Those government entities like to include things like% of Mark Up or discounts off retail as one of their factors.
What I would do is bid if able in their frame work, the material as a percent of markup and then a labor rate including the cost of the equipment.
If you have to write a narrative tell them there are several treatment options depending on the concern. As part of an effective IPM program for Schools, the product options and pest would need to be evaluated on an as needed basis.
So in other words, bid your labor rate straight up and materials as a Mark UP of actual cost.
Often you will find these people like those methods and I have gotten plenty of extra work once you prove yourself as the solution guy.