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How to get government staffing and temporary labor contracts

Public employers are the most reliable buyers of temporary labor in the country and the least understood. A county needs forty clerks for tax season. A school district needs a substitute by 7:15 tomorrow. A state hospital cannot run a night shift without agency nurses. None of this is discretionary, none of it goes away in a recession, and almost all of it is bought through a written solicitation a regional agency could win if it understood the rules.

The rules differ from commercial staffing in ways that matter. Price is a markup over a wage the buyer often sets. The volume moves through statewide term contracts that open every three to five years. Workers who touch students or patients need fingerprint clearances before day one. And several states now give temporary workers equal-pay rights against the client's own payroll.

This guide covers who buys, how the money moves, how to price a markup schedule, the compliance stack that decides eligibility, and why the incumbency problem here is more beatable than it looks.

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The short version

  • The volume moves through statewide term contracts that are multi-award, ranked by markup, and re-solicited every three to five years. Miss the cycle and the door is closed until the next one.
  • Price is a markup over wage, and the markup carries everything: 7.65 percent employer FICA, unemployment insurance, workers' compensation, liability, recruiting, screening and margin. Clerical markups run roughly 35 to 50 percent; light industrial 40 to 55; healthcare 50 to 100 and up.
  • School districts cannot let a contract worker near a student without a completed fingerprint check. California Education Code 45125.1 and Texas Education Code 22.0834 put that obligation on the contractor, before the assignment starts.
  • Nurse staffing has its own price controls. Minnesota caps agency charges to nursing homes at 150 percent of the weighted average wage plus payroll taxes; Illinois requires a nurse agency license per location.
  • A regional agency beats a national incumbent on fill rate, time-to-fill and a local pool, all of which are scored. It loses on missing forms, a markup schedule in the wrong format, or an insurance certificate that arrives late.

Who buys temporary labor in the public sector, and what they buy

Demand clusters in a few predictable places, each with its own procurement habits.

BuyerWhat they buyHow they usually buy it
State agenciesClerical, call center, data entry, case processing surges, IT staff augmentation, medical staff for state hospitals and prisonsStatewide term contract with multiple awarded vendors; agencies order off it
CountiesTax season clerks, elections workers, health department nurses, jail medical, road crews, records digitizationOwn multi-year contract, or piggyback on the state term contract
CitiesSeasonal parks and public works labor, lifeguards, utility billing clerksInformal quotes under the threshold; formal RFP for an annual master agreement above it
School districtsSubstitute teachers, paraprofessionals, bus aides, food service, custodial substitutes, special education aidesAnnual RFP, often awarded to one or two firms with fill-rate service levels
Public hospitals and health districtsRNs, LPNs, CNAs, allied health, per diem and travelSeparate medical staffing contract with credentialing requirements and, in some states, rate caps

The buyer guides for how to sell to state agencies, how to sell to county government, how to sell to school districts and how to sell to public hospitals and health systems cover how each is governed. For staffing, the point to absorb is that the state term contract is where the volume sits; everything else is an order against it or a local agreement modeled on it.

The statewide term contract: how the money actually moves

Most states run one competitive solicitation for temporary staffing, award it to several vendors at once, and let every agency, and often every county, city and school district, order from the list. Florida's is state term contract 80111600-21-STC, administered by the Department of Management Services. Washington's Department of Enterprise Services runs a separate statewide contract for temporary medical staffing. South Carolina put IT temp staffing under a managed service provider, so vendors compete as suppliers to the MSP rather than to the state.

Maine's contract is worth studying because its ordering rules are published. The state awarded RFP 202507096 to five vendors in July 2026, ranked by markup rate within each job category. An agency goes to the lowest-markup vendor in the category first; that vendor must return a candidate or a no-bid within two business days; if it cannot fill, the agency moves to the next-lowest. For categories nobody was awarded, all five get the request and the lowest markup wins.

Three consequences follow. Rank is revenue: the vendor ranked first in a category sees every order, the vendor ranked fourth sees what three others could not fill. Fill speed is the second price: a lowest-markup vendor that no-bids half its requests trains agencies to skip it, and many contracts let the state re-rank or remove it. And the cycle is everything: these contracts run three years with one or two option years, the re-solicitation is announced six to nine months before expiry, and if you are not watching the category you will read about the award in a press release.

See state term contract for the mechanics and how to get on a statewide term contract for temporary staffing for a step-by-step on getting awarded and ranked.

How pricing works: the markup schedule

Public staffing solicitations almost never ask for a bill rate. They ask for a markup percentage on the worker's hourly pay, by job category, and sometimes set the pay rate themselves through a living-wage ordinance or a stated minimum. Your markup has to carry every cost between the paycheck and your margin.

