Parsons Selected For LAWA’s Capital Improvement Program MATOC
Parsons (NYSE: PSN) has been selected as one of 15 lead consultants by Los Angeles World Airports (LAWA) for a Multiple Award Task Order Contract (MATOC).
This contract, worth nearly $1 billion over five years, encompasses on-call professional services for LAWA's Capital Improvement Program at Los Angeles International Airport (LAX) and Van Nuys Airport (VNY).
The MATOC is the largest award of its kind in Los Angeles’ history and promotes inclusivity among local, diverse, veteran, small, and microbusinesses. Parsons' longstanding relationship with LAWA includes managing major infrastructure projects, such as the Landside Access Modernization Program (LAMP).
Parsons has also been pivotal in LAWA's inclusivity efforts, specifically through the HireLAX Apprenticeship Readiness Program.
- Parsons secured a contract worth nearly $1 billion over five years.
- The MATOC is the largest award of its kind in Los Angeles’ history.
- Increased involvement in major infrastructure projects at LAX and VNY.
- Strengthened partnership with LAWA, dating back to the 1984 Olympics.
- Contribution to inclusivity initiatives, benefiting local, diverse, veteran, small, and microbusinesses.
- Parsons' role in the successful Landside Access Modernization Program (LAMP).
- The contract is shared with 14 other consultants, potentially limiting Parsons' revenue share.
- High competition may affect the profitability and scope of Parsons' projects.
- There are inherent risks and uncertainties in long-term, large-scale infrastructure projects.
Insights
The selection of Parsons Corporation for the Los Angeles World Airports' (LAWA) Capital Improvement Program MATOC is a significant development. This contract, valued at nearly
From a financial perspective, this agreement enhances revenue visibility and provides an opportunity for margin expansion through efficient project execution. Given that the MATOC is the largest award of its kind in Los Angeles' history and sets new records for inclusivity, Parsons is positioned as a leader in large-scale, inclusive infrastructure projects.
Short-term impact: Investors should anticipate initial setup costs and potential capital expenditures as Parsons ramps up operations. However, these are likely to be outweighed by the progressive revenue recognition over the contract's term.
Long-term impact: Sustained revenue and potential further opportunities with LAWA, positioning Parsons as a preferred partner for future projects. The association with high-profile, inclusive projects could enhance Parsons’ reputation, potentially leading to new contracts.
The announcement positions Parsons within the competitive landscape of infrastructure and capital improvement services. The inclusion of Parsons as one of the 15 lead consultants highlights its competence and trusted reputation in this sector.
Market implications: This selection could elevate Parsons' standing among peers, attracting more business within the aviation infrastructure space. The emphasis on inclusivity and the historical significance of the contract could also resonate well with stakeholders prioritizing ESG (Environmental, Social and Governance) criteria, potentially attracting socially responsible investors.
Industry context: The infrastructure sector is witnessing substantial growth with increased government spending on modernization. Parsons’ established relationship with LAWA and role in projects like the Automated People Mover (APM) and Landside Access Modernization Program (LAMP), showcase its capability to handle large, complex projects, offering a competitive edge.
This contract underscores Parsons' longstanding expertise in aviation infrastructure. Their involvement in projects since the 1984 Olympics and subsequent major initiatives at LAX and VNY demonstrates their capability in managing large-scale, complex projects.
Technical insights: Parsons’ role in the Landside Access Modernization Program (LAMP) and Automated People Mover (APM) indicates a robust understanding of modern aviation infrastructure requirements. The establishment of the HireLAX Apprenticeship Readiness Program also shows a commitment to fostering local talent and inclusivity, which could set a benchmark for future infrastructure projects.
Operational impact: Successful execution of this contract could lead to efficiency improvements and innovations that might set new standards in the industry. This could result in enhanced operational capabilities and potentially lower operational costs in future projects.
CHANTILLY, Va., May 22, 2024 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) announced today that the company was one of 15 lead consultants selected by Los Angeles World Airports (LAWA) for a Multiple Award Task Order Contract (MATOC) to perform on-call, task order-based, professional services for LAWA’s Capital Improvement Program. The Program Services MATOC represents nearly
LAWA’s Program Services MATOC is the largest award of its kind in the City of Los Angeles’ history and breaks inclusivity records that set new standards for local, diverse, veteran, small, and microbusiness participants.
"We are thrilled to have the opportunity to continue our longstanding partnership with LAWA, which began in the lead-up to the 1984 Olympics when Parsons provided design and construction services for LAX’s second-level roadway to increase ground traffic capacity and solve major access challenges," stated Catherine Cronin, senior vice president of Parsons' aviation sector. "For more than four decades, our team of aviation professionals has been dedicated to infrastructure projects at LAX, and we are honored to be part of one of the largest infrastructure projects in the United States – and part of renewed Olympic preparations in advance of the 2028 Games.”
Since 2017, Parsons has served as the project management/construction management (PM/CM) consultant and owner’s representative for LAX’s Landside Access Modernization Program (LAMP), which includes the Automated People Mover (APM), delivering the bid and procurement process for the APM’s development team selection.
Additionally, the Parsons-designed HireLAX Apprenticeship Readiness Program has played an integral part in LAWA's inclusivity initiatives. Launched in 2017, the program is a collaboration between public agencies, higher education, non-profits, unions, and the private sector that prepares local residents for skilled craft labor careers.
To learn more about Parsons’ aviation expertise, visit parsons.com/aviation/.
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
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Media Contact:
Chelsie McKittrick
+1 512.719.6877
Chelsie.Mckittrick@parsons.com
Investor Relations Contact:
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