Parsons Corporation is Ready Now to Build America’s Brand New, State Of-The-Art Air Traffic Control System

Rhea-AI Summary

Parsons Corporation (NYSE: PSN) and IBM (NYSE: IBM) have announced a strategic collaboration to develop a new state-of-the-art air traffic control system for the Federal Aviation Administration (FAA). Parsons will serve as the prime contractor, leveraging its nearly 50-year partnership with the FAA and experience with over 450 airports across 40 countries.

The initiative responds to Transportation Secretary Sean Duffy's call for modernizing the National Airspace System (NAS). Parsons brings its infrastructure expertise and program management capabilities, while IBM contributes its federal government and systems integration experience. The partnership aims to create an open, vendor-agnostic approach that enables continuous system improvements based on real-time feedback.

Positive

• Strategic partnership combines Parsons' 50-year FAA experience with IBM's technological expertise
• Parsons positioned as prime contractor with full program responsibility
• Parsons' extensive experience with 450+ airports across 40 countries demonstrates capability
• Open vendor-agnostic approach allows for continuous system improvements
• Parsons recently rated as #1 program manager by Engineering News Record

Negative

• Complex large-scale infrastructure project carries execution risks
• Government contract dependencies could impact timeline and implementation
• Integration challenges between multiple stakeholders and systems

Insights

Federal Contracting Expert

Parsons partners with IBM on major FAA air traffic control system overhaul, strengthening its position in critical federal infrastructure contracting.

Parsons Corporation's strategic collaboration with IBM positions the company as the prime contractor for what appears to be a massive federal infrastructure initiative to overhaul the FAA's National Airspace System. This partnership leverages Parsons' 50-year relationship with the FAA and its extensive aviation infrastructure experience across 450 airports in 40 countries.

The announcement represents a significant potential revenue opportunity, though no specific contract value is disclosed. What's particularly notable is Parsons securing the prime contractor position with "full program responsibility," giving them considerable control over project execution and potentially higher profit margins compared to subcontractor roles.

The timing is strategic, aligning with the administration's infrastructure priorities. As prime contractor, Parsons will have significant influence over subcontractor selection and technical direction, potentially creating a multi-year revenue stream if the program receives expected funding.

Parsons' deep institutional knowledge of FAA systems positions them well against competitors. Their recent top ranking as program manager by Engineering News Record further strengthens their credibility for this complex systems integration challenge. The "open vendor agnostic approach" mentioned suggests Parsons will have flexibility in technology selection, potentially leading to additional partnership opportunities beyond IBM.

While the press release lacks specific contract value or timeline information, the scope described—a complete overhaul of the national air traffic control infrastructure—indicates this could be among the larger federal infrastructure initiatives in Parsons' portfolio, with potential long-term impact on company revenues.

Parsons and IBM join forces to design solutions for a national airspace system with enhanced safety and efficiency

CHANTILLY, Va., June 24, 2025 (GLOBE NEWSWIRE) -- Today, Parsons Corporation (NYSE: PSN) and IBM (NYSE: IBM) announced a collaboration to deliver on President Donald Trump’s and Transportation Secretary Sean Duffy’s vision for a brand new, state of-the-art air traffic control system. This collaboration directly responds to Secretary Duffy's call for world-class innovators to rapidly spearhead the overhaul of the Federal Aviation Administration’s (FAA) National Airspace System (NAS), prioritizing an open vendor agnostic approach that enables the agency to leverage the latest technologies and continuously improve their systems based on real-time feedback and evolving needs. Parsons would serve as the prime contractor and single point of accountability, providing unified leadership and full program responsibility to ensure mission success.

A safe, efficient, and modern NAS is the foundation for a reliable U.S. aviation system, supporting travel, economic prosperity, and national security. Encompassing everything from air traffic control and air navigation facilities to airports, regulations, and personnel, the NAS is regarded as the global gold standard of air transportation systems. By combining Parsons’ deep FAA experience, proven large-scale program delivery success, and systems engineering and integration capabilities with IBM’s federal government and cross industry, systems integration experience, the collaboration aims to respond to Secretary Duffy’s bold call to action and lay the foundation for a safer, more resilient aviation ecosystem.  

