www.4Clicks.com

The Efficient Construction Delivery MethodFor Facilities Repair, Renovation, & Sustainability

Copyright 2015 – 4Clicks Solutions, LLC

SABER, IDIQ, BOS, MACC, SATOC, MATOC

JOC Fundamentals

JOC

PEOPLE

PROCESS

Robust Cost Data

TECHNOLOGY

JOB ORDER CONTRACTING

Create, Visualize, and Share Standardized, Accurate, and Reusable Information.

Increase Productivity

Full Transparency

More Construction Projects On-Time / On-Budget

Process Supported by Technology & Robust Cost Data

Core JOC Function

4ClicksTM Hard Copy/Online Books or Spreadsheets

Cost Line Item Modifiers þ NA

IGE / Contractor Estimate Comparison

þ NA

Apply / Manage JOC Co-efficients

þ NA

Track/Mark Priced and Non-Priced Items

þ NA

Apply / Manage JOC Co-efficients

þ NA

Manage Contracts / Contractors Projects / Estimates

þ NA

Locked Unit Price Book þ Visual Estimating QTO

þ

The Feature List is MUCH Longer

4

The Evolution of JOC Software

5

What is

The BEST electronic presentation of RSMeans Cost Data

Software Technology and Training to efficiently and consistently deploy and manage Job Order Contracting (JOC) SABER, IDIQ …

6

The Cost Database – Exclusive 400,000 Line Items

20% of estimate costs exclusively represented in 4Clicks

Who Uses

Building Owners, Contractors, and AE’s doing a lot of RSMeans-based and IDIQ line item cost estimating.

Contractors, AE’s working with and hoping to work with and/or improve work on DOD/non-DOD Federal Government, State/Local/County Government, Education, Healthcare, or Airport/Transportation - Renovation, Repair, Sustainability, and Minor New Construction Projects

#1

#2 Anyone sharing or collaborating on RSMeans-based line item cost estimates.

#3

8

Over 85% of United States CONUS Air Force, and rapidly growing numbers of other DOD and non-DOD Federal Real Property Owners (DOE, DOI, FAA, GSA, NIH, VA …) .

#4

Enables Collaboration among Owners, Contractors, Subs, & AE’s.

Enhanced 400,000 Line Item RSMeans Cost Data*

Integrated Estimate, Project, Contract, & Document Management

Automated Owner/Contractor Estimate Comparisons

*Including Full Descriptions and Modifiers. References, Graphics, and Specifications are also electronically available.

Exclusive Features of

9

Set Contract Coefficients

Manage Multiple Contracts, Coefficients, Projects, Estimates

Track and Report RSMeans Line Items and non-RSMeans Items (Priced and non-Priced)

Specifications Linked to Cost Estimate (Summary and Detailed)

Track Project Status – From Concept Through Warranty

Additional e4Clicks Project Estimator Features

10

Software Overview

11

Visual Estimating / QTO

e4Clicks

Estimate Report

Site Visit /PDF

Electronic Takeoff

RSMeans

JOB ORDER CONTRACTING

Counts Areas Lengths

Rapid ImplementationEasy-to-use, Single seat or Network deployment

Consistent UsageBest practice JOC/SABER IDIQ procedures embedded in software

TransparencySystem-wide RSMeans-based UPB (North American Standard), or estimates with your own custom guide (single trade IDIQs)

CollaborationBuilt-in estimate/project/document/contract management

Performance GainsReuse estimates

Benefits of

13

e4Clicks BASICTargets Sub-Contractors who estimate and don’t require contract, document, or project management features. Includes the Basic Version of eTakeoff.

e4Clicks PROFESSIONALFor General Contractors and Sub-Contractors who require multiple project management, document management, contract management, advanced estimating features, exporting to Adobe PDF and Microsoft Excel importing other external databases. Includes the Pro Version of eTakeoff.

e4Clicks PREMIERFor Owners to estimate and manage entire contracts or programs in a single product. Premier is used through-out the country on single and multiple award contracts (MACC, MATOC, JOC, SABER, BOA, BOS, etc). Estimate Comparison and Technical Evaluation features are included in this version. Includes the Premier Version of eTakeoff.

