tips job order contracting€¦ · tips job order contracting is extremely effective, less...

TIPS Job Order Contracting

Need Assistance? Contact TIPS 866-839-8477

Job Order Contracting General Information:

JOC is a unique procurement method that is not familiar with everyone and easily misconstrued. The

United States military created the Job Order Contracting method of procurement. The military bases

used federal dollars to maintain service, renovate or make additions to their grounds. Publicly

advertising all projects over $25 Thousand dollars for 3 competitive bids per procurement regulations

became too expensive and time consuming, as many projects needed to happen quickly and the budget

didn't have room for the added expenses or time for advertisement. The creation and approval of JOC

and or IDIQ (Indefinite Delivery, Indefinite Quantity) contracts followed.

This allowed the customer to solicit for their own JOC contractor(s) and assure the best price for future

fast tracked projects between 25 thousand and 2 million dollars. This procurement method proved to be

most efficient and soon caught on to other federal and state entities. Over the years, local cooperatives

have been able to incorporate JOC by way of advertising their own solicitation for JOC contractors and

sharing these Pre-selected rates with their customers via an Interlocal agreement. Just as they Pre-shop

for the best prices on pens, paper, pencils, computers etc., they have done the same with construction

services.

The TIPS Construction Contracts use Job Order Contracting language in the Request for Competitive

Sealed Proposals. All of our construction contracts use a nationally recognized unit price book with an

applied co-efficient (discount). The TIPS job order contracts use the RS Means price book. The selection

of the award uses a best value points system. Contractors receive points on a 100-point scale based on

the following: Experience, Reputation, Financial capability and they receive more points for lowest co-

efficient. In essence, the awarded contractor’s services have the same pre-shopped/selected

guaranteed lowest price/best value that you get when purchasing other supplies and services through

TIPS.

It is completely understandable that most clients want the most for their money as well as a reliable and

reputable contractor. This is where the TIPS job order contracts provides so much value to our

members. TIPS Job Order Contracting is extremely effective, less expensive, and timely and meets the

legalities of purchasing construction/remodel/maintenance services.



Job Order Contracting Compliance:

TIPS follows a uniform “Competitive Procurement Process” for all contracts, including the

construction related Job Order Contracts. TIPS utilizes a request for competitive sealed

proposals for the construction related Job Order Contracts. (see Exhibit A)

Construction contracts are procured pursuant to Texas Government Code § 2269.

The TIPS staff review all Job Order Contracts prior to approval. For more information, contact us

at [email protected] or (866) 839-8477.

R.S. Means Pricebook:

RS Means was developed in the 1940’s as to try to estimate (Actual and Conceptual) projects

costs more accurately.

In 2014, Means was purchased by the “Father of Job order Contracting” The Gordian group,

whose owner developed JOC in the 1980’s.

Gordian’s RS Means database has now became the industry standard for construction

estimating both in the design and construction phases of projects.

It is utilized by all types of contractors – Residential, Commercial, Industrial, and Federal.

The Federal government utilizes RS Means as a price check on all their JOC, TOC, MATOC, and

SABER contracts.

TIPS Contractor Coefficient:

RS Means is compiled as a national average of most construction activities that occur on the majority of

jobsites across America.

This “NATIONAL AVERAGE” Database then utilizes a City cost index to localize the data for a particular

region.

For instance:

The “National Average” of a Urethane Rubber track system ½” thick in place is $56.86 a Square Yard

This is just for the furnishing and installation of this system –

It does not include: a. Project Management or Superintendent b. Indirect Equipment associated with the project c. The Base that the Surfacing is adhering to or surrounding the system

It does include: a. Direct Labor to install the System b. Materials to install that system

mailto:[email protected]



c. Small tools and equipment used to install system City Cost Index Example: The City Cost Index for Division 32 in McKinney, Texas is 96.6% for materials and 88.1 % for Labor. Giving a weighted average of 90.7% of the Total with OH+P.

Line Item Description Quantity Bare Materials

Bare Labor

Bare Equipment

Total + O&P

321813330302 Urethane Rubber System ½” thick

1 Square Yard

36.49 10.32 0.00 56.86

City Cost Code McKinney Texas

90.7%

=56.86 x .907

Total

1 SY

$51.57/SY

The City cost index per square yard in McKinney Texas is $51.57. If the TIPS coefficient is .87 the cost per square yard is $44.87 for this example line item. $51.57 X .87 = $44.87 TIPS Job Order Contracting Proposal Process:

When using a job order contract with a TIPS vendor you should receive the following:



1) TIPS Vendor meets with TIPS Member to review/discuss/walk the potential construction project.

2) TIPS Vendor gives the TIPS Member a Proposal, that includes:

o Cover letter from TIPS vendor describing the project and cost.

TIPS Sample Cover Letter



o Detailed scope of work

TIPS Sample Detailed Scope of Work



o RS Means Line Item Estimate, that includes TIPS coefficient.

TIPS Sample RS Means Line Item Estimate



3) If the TIPS Member decides to move forward, TIPS Member sends the (PO, Contract, and/or AIA

Construction Contract) and (TIPS Vendor Proposal), scanned as 1 PDF document, attach to an

email, and email to [email protected].

4) TIPS will review the proposal for compliance. Two things happen when the TIPS staff approves

the project: The system will forward the PO/Contract to the TIPS Vendor, and send the TIPS

Member an authorization letter that is documentation of compliance.