CategoryTypical markup band on public contractsWhat drives it
Administrative and clerical35 to 50 percentLow workers' comp class, high volume, heavy competition
Light industrial and seasonal labor40 to 55 percentHigher workers' comp codes, turnover, drug and background screening
IT and technical30 to 50 percentHigher wages dilute the percentage; often bought under a separate IT contract
Healthcare (RN, LPN, CNA)50 to 100 percent and aboveCredentialing, professional liability, workers' comp, and in some states a statutory cap

Those bands come from 2026 industry benchmarks; treat them as a sanity check, not a bid. What matters is the build-up. On a 20 dollar clerical wage, employer FICA is 1.53 dollars, unemployment insurance runs roughly 0.40 to 1.20 depending on your experience rating, workers' compensation for a clerical class code 0.10 to 0.30, and liability, employment practices and recruiting another dollar or so. That puts cost near 23.50 before margin. A 40 percent markup bills 28.00 and leaves about 4.50 an hour, a 16 percent gross margin, which is close to where public clerical work actually clears.

Read the pricing exhibit first: many solicitations require the markup to be all-inclusive, with no separate conversion fee, overtime premium or holiday surcharge.

School districts: substitutes, paraprofessionals and the fingerprint rule

Substitute staffing is the fastest-growing segment of public temporary labor, because districts that could not fill classrooms after 2020 outsourced the problem. The contract is usually annual, scored heavily on fill rate, and priced as a markup or a daily rate per substitute.

  • Fill rate is contractual. Expect a service level, commonly 90 to 95 percent of requested absences filled, measured monthly, with the right to re-bid if you miss it two months running. Bid a fill rate you have achieved somewhere and can prove with a reference.
  • Paraprofessionals carry a qualification standard. ESSA dropped the federal two-years-of-college rule from the statute, but many states wrote it into their own law. California Education Code 45330 still requires a Title I paraprofessional to have two years of college, an associate degree, or a passing score on a local or state assessment. Your recruiting has to screen for it.
  • The fingerprint clearance is the gate. California Education Code 45125.1 requires a contractor whose employees may interact with pupils to fingerprint each one through the Department of Justice and certify in writing that none has a qualifying felony. Texas Education Code 22.0834 requires a national criminal history review, with fingerprints, for any contract employee with continuing duties and direct contact with students. Most states have an equivalent. The clearance takes days to weeks and must be complete before the first assignment, so the cost and lead time belong in your markup.

The district buyer guide at how to sell to school districts covers the board cycle. Substitute contracts are awarded in spring for a 1 July start, so the RFP posts between January and April.

Hospitals and nurse staffing: a separate market with its own price controls

Public hospitals, hospital districts, county health departments, state psychiatric facilities, veterans homes and correctional health systems all buy agency nurses, under contracts that look nothing like a clerical agreement.

  • Licensing of the agency itself. Illinois requires a nurse agency license from the Department of Labor for each location. Minnesota requires supplemental nursing services agencies to register with the Department of Health. More states have added registration since 2022; check before you bid.
  • Rate caps. Minnesota Statute 144A.74 limits what an agency may charge a nursing home to 150 percent of the weighted average wage rate for the class plus a payroll-tax factor, inclusive of all administrative and contract fees. The Department of Health publishes the maximum hourly charges each year; check the current figures before you price.
  • Credentialing is the real cost. Primary-source license verification, immunizations, TB screening, competency testing, BLS and ACLS cards, and a background check to the facility's own standard. The facility audits your files, and one missing document can suspend the contract.

The buyer guide at how to sell to public hospitals and health systems explains hospital district purchasing. Prisons and state hospitals buy through the state term contract for medical staffing, not the clerical one.

The compliance stack: E-Verify, living wage, co-employment and temp-worker laws

Eligibility here is decided by statutes and ordinances a commercial staffing firm may never have met. The main ones:

RequirementWhere it appliesWhat it means for a bid
E-Verify enrollmentPublic contracts in roughly twenty states, including Florida, Georgia, Texas, Arizona, the Carolinas, Virginia, Missouri and UtahAn affidavit or MOU number is a required form; missing it is non-responsive
Living-wage ordinancesMany large cities and counties, with an hourly floor that steps up if no health benefit is providedSets your pay rate; the markup rides on top
Temporary worker equal-pay lawsNew Jersey (Temporary Workers Bill of Rights, 2023), Illinois (Day and Temporary Labor Services Act as amended)After a threshold period, parity with the client's own employees in the same role; client jointly liable
Fingerprint background checksSchool districts everywhere; many healthcare and childcare settingsClearance before day one, at your cost, tracked per worker
Workers' compensation and co-employmentEvery contractYou are employer of record; the buyer wants a waiver of subrogation and an alternate employer endorsement

On co-employment: the buyer supervises your worker day to day, which makes it a joint employer for many purposes even though you run payroll. Public buyers manage that through insurance language: workers' compensation with a waiver of subrogation, an alternate employer endorsement, general liability at one to two million per occurrence, professional liability for medical placements. Have your broker price the endorsements before you bid; a certificate that misses the specification is a common reason a proposal is set aside.