Subscription Pricing ModelSoftware Versions

14

Studies have readily demonstrated the errors and lack of productivity related to spreadsheets – date entry and formula errors, costly data maintenance, lack of collaboration, and miscommunication.

RSMeans Online, CostWorks and e4Clicks Project Estimator are NOT competitive. CostWorks/RSMeans Online deliver excellent electronic

access to RSMeans Cost Books without modifiers, enhancements, etc.

e4Clicks Project Estimator is an advanced and collaborative cost estimating, project management, contract management, document management package inclusive of visual estimating.

Are you using SpreadSheets, RSMeans Online, CostWorksTM, or other techniques?

15

What is JOC?

An Indefinite Delivery / Indefinite Quantity (IDIQ) type contract for the procurement of renovation, repair, maintenance, construction services

• Projects that involve little or no design or engineering

• Minor maintenance (painting, carpet replacement, ceiling tile replacement, etc.)

• Repair or replacement (roofs, parking lots, underground utilities, doors, windows, etc.)

• Upgrade or replacement (HVAC, plumbing, fixtures, etc.)

• Competitive pricing through the use of a competitively-bid coefficient applied to a unit price book (UPB) like RS Means

16

What is JOC?

• Duration; 3-5 Years

• Contract Size: $2-$350M+

• Task Order Size: $100k-$500k+

• Set Aside (8a, SBVOSB, VOSB, WBE) or Unrestricted

17

JOC: Key Characteristics/ Requirements

• Collaboration

• Shared Risk/Reward

• Unit Price Book (UPB)*

• On-demand Services

• Independent Government Estimates

* “Open JOC” / Hard Bid is NOT Job Order Contracting

18

Unit Price Book - UPB

• Cost Estimating Catalog

• Detailed Unit Price Line Items• 80%+ RSMeans (Majority RSMeans Facilities, Some include

Master Composite)

• Priced (P) vs. Non-PrePriced (NPP): (10% NPP Max.)• Electronically Available with JOC-specific Software*, as specified

in Solicitation

*Spreadsheets are NOT recommended.

19

JOC Co-efficient: 0.80 to 1.20 (average)

COEFFICIENT X TOTAL OF RSMEANS LINE ITEM VALUES (for

estimate(s)) = TASK ORDER PRICE

Coefficient typically include all costs related: (a) direct and indirect labor, fringe benefits, overhead, G&A

expenses, profit, material, equipment, other direct costs, insurance, freight, handling, transportation, inspection, testing, operation and maintenance manuals, bonds, etc.

(b) federal, state, and local taxes, (c) all applicable fees permits, licenses, and (d) any miscellaneous charges.

Contractor typically may also use the City Cost Index (example RSMeans CCI / localization factor) when preparing estimate

20

JOC Benefits

• Saves time and increased responsiveness.• Flexibility to meet variable work flow and match project scope to

budget.• Improved quality of delivery and results due to best value

selection and incentivized contract.• More cost-effective, value-added service, and, reduces change

orders and claims.• Develops Owner/Contractor partnership, longer term

relationships, and adaptability to demanding environment (security, ongoing operations etc.)

• Maximizing opportunities for disadvantaged and small business.

• Faster response to warranty issues and any problems.

• Streamlined procurement process.

21

Typical Task Order Process

• Contracting Officer (CO) or Contracting Officer’s Representative (COR) will issue the Contractor a Request for Offers (RFO), which includes a Statement of Work (SOW) and any other supporting Documents.

• Upon receipt of the RFO, the Contractor shall attend a site visit, review the RFO, and meet with the COR to thoroughly discuss all conditions and details of the work.

• Contractor has “ten (10) calendar days”, unless otherwise agreed upon, from the time the RFO is issued to respond.

• The CO may accept the Contractor’s task order estimate without further discussion or negotiation on any item. Upon acceptance of the offer the CO will issue the job order at a firm fixed price.

22

The JOC Team

• Customer/Facilities

• Owner/Engineering

• Owner/Contracting

• Contractor/Subcontractor

The purpose is to create a long term working relationship with the

Contractor who becomes familiar w/ the Owner’s, facilities,

personnel and protocol and are “pre-badged: in many cases”.

