Proposals happen every day. The traditional proposal happens when a company sends out a RFP (Request for Proposal). They may send this out to 1, 2 or even 100 different companies to ask for a quote for business. In this exercise you will be acting as a small cleaning company. You will be responding to the same RFP as all of your classmates. Your goal will be to win the bid while making as much money as possible by meeting the potential client’s needs.
The important details of your cleaning company are:
Your Name (Insert your name) Professional Cleaning Services
1023 Harrison Blvd.
Ogden Ut, 84408
Understanding your operating costs are very important. In this business we will assume that you already have enough other clients to cover you fixed costs such as office space and normal staff. The following information will break down your variable cost or how much you will need to spend to get the job done:
Cleaning Tools/Supplies: You are very lucky. You have a financial person who has been able to break down the total cost of both tools such as vacuums and products such as commercial grade 409, toilet paper, and soap into an hourly rate. You will supply all cleaning materials and supplies such as toilet paper which is included in the hourly cost. However, you also have three different options. You must use the same package all the time. Premier Cleaning Tools and Products: This is the best of the best. The best cleaning tools and products will be used with the premier package. Your total average cost of using this group is $7 per service hour. For example, one person working for one hour will cost you $7, and three people working together for one hour will cost you $21. This package will clean, look and smell the best. Value Cleaning Tools and Products: This group has an average quality to both the cleaning tools and products. It has pretty good quality and boosts a decent price. Your total average cost of using this group is $5 per service hour. Affordable Cleaning Tools and Products: This group is pretty much things you can buy over the counter at your local grocery store. Compared to your other commercial cleaning products, this stuff is pretty cheap; however, there are many customers who want the least expensive option available. Your total average cost of using this group is $3 per service hour.
Cleaning Labor: There are two simple options here: Experienced and new cleaners. You may use a combination of experienced and new cleaners if you choose. Experienced Cleaners: These people have been with your company at least two years and you pay them more. Your total average cost for one of these workers is $14 per hour. New Cleaners: Unfortunately in your business you experience some turnover. Thus, you are always dealing with new cleaners. They do not do as good of a job; however, your total average cost for one of these workers is $11 per hour.
*Although these numbers have variability based on Job, you will use them to calculate profits.*
Upon checking your email one morning you receive the following RFP.
Dear (Your Name) Professional Cleaning Services,
We are accepting bids for cleaning services at our small insurance company. Our current cleaning partner that we have used for ten years has just raised their prices by 40% and even though we are happy with their quality of work, we decided it was time to shop around.
It is very important that our office always looks clean and professional. We have clients that come in on a daily basis. We are also very price sensitive. Our online competition has driven our prices and margins down.
Our building is about 2000 square feet. Everything is commercial grade carpet except the bathrooms are tile. We would need our cleaning partner to clean the entire building five times a week after 6:00 p.m. The specific spaces with in our building include: A welcome reception center. A single person male bathroom. A single person female bathroom. Four single offices. A conference room. A small break room with a microwave, fridge and table.
Our office has the usual things that need to be cleaned and taken care of at most offices. In addition, one of our agents is legally blind and has a dog to assist her. The dog is fully trained and has never had an accident in the office; however, the dog does stay in her office with her and sheds some hair.
Please send us a detailed cleaning proposal that we can review that indicates your cleaning strategy as well as the cost. We ask that you send your proposal in PDF format no later than the due date for the assignment. We will not accept any late submissions.
Dr. Nielson’s Local Insurance Company
1024 Harrison Blvd.
Ogden Ut, 84408
Part 1: (80 Points)

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