Purchased Services Contracts

What are Purchased Services?

State law does not provide an overarching definition of “purchased services” for local governments, as there are generally few specific statutory requirements. However, there is a definition in RCW 53.19.010 (in the context of personal services for port districts) that is still useful for other types of government agencies:

“Purchased services” means services provided by a vendor to accomplish routine, continuing, and necessary functions. […]

Purchased services mostly relate to physical activities that are usually repetitive, routine, or mechanical in nature, support the agency’s day-to-day operations, involve the completion of specific tasks or projects, and involve minimal decision-making. Examples include, but are not limited to:

• Janitorial services
• Delivery/courier service
• Herbicide application
• Recycling/disposal/litter pickup service
• Data entry
• Security monitoring
• Computer hardware and software maintenance
• Vehicle inspection, lubricating, and repair services

Competitive Process

Local governments in Washington have no statutory requirements for soliciting purchased service contracts. This means that the state has not established bid limits, advertising, bonding, retainage, or responsibility requirements when procuring and contracting for purchased services. As a result, local governments generally have significant flexibility in determining competitive requirements.

However, if the project includes federal funding, the funding conditions may require a specific solicitation process. Even with no statutory requirements for competition, some purchased service contracts require the payment of prevailing wages as discussed later on this page.

Estimated project amounts may determine whether a project is a fit for minimal, informal, and formal competition. Complex technical requirements, long contact duration, or high-risk work/safety concerns may also factor into an agency's decision for a more rigorous competitive process. Local governments must consider their own resolutions, policies, and procedures to determine their own local contracting requirements for minimal, informal, and formal competition.

There are two general solicitation processes that agencies can use to procure purchased services: an invitation to bid (ITB) and a request for proposals (RFP).

Invitations to Bid

ITBs are typically used for purchased services that are very straightforward, where price is the basis of award. With an ITB, a reasonable time is given for prospective bidders to respond, bids are opened, and the contract is awarded to the lowest bidder. At a minimum, every ITB should include:

• Specifications (scope). This should be well-written with an adequate level of detail describing the project tasks, performance, and frequency of the services.
• Estimated schedule. This should be realistic and closely tied to the scope.
• Bid form. Develop a bid form to allow bidders to provide pricing.
• Qualifications. This outlines minimum qualifications that the service contractor must meet (financial capability, experience, language skills, licenses, equipment, etc.).
• Submittal deadline. Allow an adequate response time.
• Agency’s standard terms and conditions. Attach a copy of the terms and conditions, if available.

Requests for Proposals

If an agency intends not to use price alone as the general basis for award, an agency could use a request for proposals instead of an ITB. RFPs ask proposers to submit qualifications, if not already on file, and a proposed scope of services in response to the agency’s specific needs. At a minimum, every RFP should include:

• Statement of need (scope). This should be well-written with an adequate level of detail describing the project tasks, performance, and frequency of the services and products.
• Estimated schedule. This should be realistic and closely tied to the scope and should include the decision to award.
• Evaluation (scoring) criteria. Be clear and tie the criteria to the scope.
• Proposal elements. List all the information that interested firms should submit, including the firm’s general approach to the project, a list of key personnel who would work on the project with their experience and availability, and general scope and deliverables. Keep the submittal requirements, page limitations, and due date in the same section of the RFP. Allow for flexibility in the format of responses.
• Submittal deadline. Allow an adequate response time of 3-4 weeks. Accept electronic proposals, and acknowledge receipt of all proposals.
• Agency’s standard terms and conditions. Attach a copy of the terms and conditions, if available, to the RFP.

Other common RFP elements include:

• Background on the agency and project, including budgets
• Reference documents, although large documents may be posted to a website and referenced in the document
• Whether interviews will be included as part of the selection process
• The pre-proposal conference schedule
• Public disclosure guidance
• Notice that costs incurred in the development of proposals and the selection process will be assumed by the proposers
• Formal certification by the proposer of its authorization to submit the proposal, time validity of the proposal, non-collusion, etc.

Janitorial Services (Building Service Maintenance)

Janitorial services, also known as public building service maintenance contracts, typically fall under the scope of purchased services for procurement purposes. As a purchased service, janitorial services would not be subject to public works bidding laws, but prevailing wages are still required by RCW 39.12.020. Agencies should also consider whether to require bonds to protect against potential claims from workers not paid prevailing wages.

WAC 296-127-023 defines “public building service maintenance contracts” to “mean janitorial service contracts and cover only work performed by janitors, waxers, shampooers, and window cleaners.” Also see the job duties defined in WAC 296-127-01308.

In addition, WAC 296-127-023 requires any building service maintenance contracts longer than one year to include language specifying the potential for wages to be altered after the first year in accordance with the latest prevailing wage rates. The cost of any future prevailing wage increases must be borne by the awarding agency.

Examples of janitorial service solicitations and contracts are provided in the Examples section at the end of this webpage.

For more on the relationship between purchased services, public works, and prevailing wages (including discussion of bonds), see the next section.

