San Francisco International Airport (SFO) is preparing to transition its passenger and baggage screening operations to VMD Corp. following the Transportation Security Administration's decision to award the company a new five-year contract.

The transition will end Covenant Aviation Security's 24-year tenure at SFO and affect approximately 1,279 employees, according to a Worker Adjustment and Retraining Notification (WARN) notice filed with the California Employment Development Department.

Covenant Aviation Security, which has provided screening services at SFO since 2002, plans to lay off the affected employees effective Nov. 30. VMD Corp., a subsidiary of Xcelerate Solutions, is scheduled to assume operations Dec. 1.

SFO officials said the contractor change is not expected to disrupt airport security screening. Under the airport's worker retention policy, the incoming contractor must retain existing employees for a 90-day trial period.

VMD has begun recruiting members of the existing workforce, including transportation security officers, supervisors and support personnel. The Service Employees International Union-United Service Workers West is negotiating with VMD regarding continued employment and contract terms for its members.

The contract transition follows a procurement dispute in which Covenant Aviation Security challenged TSA's selection of VMD. The U.S. Government Accountability Office denied the protest in February 2026.

SFO participates in TSA's Screening Partnership Program, which allows qualified private contractors to conduct passenger and baggage screening under federal oversight. Screening procedures and federal security requirements will remain in place following the transition.