BUSINESS OPPORTUNITIES: Should You Work for Uncle Sam?

Red tape or not, government contracts can be a great line of business for landscape companies. Here are the basics.

Erik Dihle is surprised more private companies don’t go after government contract work. “It either doesn’t occur to them or they perceive it to be bureaucratic,” says Arlington National Cemetery’s chief horticulturist, adding, “It’s really not that bad.” 

Green industry companies have a unique advantage when bidding on government contracts, Dihle says, because they often have the personnel and equipment to conduct a variety of tasks outside of mowing, leaf removal and pruning. For example, Arlington grants a $60,000 to $70,000 annual contract for power washing headstones. Though power washing isn’t a typical landscape service, there’s no reason a landscape company couldn’t be considered for that contract. “I don’t like to see green industry outsiders getting into green industry work, but I don’t mind the other way around,” Dihle says. “You may want to think beyond your typical services.”

WHERE TO START. Federal cemeteries, military installations, government office buildings and agencies across the country all have grounds-related needs. Firms interested in obtaining government contracts can search for opportunities at www.fedbizopps.gov, the single place where all contracts more tha

“It’s easy to find the business because everything is published,” says Bobby Ashe, vice president of Ashe Facility Services, Yorktown, Va.
 
Winning contracts is another story, though. Ashe, whose $7-million-plus company has been involved in government contracting for more than 20 years, recommends companies new to this work start with small contracts, build their credibility and then move on to larger ones. “The key is to get your foot in the door and make sure you’re learning the business and the strategies of getting the contracts, because it’s generally different from the private sector,” Ashe says.
 
Ashe also recommends signing up for FedBizOpps’ vendor notification service,” which sends out e-mail alerts by set-aside type, classification code or agency.
 
To identify local opportunities, Dihle suggests calling federal agencies or facilities in your area and asking them when their grounds maintenance contracts are coming up and who to contact in the future to find out about bid solicitations.
 
REQUIREMENTS. Companies interested in government contracting should prepare for red tape.
 
“One of the most important things to learn about government contracting is there’s a separate set of rules, such as Federal Acquisition Regulations and the way bids are structured,” Ashe says. “There’s a lot of paperwork involved, management of quality assurance and reports that have to be done, so if you don’t want to spend time doing those kinds of things it may not suit you.”

Still interested? There are a few steps all firms seeking government work must take before bidding on contracts. First, companies should know the North American Industry Classification System (NAICS) codes for their services. “Landscaping Services” is 561730, “Landscape Architectural Services” is 541320 and others can be found at http://www.census.gov/epcd/www/naics.html.
 
Next, companies must have a Dun & Bradstreet Data Universal Numbering System (D-U-N-S) number, which can be created in one day by visiting http://fedgov.dnb.com/webform/ or in five to 10 minutes by calling 866/705-5711 during business hours. The following information is required:

  • Legal name;
  • Tradestyle, Doing Business As (DBA), or other name by which your organization is commonly recognized;
  • Physical address, city, state and ZIP code;
  • Mailing address (if separate);
  • Telephone number;
  • Contact name;
  • SIC/NAICS code (line of business);
  • Number of employees at your location;
  • Headquarters name and address (if there is a reporting relationship to a parent corporate entity); and
  • Whether it’s a home-based business. 

After obtaining a D-U-N-S number, prospective federal contractors must register with the Central Contractor Registration (CCR) at www.ccr.gov and renew this registration every 12 months. Once a company registers in CCR and receives an MPIN (marketing partner identification number), it’s required to register with ORCA (Online Representations and Certification Applications), a system that works in concert with CCR. ORCA is available at https://orca.bpn.gov.

TYPES OF PROCUREMENT. The government specifies the types of firms permitted to bid on contracts. Contracts are either listed as unrestricted (meaning any company can place a bid) or one of several types of small business set-asides. Some set-aside designations are granted through a self-certify process during CCR registration, but the Small Business Administration grants certification for 8(a), Small Disadvantaged Business and HUB-Zone status (for details see “Set-Aside Specifics” above).
 
There are also different types of solicitations, and it’s beneficial to know what type of bid you’re going after, Ashe says. Typically, the government agency would specify the type of bid solicitation in the pre-solicitation notice.
 
The Invitation for Bid (IFB) method is typically used for contracts more than $100,000 and tends to be awarded based on price. It entails filling out forms, as the agency generally prescribes exactly what it wants done, how to do it and how often. The contractor just submits a price.
 
With a Request for Proposal (RFP), the government proposes a problem and asks bidders to come up with solutions and submit detailed technical proposals specifying how they would manage the work – including experience, personnel, equipment materials, etc. – and what it will cost to do so. RFPs require custom proposals and are generally more time consuming than IFBs.
 
Another method, the Request for Quote (RFQ), is not a binding contract and is often used to dig up market pricing, according to Onvia, a firm that helps companies get government contracts.
 
No matter what type of solicitation a landscape contractor is bidding on, Ashe advises contract-seekers to pay close attention to the government’s specifications.
 
“They may not be what you’re accustomed to,” he says. “You might think that cutting grass is cutting grass, but they might say every piece of machinery has to weigh under 1,200 pounds and be 60 inches in width. You have to make sure you’re bidding what they’re asking for.” 

 

January 2008
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