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HB 447 Will Limit Ability Of JOC As A Tool For Facilities People |
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| HB 447 Will Reduce Ablity Of JOC |
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Currently there is a bill under review by the legislation in Texas, House Bill 447 that will make Job Order Contracting so cost prohibitive and unmanageable that JOC will no longer be viable for publicly funded facilities and infrastructures in the state.
The JOC process is a great benefit to citizens and taxpayers of Texas. Job Order Contracting also supports many small businesses, minority businesses, disadvantaged businesses – employing many thousands of people in Texas. The alliance estimates that over 10,000 Texas businesses employing over 100,000 people in the state gain their livelihoods from JOC programs in the state. Beyond those working within JOC programs, those utilizing facilities and environments benefiting from well run professional JOC programs in the state of Texas is in the millions.
The JOC process gives public officials a key tool for efficiently and cost effectively handling the renovation, rehabilitation and repair of our public buildings and other public facilities.
The Alliance for Job Order Contracting in Texas supports all efforts to improve the fair and honest administration of the public contracting system. Regrettably, however, we feel that the current version of HB 447 unnecessarily harms the ability of Texas officials to use the JOC process and in the long run impacting many millions of people utilizing public facilities at schools, cities, counties and universities across Texas. Therefore, at this time we are against the bill and recommending that it be changed or voted against.
In summary, this proposed legislation would kill JOC in Texas limiting JOC to little more than janitors with tool belts.
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High Level Concerns on HB 447
· Not Allowing JOC Programs To Focus On What They Do Best:
Renovation, additions and other work is not permitted under this Bill only applies to “work…of a recurring nature” and “repair or maintenance”
This is a concern because JOC supports renovation, repair, rehabilitation, remodeling and construction projects as part of an ongoing program at a facility or campus. This would need to be addressed in the bill as it stands today;
· Adding Costs, Reducing Responsiveness & Eliminating Innovation:
The Entity must select or “approve” the Architect/Engineer. This requirement in a JOC program will add cost, time and delays. This requires assembling a Design Build team prior to bidding future project or we are required to work with a designer not chosen by the JOC program contractor.
This is a concern because JOC projects vary in size and scope of complexity, from very minor efforts to more complicated ones. This added burden will eliminate the ability for a JOC contractor to value engineer and design projects, allowing for cost or time savings to the owners;
· Not Allowing Governing Boards To Manage Needs & Services:
There is a hard limit of $1M per task order within a JOC program.
This is a concern because the variety and scope of individual JOC task orders/ projects within a JOC program can vary by size and nature of public funded organizations. It is better to allow the governing boards to establish a soft limit, i.e. requiring a board approval of any project over $1 million vs. a hard limit.
· Elimination Ability Of Medium & Smaller Institutions From Access To Quality JOC Providers & Programs
This Bill would not allow any of these Contracting Methods, including JOC, through a cooperative purchasing program (Co-ops and/or interlocal agreements).
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To Voice Your Concern Please Contact the Bill Committee Chairman At:
Honorable Chairman William Callegari
P.O. Box 2910, Austin, TX 78768.
Fax: 512-463-7820
Phone: 512-463-0528
Email: bill.callegari@house.state.tx.us
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For A Copy Of HB 447 Please Click Below:
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To Copy or Print A One Page Talking Points Sheet About HB447 Click Below:
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The Following Testimony & Letters Were Given At The February 26th Hearing On HB447
Please Click The Link To Download A Copy:
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