psooa

APPENDIX C
Sample Operating Agreement for Security Service

B. PHYSICAL AND TRAINING STANDARDS
Acceptability of personnel for service at _________________ will be governed by the following
conditions:

1. Individuals proposed for assignment as security officers will have at least one year of
prior satisfactory employment in a similar capacity; those proposed for supervisory
service will have at least two years’ experience as an officer.

2. Prior to acceptance, any person proposed for assignment must be interviewed by an
authorized representative of (the Company).

3. Action in (B2) above will be in addition to screening and investigation done by the
Contractor, the results of which are reported to (the Company). A copy of the Contractor’s
employee employment application shall be furnished to (the Company).

4. Individuals proposed for assignment must be in good general health without physical
defects or abnormalities that would interfere with the performance of normal duties.
Each officer must meet the following physical standards:

a. Properly proportioned as to height and weight.

b. Possessing binocular vision, correctable to 20/30 (Snellen).

c. Able to discriminate among standard colors.

d. Capable of hearing ordinary conversation at 20 feet and whispered conversation at 10
feet with each ear.

e. Able to perform normal or emergency duties requiring moderate to arduous physical
exertion such as:

(1) Standing or walking for an entire shift.
(2) Climbing stairs and ladders.
(3) Lifting or carrying objects weighing up to 50 lbs.
(4) Running for short distances.
(5) Self-defense.

Physical fitness is to be evidenced by a medical examination conducted within ninety
(90) days prior to entry on duty. An annual medical examination must be made for each
individual officer within thirty (30) days of the anniversary date of the previous
examination. A copy of the medical certificate for each employee stating that he or she

134 Protection of Assets • Copyright © 2011 by ASIS International

APPENDIX C
Sample Operating Agreement for Security Service

meets the above minimum physical conditions shall be furnished to an authorized
representative before the assignment to the Company premises. The written consent of
the employee to the medical exam must accompany the medical certificate. The final
decision as to acceptability of an individual for work will rest with the authorized
Company representative, as will the right to waive any of the above requirements.

5. Contractor is responsible for conducting its own labor relations with any labor
organization either representing or seeking representation among Contractor employees
and shall negotiate or seek to adjust all disputes that may arise. In turn, (the Company)
agrees that, except as otherwise provided herein, the Contractor may freely enter into any
contract with any labor organization lawfully representing or seeking representation
among officers performing duties described hereunder. No provision under such a
contract or any existing contract shall obligate (the Company) to Contractor employees or
to any union representing Contractor employees on the termination of this Agreement or
at any other time. In the event that the Contractor has knowledge that an actual or
potential labor dispute prevents or threatens to prevent timely performance under this
Agreement, an immediate notice, including all relevant information concerning the
dispute, shall be sent to the authorized Company representative.

6. Prior to assignment to duty as a security officer, each individual will have at least eight (8)
hours of classroom training and sixteen (16) hours of supervised on-the-job training.
Training shift assignments must be approved by the authorized representative. Before
serving in a supervisory position, an individual must have at least twenty-four (24) hours
of supervised training in the operation of the security control center and must be fully
qualified to perform all the duties of that position. All such training will be at the
Contractor’s expense, as will any refresher training program proposed by the Contractor.
Classroom training provided by the Contractor will cover the following subjects:

a. Legal restrictions on arrest, search, and seizure.

b. Control, detection, and reporting of fires, including the use of portable fire
extinguishers and the control of automatic sprinkler systems.

c. Procedure to be followed in reporting a violation of the law to a duly constituted law
enforcement agency. (Normally, all such contacts are made through the authorized
Company representative, but in the event of an emergency, direct contact may be
made. Specific procedures for the different types of foreseeable emergencies are
detailed in the officers’ special orders manual.)

d. Appearance, attitude, conduct, and the lines of reporting authority as described in
the officers’ manual.

Protection of Assets • Copyright © 2011 by ASIS International 135

APPENDIX C
Sample Operating Agreement for Security Service

7. Any specialized training proposed is compensated at a special base training rate
applicable to all Contractor personnel. The Contractor agrees to pay any amount in
excess of this base training rate.

