In 2024, more than 46,000 construction projects were completed using Gordian’s Job Order Contracting solutions. Just under 11,000 of those, approximately 24%, were completed using Cooperative JOC, also known as ezIQC®. Despite the success of organizations across North America, there are still misconceptions and misgivings about accessing construction contracts like Cooperative JOC via co-ops and group purchasing organizations. In this post, we’ll clear up the confusion and bust the myths associated with this construction procurement method.
Let’s start by level-setting a few basic pieces of information.
What Is Job Order Contracting (JOC)?
Heralded for its speed and efficiency, Job Order Contracting, or JOC, is an Indefinite Delivery, Indefinite Quantity (IDIQ) construction delivery method that allows for many projects to be completed with one competitively awarded contract. Job Order Contracting eliminates the need, expense and effort of sending every project out to bid, accelerating project delivery by as much as 25%, according to a report by NIGP and Gordian.
At the heart of every Gordian JOC solution is the Construction Task Catalog, or CTC, a unit price book researched and validated by our cost engineers and shared by project owners and contractors alike. Instead of bidding on individual projects, contractors bid an Adjustment Factor (also called a coefficient) on the CTC. This Adjustment Factor accounts for the contractor’s overhead and profit, and it is applicable over the life of the contract.
Organizations access Gordian’s JOC solutions via standalone and/or shared contracts.
What Is the Difference Between Cooperative JOC and a Standalone JOC Contract?
There are several differences between Cooperative JOC contracts and their standalone counterparts. The first difference is ownership. With a standalone JOC contract, an organization or entity has a custom CTC developed just for them, with construction costs that reflect their local market for work they are likely to accomplish with JOC. The organization works hand-in-hand with Gordian to iron out contract details and notify area contractors about bidding.
Conversely, organizations access Cooperative JOC via a purchasing co-op, GPO or from a larger public entity as part of an interlocal agreement. It is the purview of these entities, and not their individual member organizations, to work with Gordian to establish project details and award contracts. The costs in the CTC are regional, rather than hyperlocal, and, from a member standpoint, these are construction-ready contracts.
Hear more about the differences between these contracts and much more in our Job Order Contracting 101 video series.
Now that you’ve got a baseline understanding of Job Order Contracting, let’s bust some myths about Cooperative JOC.
Cooperative JOC Myths and Facts
Myth 1: Cooperative JOC “Bypasses” Competitive Bidding
This is the most pervasive misconception about Job Order Contracting. Cooperative JOC, like traditional, standalone Job Order Contracting, satisfies all competitive bidding requirements and complies with all relevant statutes and regulations. Each contractor’s Adjustment Factor is effectively their bid, and contract owners follow the same process to award as they do with Design-Build, Design-Bid-Build and other traditional project delivery methods.
Myth 2: Cooperative JOC Cannot Be Used With Federal or Grant Funding
Funding is obviously an important consideration for any construction contract, and owners should confirm whether their intended funding source restricts their means of procurement and that they follow all prescribed guidelines. That said, grant and federal funding has been used to complete a bevy of Cooperative JOC projects.
One notable example occurred in 2023, when the City of Victorville, California used Cooperative JOC (accessed via Sourcewell) to complete a $28 million project funded by a state grant. Transparent pricing in the CTC helped city officials prove they acted as thoughtful stewards of their awarded grant.
Myth 3: Cooperative JOC Excludes Local Contractor Participation
Construction contractors are a vital part of any successful Job Order Contracting program. While many contractors compete for every Cooperative JOC contract, an organization’s local contractors have as good a chance of being awarded as anyone else. Gordian encourages owners to inform their contracting community about opportunities to bid on Cooperative JOC contracts, and we have a team dedicated to contractor education and success that holds contractor information meetings, both virtually and in person. During these sessions, Gordian’s experts explain how to bid on a Cooperative JOC contract in detail, giving all attendees an equal opportunity to be awarded.
Are you a construction contractor? Find out more about how a Gordian JOC program can power your project pipeline in this on demand webinar.
As with most myths, when it comes to Cooperative JOC, there’s a sizable gap between the story and the truth. And the truth about this innovative approach to construction project delivery is positive for project owners, construction contractors and communities. Cooperative JOC satisfies bidding requirements, has been used successfully with outside funding sources and encourages local contractor participation. It’s a fast track to quality construction.
