Md. Code Regs. 14.39.04.08

Current through Register Vol. 51, No. 24, December 2, 2024

Section 14.39.04.08 - Job Order Contracting

A. In this regulation, the following term has the meaning indicated.

B. Term Defined. "Job order contracting (JOC)" means a project delivery method in which the LEA selects a contractor through a competitive procurement process based on a multiplier or coefficient that:

(1) Reflects the bidder's determination of the actual cost to perform the work plus overhead and profit; and

(2) Is applied to a fixed-price list of construction items and activities.

C. The fixed prices of the construction items and activities are defined by the LEA or through a standard project cost source.

D. The schedule of fixed prices may include a construction escalation factor for multiyear contracts.

E. Procurement and Award.

(1) An LEA shall obtain a JOC through a competitive procurement process, whether or not the LEA intends to execute State-funded projects through the JOC.

(2) The JOC may include extension clauses, but the State may not participate in a project executed under a JOC that:

(a) Has more than three annual extensions; or

(b) Has been increased by change order above the maximum combined price indicated in the solicitation, including all potential extensions, except for changes of scope to individual projects already begun before completion of the final annual extension.

F. Approvals.

(1) If an LEA intends to execute a State-funded project through the JOC, it:

(a) Shall provide the IAC or its designee with evidence that the JOC was procured competitively, including the solicitation documents and the submissions from bidders or offerors;

(b) Shall provide the IAC or its designee with a brief description of the anticipated scope of work, the duration of the JOC contract, the number of annual extensions, and the maximum combined cost of the projects to be performed under the JOC; and

(c) May also include the anticipated minimum cost of each project and the estimated cost of all projects to be performed in each fiscal or calendar year.

(2) The LEA shall notify the IAC or its designee of its intention to use the JOC to execute a State-funded project at the earliest possible date, and shall provide the information required under §F(1)(a) of this regulation.

(3) The LEA shall acknowledge in the notification that the State is not responsible for any project cost overruns.

(4) Approval of Contracts or Reimbursement.

(a) The LEA shall obtain approval of project award, reimbursement, or both, in the manner and time frame required for all projects funded under the relevant program.

(b) Design review prior to the start of construction shall be required if it would be required for similar projects funded through the same State funding program.

(c) If approval is requested for a project to be executed through a JOC under which a State-funded project was previously approved, the LEA may reference the earlier approval and the JOC solicitation, but is not required to resubmit all relevant information.

(d) For design-build JOC projects, the request for approval of project award or for reimbursement shall clearly indicate those portions of the project cost that are associated with preconstruction activities in order to allow the IAC or its designee to determine which costs are eligible for State reimbursement.

(e) Allowable preconstruction services, as determined by the IAC, shall be included in total construction cost.

(f) Final adjustment of the State's participation shall be made at project closeout.

Md. Code Regs. 14.39.04.08

Regulation .08 amended and recodified 23.03.04.08 effective 46:22 Md. R. 976, eff. 11/4/2019