The state agency that owns Atlantic City International Airport stripped a Pennsylvania company of a $188,000 contract for new security cameras in the passenger terminal and gave the job to another firm.

The South Jersey Transportation Authority said Wednesday that it may also impose other penalties on the original contractor, Schneider Electric, of Horsham, Pa., including possible legal action.

Schneider was the low bidder when the authority selected the company in December to replace the airport’s old analog-style surveillance cameras with more sophisticated digital models.

However, Schneider failed to comply with the insurance requirements in the contract, said Lauren Staiger, the authority’s general counsel. At one point, Schneider asked to have the insurance requirements changed, but the authority refused, Staiger added.

At its monthly board meeting Wednesday, the authority revoked Schneider’s contract and instead gave the work to the second-lowest bidder, Chammings Electric, of Vineland. Chammings had submitted a bid of $197,899 in November and has agreed to honor that price, the authority said.

In taking action against Schneider, the authority passed a resolution that indicated it may also bar the company from being awarded any future contracts for two years and could seek “other legal remedies it is afforded.”

Schneider officials could not be reached for comment at their Horsham office. A company official at Schneider’s regional headquarters in Dallas declined to comment and would not give her name.

The transportation authority is replacing the airport’s old analog surveillance cameras that date to the 1990s with digital technology to enhance security and passenger safety.

New cameras will be installed in the passenger terminal and the airport’s parking lots. Kevin Rehmann, a spokesman for the authority, estimated the work will be completed within 90 days.

New cameras will add one more layer to the airport’s security network. As with other airports nationwide, Atlantic City International has heightened its surveillance, passenger screening and other security measures since the Sept. 11, 2001, terrorist attacks.

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Been working with the Press for about 27 years.