Sidney Freed, 62, the founder and the chairman of the board of Government Marketing Services, suppliers of calculators and business machines, died Monday at a hospital in San Juan, P.R. He had pneumonia and multiple myeloma, a cancer of the bone marrow.

Mr. Freed, who was born in Patterson, N.J., earned a bachelor's degree in business administration at New York University. He served in the Army in Europe during World War II and won the Bronze Star Medal.

After the war, Mr. Freed settled in Washington and began a career in merchandising. He worked for a chain of camera stores and a company that developed film processing and related equipment. In 1972, he founded Government Marketing Services. He sold the firm in 1979, but continued as its chairman until his death.

Mr. Freed, who lived in Bethesda and maintained a winter residence in Pompano Beach, Fla., also assisted two of his sons, Jerry and Steve, in establishing The Match Box, a retail outlet for calculators and computer products.

Survivors include his wife, Doris J., of Bethesda and Pompano Beach; three sons, Richard, of Houston, Tex., Jerry, of Silver Spring, and Steve, of Washington, and two grandchildren.

The family suggests that expressions of sympathy be in the form of contributions to the American Cancer Society, or to the Children's Hospital National Medical Center, Washington, D.C.