8. Contractor agrees to provide continuity of service and accepts the responsibility of
providing service for the protection of the plant, property, equipment, material, and
personnel during any strike, threatened strike, work stoppage, or other interference with
normal plant operations. Officers will continue to report for duty, remain at their
assignments until properly relieved, and discharge their duties in the regular manner. In
addition, officers will perform such other protection duties as determined necessary and
proper under the circumstances by the authorized representative. If the Contractor fails
to provide continuity of service, then (the Company) may hire officers from another
Contractor for the duration of the contingency situation. Any additional costs incurred by
(the Company) as a result of such action are billed to the Contractor.

9. Contractor agrees that the protection service provided under this Agreement shall be
performed by qualified, careful, and efficient employees of the Contractor in the strictest
conformity with best practices and in accordance with such standards as may be
prescribed from time to time. Contractor further agrees that, upon request, with or
without cause, Contractor will remove from service hereunder any employee(s) who, in
Contractor’s unrestricted opinion, may be guilty of improper conduct or is not qualified
or needed to perform the work assigned. It is further agreed that Contractor shall
immediately replace any of its employees so removed if directed to do so.

10. Contractor personnel will operate special equipment in the security control center
provided and maintained by (the Company). The cost to repair any damage to such
equipment beyond the scope of normal wear and usage is the responsibility of the
Contractor, and the next following invoice submitted will reflect a credit of such amount.

11. Unannounced daily inspections of the security control center shall be conducted at least
once between 1800 hours and 0600 hours of the following day by a non-resident
supervisor of the Contractor. An “Officer’s Daily Report” will be completed at the
conclusion of each inspection and left in a sealed envelope for the authorized
representative. Contractor supervisory personnel may not enter Company property
beyond the security control center for purposes of inspection without the prior
authorization of an authorized representative, except in a bona fide emergency.

12. Contractor personnel shall make no arrests or detentions without the express consent or
written instruction from the authorized Company representative unless otherwise
specified in the written general or special orders. Officers shall not sign a complaint on
behalf of (the Company), and any request for a signed complaint by a law enforcement
agency must be referred to the authorized Company representative.

136 Protection of Assets • Copyright © 2011 by ASIS International

APPENDIX C
Sample Operating Agreement for Security Service

13. Contractor agrees to prepare and submit work shift schedules to the authorized
Company representative at least five (5) working days before the effective date of
implementation. Changes or substitutions in the work shift schedule will not be made
without prior notification to (the Company) except in a bona fide emergency.

14. Contractor agrees to hire all officers with the clear understanding that they will be
required to rotate shifts at a frequency no greater than six (6) weeks. Permanent shift
assignments may not be made without the advance approval of the authorized
representative.

C. EQUIPMENT

1. Contractor will provide and maintain the following items on a lease-purchase basis (24
months) as agreed in Section II of Attachment 3:

a. One (1) electronic security tour management system (or other acceptable system) and
related equipment in a quantity sufficient for issue to all personnel on duty at any
given time.

b. One (1) bicycle and locking arrangements for use by security personnel.
c. Two (2) two-way radios for patrol communications.

2. _______________ will supply one (1) set of master keys as needed for use by Contractor
personnel. These keys are not to be duplicated or removed at any time from the
premises. Should a set of keys be lost or should it be shown that duplication of the keys
provided has occurred, Contractor agrees to reimburse for the cost of rekeying all exterior
locks, doors, gates, etc., to the facility.

D. COMPENSATION
1. Contractor personnel assigned to work shall be compensated as indicated in Attachment
2 in addition to the fringe benefits similarly set forth. Further, the following limitations
shall apply with regard to the working conditions of assigned personnel:

a. Full-time personnel shall not work at any other Contractor-serviced location while
assigned to _____________________ facilities.

b. They shall not be required to work more than twelve (12) continuous hours in one (1)
shift.

c. They shall not be required to work more than forty-eight (48) hours during a normal
work week, which is defined as Saturday through the following Friday.

