AEI for Installation Support
Thursday, 17 October 1996
(b) The T&M contracts used for Installation Support are intended to provide broad
flexibility and rapid response to maintenance, repair or minor construction of real property.
(3) Advantages. The advantage of using a T&M contract are that it is highly flexible and
has an almost unrestricted range of construction services. Upon receipt of the scope of work and
after a site visit, the contractor can develop a detailed work plan for the Government. However,
this type of contract is more intensive to manage and shift's more risk to the government.
Additionally, this type of contract may be used only after the contracting officer determines
that no other type of contract is suitable.
i. Summary of Differences and Advantages Between IDC, JOC, and T&M Contracts.
(1) Primary Difference. The primary difference between IDC, JOC, and T&M contracts is
the range of services available within each contract or simply, their flexibility.
(2) Total Cost. In terms of total costs, least expensive to most expensive contract costs
would be IDC, JOC, then T&M contracts. The IDC generally results in lower cost to the
Government because of greater definition of scope and forward fixed pricing of a limited bid
schedule (usually resulting in the selection of a specialized prime contractor). A JOC is generally
more expensive than an IDC because of the broader and less defined range of requirements the
contractor must be able to provide and the size of the prime contractor required, multiple
subcontractors, overhead costs, etc. necessary to execute the larger contract. The T&M contract
is even less defined than the JOC. However, if a IDC is inappropriately selected and poorly
administered, it could result in more cost to the Government than a JOC or T&M contract.
(3) Advantages and Disadvantages. Why would one contract be selected over another?
(a) There is more flexibility in an indefinite delivery-indefinite quantity type contract
(IDC) since there are no limitations on Orders, except self imposed limits. (Exception: AFARS
36.6 sets limits for an A-E IDC.)
(b) JOC is usually best for real property maintenance, or minor construction. Orders
under JOC have a floor of ,000 and a ceiling of 0,000. The T&M contract can be used for
those projects under the ,000 and over the 0,000 or anywhere in between.
(c) There will be times when either the IDC, JOC, or T&M contract could be used for
(d) Under normal circumstances (non-emergencies), If the required work is a roofing
project, then the roofing IDC could be selected. If the required work is a building renovation