MMBI Job Order Contracting

A Job Order Contract (JOC) is a type of Indefinite Delivery/Indefinite Quantity contracting. It is a contract for construction services whose performance and delivery scheduling are determined by issuing Work Orders with the contractor during a fixed period of time. It is an on-call construction contract through a master agreement, not a purchase order or service contract.

This project delivery method allows Caltrans to prequalify bidders based upon established criteria, such as requiring contractors be properly licensed from contract award through contract acceptance, and self-perform at least 30% of the work for each Work Order. Prequalified contractors competitively bid on a JOC through an Invitation for Bid (IFB).

Caltrans advertises the JOC IFB where contractors competitively bid based on their Adjustment Factors on each work item listed in the Fixed Unit Price List; this Stipulated Unit Price will be used to price all Work Orders under the JOC Master Agreement. Caltrans awards the JOC Master Agreement to the lowest responsive and responsible bidder based on the lowest total dollar value of the Price Proposal.  A JOC Master Agreement is 12-months with the option of extending for up to two 12-month periods upon mutual agreement between Caltrans and contractor. Work Orders are then issued as an individual construction contracts, which identify specific locations and items of work.

The JOCs have a 25% Small Business and 3% Disabled Veteran Business Enterprise target. The Invitation for Bid (IFB) for the Master Agreement requires the contractor to develop a comprehensive plan that fully outlines the contractor’s commitment to meet the state’s goal. Additionally, the IFB requires the contractor to report quarterly on their SB and DVBE utilization progress relative to this plan.

Across the state each of the five regional JOCs account for varying portions of the miles. Over the course of the year the Master Agreement is in effect, each region will issue multiple work orders, each of which presents an opportunity for small and disabled veteran businesses.