Parsons Included on $5 Billion Contract to Revitalize Puerto Rico’s Power System

Rhea-AI Summary

Parsons Corporation (NYSE: PSN) secures $5 billion contract for Puerto Rico Power System Stabilization Project with the United States Army Corps of Engineers. The contract includes a base performance period of five years and represents new work for the company. Parsons will compete for task orders to provide temporary power generation for the stabilization of Puerto Rico’s power grid, supporting the government’s request for assistance and aiding residents of the island as they recover from natural disasters.

Positive

• Parsons Corporation secures a significant $5 billion contract, indicating positive growth potential for the company's revenue and market presence in the energy solutions sector.
• The contract to provide temporary power generation for Puerto Rico's power grid demonstrates Parsons' expertise and capabilities in addressing critical infrastructure needs in disaster recovery situations.

Negative

• None.

CHANTILLY, Va., Nov. 13, 2023 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) announced today that the company was included on a multiple award indefinite-delivery, indefinite-quantity task order contract for the Puerto Rico Power System Stabilization Project by the United States Army Corps of Engineers (USACE) Savannah District. The $5 billion ceiling value contract includes a base performance period of five years and represents new work for the company.

Under this contract, Parsons will compete for task orders to provide temporary power generation for the stabilization of Puerto Rico’s power grid, supporting the government’s request for assistance and aiding residents of the island as they recover from natural disasters.

“Power delivery projects are an integral part of Parsons’ leading energy solutions, and our expertise covers every step, from generation to end-user consumption,” said Jon Moretta, president, Engineered Systems for Parsons. “We look forward to leveraging our capabilities to advance USACE’s efforts and stabilize Puerto Rico’s power system. This work is vital to ensuring residents of the island recover, have resilient infrastructure, and a more sustainable future.”

Since 2017, the U.S. territory has been devastated by multiple storms and an earthquake, causing significant damage to its power system. To repair the system while still meeting the needs of customers, temporary power is required to augment the loss of power at generation facilities undergoing repairs.

Parsons has delivered power and energy-related solutions, including alternative and renewable energy sources, to clients for over 65 years. The company’s full-service offering includes project and program management, engineering, design, construction management, environmental, licensing, and permitting services that encompass the range of activities needed to place power systems in commercial operation.

To learn more about Parsons’ leading energy solutions, visit Parsons.com/energy.

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

FAQ

What is the contract awarded to Parsons Corporation for?

Parsons Corporation was awarded the contract for the Puerto Rico Power System Stabilization Project by the United States Army Corps of Engineers, involving the provision of temporary power generation to support the recovery of the island's power grid.

How long is the base performance period of the contract?

The contract includes a base performance period of five years.

What services does Parsons Corporation offer under this contract?

Parsons Corporation's services under the contract include project and program management, engineering, design, construction management, environmental, licensing, and permitting services, covering the range of activities needed to place power systems in commercial operation.

What is the significance of this contract for Parsons Corporation?

The $5 billion contract represents new work for Parsons Corporation and demonstrates the company's expertise in delivering power and energy-related solutions, particularly in disaster recovery and infrastructure stabilization projects.