organization. Larger organizations can benefit
from the local pricing catalogue approach customized to
unique organizational needs offered by a direct relationship
with the service provider, while smaller organizations may
wish to on-board the contracts already established through
Canadian GPOs.
Job Order Contracting can be a game-changer for Canadian public construction procurement. In a time of increased
demands and strained procurement and project management resources, JOC is the kind of innovation that public
sector organizations should take a very close look at.
NICK KRUKOWSKI
F YOUR ORGANIZATION is like most Canadian public sector
organizations, you struggle with construction services
procurement. Unfortunately, the challenges come from
multiple fronts such as unprecedented inflation, contractor scarcity and increasing demands for streamlined facility management.
One of the most prominent procurement challenges is
staffing. Construction contracting is a unique and often
highly technical aspect of public procurement. When
coupled with the pressures of urgent emergency work and
other time-sensitive projects, the strain on existing public
procurement, facilities and construction management staff
can be enormous, further exacerbating the attrition rate.
Aside from ensuring adequate internal resources, further
challenges with construction contracting include receiving
sufficient bids to ensure competitive pricing and attracting
companies with a history of successful on-time, on-budget
completion. In the current booming construction market,
many contractors have jobs booked months if not years
in advance. Depending on the size of your organization,
you may discover you are a small fish in a big pond and
therefore cannot capture and retain the attention of the more
sophisticated players.
If traditional ways of procuring less complex construction
projects are straining resources within your organization,
perhaps it is time to move from an operational or reactive
mode to a more strategic one by considering entirely new
ways of doing things. While ensuring compliance in public
sector spending is of paramount importance, this should
never preclude consideration of emerging innovations.
That’s why forward-thinking public procurement leaders
are exploring Job Order Contracting (JOC).
Maureen Sullivan is a
procurement advisor
and author of A Guide to
Practical Procurement.
RENEWCANADA.NET
