Introduction to Security Contracts
Drilling down into the specific of security contract bids requires a baseline understanding of what security contracts are and why organizations need them. A security contract is an agreement between an individual or organization that provides physical security services, and an entity that is making use of these security services. These contracts are an essential component of establishing security measures for any organizational entity – large or small. The security contracts are not only legally binding, but they are also fundamentally important for the simple reason that they outline what services are to be provided and for how long.
There are several associated details that lend themselves to a clearer understanding of how security contracts function. Security contracts are not slated as either one-sided or two-sided. They can be one or the other, or they can simply be open-ended if necessary. However, security contracts that are open-ended do not require the same level of detail as those that are scheduled. The legalities of an open-ended security contract are significantly less than either scheduled or one-sided and are not required in terms of forming the contract.
The scope of services is another important aspect of security contracts. This is the section of the contract that details just what services are to be provided. For the purposes of example (and for the sake of keeping things simple) , a basic security contract may state that the contractor is to provide 2 guards for 24-hour coverage shifts that are to be changed out bi-weekly. It would also note the correct address of the security company, and provide for the name and address of the company receiving these services, along with additional details that help both the contractor and the recipient of the contract to fully understand the nature of the contract.
The payment portion of a security contract is yet another important element. Payment can be made monthly, quarterly, or bi-annually, depending on your contract. The most important component of any payment clause is that it stipulates when payment is to be made, and how much. This protects both the individual security company and the organization that is receiving the security services. If payment is late, it can be legally binding.
The security contract must also provide for termination. A termination clause is simply a way to protect both parties. Should one party fail to meet its obligations, or if some circumstance occurs that results in an inability to continue with the contracted services for whatever reason, this clause offers a way to exit the agreement without violation. At the end of the term, either party can opt not to renew the contract without any further issues.
Different Categories of Security Contracts
A wide variety of security contracts can be put up for bid. While the most common form of security contract is an agreement for physical security personnel, there are other types of security contracts available. Some security contracts include provision of cybersecurity services, size and capacity licensing agreements, or supply agreements for technical equipment. These types of contracts may be purely subcontractor agreements with no direct customer contact but they are nevertheless considered security contracts and are often subject to the same types of bidding requirements as contracts with end users.
Agreements for security personnel generally fall into one of three categories: ongoing long-term contracts (often exceeding ten years), under which a contractor provides all site-based services at a particular facility; shorter term site-based contracts (typically one to three years) or temporary placement assignments for a contracted period; and throwover contracts, where a contractor has an ongoing contract to fulfill staffing needs but fills short-term vacancies through employees obtained from a temporary staffing firm.
Cybersecurity is another area that is increasingly subject to contract bids. A cybersecurity contract can apply to both identified cyber vulnerabilities in computer systems that must be addressed, and the provision of "overhead" cyber monitoring services, where the provider supplies technical staff and equipment to collect and report on network activity. Integration services, hardware, remote access facilitation, testing and consulting are some of the more common services provided under cybersecurity contracts.
Contracts for "integrated security solutions," or the pooling of multiple security services (such as video surveillance, access control, cyber monitoring, and intrusion detection) can also be put out for bid. Such contracts typically provide for a single provider to ensure functionality and integration of the various services within a facility or organization.
The Bidding Procedure
The first stage in the bidding process is the creation of the Request for Proposal (RFP). It’s not enough for an RFP to simply ask stakeholders to submit proposals. An effective RFP will include the latter along with a general outline of the specific requirements of the project.
The project scope may include specific objectives for service delivery, a timetable for milestones, or even additional stipulations such as the required qualifications of bidders. Once the RFP has been finalized and submitted, interested bidders will study it for an understanding of both the project specifics and the context (e.g., the mission, values and objectives) of the organization asking for proposals.
At this stage, prospective bidders may seek clarification on any points in the RFP that they find ambiguous or unclear. Many organizations will accept and respond to questions by a deadline imposed as a condition of the proposal process. Questions may need to be submitted in writing and/or they may require a fee. Finally, the original bidders’ responses to the RFPs will be returned by a specific, mandatory deadline.
Making Winning Bids
When creating a bid for a security contract, there are several important factors to consider to ensure that the bid is both compelling and competitive. Mastering the art of crafting bids is essential for winning contracts and growing your security business.
The first step in crafting a competitive bid is to thoroughly research the security contract and the client’s needs. This means reading the request for proposal (RFP) carefully and making sure you understand exactly what the client is looking for. If there are any ambiguities in the RFP, don’t hesitate to reach out to the client for clarification. This will help you tailor your bid to their specific needs and show that you have taken the time to thoroughly understand the scope of the project.
Once you have a firm grasp on the client’s needs, it’s time to showcase your business’s experience and qualifications. This is the perfect opportunity to highlight any relevant projects you have completed in the past, any specialized training your employees have received, and any awards or industry certifications your business has earned. This is your chance to show the client why your business is the best fit for the job.
Finally, it’s important to offer a competitive price that shows the client you are serious about the contract. This doesn’t mean you should undercut the competition at all costs – if you don’t believe a contract is worth a certain amount of money, then don’t bid on it. Instead, try to find a price that reflects your business’s costs and your client’s budget. By offering a competitive price, you will show the client that you are both realistic and smart about how you run your business.
Once you have crafted the perfect bid, review it carefully for any errors before submitting it. This will show the client that you are detail-oriented and professional, and it will help you stand out from the competition.