Protection of Assets • Copyright © 2011 by ASIS International 137

APPENDIX C
Sample Operating Agreement for Security Service

d. They shall not be required to work more than two (2) different shifts within a normal
work week unless the necessity for such assignments can be justified to the
satisfaction of (the Company). Under emergency conditions, exceptions to the above
limitations may be approved by the designated Company representative.

2. Adjustment of Compensation
Upon the occurrence of any of the acts or omissions listed below, there shall be an
equitable downward adjustment of the Contractor’s charges to fairly reflect the reduced
value of the services provided. This downward adjustment shall be determined by mutual
agreement of the contracting parties. Pending final agreement on the amount of such
downward adjustment, (the Company) may deduct from the monthly billing the sum of
fifty (50) dollars for each occurrence per day, per incident. If no mutual agreement is
reached with two (2) months after deduction, the amount actually deducted by (the
Company) shall be deemed acceptable to both parties. In every instance, the Contractor
will be provided advance written notification of intent to make a penalty deduction. This
section will apply to the following acts or omissions:

a. Failure to provide the number of officers required for each assignment and each shift
as specified in the Statement of Work.

b. Failure to assign trained substitute officers as replacements.
c. Allowing an officer to work in excess of twelve (12) hours in any twenty-four (24) hour

period or more than forty-eight (48) hours in a work week without the written
consent of the authorized Company representative.
d. Failure to maintain complete records of all hours worked by each employee assigned.
e. Failure to pay each employee the minimum amount specified in the Agreement.
f. Adjusting the pay scale of an employee either upward or downward without prior
notification to the authorized Company representative.
g. Failure to produce documentation concerning preemployment medical screening
and investigation prior to assignment.
h. Failure to assign a correctly uniformed and equipped officer.
i. Failure to replace any employee within eight (8) hours upon request.
j. Failure to perform the training specified under the heading “Training” before
assignment.
k. Failure to furnish all equipment and material necessary for the performance of the
services as specified under the contract.

Nothing in this section shall limit the right of (the Company) to seek legal remedies in the
event Contractor nonperformance results in actual damage exceeding the amount

138 Protection of Assets • Copyright © 2011 by ASIS International

APPENDIX C
Sample Operating Agreement for Security Service

withheld from billing. Any failure on the part of _____________ to require performance of
the provisions of this section shall in no way affect the right of (the Company) to enforce
the provisions on subsequent occurrences.

E. SHORT-TERM SUPPLEMENTAL SERVICE
1. In emergencies, additional officers, up to five (5), are to be provided within four (4) hours’
notification, and further reasonable numbers of personnel as required within eight (8)
hours thereafter. If (the Company) must fill this need from other sources because of
nonresponsiveness by the Contractor, any costs in excess of that which would be due to
the Contractor if it had met this condition will be borne by the Contractor.

2. When supplemental officers are required under circumstances that preclude giving four
(4) hours advance notice to the Contractor of such need, the Contractor shall be
compensated at the “Short-Notice Supplemental Service” rate specified in Attachment 3
for the additional manpower provided. Otherwise, such “Short-Notice Supplemental
Service” shall be provided under the standard rates agreed to in Section 1 of Attachment 3,
which is made part hereof.

F. AUDIT AND PAYMENT
1. Contractor shall furnish the Company a weekly summary of hours of service provided,
both regular and special, in a format acceptable to (the Company). Contractor will invoice
(the Company) on a monthly or biweekly basis and will mail or deliver same to such
offices as (the Company) may from time to time direct. These invoices are payable to
Contractor within thirty (30) days.

2. As full compensation for the performance of its obligations hereunder, the Company will
pay the Contractor in accordance with the bid rate corresponding with the compensation
of the Contractor’s employees, actually performing the service, for each hour of regularly
scheduled coverage. (See Attachment 3.)

