Articles

Security Officer Contract RFP's

When hiring security officers, many corporations now rely on generic contracts used by the company for contractors working in various types of contract work or even worse, they rely on a contract supplied by the Contract Security company. After a few months of service, a sudden realization occurs that the contract does not adequately provide for the needs of the organization as related to the security provider. Some examples recently discovered while working with security contracts include overtime coverage and exorbitant pay associated with overtime, communication problems between the organization and the security contractor, payroll discrepancies and inadequate response in correcting payroll problems, and failure on the part of the Security Officers in following policies and procedures as directed by Post Orders. Administrative or officials who are in charge of working with the security contract company are finding there is little recourse provided by the Security Officer Contract in correcting and keeping these types of problems from occurring.

For a Security Officer Contract to be effective and ensure a certain level of competence, performance, and professionalism, it must cover a myriad of issues. Some of the more common examples of these issues are related to training, staffing, equipment, billing schedules, employee care, and motivation. Some of the not so common issues involve turnover, selection process, confidentiality, and training. Prospective security contractors must be challenged to utilize imaginative, innovative techniques and ideas to enhance the professional level of activity and motivation of security personnel. A professional security contract covers many aspects that are usually overlooked when contracting with a security firm.

The Bidding Instructions need to be complete so they will cover a variety of topics. The Bid Instructions would include a bidders conference, when the contract would be awarded, start-up dates, and bid withdrawal instructions. Also included would be Contract definitions, disqualification rules, power of attorney instructions, a bid guaranty, and a performance and payment guarantee bond. Any addenda to the contract RFP should be in the bid instructions.

The contract RFP bid form should have a narrative section where the contract security provider can describe at length topics such as history of the bid company, organization charts, accepted turnover rates, overtime policy, and other corporate services offered by the contractor.

The fill-in narrative section allows the prospective bidding Contractor to give information for a monthly, annual, and a five-year budget. Other important information to be provided includes temporary or part-time employees, training and selection processes, start-up charts. The bid form ends with a letter of transmittal from the contractor to the client.
So, what does a good Security Officer Contract provide? In the following summary, a number of important issues are discussed briefly.

  • Billing Guidelines – This section of the contract covers how invoices will be handled and how pay will be administered. Direct charges billed to the Client may cover vacation, medical examinations, drug screenings, background investigations, and vehicle costs. Polices for straight time and overtime pay must be included.

  • Turnover rates – Turnover rates should not exceed 60% for a one-year period. Some companies demand turnover rates not exceed 30%. If turnover rates exceed 60%, more than likely, the Client is not receiving adequate, competent, and professional Security Officer coverage. There must be a section in the contract that deals with excessive turnover rates.

  • Equipment – Equipment is an important part of the contract because there must be no misunderstanding as to what equipment will be furnished by the Contractor and what will be supplied by the Client. The number of uniforms and type that each officer is to receive should be listed under the Equipment section of the contract. If belts, shoes, and other articles are to be issued, these are included also. The Client should have the option of selecting the style and color of any uniforms that are to be worn by the Officer while working at the Client’s property. Additional equipment such as flashlights, raingear, jumpsuits, or other needed equipment should be included. The equipment section of the contract should also include registration or certification with the state licensing board that controls private security services. If the officer is to transport passengers or be required to drive some type of vehicle, care must be taken to ensure the Officer is properly licensed within the state where the service will be provided. Communication equipment should also be addressed. Cellular telephones or pagers must be a requirement to maintain adequate lines of communication. Other things to consider are office space, office equipment, and furniture.

  • Training – Training must be spelled out to ensure proper training is carried out. There must be provisions for on-going and continuing training to maintain professionalism and to instill the standards and goals of the organization.

  • Performance Based Compensation Plan – Many companies are choosing to insert a Performance Based Compensation Plan in their security contract. For example, the contract security provider would be assessed each month in several categories relative to the service being provided. Point values would be assigned for each category that total 100. A score of 80–90 would result in average performance with no loss of profit or gain of profit. Scores above 90 could result in a profit gain of up to 30 per cent or more, while scores below 80 could result in a decrease in profit.

For the Security Officer RFP contract to be complete, a number of other miscellaneous items should be included. Insurance requirements, confidentiality agreements, auditing rules, emergency coverage, and reporting guidelines are just a few of these.

Without a good security contract in place, the client often does not get what they pay for. Most security contract providers want to provide coverage that not only satisfies the client but even gives them more than what is required. A good security officer contract covers every foreseeable security need of the client and spells it out so that the contract security provider knows exactly what service is expected. This type of contract allows for a good client/contractor partnership and relationship with less disappointment all around.

Prepared by Donald R. Turnage, CPP, CFE, Risk Management Associates

Other Articles

Safeguarding Building Perimeters For Bomb Attacks

Articles from the Chapter Membership

When Severe Weather Strikes

Choosing the Right Vendor

Key Control

Investigation