Purchased Services, Public Works, and Prevailing Wages

When it comes to maintenance contracts, there are some gray areas between purchased services and public works that often cause confusion. There are important differences between public works contracts and purchased service contracts; to clarify these issues, it is helpful to answer the following questions:

1. Should the contract be procured as a public work, subject to public works bid laws?
2. If not, does the contract require prevailing wages?

1. Should the Contract Be Procured as a Public Work?

Generally speaking, a public works contract requires a more rigorous solicitation process and more paperwork, and public works procurement methods are not necessarily appropriate for service providers.

Public works contracts must be awarded to the lowest responsible bidder, and many purchased service contracts are also awarded to the lowest bidder. However, purchased service contracts that are solicited through a request for proposals may be awarded based on a variety of criteria including cost, qualifications, experience, references, equipment, and more.

If a contract meets the statutory definition of “public work” in RCW 39.04.010, it should be procured as a public works contract:

"Public work" means all work, construction, alteration, repair, or improvement other than ordinary maintenance, executed at the cost of the state or of any municipality, or which is by law a lien or charge on any property therein. [emphasis added]

The exclusion of “ordinary maintenance” from the definition of “public work” in chapter 39.04 RCW can be interpreted as excluding ordinary maintenance from the public works competitive procurement processes.

So what is ordinary maintenance? Unfortunately, chapter 39.04 RCW does not define the term “ordinary maintenance” for the purposes of public works bidding, although there are administrative rules defining the term for the purposes of prevailing wage laws under separate statutes as described below.

2. Does the Contract Require Prevailing Wages?

If a contract is procured as a public work, prevailing wages are required regardless of the size of the contract. However, some purchased service contracts still require the payment of prevailing wages even if they are not procured as public works.

In addition to defining the term “public work,” RCW 39.04.010 says that “[a]ll public works, including maintenance when performed by contract shall comply with chapter 39.12 RCW [prevailing wages].” This statute implies that ordinary maintenance may be exempt from public works competitive procurement processes but is clear that any contracted public works maintenance is subject to prevailing wage laws.

WAC 296-127-010(7) defines “public work” for the purposes of prevailing wage laws and uses a broader definition than that found in RCW 39.04.010 regarding competitive procurement processes. Among other things, the definition includes all paid “work, construction, alteration, enlargement, improvement, repair, and/or demolition that is executed by contract, purchase order, or any other legal agreement,” as well as maintenance performed by contract, except “ordinary maintenance.”

Maintenance is defined as “keeping existing facilities in good usable, operational condition.” “Ordinary maintenance” is not subject to prevailing wages, but WAC 296-127-010(7) limits the definition of ordinary maintenance to “maintenance work performed by the regular employees of the state or any county, municipality, or political subdivision…”

Examples of maintenance contracts that require the payment of prevailing wages include, but are not limited to:

• Janitorial services (building service maintenance), as discussed earlier.
• Landscape maintenance. Landscape maintenance involves the tending to and maintenance of an area of land that has been previously landscaped. This includes but is not limited to activities such as mowing, weeding, applying fertilizers or chemicals, or maintaining decorative rock. See WAC 296-127-01345. When the work includes activities such as digging and planting, it becomes a public work subject to public works bid laws.
• Tree removal/trimming. Tree removal and trimming in parks is maintenance, subject to prevailing wages. Tree removal and trimming as part of a public works contract, as well as tree trimming around power lines, is a public work subject to public works bid laws.
• Street sweeping. This includes cleaning or sweeping work under a maintenance contract to keep the street in good working order. See WAC 296-127-01393. When the work includes activities in conjunction with a public works construction project to maintain and keep streets or similar surfaces clear of debris, or the clean-up of streets or similar surfaces necessary during and after a public works construction project and prior to acceptance, it becomes a public work subject to public works bid laws.

Maintenance contracts do not include any public improvement. A janitorial contract does not improve the property. Likewise, contracts involving only tasks that keep the equipment in good running order (such as cleaning, adjustments, or lubrication) may be a maintenance contract and not a public improvement contract. However, maintenance that includes “work, construction, alteration, repair, or improvement” would be considered a public work and be subject to public works bid laws.

If a purchased service requires prevailing wages to be paid, L&I requires an Intent to be filed at the start of the contract, and an affidavit to be filed each year upon renewal if services are to be performed over multiple years.

It may also be a good idea to require performance and/or payment bonds to protect against potential claims from workers not paid prevailing wages. Retainage is also sometimes considered on service contracts with prevailing wages, but state law is not clear on these issues.

Mike Purdy has some observations on the subject in When Should Retainage and a Bond Be Obtained?, including:

• RCW 39.08.010 requires a bond for all “work.” The term “work” is fairly broad and could reasonably be interpreted to refer to work subject to prevailing wages generally.
• RCW 60.28.011 states that retainage is required for all “public improvement contracts,” a term which is not defined. One could make the argument that a public improvement contract […] is the same as a “public work” in chapter 39.04 RCW, although there is no explicit connection between the two.

Without further clarification from the state, it is up to local agencies to decide whether to withhold retainage and require bonds for service contracts, depending on the size of the project and the agency’s potential financial liability.

Examples of Purchased Service Contracts and Solicitations

Below are selected examples of purchased service contracts and solicitations.

