Government Cleaning Contracts

Register on SAM.gov with NAICS 561720 and monitor solicitations for janitorial services in your area. Many federal cleaning contracts are set aside for small businesses, 8(a), or HUBZone firms — certifications significantly reduce competition. Start by bidding on state and local government facilities to build past performance, then move to federal work. Avoid AbilityOne-designated facilities, which are reserved for nonprofit programs employing workers with disabilities.

The Service Contract Act (SCA) requires contractors to pay workers the locally-prevailing wage and fringe benefits on federal service contracts over $2,500. For cleaning contracts, this means custodians and building service workers must be paid the wage rates specified in the wage determination attached to the solicitation. These rates are typically set above minimum wage and vary by county. Failing to price SCA costs into your bid accurately is the leading cause of small cleaning contractors losing money on federal contracts.

AbilityOne is a federal program that gives contracting preference to nonprofits employing workers with severe disabilities for custodial and grounds services at designated federal facilities. If a facility is AbilityOne-designated, it is not open for general competition. You can identify AbilityOne contracts in SAM.gov — they typically reference the Javits-Wagner-O'Day Act. Many federal facilities are not AbilityOne-designated, and state/local government contracts are generally not affected.

Government cleaning contracts are typically Firm Fixed Price with recurring base periods plus options. Small building contracts (20,000–50,000 sq ft) commonly run $50,000–$200,000 annually. Large facility contracts (GSA federal buildings, VA medical centers) can reach $1–5 million per year. Margins depend heavily on accurate SCA wage pricing, supply chain efficiency, and labor management. Experienced government cleaning contractors typically achieve 12–20% operating margins.

Federal cleaning contracts generally do not require specialized licenses beyond standard business licensing and insurance. Most solicitations require general liability insurance ($1–2M per occurrence is typical), workers' compensation, and a satisfactory past performance record. Some high-security facilities require background checks for employees. State and local contracts may have additional bonding requirements. Check each solicitation's specific requirements — they vary by agency and facility type.