Homeland Security Capital Corporation (OTCBB: HOMS), an international provider of specialized technology-based radiological, nuclear, environmental, disaster relief and security solutions to government and commercial customers, announced that its subsidiary, Safety and Ecology Corporation (SEC), has received a protest on an active project in Oak Ridge, Tennessee. The protest, made by the unsuccessful bidder for the project, is disputing SEC’s business size under the rules of the Small Business Administration (SBA). As previously announced, SEC was awarded the U.S. Department of Energy’s (DOE) Oak Ridge Office task order for complex environmental cleanup operations at the Oak Ridge National Laboratory as a part of the American Recovery and Reinvestment Act. The contract pursuant to which this initial task order was issued is valued at $16.6 million, and includes options that, if exercised, could increase the total value of the contract to approximately $50 million. SEC continues to actively perform work on this critical project despite the protest. The SBA’s ruling states that SEC is “other than small for the captioned size standard” by finding that SEC is affiliated with its mentor protégé, American Radiation Services, Inc (ARS), and, therefore, ARS’s headcount should be included in SEC’s headcount. SEC became an approved mentor to ARS under the auspices of the SBA’s Mentor-Protégé Program. The relationship has been beneficial to ARS, and also serves as a successful example of the spirit behind the establishment of the program. The purpose of the Mentor-Protégé Program is to enhance the development of the protégé and to encourage approved mentors to provide various forms of assistance to eligible 8(a) participants to ensure contracting opportunity experience and overall financial viability. “It is our strongly held position that the SBA determination is incorrect and, as such, SEC is appealing the determination to the SBA’s Office of Hearings and Appeals within the time prescribed by regulation,” said Christopher Leichtweis, President of Homeland Security Capital Corporation and CEO of SEC. “We think that the SBA determination is wrong and harmful to the Mentor-Protégé Program as a whole and will have a chilling effect on other similar mentor-protégé relationships.”
The $50 million task order is part of $755 million received by the Oak Ridge Office’s Environmental Management (EM) program for projects in Oak Ridge. The task order is awarded through DOE EM’s Nationwide Multiple Award Indefinite/Delivery Indefinite/Quantity contracting tool out of DOE's Consolidated Business Center in Cincinnati.About Safety and Ecology Corporation Safety and Ecology Corporation (SEC) is a rapidly growing environmental services company in the U.S., providing services nationally, in Europe and the Caribbean. The Company specializes in the removal and remediation of hazardous nuclear materials for the U.S. Department of Energy, U.S. Department of Defense, and other federal agencies. SEC also provides advanced environmental services for private industry across the country and internationally. Since its founding in 1991, SEC has grown approximately 30 percent per year, and has emerged as a technology innovator with more than 450 personnel worldwide and with annual revenues of more than U.S. $70 million. For more information on SEC, visit www.sec-tn.com. About Homeland Security Capital Corporation (HOMS) Homeland Security Capital Corporation is a company engaged in the strategic acquisition, development, and consolidation of homeland security-related businesses, within the fragmented homeland security industry. The company is focused on creating long-term value by taking controlling interest and developing its subsidiary companies through superior operations and management. The company is headed by former Congressman C. Thomas McMillen, who served three consecutive terms in the U.S. House of Representatives from the 4 th Congressional District of Maryland. HOMS operates businesses that provide homeland security products and services solutions, growing organically and by acquisitions. The company is targeting emerging companies that are generating revenues but face challenges in scaling their businesses to capitalize on homeland security opportunities. HOMS’s portfolio of companies, in addition to SEC, includes: Nexus Technologies Group, a mid-Atlantic security integrator for the corporate and governmental security markets that specializes in non-proprietary integrated security solutions including access control, alarm, video, communication, perimeter protection and bomb and metal detection security systems. Utilizing cutting-edge technologies, Nexus provides innovative, engineered and scalable solutions to effectively protect people, property and assets. For more information about Nexus, visit www.nexusna.com. Polimatrix, Inc., a system integrator and total solutions provider delivering advanced radiation and nuclear protection and detection services. The company has been operating since September 2006 as a joint venture between Homeland Security Capital Corporation and Polimaster, Inc. For more information about Polimatrix, visit www.polimatrix.com. For more information about Homeland Security Capital Corporation, visit www.hscapcorp.com. Forward-Looking Statement This release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future activities, performance, events or developments, are forward-looking statements. Although HOMS believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements.