Parsons Supporting U.S. Defense Health Agency On $10 Billion Omnibus IV Contract

Rhea-AI Summary

Parsons Corporation (NYSE: PSN) has been awarded a significant contract by the U.S. Defense Health Agency (DHA) to support health-related R&D for the Department of Defense, valued at up to $10 billion over five years. This Omnibus IV contract will enable Parsons to enhance military healthcare through innovative technologies, focusing on areas such as infectious disease research and medical simulations. The company aims to optimize DHA's investment in military health services and ensure the readiness and resilience of service members.

Positive

• Awarded a $10 billion contract by U.S. Defense Health Agency, which enhances revenue opportunities.
• Focus on innovative medical technologies aligns with current government priorities in military healthcare.
• Continuation of past investments shows trust in Parsons' capabilities in health-related research.

Negative

• None.

CENTREVILLE, Va., June 16, 2022 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) was selected by the U.S. Defense Health Agency (DHA) to provide health-related research and development and additional activities of interest for the Department of Defense and the Military Healthcare System. The $10 billion ceiling value Omnibus IV is a five-year multiple-award indefinite delivery/indefinite quantity contract with one five-year option period.

“The Parsons team stands ready to deliver on DHA’s mission of providing our country’s military health providers cutting-edge tools to deliver optimal care to service members,” said Jon Moretta, president, engineered systems for Parsons. “Our biosurveillance and environmental services group offers a broad spectrum of innovative technical and support capabilities that will help maximize DHA’s investment in force readiness, health, and resilience.”

The Omnibus IV Military Medical Research and Development contract is a continuation of successful past government investments focused on the discovery and integration of medical innovations and material solutions to continually enhance force health readiness, resilience, and rehabilitation. The contract’s program areas support migration of new or existing research and technology into military medical practice, and include medical simulation technology, research into infectious diseases and radiation effects, battlefield healthcare, clinical medicine, chemical and biological readiness, genomics and omics-based research, and science technologies. Elements of these program areas fall into four well-defined but not mutually exclusive market segments. Parsons will compete for task orders in Market Segment 2, R&D Support Services.

For decades, Parsons has delivered a better world through innovations that protect human health like research and development for infectious disease surveillance, bioinformatics, biological detection, immune and molecular diagnostics development and testing, PFAS mitigation, aerospace medical and environmental health effects, and undersea and high-altitude injury and performance research for military readiness.

To learn more about Parsons’ biosurveillance and environmental capabilities, visit www.parsons.com/biosurveillance/.

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, connected infrastructure, and smart cities. 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.

Glad Media Contact:                                        
Bernadette Miller
+1 980.253.9781
Bernadette.Miller@Parsons.com

Investor Relations Contact:
Dave Spille
+ 1 571.655.8264
Dave.Spille@parsons.com

FAQ

What is the value of the new contract awarded to Parsons Corporation (PSN)?

Parsons Corporation was awarded a contract valued at up to $10 billion.

How long is the contract duration for Parsons Corporation (PSN) with the U.S. Defense Health Agency?

The contract has a duration of five years with an option for an additional five years.

What areas will Parsons Corporation (PSN) focus on under the new contract?

Parsons will focus on health-related R&D, including infectious disease research and medical simulation technology.

What is the purpose of the Omnibus IV contract awarded to Parsons Corporation (PSN)?

The purpose is to support the Department of Defense's military healthcare system through innovative research and technology.