AEI for Installation Support
Thursday, 17 October 1996
(1) Description. A typical JOC consists of approximately 25,000 pre-priced items, each
have a unit of measure and unit price. (See Part V, Enclosure 7 for an example.)
(a) In general, JOC involves an indefinite delivery/indefinite quantity type contract, but
contemplates the use of negotiated, definitive and bilateral Orders. This type of contract is
typically issued for an initial 12-month period and four one-year options. These options allow the
military installation the flexibility to extend the contract under the proper circumstances.
(b) The scope of work and line items are defined within the project specifications.
Line items are pre-priced and consolidated into a Unit Price Book. Contractors bid mark-up
(coefficients) to be applied to the Unit Price Book line items. The JOC has two coefficient
factors; one for normal working hours and one for other than normal working hours. Coefficient
means a numerical factor that represents costs (generally indirect costs) not considered to be
included in the Unit Price Book unit prices (e.g., general and administrative and other overhead
costs, insurance costs, protective clothing, contingencies such as changes in wage rates, and the
effect of inflation in option years, and also the contractor's profit).
(c) The Government must define the scope of work for each Order. If the desired
work is complex in nature, the Government must prepare design documents to issue to the
contractor. Recommend the use of SDM to prepare design documents for use under JOC in this
(d) Orders are issued based on the quantities of each line item that are expected to be
accomplished. Order price is determined by multiplying the estimated quantities by the Unit Price
Book price and by the contractor's coefficient factor. A Order can include up to ten percent of
non-pre-priced items of work (work items not included in the original 25,000 pre-priced items).
(e) Each signed Order becomes, in effect, a fixed price, lump sum contract and is
(2) Application. Restricted to a multiple of pre-determined items of construction work.
(a) This contracting method is used to fulfill requirements for real property
maintenance and repair or minor construction projects with an estimated value exceeding ,000,
but not exceeding 0,000, at the military installation level.
(b) In general, proposed projects valued at ,000 or less are considered
INAPPROPRIATE for ordering under JOC because of the administrative costs associated with
processing JOC orders and the simplified purchase methods available for these actions.
(Reference AFARS 17.9000).