On New Jersey and Illinois: both require agencies to register or certify, both give temporary workers on covered assignments a right to pay and benefits equal to the client's own employees after a threshold period, and both make the client jointly liable. Check the current threshold and covered occupations with the state labor department before you price, because a markup on your own wage scale can be underwater once parity applies.

MWBE goals, and how a regional agency beats the national incumbent

National firms hold statewide contracts because they showed up at the last re-bid. They are vulnerable in three places.

  1. Fill rate and time-to-fill. Scored, measured and reported. A regional agency with a live local pool fills a county clerk request in a day; a national desk routes it through a queue. A documented higher fill rate on a comparable public account is the strongest argument in the proposal.
  2. Certification. Many states and most large cities set minority-owned, women-owned or small-business goals on service contracts. If you qualify, certify; it takes months, so start before the re-bid. If not, name a certified subcontractor with a real scope and dollar value. See how to get MBE certified and how to get WBE certified.
  3. Multi-award structure. You do not have to beat the incumbent. You have to be awarded, then out-rank it in the categories you care about. Bid only the categories you fill well, at a sharp markup, and skip the rest.

What does not work is undercutting everywhere with a markup you cannot hold; buyers have seen the vendor that wins on price and no-bids every request.

How staffing proposals are scored, and what gets them thrown out

A representative rubric, with weights published in the solicitation:

CriterionTypical weightWhat earns the points
Markup schedule or pricing30 to 40 percentComplete, in the required format, all-inclusive where required
Experience with public-sector clients15 to 25 percentNamed public accounts with volumes, categories and fill rates
Recruiting, screening and fill process15 to 20 percentWhere candidates come from, how fast, what checks run before placement, how no-shows are handled
Compliance and insurance10 to 15 percentE-Verify, background check process, workers' comp and endorsements, certifications
Account management, reporting and references10 to 15 percentA named account manager, usage and fill-rate reports, public references who answer the phone

Staffing proposals are disqualified for the same reasons as everyone else's, and rarely for the work: a markup schedule submitted as a bill rate, a category left blank when the instructions said bid all, a certificate without the alternate employer endorsement, an unsigned E-Verify affidavit, an unacknowledged addendum that changed the pay floor. A how to build an RFP compliance matrix is cheap insurance, and how to respond to an RFP covers the mechanics. Beyond compliance, buyers score what they can verify: a fill rate with a named account and a month beats a paragraph about commitment to service.

What working with us looks like

Most staffing firms that try this market lose the same way: they find one state term contract late, submit a markup schedule in the wrong format, and conclude the channel is closed. It is not. It is a calendar of re-bids across states, counties, districts and hospital systems, and the firms that win knew when each one was coming.

That is the work we do. We find the solicitations you can actually fill, in the categories and regions where your pool is real. We read every page, including the pricing exhibit and the insurance specification, and tell you why it fits or why it does not. Then we write the response: the fill process, the compliance narrative, the references, the forms. You set the markup and you sign it. Every response is built for one company and never reused.

If you want to see what is open for a staffing firm in your states right now, book twenty minutes and we will walk through it with you.

Common questions

Do I need to be on a state term contract to sell temporary staffing to government?

Not for everything, but for most of the volume. State agencies are usually required to order from it, and many counties, cities and districts piggyback on it. Local governments also run their own agreements, and small orders below the informal threshold can go to any registered vendor. Win local agreements now and be ready for the state re-bid.

How is pricing quoted on a public staffing contract?

As a markup percentage over the worker's hourly pay, by job category, and often all-inclusive so that overtime, holiday and conversion fees cannot be added. The buyer may set the pay rate through a living-wage ordinance. Your markup covers employer FICA at 7.65 percent, unemployment insurance, workers' compensation, liability, recruiting, screening and margin. Build it from actual costs per category rather than one blended number.

What background checks do school districts require of a staffing agency?

A fingerprint-based criminal history check for every worker who may have contact with students, completed before the assignment starts, at the contractor's expense, plus a written certification to the district. California Education Code 45125.1 and Texas Education Code 22.0834 are the most-cited examples and most states have an equivalent. Build the cost and lead time into your markup.

Are there rate caps on agency nurse staffing?

In some states. Minnesota Statute 144A.74 limits agency charges to nursing homes to 150 percent of the weighted average wage rate plus a payroll-tax factor, inclusive of all fees, with maximum hourly figures published annually by the Department of Health. Illinois requires a nurse agency license per location. Check the current rule before you price, because the cap includes your administrative fees.

Can a regional staffing agency realistically beat a national incumbent?

Yes, because most public staffing contracts are multi-award and ranked by category. You do not have to displace the incumbent; you have to be awarded and rank ahead of it in the categories you fill well. Fill rate and time-to-fill are scored, and a local pool fills faster than a national queue. MBE, WBE or small-business certification moves points too.

Sources

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