23

Low-bid Contractor?

24

Smaller projects easily can take up to 1 year to procure

Up to 22% of project costs are consumed in design and procurement

Change orders can increase project costs by 50%

Claims and litigation are the “Status Quo”

Large backlogs and inefficiencies negatively impact an organization's mission.

A World Without JOC

25

Federal Government Army Navy Air Force DOE FAA Veteran’s Administration GSA / Department of Homeland Security US Postal ServiceHigher Education California University System University of New Mexico Northern Arizona University City Colleges of Chicago Georgia Tech Healthcare Harris County Hospital District University of Washington Hospital SystemTransportation Los Angeles World Airport Phoenix Metrorail DFW Airport

State/County/Local Government Commonwealth of Massachusetts State of Washington State of Arizona City of Phoenix City of Houston Baltimore Housing Authority Los Angeles County (DPW)K-12 Independent School Districts (IDSs) Hartford County Schools Loudon County Schools Dallas Public Schools Houston ISD Mesa Public Schools (AZ)

Who is using JOC? (partial listing)

26

Faster project delivery (3-9 months less) Streamlined engineering and design Cost visibility/transparency Better contractor performance Integrated Team - Partnering/collaborative

owner/contractor relationship More opportunities for local business Effective use of year-end funds

Higher overall satisfaction*

JOC Benefits / Results

Series1

0%50%

100%

Non-Partnered/Low BidNon-partnered/Best Value Selec-tionPartnered/Best Value Selection

*Mulcahy, Francis S. The Effectiveness of Partnering and Source Selection in Job Order Contracting. Master’s Thesis, University of Washington, 2000.

27

JOC / non-JOC Timeline Comparison

28

Long-term contracts foster a higher level of investment in making the working relationship yield successful results

A JOC program not a project Allows for the development of a

trusted partner

JOC - Establishing a Fiscally Beneficial Relationship

29

Pricing structure relies on a Unit Price Book ( UPB )For example - Standardized, but enhanced

400,000 line item RS Means Cost DataCustom and/or localized UPB and/or line items.Competitively-bid coefficient (multiplier, factor)

establishes pricing at the outset of the contract.Coefficient includes all costs including materials,

labor, overhead, profit, and sometimes bond and tax.

Example:1 SF Drywall $1.00Coefficient .92 -0.08Contractual Price $0.92

The Pricing of JOC Projects

30

Delivery orders are firm fixed price, lump sum

UPB is an estimating tool

Unit price proposals represent contractor’s committed price—it converts to lump sum

Change orders rare, and with consistent pricing structure

Brings IPD/CM advantages to smaller projects but in an efficient way with an at-risk incentive to perform.

31

JOC Delivery Order Pricing

Items not appearing in the Unit • Price Book are considered Non

Pre-priced Items (NPP) Typical NPP options:

• NPP coefficient serves as a markup on three transparent subcontractor bids

• NPP markup can be set per contract provisions • Once a new unit price is negotiated it can be

incorporated into the contract• Some contracts will prohibit or limit NPP items as a

percentage of delivery orders.

Sample Contractor Bid:UPB Coefficient .92 applied to line itemsNPP Coefficient 1.18 applied to actual sub costs

Non-priced Items

32

Either the Unit Price Book or the Coefficient is usually adjusted annually

Dynamic cost databases generally maintain the same coefficient

Customized price books typically adjust coefficient annually according to an industry benchmark (RSMeans City Cost Index-CCI), and/or add customer-specific unit price line items

Goal is to help contractor and owner manage risk

Dynamic vs. Static Costs

33

Change Orders are rare in JOC• Owner-initiated• Truly unforeseen conditions

UPB governs original scope of work and scope added after• Puts owners at an advantage when directing

changes in the work

Change Orders and JOC

34

Analyzing potential JOC volume• Review historic project data (2-3 years) and reconcile with

budget projections. Segregate projects by size, location, type, etc.

