Traditional JOC lacks Cost VALIDITY

Various changes in the departments of maintenance and construction and the pressure to get projects completed led to a focus on getting the job done quickly which is not always the most cost-effective process.(Audit of Job Order Contracting 2015-2019, Dallas ISD)

The use of traditional JOC processes and tools can lead to excessive costs and lack of cost controls. JOC Programs have unfortunately been used solely to speed procurement of repair, renovation, and maintenance projects. This practice is in violation of the basic tenants of Job Order Contracting.

JOC can deliver significant benefits including 1.) lower total costs for projects, 2.) the consistent delivery of quality outcomes on-time and on-budget, and 3.) full compliance and auditability.

Most JOC implementations have focused upon getting work done quickly and ignoring the other critical aspects noted above. Furthermore, the payments of fees to "JOC consultants" for JOC tools and services based upon construction volume easily results in millions of dollars expended for JOC administration instead of actual construction.

LEAN JOC tools and services are readily available to assure best value outcomes and compliance for public sector owners. This includes the use of locally researched detailed unit price cost data versus national average cost data, location factors, or economic indexes.

Without complete documentation of District review of RSMeans project cost data, IA (the audit) cannot validate the accuracy of the contract cost estimates increasing the risk that the District potentially overpaid on one or more contracts. - (Audit of Job Order Contracting 2015-2019, Dallas ISD)

By separating projects up into phases and sections, the Dallas ISD could potentially be bypassing savings and reduced costs due to bulk discounts from vendors and contractors as well as violating District policies and procedures. - (Audit of Job Order Contracting 2015-2019, Dallas ISD)

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