Parsons Wins Contract to Update FAA Systems

Parsons Corp. said it won a multiyear contract with a potential value of about $1.25 billion to upgrade air-traffic control facilities for the Federal Aviation Administration.

Lockheed Martin Corp.’s technology services unit will be the primary subcontractor on the project, which involves building and equipping facilities at air-traffic control centers, Parsons said.

The contract is for $481 million over four years, with two three-year options that could increase the value, the closely held engineering and construction company said.

The work will require as many as 1,500 engineers and support staff and will include site selection, engineering and building facilities, computer-aided design and installing equipment, Parsons said. The upgrades are at 10 FAA regional offices including in the New York, Boston, Chicago and Los Angeles areas, company spokeswoman Virginia Hunter said.

Parsons’ contract includes managing the modernization of air-traffic control systems, including navigation and communications equipment, said FAA spokesman William Shumann.

The Pasadena-based company also will oversee the installation of emergency lights and the removal of any chemicals found at the centers, he said.

Parsons didn’t say how much of the work would be done by the Lockheed Martin unit.

Parsons beat out three other bidders, including incumbent Raytheon Co., for the work. Raytheon has had the technical services contract with the agency since 1995, the FAA’s Shumann said. He wouldn’t identify the other two finalists in the bidding.

Shares of Bethesda, Md.-based Lockheed Martin rose 24 cents to close at $46.40 on the New York Stock Exchange. Shares of Raytheon, based in Lexington, Mass., gained 10 cents to $31.85, also on the NYSE.