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DATE: |
November 18, 2025 |
10 |
SUBJECT
Title
GENERAL SERVICES - ESTABLISH JOB ORDER CONSTRUCTION CAPACITY AND AUTHORIZE THE DIRECTOR OF PURCHASING AND CONTRACTING TO ADVERTISE AND AWARD JOB ORDER CONTRACTS (DISTRICTS: ALL)
Body
OVERVIEW
The County of San Diego (County), Department of General Services requests authority to establish $175 million in Job Order Construction (JOC) capacity until exhausted, to execute approved capital and major maintenance repair and remodeling work. The County will use JOC authority for work budgeted for the Major Maintenance Implementation Plan (MMIP), minor capital remodels, and other general repairs and remodeling. The County advertises JOC contracts based on major maintenance and department forecasts of work with individual job orders issued under these contracts on an as-needed basis as County departments fund projects.
Authorizing additional capacity for JOC contracts advances several specific programs that the San Diego County Board of Supervisors (Board) has enacted. An emphasis on smaller, specialty JOC contracts creates opportunities for Small-Local Businesses to participate in County contracting, in line with Board Policy B-53, Small-Local Business Policy. Currently, 92% of the prime JOC contractors are small businesses and 69% are local to the San Diego area, which enables the prime contractor to use local subcontractors under the primary JOC contract. Additionally, as part of the Working Families Ordinance, the Board adopted amendments to Board Policy F-41, Public Works Construction Projects, on February 8, 2022 (17). These amendments require prospective bidders to pre-qualify for public works bids. Board Policy F-41, which will apply to the JOC contracts, ensures that contractors will meet a set of important standards, including labor mandates and prevailing wage requirements, before receiving County work.
The Board previously approved authority for $150 million in JOC capacity on April 9, 2024 (12). The County needs additional capacity to award new JOC contracts next year as the authority is almost exhausted.
Typically, the County awards 12 to 16 JOC contracts annually, with an individual contract value ranging from $2.5 million to $6 million each, depending on expected workload under the MMIP. Departments issue project-based job orders against each of the contracts, depending on project scope. The average individual job order is approximately $150,000 and is for trades such as roofing, heating/ventilation and air conditioning, renovations, fire protection, paving, and electrical work for County facilities. There are typically 150 to 175 active job orders annually.
Today’s action requests the Board to authorize $175 million in JOC capacity and to authorize the Director, Department of Purchasing and Contracting to advertise and award JOC contracts for capital, major, and minor maintenance programs, including unanticipated urgent work identified by County departments. The County’s continued use of JOC contracts enables the County to obtain greater efficiency of delivery in scoping, contracting, repair, and renovation projects.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Find that the proposed action is not subject to the California Environmental Quality Act (CEQA) under Article 5, section 15060(c)(3) of the State CEQA Guidelines because it is not a project as defined by section 15378.
2. Authorize the Director, Department of Purchasing and Contracting to advertise and award Job Order Construction contracts and to take any action, in accordance with Section 401, et seq., of the Administrative Code and Public Contract Code § 20128.5, with respect to Job Order Construction contracts and to amend the Job Order Construction contracts as needed to reflect changes to services and funding.
3. Designate the Director, Department of General Services as the County officer responsible for the administration of all contracts associated with job order contracting for the County of San Diego and authorize the Director, Department of General Services to execute any and all documents necessary for the implementation of all contracts associated with job order contracting.
EQUITY IMPACT STATEMENT
The approval to advertise and award Job Order Construction (JOC) contracts will enable the County to provide greater efficiency and speed of delivery in scoping, contracting, repair, and renovation projects. JOC contractors under current contracts are, themselves, all small businesses, and many meet the definition of Small-Local Business set forth in Board Policy B-53. Moreover, JOC contractors use Small-Local Business subcontractors and suppliers in the San Diego area, some of which may not have the insurance or bonding capabilities to participate as prime contractors. JOC contracts thereby provide opportunities for many Small-Local Businesses to either obtain County contracts directly or to gain experience working on County projects as subcontractors. Additionally, JOC contracts are essential to deliver repair, remodeling, and other repetitive work that ensures the safety and accessibility of public-facing County buildings that County residents access. This crucial function, which helps ensure continuity of County services at such facilities, has positive impacts on the diverse populations that the County serves.
SUSTAINABILITY IMPACT STATEMENT
Implementing effective sustainability objectives is crucial to ensuring safe and healthy communities and contributing to the overall success of the region. The authorization and award of Job Order Construction contracts will contribute to the County of San Diego’s Sustainability Goals of engaging the community, providing equitable access to County services, transitioning to a green, carbon-free economy, and protecting the health and well-being of everyone in the region.
FISCAL IMPACT
There is no direct fiscal impact resulting from today’s requested action. If approved, this request will result in the establishment of Job Order construction contracts totaling up to $175 million in capacity. Funding for issuance of individual job orders under a contract is budgeted by departments for specific project requests and is included in current and future years’ Operational Plans. There will be no change in net General Fund costs and no additional staff years.
BUSINESS IMPACT STATEMENT
Expenditures resulting from this action will create private sector jobs and economic opportunities in San Diego County. Contractors with which the County contracts through Job Order Construction (JOC) contracts are overwhelmingly Small-Local Businesses, as that term is defined in Board Policy B-53. These JOC contractors, in turn, create economic opportunities for the many Small-Local Business subcontractors with which they partner on JOC contracts. To date, JOC contractors have used more than 500 subcontractors and suppliers in the San Diego area, many of whom may not have the insurance or bonding capabilities to participate as prime contractors on larger projects.
