Command Security Corporation resumes USPS $250 million contract for security services

ABM Security loses challenge for USPS $250 million contract awards to Command Security Corporation

Command Security Corporation  today reported its financial results for its fiscal fourth quarter and year ended March 31, 2016.

As previously reported, on December 31, 2014, USPS notified Command Security Corporation of the contract awards for approximately $20 million per year to provide security services at 50 USPS locations in 18 states, Puerto Rico and the District of Columbia. The award included a four year base contract and three two-year options. In addition, the USPS awarded the Company a contract valued at approximately $5 million per year contract to operate two USPS National Law Enforcement Communication Centers (NLECC) at Dulles International Airport, VA and in Ft. Worth, TX. The combined value of both contracts were up to $250 million over 10 years.

The Company was initially scheduled to commence a one month transition period for both contracts on February 1, 2015, and assume operational responsibility on March 1, 2015.

ABM Security Services (ABM) had been the security guard services contractor for over 10 years. Pinkerton (a division of Securitas Security Services) si the incumbent contractor for the NLECC services. ABM and Pinkerton’s contracts expired January 31,2015.

On January 29, 2015, the Company announced that the USPS had issued a stay of the transition of the USPS Contract awarded to the Company pending the resolution of a dispute over the award of such contract. On January 27, 2015, the Company was notified by the USPS that ABM Security Services (“ABM”) had lodged a protest with the USPS seeking to overturn the contract that was awarded to the Company.

The Court of Federal Claims dismissed the protest filed by ABM on July 7, 2015 to allow for the USPS to take corrective action.

According to Command Security Corporation,on April 7, 2016, the Court of Federal Claims dismissed the protest filed by Universal on January 27, 2016, to allow for the USPS to take corrective action.  Following the April 7, 2016 dismissal of Universal’s claim, the Company reinitiated activities to fully assume the USPS Contract in two phases.  On June 6, 2016, the Company commenced work at approximately half the locations and on June 13, 2016, commenced work at the remaining locations.