Is government work right for my business?

Government agencies buy a lot of the same work your private customers do. Offices, schools, libraries, fire stations, parks and ports all need cleaning, grounds care, heating and cooling, electrical work and computer support. The difference is how they buy it, and that's what decides whether it's a good fit for you.

What trade work agencies buy

• Cleaning: janitorial and custodial services for offices, schools, terminals and other public buildings, sometimes with floor care or window cleaning added.
• Grounds: mowing, landscaping, tree trimming and irrigation care for parks, road edges, campuses and ponds.
• HVAC and plumbing: maintenance contracts, repairs and replacements, such as preventive maintenance on boilers and chillers.
• Electrical: repairs, lighting upgrades, generator and panel work, and maintenance.
• IT support: help desk, network and computer support for offices and schools.

The good side

• Agencies are required to pay. In Florida, a local government generally has 45 days to pay a proper invoice for goods and services other than construction, and owes interest if it pays late. Federal agencies generally pay within 30 days of a proper invoice or of accepting the work, whichever is later.
• Contracts often run for a year or more, sometimes with option years, which means steady, predictable work.
• The rules are written down. Everyone gets the same information and the same deadline, so a small business can compete on the same terms as a big one.

The harder side

• Paperwork. Expect forms, signatures, insurance certificates and sworn statements with every bid.
• Fixed deadlines. A late bid is generally refused, even by a minute.
• Sealed prices. You usually get one shot at the price, with no back-and-forth.
• Price pressure. On many bids the lowest price from a qualified business wins.
• Wage rules on federal service work. Federal service contracts over $2,500 are generally covered by the Service Contract Act, which sets minimum wages and fringe benefits (paid extras such as health and welfare pay, vacation and holidays) for the workers on the job. You have to price with those rates in mind.
• Licensing. In Florida, HVAC, electrical and plumbing contractors need a state license. Cleaning, mowing and basic lawn care don't, but applying fertilizer or pesticide for pay needs certification from the Florida Department of Agriculture and Consumer Services. Every business also needs a local business tax receipt.

When it's a good fit

• You already do this work well for commercial customers and can show it.
• You have your license (if your trade needs one), insurance and a local business tax receipt.
• You can handle being paid on invoice rather than on the day of the job.
• You're willing to read a long document carefully and meet a hard deadline.

When to wait

• Your insurance or license isn't in place yet. Sort those first: agencies check.
• You can't carry payroll for a month or two while an invoice is processed.
• You're stretched thin. A bid you rush is a bid that gets thrown out.

If the good-fit list mostly sounds like you, government work can be a steady part of your business. The next step is knowing where the bids are posted.