Challenges in Bidding
Bidding for security contracts can pose numerous challenges that require thoughtful consideration and complex decision-making. Strict compliance requirements may make it difficult for service providers to win favoritism, while intense competition can leave security professionals feeling they have little room for negotiating a better deal. As the needs and vulnerabilities of security clients evolve, providers may face increasing pressure to review and revise their bids in order to remain competitive. Contractors and building owners are overwhelmed with proposals and/or bids for security, personnel or system services. Security bidding should be as easy as 1-2-3. But, as anyone who has used the Internet to shop or sell for security services has experienced, almost anyone can enter the bidding "competition". Contractors and building owners are overwhelmed with requests and/or bids for service. Security bidding should be easy. But, as anyone can attest who has used the Internet to shop or sell for security services, almost anyone can enter the bidding "competition". Companies and properties are awash in proposals and/or contractual bids: almost all are very close to the same cost , and have virtually the same qualities, specifications, performance parameters, etc. The customer is faced with making a choice and must make an informed choice. (See Article). Thus, the welter of constant cost data bidding for security services can be confusing, difficult to understand and time consuming. The security RFP/Bids do not give adequate (or any) time for a bid submission. The customer assumes that because the proposals are "almost identical", differences in them are negligible. A significant trend is the rise of private equity and hedge funds investing heavily in security staffing, and the bid and proposal process. These companies have decidedly different ways of doing business – increasing labor and other costs, a constant return on investment, and a requirement to consolidate and subtract overhead. Building managers, owners, property managers and private equity/hedge fund groups should expect and be aware of these issues, and seek counsel to assist with assessing the chaotic nature of bidding for security contracts.
Legal Issues in Security Bids
Bidding to win a security contract is one thing, but getting that contract can be quite another. Those on the front lines will have, over time, developed their own techniques for closing the deal, no doubt covering such topics as sales, marketing, and administration. But what about the legal nitty-gritty? We are talking here about a complex and growing field, airlines, freight carriers, financial institutions, government, insurance companies, oil and gas companies, and many more looking to protect their personnel and property. No wonder ownership of physical security assets is at $450 billion and growing. Clients in this sector will have a lot at stake and, as a consequence, very high expectations of the companies bidding to provide them with valuable security services. But if you want to stay on the right side of the law and win the contract, it pays to be aware of the legal implications of your bid, from liability to enforcing contractual terms. Before beginning to prepare a bid, understand which services would be covered by the contract so that you know timely and adequately to explain to the customer what they can expect from you. Make particular note of the following. A customer might withhold payment for failure to meet an agreed timeline or standard. Some contracts will be protected by a waiver of liability, personal injury indemnity, and/or vicarious liability clauses. Your bid should unequivocally state any limitation of liability, including for indirect, incidental, special, or consequential damages. It is also important that you fully understand the extent of your obligations under whistleblower legislation. If employees are entitled to make some monetary claim against you by complaining to the customer, they will need to be sure you are not constricting the problems being complained about through confidentiality agreements or other barriers. One company offering products and security services required its security officers to sign a form stating that they were voluntarily providing the services. This was insufficient to absolve liability against a claim of sexual harassment under the D.C. whistleblower law and the D.C. Human Rights Act. As a general rule, all contract provisions should be individually stated. For instance, it is necessary that any amendments to billing take the form of an agreement and any waiver of any provision by either party in the contract should be similarly in writing and signed. The crucial thing to keep in mind is that, when bidding to provide a service, you are not just guaranteeing the provision of that service; you are legally committing to doing so. You must therefore fully appreciate the meaning of your language and must ensure that you clearly, comprehensively, and accurately state what you are offering to your potential client.
Sets of Examples: Security Bids
Making bids for security contracts win is a matter of strategy. Below are case studies of businesses who got it right.
When Pro Security Services, a small firm, was invited to pitch for a contract worth more than $500,000 in an area with multiple competitors, it knew that its unique selling proposition (USP) would be key. They focused on their recently achieved ISO 27001 certification, which distinguished them from all the other bidders. They also explained how their business was going to use this standard to ensure consistently high quality. The company got the contract.
A family-owned boutique agency pitched for a £1M+ contract with the local authority. They outlined how they would recruit locally and personally interview every applicant who applied to work with them. They said they could have a better impact on their local economy than any big name competitor. They also explained their bespoke training program, which equipped security teams to deliver the service to the standards their people are proud of. They pipped the big players to the post.
After a lengthy period of limited success, Jamie’s Security decided to have a major rethink. First, they redefined their USP, which had previously been their "no 1 in the Evergreen district." Then Jamie’s Security started a PR campaign on social media and made a commitment to networking. Before long, Jamie’s and her staff were being asked to speak at industry forums.
Social media posts delivered web traffic and inquiries. Networking enhanced Jamie’s status, which she leveraged to sign a joint venture with a savvy marketing firm. The first year, Jamie’s won millions in new contracts and grew the business, with pure profit, from $100,000 to $5M.
Bidding for Security Contracts in the Future
As with any industry, those involved in the security contract bidding process must keep an eye towards the future. Here, we will look at some of the most notable trends shaping the security contract bidding process going forward.
Innovative Technologies: Modern advances are making an impression on security contract bidding, from the ways in which documents are discovered and reviewed to the technologies used to best meet clients’ needs. Artificial intelligence (AI) can quickly sort through and learn from voluminous amounts of data in the blink of an eye while advanced analytical tools can offer more targeted insights for a more competitive edge.
Evolving Client Expectations: The more they invest in advanced security features and capabilities , the more discerning clients will become. In order to meet these expectations, security contract bidders should take a client-centric approach to all new business pursuits, paying close attention to unique requirements while adapting their strategies accordingly.
Global Security Concerns: With a population more interconnected than ever before, security breaches can quickly become global in nature. In this landscape, clients come to expect security providers who will invest not only in solutions and products, but also the appropriate licensure and certification for doing business within their boundaries. Security bidders should ensure they’re well versed in the unique needs and considerations surrounding security contracts in the areas they service.