Details
ADVISORY BOARD STATEMENT
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BACKGROUND
The County uses Job Order Construction (JOC) contracts through competitively-bid, indefinite-quantity contracts with a fixed-cost threshold for repair, remodeling, and other repetitive work. Offerors bid on a catalog of pre-priced work based on unit prices, and the individual contracts are awarded to the lowest responsible bidder. The County accomplishes work by issuing individual job orders to a JOC contractor. County staff ensure JOC contractors’ compliance with licensing, bonding, performance, quality, and warranty requirements. Additionally, based on Board Policy F-41, the County prequalifies JOC offerors before they can bid. This prequalification promotes, among other things, compliance with labor standards.
JOC is a proven contracting method that local, state, and federal agencies use in more than 1,500 jurisdictions nationwide. JOC greatly reduces procurement lead times for California Public Contract Code projects, increases the County’s ability to respond to varying workload and priorities, simplifies contract administration, engages Small-Local Businesses, and reduces costs.
County of San Diego (County) Use of JOC
The San Diego County Board of Supervisors (Board) first approved use of JOC on June 9, 1998 (34) as a means of completing small-and-medium-sized projects for renovation, repair, and other repetitive work. Most recently, the Board again authorized the advertisement, award, and administration of $150 million in JOC capacity on April 9, 2024 (12). The County needs additional capacity as the authority is almost exhausted and there is not enough to award new JOC contracts next year.
Public Contract Code (PCC) § 20128.5 authorizes counties to use JOC as a procurement method for repair, remodeling, and other repetitive work. Section 404 of the County Administrative Code provides that approval of department budgets, appropriation transfers, or appropriations of unanticipated or over-realized revenues-including repair or remodeling costs-are an order of the Board for the purposes of Public Contract Code § 20128.5. As the County has exhausted the JOC capacity last established by the Board, the Board must again authorize the continued advertisement, award, and administration of JOC contracts.
State law limits the value of each JOC contract, now at a maximum of approximately $6 million, and restricts the contract term to one year. Accordingly, new JOC contracts are advertised periodically, based on the major maintenance program and forecasts by departments. These projects include roofing, heating/ventilation and air conditioning, general repairs/renovations, fire protection, paving, and electrical work. JOC is integral to the completion of the County’s major maintenance program by providing greater efficiency and speed of delivery in scoping, contracting, repair, and remodeling work.
JOC Capacity
Today’s proposal would authorize the Director, Department of Purchasing and Contracting, to advertise and award JOC contracts with up to a maximum of $175 million in total combined capacity for job orders executed under all awarded contracts. It is expected that $175 million in new capacity will last for two to three years.
The County intends that at least one JOC contract be awarded and available for use for each of the following trades: paving, concrete/general engineering, flooring, painting, electrical, mechanical, roofing, plumbing, and general contracting. The County will place special emphasis on letting JOC contracts with values of $2.5 million or less, to better create opportunities for Small-Local Businesses (as defined in Board Policy B-53) to participate in County contracting. This request will allow JOC contracts to be advertised and awarded on an as-needed basis, as project forecasts warrant, until the County exhausts the $175 million authority.
As the steward of County facilities, the Department of General Services (DGS) is charged with maintaining the County’s infrastructure and meeting maintenance requirements. Each year, DGS prepares, and the Facilities Planning Board approves the Major Maintenance Implementation Plan (MMIP) for inclusion in the County’s annual Operational Plan. The MMIP is generated from department requests and facility condition assessment reports which provide the documentation necessary to identify and prioritize critical repairs affecting life, safety, regulatory, and mission-critical assets. Repairs and improvements in the MMIP may also address regulatory requirements mandated by state and federal law and energy conservation measures that lower the County’s overall operation costs and promote environmental sustainability.
In addition to projects in the MMIP, the County also uses JOC for the Minor Capital, Facility Operations, and Energy Conservation programs. The Department of Public Works and the Department of Parks and Recreation, in addition to DGS, have access to the JOC authority through DGS for approved renovation projects, remodeling projects, private road repairs, and airport road/runway repairs.
While the requested authorization is for JOC capacity of up to $175 million, the County’s total obligation under any authorized contract is not fixed. Stated differently, no minimum guaranteed dollar value for any contract and contract usage exists; JOC contracts are as-needed contracts.
ENVIRONMENTAL STATEMENT
The proposed Board action is not subject to California Environmental Quality Act (CEQA) review under Section 15060(c)(3) of the CEQA Guidelines because it is not a project as defined by Section 15378. Authorizing the Director, Department of Purchasing and Contracting, to advertise and award Job Order Construction (JOC) contracts has no potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. This proposed action does not authorize work at any particular site or facility. Therefore, there is no project to analyze under CEQA at this time. At the time that specific job orders under the JOC contracts are identified, staff will perform the necessary environmental review before issuing a job order.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed action to authorize and award Job Order Construction (JOC) contracts supports the Sustainability Initiative in the County of San Diego’s 2025-2030 Strategic Plan by ensuring economic solvency to achieve the basic facilities and physical resources necessary for superior service delivery. Additionally, today’s proposed action supports the Equity, Empower, and Community Initiatives, in that JOC contracts support Economic Opportunity for Small-Local Businesses, ensure the Safety of County facilities for the County communities accessing them, and invests in County (and, specifically, Small-Local Business) workforces.
Respectfully submitted,
ebony n. shelton
Chief Administrative Officer
ATTACHMENT(S)
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