You are at your desk grinding away on your daily hour’s budget comparison report when a FedEx package arrives and makes your day. Inside, you find a request for proposal (RFP). All of that cold calling is finally paying dividends. Rejoice!
A quick perusal indicates it could be a great opportunity; however, it will require a high level of commitment in time and resources: a multi-day site tour, a voluminous response requirement and, if selected to make the first cut, an in-person presentation by your entire executive team. At this point, your BSCAI Contracting Success seminar experience reminds you it’s time to ask yourself the two critical questions during any facility services RFP process:
Does this commercial janitorial RFP qualify for us?
Do we qualify for the RFP?
Does the RFP Qualify for Us?
Since becoming a member of BSCAI, you’ve already made a criteria list for your commercial company to qualify for this opportunity. Below are four areas of RFP best practices your list will cover.
Does this account appear to be the right revenue size, allowing you to achieve your janitorial service company’s revenue goal?
Does the client match the facility maintenance market segments clearly defined as an ideal client? For example, a movie theater chain might be a significant client; however, your operational expertise is not geared to multi-site facilities, third shift and seven-days-a-week service accounts. Rather, a single-site facility management contract, full-time day portering and part-time/nighttime requirement may better align with your current janitorial business model.
The revenue and market segment are ideal; however, if the terms and conditions do not qualify, it might not be an opportunity after all. Key points of consideration are:
Risk: Understanding the level of risk involved based on indemnity language
Payment terms: Are the payment terms acceptable regarding your commercial cleaning company’s cash flow requirements?
Insurance Requirements: Does your current insurance policy provide for the types of coverage and amounts required?
Termination Clause: Does the contract allow termination by either party? Unforeseen circumstances like scope creep, non-payment for services, and unrealistic expectations are common examples in facility service contracts and why it is imperative to have the ability to cancel a contract.
Some RFPs are merely requests for vendors to submit information. This typically indicates a client isn’t requesting a proposal to be considered and, instead, the request is for unpaid consulting services provided by your organization. This might take further investigation, perhaps a phone call or email to ask probing questions: Why is the janitorial RFP happening? Is the incumbent allowed to bid? What would it take to make a change?
Do we Qualify for the RFP?
After turning a discerning eye toward the RFP, we must now cast a wary eye toward ourselves, as well. Do we qualify for the RFP? There are a host of reasons facility contractors might not qualify in the client’s opinion. However, that is conjecture.
Hence, let us explore the reasons we may not qualify and ultimately be unsuccessful in securing the business.
Cash flow refers to the flow of money in and out of a business over a specific period. It’s an important indicator of an organization’s financial health. Positive cash flow indicates more money is coming in than going out, while negative the opposite.
A new client means more cash out before more cash comes back into the business. Hence, does the outlay of cash for start-up, transition, cleaning equipment and janitorial supplies at the outset outstrip our means? Furthermore, do the additional payroll expenses due prior to receiving payment for services based on terms in the RFP require seeking outside funding to operate?
Does your company’s risk profile to the potential client seem unreasonable? The client realizes a certain amount of risk by selecting your firm to become the janitorial vendor of choice. Ways your firm could represent risk to them are:
Lack of Experience/Expertise: Does your firm lack industry-specific references that “walk and talk” like them? For example, if it is a professional office/lab/surgical center, does your firm have a list of current references that are professional offices/labs/surgical centers?
Management Team Depth: This was an issue for me during my first 10 years in business. As a small, family owned and operated commercial cleaning company, there was little-to-no management team depth. I was president, head of operations, floater, fill-in, director of HR, (sound familiar?). Mrs. McLemore was payroll, bookkeeping, AP/AR, controller and day maid. Hence, when a rather large financial institution considered us as their vendor, the question arose, “We like you both; however, what happens if either of you become ill or decide to go on vacation? Who will we call?” (We didn’t get the work.)
I have a saying: “Give me the job first. I’ll figure out how to do it later.” However, while an admirable, can-do attitude serves any business well, there are times when discretion is the better part of valor.
Having a realistic understanding of what you and your facility services business can successfully manage (headcount, payroll, geography, number of shifts, hiring, staff, re-staff, quality control, etc.) is essential to ensuring the success of your janitorial operations.
This works both ways. Two examples include:
Are you willing to agree to their terms and conditions as stated in the RFP?
Are the insurance coverage requirements above your commercial cleaning company’s means to acquire?
In either scenario, guess what? You do not qualify. NEXT!
RFPs: Finding the Right Fit for your Business
This article utilizes the collective wisdom acquired by BSCAI members through years of experience with RFPs. The points made are for your consideration. They are meant to provide an outline of a list of questions that should be considered, then asked and answered during the janitorial RFP process. After all, there is plenty of business where we do qualify and, more importantly, just as much that qualifies for us.
This article is a continuation of BSCAI’s Bidding and Estimating content series, helping you learn how to bid commercial cleaning jobs. Read more in the series on Contractor Connections, at bscai.org/contractor-connections-hub.
POSTED ON: 2/18/2025
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