Protection of Assets • Copyright © 2011 by ASIS International 139

APPENDIX C
Sample Operating Agreement for Security Service

G. PERIOD OF PERFORMANCE

This Agreement shall commence at 12:01 A.M. on ____________ and shall expire at 12:00
midnight on ____________ unless previously terminated by thirty (30) days’ written notice by
either party to the other, or unless extended by written agreement prior to such expiration
date. Any extensions of this Agreement shall be subject to the same terms and conditions. All
notices given by either party to the other under this Agreement shall be addressed as follows:

If to Client: If to Contractor:
____________________________ ___________________________
____________________________ ___________________________
____________________________ ___________________________

All such notices shall be prepaid, registered, U.S. mail.

(CONTRACTOR) (COMPANY)
By: _____________________________________ By: _____________________________________
Title: ___________________________________ Title: ___________________________________

140 Protection of Assets • Copyright © 2011 by ASIS International

APPENDIX C
Sample Operating Agreement for Security Service

SAMPLE OPERATING AGREEMENT FOR SECURITY SERVICE—ATTACHMENT 1

INSURANCE

A. Standard Workers’ Compensation and Employee $100,000
Liability (Self-Insured)
$5,000,000
B. General Liability $5,000,000
1. Bodily Injury
2. Property Damage

Protection of Assets • Copyright © 2011 by ASIS International 141

APPENDIX C
Sample Operating Agreement for Security Service

SAMPLE OPERATING AGREEMENT FOR SECURITY SERVICE—ATTACHMENT 2

I. COMPENSATION $10.25
$11.15
A. Security Officer $12.05
Step 1 0 to 6 months service $12.60
Step 2 6 through 12 months service $13.20
Step 3 13 through 18 months service
Step 4 19 through 24 months service
Step 5 Longer than 24 months service

B. Security Supervisor or Senior Officer $12.10
Step 1 Up to 24 months service $14.20
Step 2 Over 24 months service

C. Training Rate $10.25

Note: Billing rates are for discussion purposes only and are not suggested salaries. As mentioned
elsewhere, a thorough analysis of local salary conditions should be conducted to ensure
security personnel are appropriately compensated.

II. FRINGE BENEFITS

Such benefits shall include, but are not limited to:
A. Work on any Contractor holiday shall be compensated at time and one-half for all

personnel.

B. Contractor employees shall receive vacations under the following conditions:

x One week (40 hours) at the end of each year of up to five years of continuous service
and

x Two weeks (80 hours) at the end of each year after five (5) years of continuous service.

C. The employee shall have the choice of taking such earned vacation or receiving pay
instead, but may not carry over any vacation eligibility into the following year.

D. All uniforms and equipment necessary for the performance of duties shall be supplied at
no cost to the individual.

142 Protection of Assets • Copyright © 2011 by ASIS International

APPENDIX C
Sample Operating Agreement for Security Service

SAMPLE OPERATING AGREEMENT FOR SECURITY SERVICE—ATTACHMENT 3

BILLING RATES
I. PERSONNEL

A. Security Officer Straight Time Overtime
Rate _____________________ ______________________
@ $15.10 _____________________ ______________________
@ $15.90 _____________________ ______________________
@ $13.35 _____________________ ______________________
@ $14.40 _____________________ ______________________
@ $15.20
Straight Time Overtime
B. Supervisor _____________________ ______________________
Rate _____________________ ______________________
@ $17.20
@ $16.90 Straight Time Overtime
_____________________ ______________________
C. Training
Rate
@ $14.85

II. EQUIPMENT

A. Lease-Purchase (12 months)
1. One (1) electronic security tour management system (or equivalent), with full
maintenance, payable at __________ per month.

2. One (1) bicycle, with full maintenance, payable at __________ per month.

3. Two (2) portable radios with full maintenance, at __________ per month.

Protection of Assets • Copyright © 2011 by ASIS International 143

APPENDIX C
Sample Operating Agreement for Security Service

III. SHORT-NOTICE SUPPLEMENTAL SERVICE
____________ per hour of service, if four-hour notice is not provided; otherwise, the standard bid
rates listed in item I above apply.

