NOAA Awards Parsons Team $16 Million Contract For Polar Operational Environmental Satellites Operations

Rhea-AI Summary

Parsons Corporation (NYSE: PSN) has been awarded a $16 million contract by the National Oceanic and Atmospheric Administration (NOAA) for engineering services, IT functionality, and flight operations support for the Polar Operational Environmental Satellites (POES) NOAA-15, NOAA-18, and NOAA-19. This one-year contract includes two additional option years and marks a significant shift as it transitions satellite control from a government-operated system to a hybrid cloud-based commercial operation. The collaboration aims to enhance environmental monitoring capabilities.

Positive

• Secured a $16 million contract with NOAA for managing POES satellites.
• Transitioning operations to a hybrid cloud architecture may enhance operational efficiency.
• Potential for further commercialization of government-owned satellites.

Negative

• None.

CENTREVILLE, Va., Oct. 19, 2022 (GLOBE NEWSWIRE) -- The National Oceanic and Atmospheric Administration (NOAA) has selected a team led by Parsons Corporation (NYSE: PSN) to provide engineering services, information technology functionality, and flight operations support to assume on-orbit operations for the Polar Operational Environmental Satellites (POES) NOAA-15, NOAA-18, and NOAA-19. The $16 million definitive contract has a one-year performance period and two one-year option periods and is new work for Parsons.

The Parsons-led team comprises Arctic Slope Technical Services, Inc. (ASTS), a subsidiary of Arctic Slope Regional Corporation (ASRC) Federal, and Kongsberg Satellite Services (KSAT). ASTS currently operates the POES spacecraft and will continue to support operations and implementation of cyber security architecture, while (KSAT) will provide ground antenna support with their KSATlite service.

“In partnership with NOAA, this team will leverage our extensive portfolios of satellite operations and information technology capabilities to demonstrate successful commercialization of the polar operations mission,” said Jason Long, Parsons vice president for civil solutions. “We look forward to further evolving the partnership between government and commercial industry in the space domain to affordably extend the life of these valuable environmental monitoring systems.”

NOAA’s three POES will be one of the first U.S. government satellites transitioned from a legacy government owned ground control system to a hybrid cloud based commercial operation, setting a precedent that may lead to further commercialization of government-owned satellites in the future.

Over the next six months, the team will move the control of the POES to commercial ground control systems deployed on a hybrid cloud architecture using Parsons’ commercial space software applications while demonstrating successful control of POES, followed by six months of full commercial operations.

Instrument Science data from the satellites will be delivered to NOAA for processing within their existing architecture, retaining these spacecraft as valuable data sources supporting NOAA’s critical mission to keep the public informed of the changing environment.

Parsons has developed multiple operational commercial-space solutions that are based on government programs, to include OrbitXchange™, which enables increased capacity for satellite operations via a cybersecure cloud environment. The company is focused on delivering rapid, affordable off-the-shelf technology that can advance both military and commercial missions.

To learn more about Parsons’ space solutions, please visit: parsons.com/markets/space/.

About ASRC Federal
ASRC Federal’s family of companies deliver successful mission outcomes and elevated performance for federal civilian, defense and intelligence agencies while building an enduring enterprise focused on customers, employees, and shareholders. For more information, please visit www.asrcfederal.com [gcc02.safelinks.protection.outlook.com].

About Parsons:
Parsons (NYSE: PSN) is a leading disruptive technology provider in the national security and critical infrastructure markets, with capabilities across cybersecurity, missile defense, space, C5ISR, transportation, environmental remediation, and water/wastewater treatment. Please visit Parsons.com and follow us on LinkedIn and Facebook to learn how we’re making an impact.

Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results and events may vary materially from those indicated in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, among others: any issue that compromises our relationships with the U.S. federal government or its agencies or other state, local or foreign governments or agencies; any issues that damage our professional reputation; changes in governmental priorities that shift expenditures away from agencies or programs that we support; our dependence on long-term government contracts, which are subject to the government’s budgetary approval process; the size of our addressable markets and the amount of government spending on private contractors; failure by us or our employees to obtain and maintain necessary security clearances or certifications; failure to comply with numerous laws and regulations; changes in government procurement, contract or other practices or the adoption by governments of new laws, rules, regulations and programs in a manner adverse to us; the termination or nonrenewal of our government contracts, particularly our contracts with the U.S. federal government; our ability to compete effectively in the competitive bidding process and delays, contract terminations or cancellations caused by competitors’ protests of major contract awards received by us; our ability to generate revenue under certain of our contracts; any inability to attract, train or retain employees with the requisite skills, experience and security clearances; the loss of members of senior management or failure to develop new leaders; misconduct or other improper activities from our employees or subcontractors; our ability to realize the full value of our backlog and the timing of our receipt of revenue under contracts included in backlog; changes in the mix of our contracts and our ability to accurately estimate or otherwise recover expenses, time and resources for our contracts; changes in estimates used in recognizing revenue; internal system or service failures and security breaches; and inherent uncertainties and potential adverse developments in legal proceedings, including litigation, audits, reviews and investigations, which may result in materially adverse judgments, settlements or other unfavorable outcomes. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption “Risk Factors” in our Registration Statement on Form S-1 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statement made in this presentation that becomes untrue because of subsequent events, new information or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.

Media Contact:
Angie Benfield
+1 803.334.5277
Angela.Benfield@parsons.com

Investor Relations Contact:
Dave Spille
+ 1 703.775.6191
Dave.Spille@parsons.com

FAQ

What is the value of the contract Parsons Corporation received from NOAA?

The contract is valued at $16 million.

What will Parsons Corporation provide under the NOAA contract?

Parsons will provide engineering services, IT functionality, and flight operations support for the POES satellites.

How long is the performance period for Parsons' contract with NOAA?

The performance period is one year, with two additional one-year options.

What is the significance of the transition to hybrid cloud operations for NOAA satellites?

It marks a shift from government control to a commercial operation, potentially setting a precedent for future satellite commercialization.