Quick bidding question

[MASTERMOWER]

If you're bidding on a 4 year contract (in this case snow plowing), would you increase the price for the initial year to be in accordance for inflation on year three/four? BTW: this is a government contract

[jrservices]

If you're bidding on a 4 year contract (in this case snow plowing), would you increase the price for the initial year to compensate for inflation on year four? BTW: this is a government contract

I'm looking at one now, state contract for 8-10 properties, one year contract, with 4 renewals for four addl years. Contract cost renewal increase shall not exceed the prior years contrct cost by more than an amount equal to the change in the National Consumer Price Index for Wages, or 5% maximum escalation rate, whichever is less. Keep in mind, this is NYS, not Kansas.

[Sammy]

In Michigan, it is unlawful to contract for lawn care more than one year.
Not sure if snow plowing is the same or not.

Check your state laws.

[Georges Lawn & Mulch]

If it's a once and done bid for 4 years I would make sure you have enough built into it to cover the out years. You will make more profit the first two years, but it will equal out in the end do to inflation in the later years. I bid several of these and there were other bidders that I'm sure did not take this into consideration and they got the contracts. Its going to cost them down the road.

[btammo]

I have a few of these multi year snow removal contracts. basically what I did was figure out what it was going to be for the current year, added in the inflation etc (whatever percentage you want) for the following years. Added them together for a lump sum and divided by the amount of years of the contract so you have the same amount each year of the contract. This is the way my customer wanted to do it since it was one of 175 properties that he oversees the facilities and cant renegotiate contracts every year. Do you have your pay your employees "rate" for government or state snow plowing?

[MASTERMOWER]

Yo - I finally was able call and make a site visit, along with actually obtaining the 56! page contract. This federal government contracting stuff is a major pain in the butt, but it appears this will pay well? Basically we only get 3-5 measureable snow events per winter here lately. This contract is basically set up for 18 snow removals, 2 ice removals, along with suppling 150 lbs of ice melt for thier use, all per year for the next 4 years. Might I add....I don't believe they where able to get anyone else interested in bidding...???

Anyhow, no terms for price increases. I have to figure out the costs per year up front.

This bidding process will be fun. Stay tuned.

GM, sorry for my neglection, feel free to move this to the appropriate forum...that is, if you can scrunge up the time!

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Do you have your pay your employees "rate" for government or state snow plowing?

It appears this contract is full of conditions. I browsed through it quickly. I do believe there was something about paying the government rate for employees. At this point it'd just be me; however, I doubt that'd be the case next year. Anyway, I'm off to read through all this fine print.