THE 12 HIDDEN COST TACTICS THAT TURN A LOW SECURITY BID INTO A BUDGET PROBLEM
See how large security companies recover margin after award — and what procurement and security leaders should lock into the RFP before it happens.
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What Happens After the Bid: The Hidden Costs of Security Contracts
Low bids win security contracts every day. What happens after those contracts are awarded? Budgets start to silently increase. Ambiguous contract language, loosely defined labor rules and quiet billing changes add significant cost long after the award.
This ebook breaks down the most common post-RFP revenue recapture tactics used by big security firms. It also shows leaders—from executives to procurement managers—how to spot and prevent them before they drive up costs.
12 REVENUE RECAPTURE TACTICS THAT YOU AND YOUR PROCUREMENT TEAMS NEED TO WATCH FOR:
These are the most common ways low-bid security contracts become higher-cost programs after award. Some appear as new line items. Others show up as billing logic, labor treatment, or small rate changes that compound over time.
Ghost posts, gapped hours, no-shows and partial shifts are billed as full shifts with little to no transparency in timekeeping.
Companies take advantage by providing unneeded OT resources, and bill for both PTO and the backfill resource.
“Vehicle included” promises actually don’t include added fuel costs, new insurance requirements and unexpected expenses like tires.
Unnecessary uniform and gear refresh cycles—to look “sharper,” replace lost items, or procure new seasonal attire—are added to help recapture margin.
The promise of “free account management” on the RFP can be misleading. In reality, national vendors often add $150-$200K in account management fees after the RFP due to new needs assessments.
Additional holidays inserted after the fact, increasing the PTO and supplemental resource bill rates.
Because of high turnover, a constant carousel of new employees on a lower probationary rate keeps the vendors costs low while your hourly rate doesn’t change.
Security managers push small, ongoing rate increases under the guise of increased taxes, insurance and other fees to elevate margins.
Big security companies win the RFP with below-market wages, which creates poor quality and churn. To then elevate the quality, the vendor raises the rates.
Non-disclosed guard tech fees (such as $2,500 portal start up fees, $200/mo device charges, etc.) are quietly added after the fact.
Promises of zero expense pass-throughs and other charges suddenly become negotiable, with those incremental add-on costs continuing to add up.
Inadequate staffing after the RFP process forces clients with growing security needs to use higher-cost floater guards until replacements are found.
Learn the ins and outs of revenue recapture tactics used to recoup margins by Big Security in the eBook.
In the ebook, You'll learn
The 12 most common ways security costs increase after contract award
Where RFP language leaves room for interpretation and cost recovery
What to lock into scope, pricing and audit terms to protect your budget
The questions procurement teams should ask before signing
It's True: You get what you pay for
If you’re reviewing physical security vendors—or managing a full RFP process—don’t just look at one quoted rate.
Evaluate each security company’s business model, history of past client engagements and question all cost centers that are ill-defined. Most importantly, realize that long-term security value is best served by a totally transparent service partnership.
