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Facility
owners/managers today face a complex dilemma. Aging facilities,
budget cuts and personnel “downsizing”, yet they are
still expected to provide top service and high quality facilities
to their customers. To be successful, they much learn how to do
more with less – they must maximize performance and minimize
expenditures. Existing procurement practices must be scrutinized
to determine whether they deliver the Best Value to the facility
owner/manager. Fortunately, about 20 years ago, certain US Army
Facility Engineers bean researching this situation. Their research
primarily focused on two key processes 1 the process of hiring
the best contractor for a specific project 2) the process of converting
a new work request into an actual construction project in the
most timely and cost effective manner. Their research eventually
led to the creation of a revolutionary new procedure method called
Indefinite Delivery Indefinite Quantity (IDIQ). This method of
procurement quickly spread to every military base in the county.
It is now used by nearly every Federal Agency and is currently
making its way into the public and private agencies outside the
Federal Government. Basic Industries, Inc., has embraced the IDIQ
method of procurement and is firmly committed to the belief that
all facility owners/managers should have an IDIQ method of procurement
at their disposal. IDIQ contracting is referred to by several
different acronyms (Delivery Order Contracting – DOC, Task
Order Contracting TOC, Simplified Acquisition of Base Engineering
Requirements – SABER and Job Order Contracting JOC). The
Texas procurement code defines it as Job Order Contracting –
JOC.
In
2002, Basic Industries, Inc., committed its resources to IDIQ
contracting by establishing a division, Basic IDIQ, to promote
and deliver Job Order Contracting within the state of Texas. Basic
IDIQ entered this relatively new market with a core belief that
for facility owners/managers, “Hiring the best contractor
is not the same as hiring the lowest price contractor”.
The alternative to low-bid procurement is a performance based
selection process, which recognizes that price is only one o many
factors to be considered when selecting a contractor. Performance
based selection must consider all factors that will predict the
level of performance by a contractor including technical ability,
prior performance and competitive pricing. This is the essence
of IDIQ contracting, combined with incentives for the contractor
to perform. Most IDIQ contracts include a base year contract with
up to four annual renewal options based on contractor performance.
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