Parsons Awarded $27 Million Defense Threat Reduction Agency Task Order for Proliferation Prevention

Rhea-AI Summary

Parsons (NYSE: PSN) has secured a new $27 million Defense Threat Reduction Agency (DTRA) task order focused on preventing weapons of mass destruction proliferation in Eastern Europe. The contract includes a two-year performance period with three one-year option periods under the DTRA Cooperative Threat Reduction Integrating Contract (CTRIC) III.

Parsons will provide expertise, training, resources, program management, equipment procurement, and construction management capabilities to help partner nations address security risks. This marks the company's seventh task order under CTRIC III since June 2018, furthering DTRA's mission to reduce global WMD threats.

Positive

• Secured new $27 million DTRA task order
• Contract includes potential five-year duration through options
• Represents expansion of work with DTRA (seventh task order since 2018)

Negative

• None.

Insights

Defense Industry Analyst

This $27 million DTRA task order represents a strategic win for Parsons in the critical defense sector. The contract structure, with a two-year base and three one-year options, provides stable revenue potential and strengthens Parsons' position in the WMD threat reduction market. This is the company's seventh task order under the CTRIC III contract since 2018, demonstrating consistent performance and growing relationship with DTRA.

The Eastern European focus is particularly relevant given current geopolitical tensions. The scope encompasses high-margin services including program management, procurement, training and construction management. While the $27 million ceiling represents less than 0.25% of Parsons' market cap, the strategic value extends beyond the monetary amount through enhanced positioning in the defense sector and potential for follow-on work.

CHANTILLY, Va., Oct. 24, 2024 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) announced today that the company was awarded a Defense Threat Reduction Agency (DTRA) Proliferation Prevention Program task order to reduce the threat of weapons of mass destruction (WMD) proliferation in Eastern Europe. The $27 million ceiling-value task order under the DTRA Cooperative Threat Reduction Integrating Contract (CTRIC) III is new work for the company and consists of a two-year period of performance and three one-year option periods.

Under this task order, Parsons will provide expertise, training, and resources to allow partner nations in Eastern Europe to address existing and emerging security risks. The company will provide DTRA with program management, equipment procurement and delivery, training, sustainment, and design and construction management capabilities.

“Our proven, best-in-class people and solutions are leading the charge for a safer world,” said Jon Moretta, President, Engineered Systems, for Parsons. “For decades, Parsons has advanced DTRA’s mission to prevent, reduce, and counter threats to global security. We look forward to continuing this critical work through the agency’s Proliferation Prevention Program, supporting efforts to strengthen partner capabilities to detect and interdict WMD-related trafficking across borders.”

Parsons was named on the DTRA CTRIC III multiple award contract in June 2018 and has since been awarded seven task orders. Through these task orders, the company has advanced the agency’s Cooperative Threat Reduction mission to partner with willing countries to reduce global threats from WMD and related materials, technologies, facilities, and expertise.

To learn more about Parsons’ global security and mission solutions, visit Parsons.com/security-and-mission-solutions/.

About Parsons:
Parsons (NYSE: PSN) is a leading disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and intelligence, space and missile defense, transportation, environmental remediation, urban development, and critical infrastructure. 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:                                        
Jonathan Larry
+1 706.832.7330
jonathan.larry@parsons.com

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

FAQ

What is the value of Parsons' new DTRA task order in 2024?

Parsons (PSN) was awarded a $27 million ceiling-value task order from the Defense Threat Reduction Agency (DTRA) in October 2024.

What is the duration of Parsons' (PSN) new DTRA contract?

The contract includes a two-year base period of performance with three one-year option periods, potentially extending to five years total.

How many CTRIC III task orders has Parsons (PSN) received since 2018?

Parsons has been awarded seven task orders since being named on the DTRA CTRIC III multiple award contract in June 2018.