Command Security Stock Soars to 5-month High After U. S. Postal Service Contract Is Reaffirmed
The company’s stock price is up almost 24% after announcing in a SEC filing it received confirmation it won a U. S. Postal Service contract worth $250 million over 10 years.
HERNDON, Va. – Command Security Corp. (NYSE MKT: MOC) jumped to the highest in five months after the security services company said it had been notified by the U. S. Postal Service (USPS) of its decision to confirm the award of a contract valued at $250 million over a 10-year period.
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Shares surged to $2.83 on Monday, the highest intraday price since June 18, before trimming gains to trade at $2.38, up 15%, at 11:52 a.m. Thursday in New York.
The USPS and Command Security, based here, will begin to develop the transition process for the company to formally assume the responsibilities under the USPS contract, Command Security said in a statement.
“We have waited a long time for this affirmation and hope there will be no further delays or roadblocks imposed to disrupt this important work,” CEO Craig Coy said in the statement.
Command Security initially received notification on December 31, 2014, of the USPS contract award, which provides for security services at 50 USPS locations in 18 states, Puerto Rico and the District of Columbia. It is valued at $20 million annually.
The contract also covers the operation of the two USPS National Law Enforcement Communication Centers (NLECC) at Dulles International Airport, Virginia and in Ft. Worth, Texas, valued at $5 million per year.
The award includes a four-year base contract and three two-year options.
On January 29, Command Security said 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, the company was notified by the USPS that ABM Security Services had lodged a protest with the USPS seeking to overturn the contract that was awarded to the company.
In a decision dated June 15, the USPS Supplier Disagreement Resolution Officer found that the USPS contract awarded to the company represented the best value for the USPS.
The Supplier Disagreement Resolution Officer denied the disagreement filed by ABM, and lifted the stay on the performance of the USPS contract with the company.
Command Security and its Aviation Safeguards subsidiary provides uniformed security officers, aviation security services and support security services to commercial, financial, industrial, aviation and governmental customers throughout the U.S.
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