1. A. In this regulation, the following term has the meaning indicated.

2. B. Term Defined. “Job order contracting (JOC)” means a project delivery method in which the LEA selects a contractor through a competitive procurement process based on a multiplier or coefficient that:

   1. (1) Reflects the bidder's determination of the actual cost to perform the work plus overhead and profit; and
   2. (2) Is applied to a fixed-price list of construction items and activities.
3. C. The fixed prices of the construction items and activities are defined by the LEA or through a standard project cost source.
4. D. The schedule of fixed prices may include a construction escalation factor for multiyear contracts.

5. E. Procurement and Award.

   1. (1) An LEA shall obtain a JOC through a competitive procurement process, whether or not the LEA intends to execute State-funded projects through the JOC.

   2. (2) The JOC may include extension clauses, but the State may not participate in a project executed under a JOC that:

      1. (a) Has more than three annual extensions; or
      2. (b) Has been increased by change order above the maximum combined price indicated in the solicitation, including all potential extensions, except for changes of scope to individual projects already begun before completion of the final annual extension.
   3. (3) When submitting a contract approval to the IAC, the LEA must acknowledge that the State is not responsible for any project cost overruns.

6. F. Approvals. If an LEA intends to execute a State-funded project through a JOC, it:

   1. (1) Shall provide the IAC or its designee with a brief description of the anticipated scope of work, the duration of the JOC contract, the number of annual extensions, and the maximum combined cost of the projects to be performed under the JOC;
   2. (2) Shall submit the project for design review prior to the start of construction [shall be required] if it would be required for similar project funded through the same State funding program;
   3. (3) May reference an earlier approval and the JOC solicitation if approval is requested for a project to be executed through a JOC under which a State-funded project was previously approved, but is not required to resubmit all relevant information;
   4. (4) Shall obtain approval of contract award, reimbursement, or both, in the manner and timeframe required for all projects funded under the relevant program;
   5. (5) Shall, for design-build JOC projects, clearly indicate on the request for approval of contract award or for reimbursement those portions of the project cost that are associated with preconstruction activities in order to allow the IAC or its designee to determine which costs are eligible for State reimbursement;
   6. (6) Shall include in the total construction cost allowable preconstruction services, as determined by the IAC; and
   7. (7) Shall acknowledge that final adjustment of the State’s participation will be made at project closeout.

Authority: Education Article, §§4-126, 5-112, and 5-303, Annotated Code of Maryland

Effective date: May 21, 2007 (34:10 Md. R. 891)

COMAR 23.03.04 recodified to be COMAR 14.39.04 under new subtitle, Interagency Commission on School Construction, effective November 4, 2019 (46:22 Md. R. 979)

Regulation .01A amended effective November 4, 2019 (46:22 Md. R. 979)

Regulation .03 amended effective June 28, 2021 (48:13 Md. R. 509)

Regulation .04A amended effective November 4, 2019 (46:22 Md. R. 979)

Regulation .05 amended effective August 18, 2025 (52:16 Md. R. 848)

Regulation .05D, E amended effective November 4, 2019 (46:22 Md. R. 979)

Regulation .06B, D amended effective November 4, 2019 (46:22 Md. R. 979)

Regulation .08E, F amended effective August 18, 2025 (52:16 Md. R. 848)

Regulation .09 repealed effective June 28, 2021 (48:13 Md. R. 509)