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How to price a grounds maintenance contract

Acres and cut cycles to hours, seasonal and year-round crews, SCA rates by class, and equipment and fuel that escalate.

A federal grounds solicitation usually lists the areas, mowing heights, cut frequencies and the growing season. The Service Contract Act wage determination gives you the minimum wage and fringe benefits for each worker. What neither gives you is the part that moves the price most: how many hours each task takes, which class of worker does it, and how many of those workers you carry through the winter.

This guide builds a grounds price in that order, then prices an 88-acre campus in Harris County, Texas, on WD 2015-5233 rev 35. The tax and indirect assumptions match our burdened labor rate guide, except workers' comp, which is higher for outdoor crews.

1. Split the PWS into seasonal and year-round work

Go through the performance work statement (PWS) and put every task in one of three groups:

A weekly cut over a 32-week season is 32 cuts. If the PWS sets mowing by grass height instead of a calendar, the number of cuts is your estimate, so write it down as an assumption and check it against the incumbent's history if the agency shares it. Walk the site if you can. Slopes, ditches, fence lines and the distance between mowing areas change the hours more than the acreage does.

2. Turn acres into labor hours

Hours per year = acres ÷ acres per hour × cuts per year
Use a separate production rate for each mower type and area

A wide tractor deck on open turf covers far more ground per hour than a zero-turn working around buildings, signs and trees. Use rates you have measured on your own jobs, by equipment and by type of area. The rates in the example below are assumptions, not a standard.

Trimming, edging and blowing follow the number of obstacles and the length of curbs and walks, not the acreage. Estimate them in hours per cut from the site walk, not as a percentage of mowing time.

3. Match each task to a class on the WD

Each service employee must be paid at least the WD wage and receive the WD fringe benefits for the class of work performed (FAR 52.222-41(c)(1)). The grounds classes on WD 2015-5233 rev 35 for the Houston area:

CodeOccupationRate
11210Laborer, Grounds Maintenance$17.44
11260Pruner$15.49
11090Gardener$23.50
11270Tractor Operator$21.47
23440Heavy Equipment Operator$24.54
31361Truckdriver, Light$21.12
99410Pest Controller$20.48

The WD says each class has the duties described in the SCA Directory of Occupations. Compare what your crew will actually do with those descriptions before you assign hours. If a task fits no listed class, the contractor must request a conformed class and rate on SF 1444 (FAR 52.222-41(c)(2)); see how to read an SCA wage determination.

Grounds crews often switch tasks during the week. Under 29 CFR 4.169, a worker who does work in two classes in a workweek must be paid the higher rate for all hours that week, unless your records show which hours went to each class. If a tractor operator spends 472 hours a year on laborer work and you have no time records by class, those hours cost $21.47 instead of $17.44: $4.03 × 472 = $1,902.16 a year in extra wages, before taxes and markups. Price the split only if you will track it.

4. Seasonal and year-round crews cost differently per hour

The WD rates are the same for both. The burden is not, for four reasons:

The net effect in our example: a seasonal laborer costs less per productive hour, mostly because the crew carries 40 hours of PTO instead of 168. The saving is real only if you can rehire and train a crew every spring. Price the turnover you expect.

5. Equipment and fuel as other direct costs

In option years, labor and ODCs follow different rules. FAR 52.222-43(b) makes you warrant that your prices include no allowance for the increases the clause adjusts for later. That adjustment covers wages and fringe benefits required by a new WD, plus the related social security, unemployment tax and workers' comp, but no overhead, G&A or profit (FAR 52.222-43(d) and (e)). It does not cover fuel or equipment. So hold labor at the current WD rates in every option year, and escalate equipment and fuel by your own estimate.

Worked example: an 88-acre campus in Harris County

Assumptions: 72 acres of open turf mowed by tractor at 3.0 acres per hour, and 16 acres around buildings mowed with zero-turn mowers at 1.0 acre per hour, both weekly over a 32-week season from mid-March to late October. Trimming, edging and blowing take 20 hours per cut. One full-time laborer works all year on policing, beds and shrubs. Mowing other than the tractor, and all trimming, is Laborer, Grounds Maintenance work, and time is recorded by class.