TIPS Sample Authorization Letter




Current Job Order Contracting Categories:

Asbestos, Mold, Lead and other Hazardous Building or Site Contaminants Abatement,

Remediation and Disposal Services (JOC)

HVAC (JOC)

Job Order Contracting

Pavement and Other Related Services (JOC)

Roofing (JOC)

Synthetic or Natural Sports Fields, Courts or Tracks (JOC)

Trades, Labor and Materials (JOC)

TIPS Job Order Contracting Contacts:

David Mabe

Vice-President of Construction

[email protected]

(903) 243-4759

Heath Hinton

TIPS Estimator

[email protected]

(903) 575-2629

FAQ’s:

Q: Does RS Means take into account Prevailing Wage Rates? A: Yes, RS Means takes that into account as well as Union Labor rates that are more prevelant in the Northeastern U.S.

Q: Doe RS Means take into account Shipping/Freight? A: Yes, to an extent. RS Means includes freight to 20 miles from the city cost code that is being indexed.

Q: What is Indirect Labor? A: Indirect Labor is anyone that is not involved directltly with the project every day. Some examples would be receptionists, accountants, business development, Human resources.

Q: Does RS Means include project management and supervision in each line item. A: No, RS Means doe not include a Project manager or Superintendant in each line item. They do include Foreman over particular line items that have installation crews. Project Managers and Superintendants are line items themselves that can be added based on the project requirements. Q: Can Engineering and/or Architectural services be included in the TIPS Job Order Contract? A: No, Texas law prohibits either of these services to be included in a purchasing cooperative contract. The TIPS member must engage these services indepently and outside the scope of the TIPS Job Order Contract.





Q: Does the TIPS Job Order Contract require the TIPS Vendor to satisfy bonding requirements? A: Yes, the TIPS Job Order Contract specifically states that, if bonding is required, the TIPS Vendor must provide a bond and the bonding cost will be passed on to the TIPS Member. In Texas, a payment bond is required for construction projects above $25,000, and a payment and performance bond for construction projects over $100,000. The TIPS Vendor should work closely with the TIPS Member to satisfy their statutory bonding requirements.



EXHIBIT A

REV. 5-4-2017 RP

The Interlocal Purchasing System – TIPS Region 8 Education Service Center 4845 US Hwy 271 North | Pittsburg, Texas 75686 1-866-839-8477 | www.tips-usa.com

TIPS COMPETITIVE BID PROCESS

The Interlocal Purchasing System (TIPS) is a National Cooperative Purchasing Program for use by member schools, colleges, universities, cities, counties, and other government entities in all 50 states as authorized by each entity’s jurisdictional legal requirements. Region 8 Education Service Center, located in Pittsburg, Texas is the lead government agency for the cooperative. The Education Service Centers were established by the Texas Legislature by Chapter 8 of the Texas Education Code: http://www.statutes.legis.state.tx.us/Docs/ED/htm/ED.8.htm. The primary procurement statute for the lead agency is Chapter 44.031 of the Texas Education Code: http://www.statutes.legis.state.tx.us/Docs/ED/htm/ED.44.htm Construction Contracts are procured pursuant to Texas Government Code § 2269. Other state and federal statutes and regulations may apply as well.

TIPS procures and awards all vendor contracts according to Texas statutes and other applicable federal EDGAR regulations, 2 CFR Part 200 as interpreted by the US Department of Education.

All proposals are posted on the web at www.tips-usa.com/rfp.cfm and www.RFPDB.com. The proposals are advertised locally in the Pittsburg Gazette (Pittsburg, Texas), The Advocate (Baton Rouge, LA), the Daily Journal of Commerce (Portland, OR) and the USA Today (National Publication). The advertising affidavit, along with the corresponding proposal documents, can be accessed on the TIPS website from any vendor profile page. Proposals are posted for a minimum of 21 days, and scored by a Review Committee. The scoring process applies evaluation criteria required by Texas Education Code 44.031(b) found at http://www.statutes.legis.state.tx.us/Docs/ED/htm/ED.44.htm#44.031. Vendors must score 80 out of 100 available points on the scoring rubric. Bid tabulations can be provided upon request. Recommendations for Vendor Contract Awards are made to the Region 8 Board of Directors for approval at regular scheduled monthly meetings held in compliance with the Texas Open Meetings Act found at http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.551.htm. Vendor Contracts are awarded for 12 months and usually may be renewed for an additional two (2) year term. Vendor awards that are compliant with Federal Regulations 2 CFR Part 200 for expenditure of certain Federal Grant Funds are noted with the vendor award information provided by TIPS. Awards are not compatible with USDA Federal Child Nutrition funds expenditures due to new expanded requirements and interpretations by USDA issued in 2016 and periodically updated. When further clarification of interpretations of 2 CFR Part 200 is received, TIPS will adjust its processes to meet any new guidance.

Note: For child nutrition and, other federal funds as well, members may use our contracts for the small purchase (multiple quote process. TIPS recommends you get at least 3 quotes) and micro-purchase (<$3500) procedures under 2 CFR part 200.

For additional information please contact: Sarah Bond – TIPS Contracts Compliance Specialist – [email protected] or (866) 839-8477 Meredith Barton – TIPS Vice-President of Operations – [email protected] or (866) 839-8477 David Mabe – TIPS Vice-President of Construction – [email protected] or (903) 243-4759 Jeff Shokrian – Business Development Manager – [email protected] or (832) 752-5978

For legal questions contact: Rick Powell - Texas Education Service Center Region 8/TIPS General Counsel (866) 839-8477 - [email protected] No attorney /client relationship is created and no legal advice is provided via this contact.

http://www.statutes.legis.state.tx.us/Docs/ED/htm/ED.8.htm




http://www.tips-usa.com/rfp.cfm





http://www.rfpdb.com/

http://www.rfpdb.com/

http://www.statutes.legis.state.tx.us/Docs/ED/htm/ED.44.htm#44.031

http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.551.htm






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