How to Price a Janitorial Contract for a Government Bid
Updated
Short answer
To price a government janitorial contract, measure the cleanable square footage, divide by a realistic production rate to get labor hours, multiply by the wage rate in the solicitation's wage determination plus fringe benefits and payroll taxes, then add supplies, equipment, insurance, supervision, overhead and a profit margin.
1. Measure the work
List each area (offices, restrooms, hallways, break rooms), its square footage, floor type, and how often each task is done (daily, weekly, monthly). The solicitation's performance work statement usually has this.
2. Turn square footage into labor hours
Use production rates (square feet cleaned per hour) that match each area type. Restrooms are slower than open offices. Multiply by frequency to get monthly hours. Be realistic: under-estimating hours is the most common way to lose money.
3. Price labor correctly
Use the wage determination in the solicitation for each job type, then add fringe benefits, payroll taxes, workers' comp and paid time off. Add supervisor time.
4. Add everything else
- Supplies and consumables (if the contract says you provide them)
- Equipment and its replacement
- Insurance and bonding if required
- Overhead: admin, vehicles, phones, software
- Profit margin
5. Sanity-check your price
Compare against past awards for similar buildings on USAspending.gov. Then send it with a short capability statement. Find open cleaning contracts in your state.
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Frequently asked questions
What is a wage determination?
Many federal service contracts include a wage determination that sets minimum wages and fringe benefits for each job type in that area. Your price must cover at least these rates.
Should I go to the site visit?
Yes, if one is offered. It shows you the real floor types, traffic and condition, which can change your labor hours a lot.
Should I bid the lowest price?
Not always. Many contracts are awarded on best value or lowest price technically acceptable. A price that's too low can be rejected as unrealistic, or make you lose money.