Service Contract Act bid price calculator
Pricing a security guard, janitorial, grounds or food service contract? Pick the county where the work is. You'll see the Department of Labor wage rates for that area, then add your taxes, overhead and profit to get a bid rate per hour and an annual price.
Free, no sign-up. Rates come from the current area wage determinations on SAM.gov.
How the price is built
- Wages. The WD rate for each job times 2,080 paid hours a year. Paid holidays, vacation and sick leave are part of those hours.
- Health & welfare. The WD's H&W rate on every paid hour, up to 40 a week.
- Payroll taxes and insurance as a percent of wages: Social Security and Medicare (7.65%), federal and state unemployment, and workers' comp.
- Overhead, G&A and profit, each a percent of the costs before it. The starting numbers are only examples; use your own.
- Bid rate per hour is the annual price divided by the hours a worker actually works, about 2,080 minus holidays, vacation and sick leave. That's the rate to cover an hour of service, with relief staff filling in during leave.
Wage rates, H&W, vacation and holidays come from the area wage determination that SAM.gov lists for the county. The county list was last checked October 10, 2026, and rates are re-read from SAM.gov daily. SAM.gov noted that some wage determinations published April 29, 2026 may list incomplete locations, so check the area on the WD itself.
The wage determination in the solicitation governs. This is an estimate, not legal or pricing advice. Check the solicitation's WD, any collective bargaining agreement, and state or local minimum wage laws before you bid.
Frequently asked questions
What is an SCA wage determination?
A schedule from the Department of Labor that sets the minimum hourly wage for each kind of service worker in an area, plus fringe benefits: health and welfare, vacation and paid holidays. Federal service contracts over $2,500 include one, and the contractor must pay at least those rates.
Which wage determination applies to my bid?
The one attached to the solicitation, usually in Section J or the contract clauses. The contracting officer picks it for the place of performance. If the current contractor's workers have a union agreement, a collective bargaining wage determination with the union's rates applies instead, and this calculator doesn't cover those.
How is health and welfare paid?
As an hourly amount for every hour a worker is paid, up to 40 hours a week, including paid vacation and holidays. You can pay it as benefits like health insurance, as extra cash on the paycheck, or a mix of the two.
Why are there two health and welfare rates?
Contracts covered by Executive Order 13706 also require up to 56 hours of paid sick leave a year, so they use a lower H&W rate. EO 13706 covers contracts awarded on or after January 1, 2017, so most new bids use the lower rate plus sick leave.
Do I have to give vacation to workers I hire from the old contractor?
Yes. Vacation is based on length of service, which includes time with earlier contractors doing similar work at the same federal facility. A workforce with long service earns more vacation, so ask about it at the site visit or in questions to the contracting officer.
Is this legal or pricing advice?
No. It's an estimate from the area wage determination SAM.gov lists for the county. The WD in the solicitation governs, and your real tax, insurance and overhead rates will differ from the examples. For help pricing a bid, ask a free APEX Accelerator counselor.
Service contracts by industry
- Security guard contracts
- Janitorial and cleaning contracts
- Landscaping and lawn care contracts
- Food service contracts
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