Guard Government Facilities with Security Performance Bonds
Federal buildings, courthouses, transit systems - they all need security. The pay is steady, the contracts are multi-year, but they require performance bonds. Let's get you qualified for those high-value government security contracts.
License Bond (State Required)
$5K-50K bonds plus contract performance bonds
Performance Bond (Contract)
Government facility security contracts
Why Government Security Contracts Are Different (and Better)
I've watched security companies chase retail contracts that pay $12/hour with 30-day cancellation clauses. Then they discover government security work and realize what they've been missing: $18-25/hour rates with 3-5 year terms and guaranteed payment.
Picture this: A federal courthouse security contract. $800,000 annually. Three years guaranteed with two one-year options. No chasing invoices. No "we're cutting your rate" conversations. Just steady, professional work at premium rates.
The catch? Every government security contract requires a performance bond. And suddenly you're researching bonding requirements at 2 AM, trying to figure out if the bond premium is worth it for steady income.
Spoiler alert: It absolutely is. That $24,000 annual bond premium for a $800K contract? It's the price of admission to the major leagues of security services.
What makes government security different:
- Premium rates: $18-25/hour vs $12-15 commercial
- Long terms: 3-5 years with renewal options
- Guaranteed payment: Government always pays
- Professional respect: You're protecting critical infrastructure
Who Requires Security Performance Bonds?
(Anyone who can't afford security failures)
Federal buildings, courthouses, military installations, VA hospitals - all require performance bonds for security contracts. It's standard operating procedure for critical infrastructure.
Typical requirement: 100% performance bond for multi-year contracts
Airports, subway systems, bus terminals, train stations - transportation hubs require bonded security. Public safety is non-negotiable at these facilities.
- • Airport security: Always bonded
- • Transit police: Often required
- • Port security: Usually required
- • Bridge/tunnel security: Sometimes
State capitol buildings, city halls, county facilities often require performance bonds for security contracts. Varies by jurisdiction and contract size.
Note: State contracts often have local preference programs that favor in-state companies
$100K-300K Annual Contracts
Perfect entry point for established security companies. Municipal buildings, small federal facilities often in this range.
Reality check: A $600K courthouse security contract might cost $18,000/year in bonding. But compare that to the stress of chasing retail security accounts.
Here's what most security companies don't know: The SBA will guarantee your performance bond up to $14 million. Yes, even if your credit isn't perfect. Even if you're competing against Allied Universal and Securitas.
Quick Bond Program
For contracts up to $500K
- ✓ No financials required
- ✓ Fast track approval
- ✓ Credit issues acceptable
- ✓ Perfect for first federal contract
Standard Program
For larger contracts
- ✓ Up to $14M capacity
- ✓ 90% guarantee for minorities
- ✓ 80% for others
- ✓ Multi-contract relationships
Real example: A veteran-owned security company with average credit used SBA to bond a $450K federal courthouse contract. The national companies couldn't match their rates or local service commitment.
Your Path from Commercial to Government Security
Start this process 3-6 months before you bid. Seriously.
Foundation requirements:
- • State security license bond
- • PI license if required
- • Firearms licensing
- • Business licenses
You can't bid government work without proper state licensing. Start here.
Find your targets:
- • SAM.gov for federal contracts
- • State procurement websites
- • Local government opportunities
- • Transit authority contracts
Before you bid anything:
- • Apply for bond capacity
- • Submit financial documents
- • Get approval letter
- • Know your exact rates
Pre-qualification is free and prevents disaster later. Don't bid without it.
Build your credentials:
- • Get security clearances
- • Train key personnel
- • Document procedures
- • Build client references
Pro tip: Government values documented procedures and trained personnel.
Bid strategically:
- • Include bond costs in pricing
- • Add 3-5% for bond premiums
- • Emphasize local presence
- • Submit bond letter with bid
Building your empire:
- • Execute contracts flawlessly
- • Build government relationships
- • Increase bonding capacity
- • Bid larger opportunities
Perfect performance = contract renewals = easier bonding = bigger opportunities.
Mistake #1: Bidding Without Proper Clearances
Winning a federal building contract only to discover key personnel need security clearances that take 6-12 months to process.
Fix: Start clearance process early. Factor clearance costs and timing into your bids.
Mistake #2: Treating It Like Commercial Security
Using commercial security rates and procedures for government contracts. Government has different requirements, documentation, and expectations.
Fix: Study government security requirements. Invest in proper training and procedures.
Mistake #3: Underestimating Compliance Costs
Forgetting about drug testing, background checks, ongoing training, reporting requirements. These add up fast.
Fix: Build compliance costs into your rates. Government pays for quality, not bottom-dollar pricing.
Mistake #4: Poor Staffing Planning
Winning a contract without qualified staff to fulfill it. Government security often requires specific training and experience.
Fix: Recruit and train staff before you bid. Have backup plans for critical positions.
Year 1: Marcus's security company guarded shopping malls and office buildings. 12 guards, constant turnover, $14/hour rates. Revenue: $480K but margins were thin.
Year 2: Got state security license bond, started clearance process for key staff. Used SBA program to get pre-qualified for $300K capacity. Won first federal building: $220K annually.
Year 3: Perfect performance on federal contract. Added courthouse security: $380K annually. $20/hour rates, better retention. Revenue: $600K with higher margins.
Year 4: Bonding capacity increased to $1.2M. Won transit system contract: $850K annually. Total revenue: $1.45M with stable, trained workforce.
Year 5: Added second transit contract and military base perimeter security. Revenue: $2.1M, 35 employees, industry respect and stable cash flow.
Questions Security Companies Actually Ask
Depends on the facility. Federal buildings often require Public Trust clearances. Military bases need Secret clearances. Courthouses usually don't require clearances. Check each contract's requirements.
Absolutely. Government contracts often favor small businesses, veterans, minorities. You can provide personal service and local accountability the big companies can't match. Use SBA programs to level the playing field.
Government security pays better, so retention is easier. Partner with military transition programs, police academies, and veteran organizations. Build a pipeline before you need it.
Plan for 45-60 days operating expenses. Government pays reliably but slowly. You need to cover payroll, benefits, and overhead while waiting for payment. Factor this into your bonding capacity.
Government contracts require substantial liability coverage (usually $2-10M). This is separate from performance bonds. Budget 2-4% of revenue for insurance costs on government work.
Ready to Move from Retail Security to Government Contracts?
Look, guarding shopping malls for $12/hour is exhausting. Government security offers professional respect, better pay, and contract stability. The bond is just your entrance fee to the major leagues.
No obligation. No pushy sales calls. Just honest advice about whether you're ready for government security work and what it'll really cost. That $800K courthouse contract isn't going to bid itself.