“This partnership represents two American industry leaders bringing together a combined nearly 200 years of experience and expertise in complex program management and systems integration to deliver a state-of-the-art air traffic control system for our nation,” said Carey Smith, Chair, President, and Chief Executive Officer of Parsons Corporation. “This top priority initiative requires a company that knows the FAA and can hit the ground running to ensure the safety, prosperity and growth of our communities that depend on airspace efficiency. We are excited to collaborate with IBM to ensure that this initiative receives the right expertise to rapidly deliver on the FAA’s critical mission. Together, we bring the agility, commitment, and innovation required to transform America’s airspace and realize the administration’s vision for a safer, stronger, and more efficient air traffic management system.”

Parsons, a leading global infrastructure and solutions delivery partner, has planned, designed, constructed, managed, enhanced, and sustained terminal, landside, and airside infrastructure for over 450 airports in 40 countries. The company has been the FAA’s infrastructure partner for nearly 50 years and under the FAA’s Technical Support Services contract, leveraging its engineering, infrastructure, and project management expertise to support the FAA capital program goals. Under the contract, Parsons implements initiatives across the FAA’s Aviation System Capital Improvement Program including project management; infrastructure modernization; systems and equipment installation and testing at more than 600 locations; and health, environmental, engineering, and construction management services. In addition, Parsons was recently rated as the number one program manager by Engineering News Record and one of the top three companies for construction management.

“We are proud to bring our expertise and technology to this once-in-a-generation opportunity,” said Mohamad Ali, Senior Vice President at IBM. “In partnership with Parsons, we’re excited to respond to the administration’s call to help modernize the National Airspace System. This is just the beginning, and our shared commitment to an open approach ensures that we can integrate the best available technologies to build a safe, stable and future ready airspace infrastructure that will serve the nation for decades to come."

IBM has served the U.S. federal government for almost its entire 114-year history, providing federal government agencies with the technology and expertise that helps reduce administrative burdens, improve the delivery of citizen services and optimize resources to drive a more efficient and effective government.

To learn more about Parsons and IBM’s plan to build the FAA’s brand new, state-of-the-art air traffic control system, visit https://www.parsons.com/restoring-american-airspace/.

About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. More than 4,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity and service.

About Parsons Corporation
Parsons (NYSE: PSN) is a leading disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and intelligence, space and missile defense, transportation, environmental remediation, urban development, and critical infrastructure. Please visit parsons.com and follow us on LinkedIn and Facebook to learn how we're making an impact.

Media contacts

IBM
Banks Willis
banks.willis@ibm.com

Parsons                                        
Bryce McDevitt
+1 703.851.4425
Bryce.McDevitt@parsons.com

Forward-looking statement
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.

FAQ

What is the partnership between Parsons (NYSE: PSN) and IBM for the FAA project?

Parsons and IBM are collaborating to develop a new state-of-the-art air traffic control system for the FAA, with Parsons serving as the prime contractor and single point of accountability.

What is Parsons' experience with the FAA and airport infrastructure?

Parsons has been the FAA's infrastructure partner for nearly 50 years and has worked with over 450 airports in 40 countries, providing engineering, infrastructure, and project management expertise.

How will the new air traffic control system be implemented?

The system will follow an open vendor-agnostic approach, enabling the FAA to leverage the latest technologies and continuously improve based on real-time feedback and evolving needs.

What is the scope of the National Airspace System (NAS) modernization?

The modernization encompasses air traffic control, air navigation facilities, airports, regulations, and personnel, aiming to create a safer, more resilient aviation ecosystem.

Who will lead the FAA air traffic control system modernization project?

Parsons Corporation will serve as the prime contractor with full program responsibility, while collaborating with IBM for systems integration and technological expertise.