Commercial Integrated Pest Management Contracts

Pest management is a dynamic industry which has evolved during its existence. Services offered by our industry have been shaped by the development of modern pesticides, the formation of the U.S. Environmental Protection Agency, environmental advocacy groups, the media, and many other forces. The attitudes and desires of private and commercial consumers regarding pest management services have been affected by these factors. This has led to significant changes in the services consumers are demanding.

It is readily apparent from the residential consumer study conducted several years ago by Dr. Michael Potter of the University of Kentucky that potential customers neither understand the acronym, IPM, nor the phrase, Integrated Pest Management. However, this does not necessarily hold true for our commercial customers, many of whom are familiar with quality assurance programs, such as USDA, ISO 9000, HAACP, etc.

EARLY INDUSTRY IMPACTS. Demand for changes in pest management services in the commercial market was spearheaded by Dr. Al Greene of the General Services Administration, and many members of the Department of Defense’s Armed Forces Pest Management Board. These organizations were among the first to write contract specifications which required the implementation of IPM strategies at their facilities.

The demand for IPM services are increasing as more government organizations and commercial industries are demanding this type of service in their Request for Proposals (RFPs). Within the past year, I have assisted several companies in preparing the technical proposal for facilities, such as the Smithsonian Institution, Crestar Banks, the National Institutes of Health and Pepsico. The Department of the Navy is also considering the use of contract pest management services for all of their facilities. The estimated value of this contract is $34 million.

WINNING CONTRACTS MEANS BEING PREPARED. Considering the size of some of these contracts it never ceases to amaze me how few companies are prepared to play in this game. The key elements in having a shot at large contracts is knowing when the requests for proposals are "on the street" and having a company IPM package in place. The scope of these RFPs do not lend themselves to a brief statement of work and a few hours of preparation. It may take days or even weeks to prepare an adequate package.

Most of these contracts are one-year contracts renewable for three to five years based on performance. The size of the facilities and the complexity and expectations of the pest management plan are the driving forces behind the cost of services, which can easily be several hundred thousand dollars.

The RFP will require each prospective bidder to provide detailed information on their pest management philosophy, the company, personnel, and a technical proposal which details how the pest management objectives of the requesting agency or company will be met. Ultimately, you will be expected to provide a price for your services, but you should realize that these contracts are no longer being awarded exclusively to the lowest bidder.

The RFP normally requires you to provide elements of information that demonstrate your company’s ability to provide the pest management services requested in the contract. A list of current and previous clients may be required.

The written proposal must demonstrate your understanding of the concepts of IPM, the importance of sanitation in IPM programs, and pest management methods in the areas and facilities specified in the RFP. After a site visit, you are expected to prepare an IPM Technical Proposal which details how you plan to manage specified pests (often everything but wood destroying insects). This proposal is usually expected to emphasize inspection, monitoring, and pest management procedures.

You are often expected to develop a quality assurance program and designate QA personnel (this often requires a company staff entomologist or having one on retainer). The operation of the QA program must include elements such as inspections, reports (often monthly, semi-annual and/or annual), and facility log books.

A recent RFP from the Smithsonian Institution specifically stated, "Offerors merely proposing to provide a service in accordance with the proposed contract document at a specified cost, shall not be eligible for award. The proposal must include a comprehensive plan for meeting the needs of S. I. while addressing the requirements of the RFP, and explaining the proposed technical approach to be used." The Institution’s proposal evaluation criteria assigned 60 points to the technical proposal (plan of accomplishment, qualification of personnel, and qualification of the firm), and 40 points to cost.

The times are changing, and if you want to play in this game, you must be prepared. It is best to have a company IPM contract package prepared so most of your response time can be dedicated to the walk-through and modifications of your plan to address the pest management needs of the client.

Part 2 of this article focuses on developing technical proposals and will appear in the August issue of PCT. Dr. Richard Kramer is president of Innovative Pest Management, Olney, Md.