How to Bid on Security Contracts: RFP Guide with Pricing Formula & Proposal Template (2026)

To bid on a security guard contract, you need to find the RFP (SAM.gov for federal, state procurement portals for local), calculate your fully burdened bill rate using the pricing formula (guard pay + payroll burden + overhead + profit margin), and submit a compliant proposal that addresses every requirement in the solicitation. The most common reason security companies lose bids is not price — it is failing to address mandatory requirements or submitting generic proposals that do not demonstrate understanding of the client’s specific needs.

Bidding on security contracts is where most security companies either grow or stagnate. The companies that win consistently are not always the cheapest or the biggest. They are the ones that submit professional, compliant proposals that clearly communicate what the client will get, how much it will cost, and why this company is the right choice.

This guide walks you through the entire bidding process — from finding contracts to calculating pricing to writing proposals that win.

Understanding the Bidding Process

How Security Contracts Are Awarded

Government contracts almost always use competitive bids or RFPs. Commercial contracts use a mix — larger clients use formal RFPs, smaller clients negotiate directly.

Step 1: Find Contracts to Bid On

Government Contracts (Federal)

SAM.gov is the single source for all federal contract opportunities.

1. Register on SAM.gov (free, required to bid on any federal contract)
2. Search by NAICS code: 561612 (Security Guards and Patrol Services)
3. Filter by state, dollar amount, and set-aside type
4. Set up email alerts for new postings matching your criteria

Tip: Federal security contracts over $2,500 fall under the Service Contract Act (SCA), which requires prevailing wages. Always check the wage determination before pricing — SCA wages are often $22-$35/hr for guards, significantly above market rate.

Government Contracts (State and Local)

Every state has a procurement portal:

Cities and counties post on their own purchasing websites. Search “[your city] procurement portal” or “[your county] bid opportunities.”

Commercial Contracts

Most commercial security contracts are not publicly posted. They come through:

• Direct outreach to property managers and facilities directors
• Referrals from current clients and industry contacts
• Networking at BOMA, IFMA, ASIS chapter events
• Incumbent loss — when a client’s current vendor underperforms and they reach out to alternatives
• Online presence — clients searching Google for “security companies near me”

For commercial contracts, the “bidding” process is typically a proposal in response to a direct request, not a formal RFP.

Step 2: Read the RFP Carefully

Government RFPs can be 30-100+ pages. Do not skip any section. Here is what to look for:

Critical RFP Sections

Red Flags to Watch For

• Unrealistic guard-to-site ratios — if the RFP requires 24/7 coverage at 5 sites with only 10 guards, the math does not work
• No site visit opportunity — bidding blind on a site you have never seen increases risk
• Extremely low incumbent pricing — if the current vendor is underbidding and losing money, the client’s price expectations may be unrealistic
• Vague evaluation criteria — if the RFP does not explain how proposals are scored, the selection may be subjective

Step 3: Conduct a Site Visit

Always request a site visit before bidding. Walk the property. Count the entry points. Check the lighting. Measure patrol distances. Talk to the current guards if possible.

A site visit lets you:

• Accurately estimate patrol times and staffing needs
• Identify security gaps the client may not have mentioned
• Demonstrate seriousness and professionalism
• Ask questions that improve your proposal

If the RFP does not mention a site visit, ask. Most clients will accommodate the request. If they refuse, factor additional risk into your pricing.

Step 4: Calculate Your Bid Price

The Pricing Formula

Bill Rate = Guard Pay + Payroll Burden + Overhead + Profit Margin

Component Breakdown

Guard pay rate: The hourly wage you pay your guards. Research your local market — underpaying leads to turnover, overpaying kills your margins.

Payroll burden (25-35% of pay):

Overhead ($2-4/hr per guard):

Profit margin: Target 10-20%. Below 10% leaves no room for error. Above 20% makes you uncompetitive on most bids.

Example Calculations

Annual Contract Value

To estimate the annual contract value:

Annual Value = Bill Rate × Hours per Week × 52 weeks

For 24/7 coverage (168 hrs/week) at $29.90/hr: $29.90 × 168 × 52 = $261,110/year

Step 5: Write the Proposal

Proposal Structure

Winning Proposal Tips

1. Address every requirement — go through the RFP line by line and ensure your proposal responds to each point. Missing one mandatory item can disqualify you.
2. Be specific, not generic — “We will provide GPS tracking” is weak. “Guards will clock in via our mobile app with geofenced verification, and you will receive an automated patrol report every morning at 7 AM with GPS routes and checkpoint scans” is strong.
3. Include sample reports — show the client exactly what they will receive. A sample GPS patrol report or incident report is worth more than a page of marketing copy.
4. Name your people — if possible, identify the site supervisor and project manager by name with their qualifications. Clients hire people, not companies.
5. Price transparently — break down your pricing so the client can see what they are paying for. Hidden pricing loses trust.

Step 6: Submit and Follow Up

Submission Checklist

• All required forms completed and signed
• Pricing matches the format requested (hourly, monthly, annual)
• Insurance certificates current and meeting minimum requirements
• Licenses current and correct jurisdiction
• Proposal formatted per RFP instructions (page limits, font size, margins)
• Submitted before the deadline (late = automatic disqualification)
• Electronic submission through the correct portal (if applicable)

After Submission

• Government contracts: Wait for the evaluation period. You may receive clarification questions — respond within 24 hours. Award decisions are typically announced 30-90 days after submission.
• Commercial contracts: Follow up within one week. Offer to answer questions or present in person. Commercial clients often want a face-to-face meeting before making a decision.

Common Bidding Mistakes

Getting Started

If you are new to bidding:

1. Register on SAM.gov — free, takes 2-3 business days, required for all federal bids
2. Set up bid alerts on your state procurement portal for security guard services
3. Build your bid library — company overview, insurance certs, license copies, sample reports — ready to insert into any proposal
4. Bid on 2-3 small contracts to practice the process before targeting larger opportunities

If you need the technology capabilities (GPS tracking, client portal, automated reports) that win competitive bids, start a free 14-day trial with Novagems and have sample reports ready for your next proposal.