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Command Security Corporation Notified of the U. S. Postal Service's Decision to Confirm Contract Award, Contract Value ~$250M

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Command Security Corporation
(NYSE MKT: MOC) announced today the notification by the U. S. Postal Service
("USPS") of their decision regarding the previously announced contract
award.
On December 31, 2014, Command Security Corporation ("Command Security" or
the "Company") received notification of the award of the USPS contract under
Solicitation No. 2B-14-A-0078, valued at approximately $250 million over a
ten year term of service. The contract provides for security services at 50
USPS locations in 18 states, Puerto Rico and the District of Columbia,
valued at approximately $20 million per year, as well as the operation of
the two USPS National Law Enforcement Communication Centers (NLECC) at
Dulles International Airport, Virginia and in Ft. Worth, Texas, valued at
approximately $5 million per year. The award includes a four year base
contract and three two-year options.
On January 29, 2015 the Company announced that the USPS had issued a stay of
the transition of the contract awarded to the Company pending the resolution
of a dispute over the award of such contract. The contract at issue was
disclosed in a press release issued by the Company on January 6, 2015, and
in a Form 8-K filed by the Company with the Securities and Exchange
Commission on January 12, 2015. 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.
In a decision dated June 15, 2015, the USPS Supplier Disagreement Resolution
Officer found that the December 31, 2014 contract awarded to the Company
represented the best value for the USPS. Accordingly, the Supplier
Disagreement Resolution Officer denied the disagreement filed by ABM, and
lifted the stay on the performance of the December 31, 2014 contract with
the Company.
On June 17, 2015, the Company was notified by the United States Department
of Justice that ABM has expressed an intent to file a protest with the Court
of Federal Claims challenging the award of the USPS contract to the Company,
and seeking an injunction to stop the transition of the USPS contract to the
Company. The Company cannot predict the duration or outcome of the dispute,
including whether the transition will occur.

 

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