Yes, government contracting can be worth it for a company with a healthy commercial business, but it requires careful planning for cash flow, compliance, and resources. Federal contracts, governed by the Federal Acquisition Regulation (FAR), have specific requirements, while state and local government contracts follow their own procurement codes and portal guidelines.
One common concern is payment cycles. Federal agencies are generally prompt payers once an invoice is properly submitted through systems like WAWF and PIEE. However, setting up these systems and ensuring compliance with invoicing rules takes time. You will need to manage your cash flow to cover expenses until payment arrives.
Regarding prevailing wage requirements, landscaping falls under services, which means the Service Contract Act (SCA) may apply to federal service contracts above the micro-purchase threshold. This means you must pay your employees no less than the prevailing wage rates and fringe benefits for the locality where the work is performed, as determined by the Department of Labor. This can impact your payroll and benefits administration, so understand the wage determinations for your area and labor categories.
For federal contracting, you will need to register in SAM.gov and renew it annually. This registration is free. The initial setup and ongoing compliance with various regulations, like those for small business set-asides or limitations on subcontracting, do add administrative work. However, this can be managed by dedicating staff or by clearly outlining responsibilities. Many companies find that the stability and volume of government work, especially on recurring services like grounds maintenance, justify the initial investment in processes and compliance.