IV. BENEFITS
A. Life Insurance

1. Pay grades to be covered:
2. Amount:
3. Contribution by employee:
B. Medical and Health
1. Pay grades to be covered:
2. Describe coverage:
3. Contribution by employee:
C. Long-Term Disability
1. Pay grades covered:
2. Describe coverage/compensation:
3. Contribution by employee:

V. NUMBER OF OFFICERS IN COMPANY

SUBMITTED FOR: _______________________________________________________________________
(Name of Company)

By: ______________________________________________ Title:________________________________
(Authorized Representative)

144 Protection of Assets • Copyright © 2011 by ASIS International

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Protection of Assets • Copyright © 2011 by ASIS International



INDEX

INDEX Closed-circuit television (CCTV) monitoring, 6, 51
Communication skills, officer, 24, 37, 88, 93, 100
A Consultants, 74, 82
Contract versus proprietary officers. See
Access control, 4, 24, 52
Administration (of contract), 107-24 Proprietary versus contract officers
Alertness. See Vigilant performance Criminal history, 9, 10, 34
Appearance, officer, 12, 17, 128
Appraisal (of officers). See Evaluation (of D

officers) Data capture, 41
Apprenticeships, 64, 90 Discipline (supervisory action), 11, 51, 60, 61, 70
Argyris, Chris, 49 Distance learning, 77, 80, 81, 103, 104
Awarding (of contract), 123 Disturbed persons, 4, 7
Drug screening, 9, 10
B
E
Behavior, officer, 7, 12, 44, 47, 61, 74, 128
Behavioral objectives, 74 Education, 10, 13, 35, 68, 81, 87, 88, 102, 110
Behavioral theories, 47 E-learning. See Distance learning
Benefits, employee fringe, 19, 48, 120, 142, 144 Emergency response, 6, 23, 35, 71, 117
Bennis, Warren, 49 Environment, human, 55, 59
Bidder’s conference, 109, 115 Environment, mechanical, 50
Bidder’s list, 113 Environment, physical, 52
Bids, analyzing, 116, 120, 121 Environment, work, 47, 50, 58, 71
Big Five model of personality, 56 Equipment, officer, 17, 33, 37, 45, 73, 75, 117,
Budget issues, 19, 79, 108
120, 128, 137, 143
C Escort, 3, 6, 15
Ethics, officer, 13, 76
Canadian General Standards Board CAN/CGSB- Evaluation (of bids). See Bids, analyzing
133.1-99, 11, 72, 94 Evaluation (of officers), 10, 37, 52, 60, 65, 72

Case studies, 76 F
Certified Healthcare Protection Administrator, 89,
Fatigue. See Vigilant performance
91 Firearms. See Weapons
Certified in Security Supervision and Fixed post, 24, 32, 35, 50, 54, 61
Foot patrol, 5, 35, 53, 54
Management (CISSM), 91
Certified Institutional Protection Specialist (CIPS),

81
Certified Protection Officer (CPO), 71, 78, 81, 84,

85, 89, 91, 97, 102
Certified Protection Officer Instructor (CPOI), 82
Certified Protection Professional (CPP), 91
Character, officer, 11

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INDEX

G M

General orders, 33, 112, 123, 127 Maslow, Abraham, 48
Government. See regulation McGregor, Douglas, 47
Guidelines and standards. See Standards and Media relations. See Public relations
Mentally ill. See Disturbed persons
guidelines Mentoring, 65, 77
Misconduct, 60
H Mobile patrol, 54
Monitoring. See inspection (of conditions by
Herzberg, Frederick, 48
officers)
I Monitoring (of CCTV, alarms, etc.), 6, 46, 51, 52, 125
Morale, 12, 31, 45, 48, 70, 113
Incentive pricing, 122 Motivation, 18, 38, 47, 48, 58, 70, 75, 117
Inspection (of conditions by officers), 6, 52, 61 Myer-Briggs Type Indicator, 55
Insurance, 8, 10, 13, 14, 16, 20, 72, 101, 117,
N
120, 121, 133, 141, 144
Interaction (with employees), 59, 98 Naps, 47
Internships, 64, 87 Necessary human being, 24
Number of security officers, 1, 2, 3, 28, 30, 31,
J
94, 144
Job aids, 77
Joint training. See Training, integrated O

