JOC Contractor Spotlight: Tri-State General Contracting Group, Inc.

Contractor’s Success Fueled by Decades of JOC Experience

Successful Gordian Job Order Contracting (JOC) programs depend on a deep and talented bench of construction contractors. In exchange for being ready to complete an organization’s operational work and working within the unique parameters of the JOC process, these dedicated construction pros are rewarded with the potential for a steady stream of work. It’s a win-win.

This series profiles construction contractors who have made the most of the opportunity to participate in a Gordian JOC program. They’ll share how they became involved, how JOC has helped strengthen their project pipeline and advice for contractors who want to participate in Gordian JOC programs in their area.

Company Background

Headquartered in Amarillo, Texas, Tri-State General Contracting Group, Inc., opened in 2003 with only three employees. 20 years later and counting, Tri-State is now 40 employees strong. President Jerry Reynosa credits the company’s incredible success to two things: An approach to business that prioritizes controlled growth and a Small Business Administration (SBA) 8(a) Business Development program that creates opportunities for small and minority-owned companies to work with a local Department of Energy campus.

ITri-State has completed scores of public sector construction projects for the Department of Energy, the State of Texas, the City of Amarillo, many county and local government entities and area school districts. Over the last three years, Tristate has averaged approximately $30 million in annual revenue and has received several awards, including Contractor of the Year for the Lubbock District, and the Small Business Vendor of the Year from the Pantex Plant, a Department of Energy nuclear facility.

“We’re proud of [the Pantex award]. Our mandate is to focus on quality and safety and that’s what I push to my staff. Safety and quality are primary,” Reynosa tells Gordian.

Getting Involved With a Gordian JOC Program

In 2016, Tri-State was awarded an Indefinite Delivery, Indefinite Quantity (IDIQ) contract via the federal government’s General Services Administration (GSA). When he was introduced to Job Order Contracting a few years later, Reynosa immediately recognized the similarities.

Job Order Contracting is an IDIQ construction procurement method that allows organizations to complete many projects using a single, competitively awarded contract. The number and timing of the projects are unknown, hence, Indefinite Delivery, Indefinite Quantity.

In contrast to traditional project delivery methods, where construction contractors bid on individual projects, with JOC contractors bid on a Unit Price Book. At Gordian, we call our Unit Price Book the Construction Task Catalog®, a distinction built on research and specificity. Whereas many JOC programs use a Unit Price Book with national average pricing, the construction costs published in the CTC are local and verified by Gordian’s internal engineers. This precision offers owners greater cost control and ensures contractors are paid fairly.

Tri-State bid on a Cooperative JOC contract held by Sourcewell, a major cooperative purchasing association. These JOC contracts differ from their standalone counterparts in that they are held by a co-op, group purchasing organization (GPO) or separate public entity and accessed by many organizations. The upside of Cooperative JOC for project owners is they get to bypass ironing out the fine print of a contract and start construction faster. Contractors benefit from the opportunity to build strong working relationships with many organizations.

“I had a meeting with my folks, and I said, ‘Let’s pursue this,’” Reynosa recalls. “This would be great for us and for our customers.”

Get more info about participating in a Gordian JOC program and how JOC can help you put more projects in the pipeline and grow your business.

Job Order Contracting Successes and Milestones

The bulk of the projects Tri-State has completed under Gordian’s Job Order Contracting have been valued between $50,000 and $100,000 and are often done on tight timelines. This includes removing and replacing overhead doors for Texas A&M AgriLife, a branch of the Texas A&M University system, and millions of dollars of work for the City of Amarillo.

“We’ve had a great experience with the City of Amarillo. They utilize the JOC program a lot. The Parks department started reaching out to us recently, along with the HUD department and Waste Management,” Reynosa says. “The Amarillo International Airport has submitted approximately $300,000 worth of work orders in the last month or two.”

Early in 2024, Tri-State was awarded a $5.5 million Cooperative JOC contract to build what city officials are calling a transformation facility for Amarillo’s unhoused population. Similar to the Victorville Wellness Center in California, also built with Gordian JOC, the facility will offer comprehensive wraparound services, including private living quarters and job training.

“This project will make a huge impact on our community. It’s going to be very positive for our city,” Reynosa says.

Find upcoming opportunities to bid on Gordian JOC contracts in your area.

Advice for Aspiring JOC Contractors

If Jerry Reynosa has one tip for contractors considering bidding on a Job Order Contracting program, it’s to be thorough when developing their Adjustment Factor, the cost multiplier contractors add to the preset costs in the Construction Task Catalog to turn a profit.

“The coefficient [another term for Adjustment Factor] is something you really have to pay attention to if you want to get into the JOC world. That’s especially true in Texas. A project in Midland or Odessa costs me more to do than here in Amarillo. You need to know your numbers.”

The benefits have far outweighed the challenges for Tri-State General Contracting. In addition to creating a steady stream of work for his company, Reynosa sees value in using Job Order Contracting to train the next generation of commercial contractors.

“I put my younger project managers in charge of JOC projects. It gives them good experience managing schedules and overseeing smaller projects before they move onto bigger jobs,” he says.

In addition to training his younger staff, Jerry recommends Job Order Contracting for the collaboration he has with customers.

“JOC is full disclosure. We’re showing how we get to a price, line by line, and that openness creates a team mentality. We’re all in it together to make sure the job gets done correctly.”