security tenders

Security guarding tenders: PSIRA, grading and wage costing

Guarding contracts are heavily regulated. What PSIRA requires, how officer grades affect cost, and how to build the rate.

Published Reviewed 7 min read

Branded private security response vehicles parked in Meadowridge, Cape Town, part of South Africa's private security industry
Photo: Husskeyy, via Wikimedia Commons, CC BY-SA 4.0. Cropped.

Security is one of the largest recurring service categories in South African public procurement, and one of the most regulated. Every government building, hospital, school, depot and municipal facility needs guarding, and those contracts run on multi-year cycles.

The regulation is what separates serious bidders from the rest. This covers what is required and how the rate is built. For live contracts, see security tenders.

PSIRA registration is non-negotiable

The Private Security Industry Regulatory Authority registers both security businesses and individual security officers. A business must be registered and in good standing to provide security services lawfully, and every officer deployed must be individually registered and graded.

Government tenders check this. Expect to submit your business registration certificate and, frequently, evidence for the officers you intend to deploy. A lapsed registration, on the business or on officers, is a compliance failure that ends the bid regardless of price.

Officer grades drive the cost

PSIRA grades security officers from A to E, with grade A the most senior. Tenders specify the grades required for each post, and the grade determines both the wage and the competence expected. A site needing grade B and C officers costs materially more than one specified at grade D and E.

Price the grades the specification asks for, not the grades you would prefer to deploy. Substituting lower grades to win on price is a contract breach that surfaces during the first inspection.

Wage compliance is checked

The private security sector is covered by a sectoral determination setting minimum wages by officer grade and by geographic area, revised periodically. Government buyers are alert to underpricing here, because a rate that cannot cover the lawful wage bill signals either non-compliance or a contract that will fail.

Confirm the current determination for the relevant area and grade before pricing. As with cleaning, the wage is only part of the employment cost.

  • UIF, Skills Development Levy and Compensation Fund contributions
  • Provident fund and industry council contributions where applicable
  • Leave accrual and public holiday cover
  • Night shift allowances where the roster requires them
  • Relief cover, which on a 24 hour post is a structural cost rather than an occasional one

Work the roster out before pricing

The specification will state posts, hours and coverage. Turning that into headcount is the step where errors compound. A single post covered 24 hours a day, seven days a week is not three officers. Once shift patterns, rest days, leave and relief are accounted for, it is materially more, and the exact figure depends on the roster you design.

Build the roster, count the actual people required, then cost them. Every underpriced guarding bid traces back to this calculation being done in reverse.

Equipment, supervision and control room

Beyond wages, guarding contracts carry uniforms and replacement, radios or communication equipment, torches and batons where permitted, occurrence books and reporting systems, vehicles for patrol or supervision, and area supervision visits.

Many specifications require control room monitoring and documented patrol verification. If the tender requires it, it needs to be in the price. If it does not, offering it can earn functionality points, but only if the tender's scoring matrix rewards it. Read the matrix before adding cost.

Where the contracts are

Guarding is tendered by every tier. Provincial health and education departments secure hospitals, clinics and schools; municipalities secure depots, halls, libraries and water infrastructure; national departments secure offices and courts; state-owned companies secure stations, substations and depots.

See Public Works tenders and municipal tenders for the largest sources. Many guarding businesses also bid cleaning tenders, since buyers increasingly package facilities services together.

Common questions

Do I need PSIRA registration to bid for government security tenders?
Yes. The security business must be registered with the Private Security Industry Regulatory Authority and in good standing, and every officer deployed must be individually registered and graded. Buyers verify this, and a lapse ends the bid.
How are security officer wages set?
By a sectoral determination for the private security industry, which sets minimums by officer grade and geographic area and is revised periodically. Confirm the current figures before pricing, and add statutory contributions, leave accrual and relief cover on top.
How many officers does a 24 hour post need?
More than three. Once shift patterns, rest days, annual and sick leave and relief cover are accounted for, continuous cover of a single post requires a larger complement, and the exact number depends on the roster you design. Building the roster first is the only reliable way to price it.

Live tenders in this area

Keep reading