Contract services, which assume direct and administrative costs for their personnel, are fiercely competitive and in general, are more cost-effective than in-house services. In-house service costs include pay for nonproductive days, excess hourly rates such as overtime and vacation, personnel costs, payroll and benefit costs, insurance costs, union costs, and administrative and other expenses. After assessing security needs, vulnerabilities, and resources, the security manager can determine the best options for meeting needs. Because contract services usually are cheaper and of better quality, many companies staff in-house supervisory personnel on all shifts and staff the balance with contract personnel. Another option is to specify that the contract company supplies tactical management as well as line staff, or tactical management may be contracted through a separate company. Finally, even when security needs are such that a proprietary force must be maintained, it may be desirable to maintain the minimum necessary force and supplement it with outside assistance on an as-needed basis. 3 figures.