01-31-2022

Parsons: California’s Executive Budget Proposal Presents Another Historic Opportunity To Build Back Smarter

Build Back Smarter

CENTREVILLE, VA. (January 28, 2022) – Parsons Corporation (NYSE: PSN) today highlighted the major infrastructure improvements outlined in California’s recent budget proposal. 

With this budget, California is making a clear statement, positioning itself to be competitive to pursue significant federal investments from the Infrastructure Investment and Jobs Act. Further, the budget makes an historic state investment of over $20 billion in infrastructure-related projects to prepare and protect California communities from climate change. The transportation infrastructure package focuses on increasing mobility options for Californians through rail, transit and active transportation projects, equity-related investments to reconnect communities, and enhanced safety projects.  

The budget proposal also includes major investments in transportation systems, resiliency, and a host of other priorities that align with Parsons’ areas of expertise.

“Investing in infrastructure modernization is key as states look to continued future growth and flexibility,” said Mark Fialkowski, president, mobility solutions for Parsons. “Our team, which has deep roots in California, looks forward to applying our nearly 80 years of innovation and experience across the entire infrastructure domain to help California build back smarter with more resilient and sustainable infrastructure solutions.”

Build Back Smarter means constructing roads and bridges with centuries-long lifespans in a way that leverages digital innovations. It means keeping sustainability top of mind when designing and building communities and installing smart systems to reduce traffic at intersections and improve pedestrian safety. It also means partnering with local communities to promote economic development and increase the overall standard of living.

Parsons’ experience and vision is well aligned with the priorities outlined today in the budget proposal, and includes but is not limited to:

  • Transportation – The Budget includes a focus on “emerging opportunities” with $200 million to invest in demonstration and pilot projects in high carbon-emitting sectors, such as maritime, aviation, rail, and other off-road applications, as well as support for vehicle grid integration at scale. Also, the budget allocates $1.2 billion for port-related high-priority projects that increase goods movement capacity on rail and roadways serving ports and at port terminals, including railyard expansions, new bridges, and zero-emission modernization projects. Beyond goods movement, there is $2 billion to invest in high-priority transit and rail infrastructure projects. Parsons has delivered advanced, sustainable, and smart transportation solutions to California for decades, including supporting capital programs at Los Angeles International Airport, assisting with Communications-Based Train Control (CBTC) implementation for the Bay Area Rapid Transit District; and providing engineering services for Los Angeles County Metropolitan Transit Authority’s I-10 express lanes project.
  • Clean Energy – The Budget includes $2 billion ($2.035 billion General Fund over two years, $1.5 million Energy Resources Programs Account in 2022-23, $2.6 million Public Utilities Commission Utilities Reimbursement Account ongoing) for a Clean Energy Investment Plan that will spur additional innovation and deployment of clean energy technologies in the energy system. Parsons has embraced the challenge of achieving a more sustainable future, and is helping to develop, design, and deploy the next generation of clean energy projects, including supporting the Department of Energy’s Ivanpah Project in Nipton, California; and providing engineering services for solar projects in California’s Eastern Municipal Water District.
  • Water Resilience and Drought Response – Last year’s Budget included an historic investment of $5.2 billion over three years to advance water resilience and drought response. This investment provides immediate assistance to struggling communities and prepares for more severe, climate-induced drought and flood conditions in the long term. The current Budget proposal builds on this investment by including an additional $750 million one-time General Fund to support drought resilience and response. Parsons is a full-service partner in helping clients through water management challenges, delivering custom-tailored solutions to help sustainably meet the demands of growth and drought, including supporting upgrades and expansion of water reclamation or recycling facilities for  Elsinore Valley Municipal Water District and the Inland Empire Utilities Agency.

To learn more about Parsons’ infrastructure capabilities, visit Parsons.com/critical-infrastructure/.

About Parsons

Parsons (NYSE: PSN) is a leading disruptive technology provider in the global security, intelligence, 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.

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