Earl Blue, 51, the head of VIP Protective Services, was hired by Knight Takes King Productions to manage on-set security during season one filming of the Netflix series in 2012.
He claims Spacey, who played lead character Frank Underwood in House of Cards, refused to acknowledge the black team members and even made racial slurs.
Blue said a group of black security guards were watching the trailer for the show when he heard the actor tell his personal security manager: 'I don't want n***ers watching my trailer.'
When Blue raised concerns with set managers about Spacey, who was referred to as 'The Powers That Be', he was told: 'That's just the way he is; we've got to keep him happy.'
And despite producers allegedly telling VIP Protective Services - who have provided security services for HBO in the past - that they were pleased with their work, their $1.1 million contract was not renewed.