Opting for the lowest-priced service provider may lead to premature contract termination, as the expenses associated with fulfilling the initial contract could become unsustainable for the contracted security company.
By selecting a low-quality service provider, you inadvertently support the prevalence of exploitative labor practices, underbidding, and the creation of an unfair competitive landscape in the market. This occurs because the lowest bidder often cannot deliver high-quality services, resulting in businesses primarily competing based on price rather than the quality of services offered.
This situation not only adversely affects you as a buyer by limiting your options for reputable companies but also perpetuates an unhealthy business environment.
To reduce expenses, private security service companies frequently opt for hiring guards as independent contractors.
Additionally, the use of subcontracting as a means to avoid paying fair wages and taxes is on the rise, especially when such subcontracting is awarded to low-bidding service providers. These practices can carry detrimental consequences for you as a client and buyer.
There is evidence to suggest that certain low-cost service providers disregard contract security regulations in order to reduce expenses. This frequently entails a failure to meet mandatory requirements such as licensing, insurance, and training, ultimately compromising the quality of the services rendered. Non-compliance can also have adverse repercussions for the client.
A negative impact on the quality of services of the lowest bidder is usually the case due to the fact that the low costs often do not encompass fair compensation, essential training, and suitable working conditions for security officers. This situation promotes a competitive race that erodes the quality of contract security services available in the market.
Consequently, end-users seeking security services will have limited options among high-quality companies to meet their security needs.
Opting for the lowest-priced service provider with a low level of security also substantially damages the industry’s reputation in the eyes of the public. As a result, it reduces the positive public perception of your organization.
Begin by crafting request for proposal (RFP) that clearly communicates your expectations to the companies bidding for the security services job. This way, you could focus on receiving the best value and return on your investment. Your RFP should include at least the following elements:
Specify the wages you are willing to pay to security officers, supervisors, account managers, or any other personnel assigned to your facility. Ensure that these wages align with the prevailing competitive rates in your area and industry. If you seek experienced security officers and the company aims to retain them with higher wages, consider offering a higher rate to attract and retain quality personnel.
A competitive wage is crucial to minimizing turnover and attracting experienced security personnel.
Clearly define the type of uniform to be worn, the quantity of each uniform item provided to officers, the replacement process, and how the uniforms need to align with your facility’s environment. Stress the importance of appearance, which is a critical aspect of success.
Specify that the security company, not the security officers themselves, should bear the cost of uniforms.
Specify the required training for each security officer before they can work at a post or patrol. In your RFP, mention that the cost of training will be covered after the security officer completes a specific duration on the job, such as three months for example.
This approach ensures that your organization is not treated as a training ground and attracts higher-quality candidates from the security provider.
Outline your expectations for post orders, including the requirement that they be developed by the security provider and approved by you.
Define the types of post orders and procedures that should be developed.
Emphasize the importance of compliance with all state or local regulations regarding the security provider. Ensure that all security officers have clean backgrounds with no criminal convictions that could pose a problem for your organization.
Specify that the background checks will be conducted and/or financed by the security company.
Request information about liability insurance coverage, workers’ compensation, and any additional benefits for security officers.
Ensure that the RFP covers all aspects of the contract, leaving no room for ambiguity in the bidding process.
The process of selecting a security company requires careful consideration and attention to detail. By creating an RFP and driving the selection process, you can secure a contract that provides you with value and peace of mind, reducing the risk of unnecessary litigation.
Remember that security plays a vital role in our communities and society. Very often, making informed choices in this field is essential to safeguarding lives and property.
