Federal agencies buy unarmed and armed guard services for offices, warehouses, clinics, ports of entry, parks and military sites. Many contracts are set aside for small businesses. They're won by companies that read the post orders carefully and price every hour correctly.
Free tool: Run your own numbers in the free security guard bill rate calculator.
1. Know the codes
- NAICS 561612, Security Guards and Patrol Services, covers most guard contracts. Check your size against the SBA size standard for that code before bidding a set-aside.
- Related work: 561621 (alarm monitoring and security systems) and 561611 (investigation services).
- Find open jobs on our security and guard contracts list, updated daily.
2. Read the performance work statement for these things
- Posts and hours: each post, its hours and days, and whether it's armed or unarmed. A 24/7 post is 8,760 hours a year.
- Guard qualifications: state guard licenses, firearms qualifications, background checks, training hours, CPR and first aid. Some agencies add their own certification, and for Federal Protective Service buildings guards are called Protective Security Officers (PSOs) and need agency training.
- Uniforms and equipment: who provides radios, vehicles, weapons and ammunition.
- Supervision and reporting: site supervisor, project manager, logs and incident reports.
- Start-up time: how quickly guards must be trained, cleared and posted after award. This drives your hiring costs.
3. Price from the Service Contract Act wage determination
Guard contracts are covered by the Service Contract Act. The wage determination attached to the solicitation lists minimum hourly rates for job titles such as Guard I (unarmed) and Guard II (typically armed, with more responsibility). On top of the wage you must provide the health and welfare amount per hour, plus the paid vacation and holidays it lists. If the incumbent's guards are unionized, a collective bargaining agreement may set higher wages for you as the successor.
4. Worked example: one 24/7 unarmed post
The numbers below are illustrative only. Use your solicitation's wage determination and your real costs.
| Hours to cover | 8,760 per year (24 hours × 365 days) |
|---|---|
| Wage + H&W | Example: $20.00 Guard I wage + $5.00 health and welfare = $25.00 |
| Vacation, holidays, training time | Example: 10% of wage = $2.00 |
| Payroll taxes, workers' comp, liability insurance | Example: 15% of wages paid = $3.30 |
| Uniforms, equipment, licensing, supervision share | Example: $1.70 per hour |
| Cost per post-hour | $32.00 |
| Overhead and profit | Example: 12% = $3.84 |
| Price per post-hour | About $35.84, so about $313,960 a year for the post |
Remember the relief factor: covering one 24/7 post takes roughly 4.2 to 4.8 full-time guards once you count days off, vacation, sick leave and training. Make sure your staffing plan and payroll budget reflect it.
5. The technical part (if evaluated)
- Staffing plan: how you'll recruit, clear and train guards in time, and cover call-outs.
- Quality control: post inspections, supervisor checks and how fast you fix problems.
- Past performance: commercial, state or local guard contracts count (no federal experience yet?).
Common mistakes
- Pricing below the wage determination or forgetting health and welfare.
- Forgetting the relief factor, overtime exposure or holiday premiums.
- Underestimating start-up: clearances and training can take weeks.
- Missing an option year or surge-hours line item.
- Not holding the state licenses the work requires.
Frequently asked questions
What NAICS code is used for federal security guard contracts?
Mostly NAICS 561612, Security Guards and Patrol Services.
How do you price a security guard contract?
Calculate the total post hours, build a fully loaded hourly cost from the Service Contract Act wage determination (wage, health and welfare, vacation and holidays, taxes, insurance, equipment and supervision), then add overhead and profit to get a price per post-hour.
How many guards does a 24/7 post need?
Roughly 4.2 to 4.8 full-time guards, depending on shift pattern, leave and training time.
Want it done for you?
Seal the Bid prepares the full package, including the post-hour pricing sheet built from the wage determination, from $495. You set the price, sign and submit. See open guard contracts or see the contracts that fit you.