Parsons Wins Position on $675M Contract Supporting USACE Electronic Security Systems

Rhea-AI Summary

Parsons Corporation (NYSE: PSN) has been awarded a $675 million indefinite-delivery, indefinite-quantity multiple award task order contract (MATOC) by the U.S. Army Corps of Engineers (USACE). This contract aims to support the U.S. Army Engineering and Support Center Huntsville in its Electronic Security Systems (ESS) Program over a base period of three years with options for extensions. Parsons will provide personnel, equipment, and services to meet global security needs. The company has a longstanding partnership with USACE, previously being a top awardee on the prior ESS contract. The PR underscores Parsons' commitment to delivering advanced security solutions.

Positive

• Awarded a $675 million contract, enhancing revenue potential.
• Supports U.S. Army's electronic security needs, ensuring demand stability.
• Opportunity for multiple task orders enhances business growth.
• Demonstrates Parsons' long-term relationship with USACE, which may facilitate future contracts.

Negative

• None.

CENTREVILLE, Va., Feb. 09, 2023 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE: PSN) announced today that the company was awarded a position on a $675 million indefinite-delivery, indefinite-quantity multiple award task order contract (MATOC) by the United States Army Corps of Engineers (USACE). The award, which includes a base period of three years, two twenty-four-month option periods, and a six-month extension, will support the U.S. Army Engineering and Support Center Huntsville in meeting Electronic Security Systems (ESS) Program needs.

“At Parsons, we are committed to delivering security solutions that protect personnel and assets across the globe,” said Jon Moretta, president, Engineered Systems, for Parsons. “As a trusted provider of engineering services and advanced technologies, Parsons is well equipped to support the continued success of the U.S. Army Engineering and Support Center Huntsville’s security mission in advancing national interests.”

ESS provides physical security and force protection measures to U.S. government agencies worldwide. Under this MATOC, Parsons will compete for task orders to provide the personnel, equipment, and services necessary to procure, install, and maintain these ESS. The U.S. Army Engineering and Support Center Huntsville is responsible for the ESS Program and maintaining the ESS Mandatory Center of Expertise, providing global support to the Department of Defense and other Federal agencies and customers to deliver the highest quality ESS projects.

Parsons has partnered with USACE for decades, leveraging the company’s expert teams and providing technology-driven solutions to meet critical infrastructure protection, environmental remediation, complex infrastructure, engineering and planning, and program and construction management needs. Parsons and Xator, LLC, a Parsons company, were the top awardee of task order dollars on the previous ESS contract, ESS VI.

To learn more about Parsons’ global security solutions, visit Parsons.com/defense/.

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 solutions. 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 value of the contract awarded to Parsons Corporation?

Parsons Corporation was awarded a $675 million task order contract by the U.S. Army Corps of Engineers.

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

The contract includes a base period of three years, with options for two additional twenty-four-month periods and a six-month extension.

What will Parsons Corporation provide under the Electronic Security Systems Program?

Parsons will provide personnel, equipment, and services to meet the Electronic Security Systems Program's requirements.

What is the significance of Parsons' partnership with USACE?

The partnership highlights Parsons' longstanding relationship with USACE, which supports its credibility and potential for future contracts.

When was the contract awarded to Parsons Corporation?

The contract was announced on February 9, 2023.