Government Procurement Contracts and Your Landscaping Business
If you’re a landscaper in search of more business, one avenue that you might not have considered yet is government work. Rich Clark, manager of grounds for the Kansas City Missouri School District, says there’s potential for work in a variety of projects, such as a new civic building, a park, snow removal, or re-developing an urban area.“Many cities don’t have the manpower to do what they would like to make the city look nice, so they outsource,” he says.
Procurement work has a lot of advantages and disadvantages. Here’s what you should know about government landscaping contracts before you bid on one:
The advantages
Clark says the good thing about government contracts is that they are stable and won’t default when its time to collect payment.
Tony Gibson, owner of Gibson Landscape LLC, based in Jonesboro, Ga., adds that a government contract can provide a large portfolio of work.
“A lot of times these are not little one-off projects,” he says. “If you pick up a park, it’s generally large in scale and scope relative to larger commercial projects.”
The disadvantages
Although the government might be stable in fulfilling the contract terms, Clark says it won’t necessarily be a stable customer year after year.
“When dealing with contracts at the state and local entities they have to be fair in all bidding, so just because you got the bid one year does not mean you will get the job the next year,” he says. “it’s unlike private contracts, where the owner of the business can just renew the contract because he or she likes you and the work you do.”
Clark explains that the margins in government work tend to be small. Most bids go to the lowest bidder, so even if they really liked your service and product the year before, there’s no guarantee of repeat business, especially if a competitor puts in a lower bid for the same services. This aspect of government work creates a culture of competitive undercutting.
Unlike private-contract bids where you can sell your work based on quality, timeliness, customer service and workmanship, Clark says many companies have to sometimes operate on a smaller margin in order to get government bids. Gibson also adds that virtually anyone—from upstarts to a veteran landscaping companies—can bid on government contracts, making it that much more difficult to differentiate yourself from the competition.
Clark also adds that government work usually involves jumping through more hoops and completing more paperwork.
“You have to be registered with the state and have usually a minimum amount of insurance,” he says. “You also have to be an approved vendor and comply with all EOE (Equal Opportunity Employment) rules.”
Where to find procurement opportunities
Clark recommends checking the classified section of your local newspaper as well as looking on your municipality’s government website. Many government websites will typically have an icon somewhere that mentions bids or contract procurements, he says.
Gibson recommends subscribing to construction listing websites, such as Dodge Room, Reed Bulletins or CDC News, which feature open bids in certain geographic areas.
Because a blind bid process awards these contracts, knowing certain contacts will not necessarily help. However, Gibson says that it would be to your advantage as a landscaper to build a relationship with at least one architecture firm, as this opens up new avenues of design and build opportunities.
Clark adds that landscaping companies with a measurably smaller carbon footprint have an edge in acquiring government work.
“Part of some requirements for a lot of municipalities is a special provision will be given to companies that have equipment with alternative fuel,” he says. “So if you have mowers with liquid propane and your bid is higher than your competition without the alternative fuel, you can get the bid even though you may not be the lowest bidder.”
The benefits and drawbacks of government contracts depend on your business and the type of new work you’re looking for. Make sure to do your research and budget properly to see how low you can make your bids without underselling your services.
