Parsons Wins $164M Contract For Army Ammunition Plant Environmental Facility

Rhea-AI Summary

Parsons Corporation (NYSE: PSN) has been awarded a $164 million contract by the US Army Corps of Engineers to construct an Explosive Decomposition Chamber at the Holston Army Ammunition Plant in Kingsport, Tennessee. This four-year project aims to replace traditional open burning of explosive waste with a closed destruction solution, enhancing environmental protection. Parsons will provide technical design, engineering, and permitting services for the facility, which is expected to significantly reduce hazardous waste emissions. This contract builds on Parsons' previous work at Radford Army Ammunition Plant, furthering its commitment to sustainable military solutions.

Positive

• Awarded a $164 million contract for a new Explosive Decomposition Chamber, enhancing revenue.
• Project supports the Army's mission to reduce environmental impacts from explosive waste.
• Builds on previous successful projects, enhancing Parsons' reputation and capabilities.

Negative

• None.

CENTREVILLE, Va., March 31, 2023 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) announced today that the company was selected by the United States Army Corps of Engineers (USACE) Norfolk District to deliver a new Explosive Decomposition Chamber (EDC) facility at Holston Army Ammunition Plant (HSAAP) in Kingsport, Tennessee. The four-year, $164 million contract is new work for the firm.

“Our team is uniquely equipped to deliver solutions for the most complex environmental challenges that our clients face,” said Jon Moretta, president, Engineered Systems, for Parsons. “This new facility will meet the Army’s mission of reducing environmental impacts by transitioning from the open burning explosive waste treatment process to a technology-driven closed destruction solution. We look forward to leveraging our technical design, engineering, and complex delivery capabilities in support of this mission as part of our continued commitment to innovative solutions and environmental stewardship.”

HSAAP, a government-owned, contractor-operated (GOCO) facility, is a major supplier of explosive materials to the Department of Defense and, consequently, generates explosives waste which has historically been open burned since the 1940s. Under this contract, Parsons will provide technical design and engineering, permitting, and delivery of the EDC facility. This emission-controlled thermal treatment facility will process the hazardous explosive waste streams, significantly reducing the need for open burning, and will satisfy the federal government’s requirements to treat bulk explosive waste safely and effectively.

This project expands Parsons’ role in supporting Army efforts to minimize the environmental impact of Army Ammunition Plants. In September 2021, Parsons was awarded a contract for a new Energetic Waste Incinerator and Contaminated Waste Processor project at Radford Army Ammunition Plant in Virginia. Like the new EDC facility project, the work at Radford will provide a facility to treat hazardous energetic waste streams in an environmentally friendly manner. Recent world events, such as the conflict in Ukraine, have spurred an increase in munitions production at GOCO army ammunition plants, underscoring the importance of the Army’s transition to more sustainable solutions to mitigate adverse environmental impacts.

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, 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 new contract awarded to Parsons Corporation about?

Parsons Corporation was awarded a $164 million contract to build an Explosive Decomposition Chamber for the US Army Corps of Engineers.

How much is the contract for Parsons Corporation to build the EDC facility?

The contract for building the EDC facility is valued at $164 million.

Where will Parsons Corporation's new Explosive Decomposition Chamber be located?

The facility will be located at the Holston Army Ammunition Plant in Kingsport, Tennessee.

How long is the contract for Parsons Corporation's new project?

The contract for the EDC facility spans four years.

What is the primary goal of the EDC facility project by Parsons Corporation?

The project aims to transition from open burning explosive waste treatment to a closed destruction solution to reduce environmental impacts.