Every year, the federal government endeavors to award 23 percent of all federal contract dollars to small businesses. For small janitorial and cleaning service providers, it would be a missed opportunity if they did not take advantage of the many government contracts that are available to them.
Type of Contracts to Look For
Local, state and federal government agencies regularly post janitorial opportunities for open bidding; each day there are hundreds of such opportunities available across the United States, all of which need small businesses to respond with proposals. A wide variety of different contract types exist within the janitorial and cleaning services sector, many of which are suitable jobs for businesses of almost any size. One type of government contract is called a “spot bid,” which means it is a one-time service contract. In the case of a spot bid, a company bids on the job and if they win, the contract term ends once the job is completed. Other government contracts for janitorial or cleaning services may extend for a year or more. These contracts could also include related service agreements, for example cleaning offices at the beginning or end of property lease terms.
How Pricing is Calculated
Pricing for janitorial and cleaning contracts may be calculated based on the square footage of the property to be cleaned, or on the particular tasks or services that are required by the client. The bid proposal will often include estimated costs for supplies, which may include toilet paper, paper towels, soap, and other cleaning supplies. Proposals will also normally take into account any costs related to employee wages and operating costs such as insurance. Depending on a company’s specific business strategy and operating procedures, a typical profit margin for a janitorial contract can be anywhere from 20-30%. In order to ensure accurate pricing when preparing a government bid, firms are encouraged to make the exact cleaning requirements of the contract clear: If walls, ceilings, desks and other areas are expected to be cleaned in addition to the areas outlined in the contract language, it may be necessary for the service provider to increase the bid proposal price.
Take Advantage of Great Opportunities
Feeling like a small fish in a big pond can deter many people from bidding on government contracts - but this shouldn’t be the case, as many small businesses are qualified to handle working with the government. Winning a government contract provides a great opportunity for business owners to get their company name out there and to grow their business. While being hired by individuals or other businesses to provide janitorial or cleaning services is great for your company, winning a government contract means a guaranteed paycheck, one that can last anywhere from one to five years and often include an option to extend the agreement. As long as you are a reputable business that can adequately provide the services required by the contract, you will be granted a long term deal, possibly with extra service agreements attached. This is not only good for your business, but for people who are looking for employment as well.
Danielle Calamaras | BidNet.com