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Iraq: Parsons Corp. Wins $900 Million Contract

March 30th, 2004

SAN FRANCISCO, March 30  - California's Parsons Corp., one of the most active U.S. companies in Iraq, said on Tuesday it won a contract worth up to $900 million from the U.S. military for security and justice work in Iraq.

The privately-owned engineering and construction company said the latest deal includes the restoration and construction of bases for the Iraqi security forces, police stations, border control stations, fire stations, courthouses and prisons.

The project for two years with three one-year options has a potential value of $900 million and is the second contract the Pentagon has awarded Parsons in a batch of $5 billion worth of heavy construction contracts funded by $18.6 billion appropriated by Congress to rebuild Iraq's infrastructure.

Last week the Pentagon awarded a $500 million contract to Parsons for the construction and renovation of public buildings in the war-torn country.

The security and justice contract is the last prime construction deal to be announced in the $5 billion batch.

"We've begun getting people cleared to go to Iraq for this project and are defining what the scope of the work will be," said Erin Kuhlman, a spokeswoman for Parsons.

She said Parsons plans to subcontract the majority of work to Iraqi firms and suppliers and has selected two British companies -- TPS Consult and Pell Frischmann -- to support the engineering and design of justice facilities.

Parsons also is part of a joint venture with Worley Group of Australia performing up to $800 million worth of work to restore Iraq's northern oil infrastructure.

The company also is involved in a $1.8 billion infrastructure deal awarded in January by the U.S. Agency for International Development to engineering company Bechtel, a privately-held company also based in California.

Other lucrative Iraq business includes building military bases as well as a $1.5 billion contract Parsons obtained with the U.S. military for construction and engineering work in Iraq and other hot spots where the military is active.

Bidding for the latest batch of heavy-duty construction contracts was restricted to companies from nations that supported the U.S.-led effort to overthrow former Iraqi President Saddam Hussein.

Other prime construction contracts have gone to Washington International Inc., the power unit of Boise, Idaho-based engineering and construction company Washington Group International as well as construction services company Perini Corp of Framingham, Massachusetts.

The company with the most business in Iraq is Halliburton Co. , the Texas-based oil services firm once led by Vice President Dick Cheney.

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