Parsons Included on $200M U.S. Army Corps of Engineers Construction Management Contract
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Insights
Parsons Corporation's inclusion in the USACE Fort Worth District's $200 million contract is a significant development for the company. This contract implies potential growth opportunities for Parsons, as it allows them to compete for various task orders which can boost their revenue streams. The construction management services, especially within the military construction sector, are typically long-term engagements that could provide a stable source of income over the base period and the option periods if exercised.
Given that the contract is an indefinite-delivery, indefinite-quantity (IDIQ) type, it provides flexibility and scalability to USACE in terms of ordering services. For Parsons, this means that while the potential for work is significant, actual revenues will depend on the number and value of task orders they secure. This model also suggests a competitive environment where Parsons will have to demonstrate efficiency and expertise to win task orders against other awardees.
The historical context of Parsons' previous work with the USACE Fort Worth District, particularly their role in the San Antonio Base Realignment and Closure contract, establishes them as a seasoned entity in this domain. This past performance may give them a competitive edge in securing task orders. However, the actual impact on the company's financials will depend on their success rate in this competition.
The announcement by Parsons Corporation about the IDIQ contract with the USACE Fort Worth District is likely to be viewed favorably by investors and analysts tracking the company. The contract's potential value of $200 million over a maximum of seven years could be material to Parsons' backlog, which is a critical metric that investors consider when evaluating the company's future revenue prospects.
Investors should monitor the company's quarterly earnings reports and SEC filings for updates on the value of task orders received under this contract, which will provide a more tangible measure of its contribution to revenue. It's important to note that while the announcement is positive, the incremental nature of task order wins means that it may not lead to an immediate surge in revenue. Instead, it should be viewed as a pipeline for future growth that could enhance the company's financial stability and performance over time.
Moreover, the sector in which Parsons operates, particularly related to military and infrastructure, is often seen as less cyclical and more resilient to economic downturns. This could potentially make Parsons' stock more attractive to investors seeking stable, defense-related income streams, especially in a multi-year contract setting.
Parsons' engagement with the USACE signifies a deepening of their involvement in the defense sector, specifically in infrastructure projects critical to national security. The defense sector is known for its stringent requirements and high barriers to entry, which means that Parsons' ability to secure such contracts reflects their expertise and reliability in this highly specialized field.
For stakeholders in the defense industry, contracts like these are often seen as bellwethers of a company's standing and its ability to navigate the complex procurement processes associated with defense and government projects. The contract also underscores the role of infrastructure in national security, with projects that not only enhance military readiness but also have the potential to generate economic activity.
In terms of broader implications, Parsons' involvement with USACE projects could lead to technological advancements and innovations within the construction management field. The company's decades of experience might contribute to evolving best practices in an industry that is increasingly focusing on sustainability and efficiency.
CHANTILLY, Va., April 11, 2024 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) announced today that the company was included on a
Under this contract, Parsons will compete for task orders to provide supervision, personnel, and administrative and logistics support for USACE Southwestern Division Construction Phase Services on large military construction programs.
“Parsons is a trusted and recognized program and construction management leader with decades of experience delivering transformational infrastructure solutions to the federal government,” said Jon Moretta, president, Engineered Systems for Parsons. “We look forward to continuing our support of USACE as they oversee military design and construction projects that strengthen our nation’s security, energize the economy, and reduce risks from disasters.”
For 80 years, Parsons has guided federal government agencies through planning, design, construction, and post-construction challenges on complex, multi-site, multi-phase programs. This contract expands Parsons’ support of USACE Fort Worth District. The company was previously the architecture-engineering integrator for the District’s
To learn more about Parsons’ federal infrastructure solutions, visit Parsons.com/infrastructure-capabilities.
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 protection. 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.com
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