Indefinite delivery, indefinite quantity (IDIQ) contracts have been used by the United States Armed Forces as a standard form of construction procurement for nearly a half century.
IDIQ contracts deliver both flexibility and cost by allowing owners to complete an unlimited number of construction projects under a single, longstanding contract rather than needing to take each individual project to bid. There are several types of IDIQ contracts, but one particularly effective method is Job Order Contracting (JOC), also referred to as a SATOC (Single Award Task Order Contract).
Originally created by the Army Corps of Engineers, JOC is now utilized by all levels of government. JOC’s popularity and success is due to its process design, which emphasizes collaboration, continuous improvement and LEAN principles. Every JOC program is based on a Unit Price Book, which provides preset prices to any tasks needed to complete projects detailed in the Scope of Work. Owners can order any job or task listed in the Unit Price Book from the awarded contractor without having to take an individual project through a bid process, since tasks are priced in advance.
Ken Davis helped implement the JOC program at Fort Stewart during his 38 years of service to the U.S. Army. Davis emphasized time saving as one of the advantages of Job Order Contracting
“We were bidding on everything one at a time with individual, standalone contracts. We had to come up with specifications for every single contract or task order. JOC allowed us to begin projects in about half the time it took to do a standalone contract.”
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