Janitorial Services (Building Service Maintenance)

As a reminder, building service maintenance contracts longer than one year must comply with WAC 296-127-023 regarding prevailing wage increases.

• Arlington Janitorial Services RFP (2022) – 1-year initial term with automatic renewals up to 5 years unless terminated; includes standard services contract
• Franklin County Janitorial Services RFP (2023) – 3-year term
• Port of Bellingham Janitorial Services RFP (2023) – 2-year term; includes detailed cleaning tasks/schedules and sample agreement
• Redmond Janitorial Services RFP (2022) – 2-year initial term; includes scope of work, sites/cleaning frequency, cleaning quality standards, and services agreement
• Stanwood Janitorial Services RFP (2022) – 1-year initial term with optional extensions; includes standard contract

Landscape Maintenance & Spraying Services

• Mercer Island Facilities Landscape Maintenance RFP (2023) – Landscape maintenance at city facilities, including lawn/plant care, hard surface/debris cleanup, and moss control; mulching and pressure washing are additives. Requires prevailing wages; includes sample purchased services agreement
• Port of Walla Walla Airport Property Spraying RFP (2023) – Weed spraying, fertilizing, and fungicide application for airport and industrial park properties. Requires prevailing wages; includes airport security requirements for personnel.
• Sammamish Parks Landscape Maintenance RFP (2023) – Landscape maintenance at city parks, including lawn care, plant/tree care, herbicide application, hard surface maintenance, and natural area maintenance. Requires prevailing wages; includes purchased service contract.
• Yakima County Herbicide Application ITB (2023) – 2023-25 herbicide application program on road shoulders, sidewalks, and other rights-of-way. County will provide herbicides and additives; requires prevailing wages.

Other Public Works Maintenance Services

• Federal Way Street Sweeping Services RFB (2023) – Annual street sweeping services requiring payment of prevailing wages. Includes public works maintenance agreement and supporting documents.
• Lake Forest Park Stormwater System Cleaning ITB (2022) – Cleaning of storm sewer catch basin structures and stormwater pipes, requiring payment of prevailing wages. Includes pro forma purchased service contract.

Security & Parking Enforcement Services

• Benton County Unarmed Security Guard Services RFP/Q (2022) – Unarmed security guard services at county justice center and courthouse; county also requests rates for armed guards if needed in future. 3-year term; includes sample contract
• Cowlitz County Armed Security Guard Services RFP (2019) – Armed security guard services, including point-of-access control, for all county buildings that house courts. 1-year term with optional extensions; includes sample contract
• Kitsap Transit Unarmed Security Guard Services RFP (2022) – Unarmed security guard services at transit buildings, bases, and park-and-ride locations. 2-year contract with optional extensions; includes sample agreement
• Lacey Park Opening and Closing Security Services RFP (2023) – Service provider to open and close gates and restrooms at parks and communicate with park patrons and law enforcement as needed in a positive manner. Contract term is almost three years.
• Port of Bellingham Security Services RFP (2022) – Unarmed security guard and security patrol services for port personnel and property. 2-year initial term with optional extensions; includes sample security contract
• Redmond Parking Enforcement Services RFP (2024) – Parking enforcement services at municipal campus. 1-year term with optional extensions; includes scoring criteria and standard services agreement.

Solid Waste Collection & Disposal Services

• For examples, see our page Solid Waste Collection, Recycling, and Disposal

Vehicle Maintenance, Towing & Painting Services

• Benton County Autobody Repair Services RFP (2023) – As-needed autobody repair/painting services for 300+ fleet vehicles. County intends to contract with multiple vendors to create roster of services. 1-year term; may be extended for additional 1-year period. Includes standard service agreement
• Cowlitz County Vehicle Maintenance Services RFP (2023) – Vendor to provide overflow maintenance and repair services for fleet vehicles as needed; does not include heavy equipment or paint/body work. One-year term with optional extensions; includes sample agreement/terms
• Kitsap County Towing Services RFP (2023) – 24-hour, 7-day towing and all related services, including dispatch services, for county sheriff's office. Covers county-owned vehicles, private tows, and impounds; includes sample contract
• Kitsap Transit Vehicle Body Repair and Painting RFP (2023) – Body repair and painting of bus/transit vehicles of various sizes. Must be able to support repair of at least two 40' buses simultaneously. Includes scoring criteria, paint color schemes, sample agreement, and FTA contract clauses and certifications
• Kittitas County PUD No. 1 Fleet Maintenance RFP (2017) – RFP for vehicle maintenance and repair services for 16 utility vehicles. Vehicles are separated into four classes, and contractors may submit proposals for one or more classes based on their expertise

Printing & Imaging Services

• Kent Printing Services RFP for Park Program Guides (2023) – Printing vendor to work with parks and multimedia staff for printing parks program guides for three issues; includes goods & services agreement
• Thurston County Ballot Printing Services RFP (2023) – Seeking one qualified vendor to provide ballot printing services for county auditor's office; 2-year contract with optional extensions
• Whatcom County Digital Imaging Services RFP (2023) – Digital imaging and microfilming services for county auditor's office; includes State Archives standards for production and use of microfilm