How Federal Agencies’ Use of JOC Promotes Small Business Growth

Small businesses are an important part of the economy and a major driver of U.S. economic growth. Following the COVID-19 recession, small businesses grew rapidly, making up over 60% of the jobs lost during the first two quarters of the pandemic. Overall, they have accounted for 66% of new jobs over the last 25 years. And with nearly 3.5 million small construction businesses active in 2022, construction is among the top industries providing opportunities for small business owners.

A New Promise for Small Construction Businesses

President Biden’s Bipartisan Infrastructure Law promises to “rebuild America’s roads, bridges and rails, expand access to clean drinking water, ensure every American has access to high-speed internet, tackle the climate crisis, advance environmental justice and invest in communities that have too often been left behind.” Along with revitalizing communities and their infrastructure, this law promises to create 1.5 million jobs annually.

This is a huge opportunity for all players in the construction industry, especially small business owners. Broadband infrastructure and improvements to roads and bridges can revitalize cities and towns of all sizes, bringing more opportunities for contractors. And many are hopeful for the effects that this law will have on small construction businesses across the country.

What Gordian JOC Can Do For Small Businesses

Fortunately, solutions like Gordian’s Job Order Contracting (JOC) can help provide work for small business owners and employees. JOC is a single solicitation project delivery method; thus, the administrative costs associated with bidding for multiple jobs are reduced to just one bid. For contractors, this means the barrier of entry for JOC projects is lower than with alternative methods.

Read more about how Gordian JOC can help you enable small business owners in your community.

JOC contracts are performance-based, meaning contractors who complete projects successfully can earn bigger jobs. It is an indefinite delivery, indefinite quantity (IDIQ) project delivery method, meaning the amount of work that can be supplied to contractors is undetermined at the start of the contract, so contractors who do great work can be rewarded with more jobs. Because multiple projects can be completed over the life of one long-term contract, project owners and contractors can build relationships that benefit both parties. This prevents opportunistic behaviors, provides a steady stream of income, and promotes small business growth.

How JOC Promotes Small Business Growth

Job Order Contracting can alleviate the headache of long procurement processes. Traditional procurement cycles typically take months to complete and require a significant amount of administrative and technical resources. Procurement of JOC contracts is shown to require less time and less human resources. This means you complete more projects, faster. And because JOC contracts help connect local contractors and project owners, an overwhelming majority of JOC projects are completed on time, on budget, with satisfactory results.

Modernizing Agency Operations on-demand webinar

Watch this webinar to hear how government and industry experts recommend practices for modernizing agency operations, including a spotlight on how JOC helps agencies create mutually beneficial industry partnerships.

JOC can also help project owners source qualified local contractors. Gordian does all the legwork – finding contractors, training them on how to run a JOC project successfully and providing them the software they need to run their programs and manage task orders. And because 35% of Gordian contractors hold an MWBE certification, using JOC can help you provide opportunities for all contractors.

A Mutually Beneficial Solution

Because it saves both the project owners and contractors time by reducing bidding effort for both parties, JOC reduces the barriers to entry for small business owners and provides them with opportunities for long-term business relationships and organizational growth. It also helps project owners secure local contractors that can do great work.

Still want to know more? Visit this resource hub to learn all there is to know about Job Order Contracting.

With new federal funding aimed at rebuilding America’s infrastructure, there is a great opportunity for federal project owners to help create new jobs and stimulate the growth of our small businesses. And JOC can be the perfect solution to help project owners and business owners get the right projects done, by the right people, faster.

About Gordian

Gordian is the leader in facility and construction cost data, software and services for all phases of the building lifecycle. A pioneer of Job Order Contracting, Gordian’s solutions also include proprietary RSMeans data construction costs and Facility Intelligence Solutions. From planning to design, to procurement, construction and operations, Gordian’s solutions help clients maximize efficiency, optimize cost savings and increase building quality.