Seasonal workers are paid 32 weeks × 40 hours = 1,280 hours. Five of the WD's eleven holidays fall in the season (Memorial Day, Juneteenth, Independence Day, Labor Day and Columbus Day). It is the crew's first season, so no vacation is due. Year-round workers get eleven holidays and two weeks of vacation. Standard H&W of $5.92, paid into a health plan; not covered by EO 13706. SUTA 2.7% on a $9,000 wage base, workers' comp 5.00% of payroll, overhead 10%, G&A 8% and fee 6%. Replace every assumption with your own.

Hours

TaskMathHours
Tractor mowing72 ÷ 3.0 × 32768
Zero-turn mowing16 ÷ 1.0 × 32512
Trim, edge and blow20 × 32640
Seasonal laborer hours512 + 6401,152
Year-round laborer hoursOne FTE1,912

Laborer bill rate, seasonal and year-round

LineSeasonalYear-round
Paid hours1,2802,080
PTO hours40168
Productive hours1,2401,912
Wage per productive hour$18.00$18.97
H&W per productive hour$6.11$6.44
Annual wages$22,323.20$36,275.20
FICA, 7.65%$1,707.72$2,775.05
FUTA, 0.6% × $7,000$42.00$42.00
SUTA, 2.7% × $9,000$243.00$243.00
Workers' comp, 5.00%$1,116.16$1,813.76
Taxes and insurance per productive hour$2.51$2.55
Direct labor cost$26.62$27.96
Overhead, 10%$2.66$2.80
G&A, 8%$2.34$2.46
Fee, 6%$1.90$1.99
Bill rate per productive hour$33.52$35.21

Wage and H&W per productive hour are the hourly rate × paid hours ÷ productive hours: $17.44 × 1,280 ÷ 1,240 and $5.92 × 1,280 ÷ 1,240 for the seasonal column. The same build for a seasonal Tractor Operator at $21.47 gives $39.41 per productive hour.

Annual price

StepMathValue
Tractor Operator, seasonal768 × $39.41$30,266.88
Laborers, seasonal1,152 × $33.52$38,615.04
Laborer, year-round1,912 × $35.21$67,321.52
Labor$136,203.44
EquipmentAssumed$14,000.00
Fuel1,800 gal × $3.25$5,850.00
G&A on ODCs8% × $19,850.00$1,588.00
Fee on ODCs6% × $21,438.00$1,286.28
Annual price, base yearLabor + ODCs$158,927.72
Price per mowed acre per year$158,927.72 ÷ 88$1,806.00

Values are rounded to the cent at each step. The tractor needs 768 ÷ 1,240 = 0.62 of a seasonal worker. One seasonal tractor operator can cover it and spend the other 472 productive hours on laborer work, which is why the time records in section 3 matter. The remaining 680 laborer hours are about half of a second seasonal worker. Make sure the crew you schedule fits the cuts the PWS requires each week.

Option years

Labor stays at $136,203.44 in every year. Equipment stays at $14,000.00. Fuel is assumed to rise 4% a year from $3.25 a gallon, rounded to the cent, with G&A and fee on top.

PeriodFuel per gallonAnnual price
Base year$3.25$158,927.72
Option year 1$3.38$159,195.60
Option year 2$3.52$159,484.09
Option year 3$3.66$159,772.58
Option year 4$3.80$160,061.07
Five years$797,441.06

If a new WD raises the rates after award, you recover the wage and fringe increase under FAR 52.222-43. See FAR 52.222-43 price adjustment, step by step.

Checks before you submit

Find the grounds rates for your county

See Laborer, Tractor Operator and every other class on the WDs for your place of performance.

Open the free WD lookup

Acres in, bid price out.

SCA Bid Pricing Pro burdens every labor class the same way, adds your equipment and fuel, and prices the base and four option years, with checks that must read OK before you submit.

Sources

Last reviewed: November 2026. This guide is a pricing aid and general information, not legal or tax advice.