Form 8-K COMMAND SECURITY CORP
January 12, 2015
On December 31, 2014, Command Security Corporation (the “Company”) was awarded a contract for services with the United States Postal Service (“USPS”) valued at an aggregate of approximately $250 million over a potential ten year term of service. Pursuant to the agreement, the Company will provide security services at 50 USPS locations in 18 states, Puerto Rico and the District of Columbia, an award valued at approximately $20 million per year. The Company has commenced a one month transition period and will assume operational responsibility on February 1, 2015. In addition, the Company will operate the two USPS National Law Enforcement Communication Centers located in Ft. Worth, Texas and at Dulles International Airport in Dulles, Virginia, an award valued at approximately $5 million per year. The Company will commence a one month transition period for this contract on February 1, 2015, and will assume operational responsibility on March 1, 2015.
The services performed under the agreement will be in accordance the terms provided for in the Statement of Work agreed upon by the parties. The USPS may change the scope of the Statement of Work at any time in writing. The term of the award is 4 years, with three two-year options to extend, which may be exercised by USPS at any time with prior written notice. In addition, USPS may terminate any services provided under the agreement with 30 days’ prior written notice. During the term of the agreement and for two years following its termination, the Company agrees not to compete with the USPS for any postal service contracts or contract with any competitor for any product for which the Company provided services under the agreement with the USPS. The agreement contains standard terms and conditions, including the restriction on assignment of the agreement by the Company and the right of the USPS to audit the books and records of the Company related to its services provided under the agreement. The USPS may terminate the agreement for default by the Company.
Also see, from Jan. 6, 2015:
Command Security Corp. (AMEX: MOC) shares have nearly doubled Tuesday after the company announced the award of two United States Postal Service (USPS) contracts valued at approximately $250 million over a ten year term of service.
On December 31, 2014, Command Security Corporation received notification of the award of an approximate $20 million per year contract to provide security services at 50 USPS locations in 18 states, Puerto Rico and the District of Columbia. The award includes a four year base contract and three two-year options. The Company has commenced a one month transition period and will assume operational responsibility on February 1, 2015.
In addition, the USPS awarded the Company an approximate $5 million per year contract to operate the two USPS National Law Enforcement Communication Centers (NLECC) at Dulles International Airport, VA and in Ft. Worth, TX. The Company will commence a one month transition period for this contract on February 1, 2015, and will assume operational responsibility on March 1, 2015.
Todd Pratt, Vice President, Sales and Marketing said, “This is a major success for our team and represents the largest single contract ever awarded to the Company. It represents an affirmation of our strategic plan and positions the Company to compete for other major contracts.”
“We are honored to have been selected by the USPS for this important contract to provide for their security needs across the country,” said Craig P. Coy, Chief Executive Officer. “Our operational and support staff teams have worked very hard to enable the Company to secure this opportunity and we look forward to a long and successful relationship with the USPS.”