• What will your JOC “bandwidth” be?• All-inclusive, or selective? As defined by scope, or urgency.• Size limits? Consider in-house capabilities, other contract vehicles, and

political influences

• Define contract footprint, including potential regionalization• Single or multiple award

Numbers to consider.• $3M—minimum annual volume for standalone JOC program• $6M—maximum efficiencies are achieved, allowing addition of

support staff• Many owners with less volume can access JOC through

purchasing cooperatives

Owners Preparing for JOC

35

Assess in-house capabilities• Project Management Capacity• Skillsets

• Line-item estimating, or ability to review estimates, Proactive definition of scope, In-house maintenance crews

• Training Plan How will JOC interface with your design

professionals? Flowcharting how JOC process will interface with

purchasing, management and board approvals

One Owner’s Management Plan:Each PM manages 15-20 projects simultaneously, up to 50 per year

Owners Preparing for JOC

36

Company culture of high performance needed to succeed in JOC?

Ability and capacity to create productive teams? Proactive rather than reactive? Line item estimating capabilities?

Contractors Preparing for JOC

37

Considerations that drive the coefficient: Contract volume (higher volume = ⇩) Geographic dispersion of projects (further apart = ⇧) Type of work Average size and size range of delivery orders Three S’s: Supervision, Security, Safety Contract Administration Cost For RS Means, Division 1 provisions and column used

(Bare Costs vs. O&P column) UPB used Marketing costs Look at historic coefficients, but beware of changes

that can impact the coefficient!

Contractors Preparing for JOC

38

Bidding the Coefficient: Historic CostsReconcile 2-3 historic projects where final costs are known against a line item estimate generated from UPB Focus on Divisions 2, 9, Mechanical and

Electrical?Program CostsCalculate total personnel and overhead costs to manage the program, reconcile with typical project costs and then reconcile unit costs with select line items

Contractors Preparing for JOC

39

Once a JOC Program is in place, client project demands/requests happen over the contract term. This starts the JOC Process:

The JOC Process

40

Scope Variability - Detail of Owner scope preparation varies according to: Owner preference and skillset Owner people resources available When in planning cycle project was identified for JOC

Owner Provides:Project Need, Target Budget

Owner Provides:Defined Scope

Document

Owner Provides:Complete Bid Documents

More turnkey, contractor led More proactive owner involvement

Range of Owner Participation

The JOC Process - SCOPE

41

Typically within days Collaborative Process Goal of capturing

every necessary component of work

Site Visits

42

• Demo / dispose of 3 existing lights Reuse existing circuit for new lights.

• Remove & replace 2 existing HVAC grilles

• Install gyp ceiling at 8' 8" with 4 new surface mounted explosion proof lights. Relocate existing smoke detector to new ceiling

• Demo CMU for 42" opening min. (exist opening +/- 36")

• Demo & dispose of existing metal partitions and replace with new 4" CMU covered completely with ceramic tile, with one block

scupper at bottom of each

• Remove and reinstall existing 3 urinals and 2 commodes

• Demo ceramic tile, floors and walls, (exist ceramic on walls is approx. 8'-0" high)

Owner/Contractor-Joint Scope Development /Documentation

43

Performed in-house

Included in coefficient

Will engage design professional when needed Major building

system engineering

Structural Life-safety

Targeted or Incidental Design

44

Presented to owner for approval

Important confirmation step for aligning vision and expectations prior to proceeding with labor-intensive line item proposal

Scope and Work Plan Submitted to Owner

45

The JOC Process - PROPOSAL

46

Generation of the line item estimate Assurance of a fair price:

– Are the line items appropriate?– Are the quantities correct?

Owner has to understand the process and have faith that it provides competitive value

Proposal Format

47

48

Project Execution

49

What JOC is NOT

• A Simple Way to Bypass Procurement

• Dialing for Dollars / Hard Bid

• Antagonistic

50

JOC is a form of IPD – Integrated Project Delivery Emphasis on Pricing Transparency Integration Across the Building Lifecycle Technology Changes:

– JOC-specific software deployed via Cloud– Cost Databases and Estimating Approaches will

further evolve to reveal lifecycle costs “Greater Good” goals

– Small and disadvantaged business utilization– Sustainability

The Future of JOC

51