K Observation, 5, 55, 59, 93, 98
On-the-job training. See Training, on-the-job
L Orders. See General orders, Post orders, Special

Learning. See training orders
Lectures, training, 70, 76, 84, 87 Organizational structure (of security department),
Legal issues, 8, 13, 14, 20, 41, 71, 72, 82, 86, 88,
17, 45, 49, 83, 103, 107
90, 98, 113, 123 Overtime, 28, 30, 32, 79, 84, 117, 119
Liability. See Legal issues
Log, database, 39 P
Log, security, 32, 39, 41
Loss Prevention Certified (LPC), 91 Patrol. See Foot patrol or Mobile patrol
Loss Prevention Qualified (LPQ), 91 Peace officer, 20
Performance, officer, 12, 13, 18, 36, 37, 43, 44,

46, 51, 54, 58, 60, 69, 72, 73, 128
Personal attributes, 11
Personnel requirements. See Number of security

officers
Physical Security Professional (PSP), 81, 99
Policies, 5, 7, 14, 16, 34, 54, 60, 75

152 Protection of Assets • Copyright © 2011 by ASIS International

INDEX

Post orders, 23, 34, 36, 37, 38, 93, 95 Studies, government and private, 44, 45, 88
Private Security Officer Selection and Training Supervision, 36, 70, 85, 91, 113, 116

Guideline, 10, 91, 93, 102 T
Procedures, 7, 23, 34, 35, 70, 75, 77, 80
Proprietary versus contract officers, 1, 10, 14, Task simplification (offsetting the effects of), 61
Testing, 9, 45, 59, 71, 74, 75, 78, 80, 89, 95, 117
19, 31, 107 Theory X and Theory Y, 47, 50
Public relations, 3, 8, 13, 33, 97, 128 Training, 10, 11, 14, 24, 45, 63, 67, 68, 117, 119
Punishment. See Discipline
benefits of, 69
Q design of, 68, 73, 74
evaluation of, 75
Qualifications, officer, 8, 30 history of, 63, 87, 89
identifying needs, 58, 72
R integrated, 85
key concepts, 65
Recognition of officer achievement, 48, 58, 71, methods and delivery, 76, 78, 80, 84, 87,
84, 85, 89, 115 95, 103
obstacles to, 79, 81
Regulation, 1, 8, 10, 16, 72, 74, 89, 90, 92, 95, on-the-job, 77
100, 101, 104 supervisory, 86
trends in, 100
Reports, security officer, 38, 41, 95, 110 Trend analysis, 41
Request for proposal (RFP), 108 Tuition reimbursement, 84
Retention (of learning), 67 Turnover, 25, 36, 45, 70, 71, 113, 114, 123
Rewards, 47, 58, 61, 78, 85
Roles (of security officers), 3, 54, 74, 85, 86, 97, U

100, 116 Uniform, 12, 17, 33, 85, 117, 128

S V

Salaries, 25, 78, 85 Video (for training), 66, 76, 80, 86
Scheduling, 23, 25, 26, 27, 29, 46, 57, 80 Vigilant performance, 11, 31, 33, 44, 45, 47, 51,
Scope of work, 98, 109, 112, 125
Selling security department services, 86 61, 127
Shifts. See Vigilant performance
Sleep. See Vigilant performance W
Socialization, 8, 67, 74, 77, 85
Special assignments, 3 Weapons, 9, 14, 16, 60, 85
Special orders, 112, 115, 123, 132
Staffing requirements. See Number of security XYZ

officers
Standards and guidelines, 10, 11, 14, 15, 16, 52,

72, 81, 88, 90, 94, 99, 101, 134
Straight time. See Overtime
Structure. See Organizational structure (of

security department)

Protection of Assets • Copyright © 2011 by ASIS International 153