Innovative Solutions

DELIVERING
Innovative Solutions
PARSONS CORPORATION
100 West Walnut Street
Pasadena, CA 91124
U.S.A.
Phone: +1.626.440.2000
www.parsons.com
BOARD OF DIRECTORS
Seated, left to right
Standing, left to right
Admiral R.J. “Zap” Zlatoper
Molly C. Broad
James S. Marlen
James F. McGovern
C. Michael Armstrong
James F. McNulty
Lawrence V. Jackson
William L. Kimsey
James F. McNulty
Lawrence V. Jackson
James S. Marlen
Chairman and Chief Executive Officer,
Parsons Corporation
Executive Vice President, People Division,
Wal-Mart Stores, Inc.
Chairman and Chief Executive Officer,
Ameron International Corporation
President and Chief Operating Officer,
Dollar General Corporation (former)
Director, Ameron International Corporation
C. Michael Armstrong
Chairman, Johns Hopkins Medicine
Chairman, Comcast Corporation (former)
Chairman and Chief Executive Officer,
AT&T (former)
Senior Vice President, Operations,
PepsiCo Food Systems (former)
James F. McGovern
Director, RadioShack Corporation
CEO and President, Dunhill Technologies LLC
Senior Managing Director, Alagem Capital Group
CEO and President, Calpoint LLC
Director, Citigroup
President, Teledyne Brown Engineering (former)
Director, Hospital Corporation of America
Chief Executive Officer and Global
Executive Board Member,
Ernst & Young Global, Ltd. (former)
Admiral R.J. “Zap” Zlatoper, USN (retired)
Trustee, Johns Hopkins University
Member, SV Partners, U.S. Advisory Board
Visiting Professor,
Massachusetts Institute of Technology
Deputy Chairman and
Chief Operating Officer,
Ernst & Young (former)
Director, Accenture Ltd.
Director, NAVTEQ Corporation
Molly C. Broad
Director, Royal Caribbean Cruises, Ltd.
President and Chief Executive Officer,
University of North Carolina
Director, Western Digital Corporation
Executive Vice Chancellor and
Chief Operating Officer,
California State University (former)
COMPETENCE
Director, A. Schulman, Inc.
William L. Kimsey
Director, International Handling Services
DIVERSITY
Senior Vice President, Supply Operations,
Safeway Inc. (former)
Chairman and Chief Executive Officer,
Hughes (former)
R2_COVER.indCS 2
RESPECT
Trustee, Estate of James Campbell
Co-Chairman of the Board
and Chief Executive Officer,
Sanchez Computer Associates, Inc. (former)
Commander in Chief, U.S. Pacific Fleet (former)
Director, Fort Street Investment Corporation
Trustee, Rensselaer Polytechnic Institute
Regent, Chaminade University, Hawaii
Our Strategies
Our Performance Measures
• Provide responsive, high-quality service to our customers
• Widen capabilities/markets
• Maintain financial strength
• Emphasize total solutions
• Grow through strategic alliances/acquisitions
• Identify, recruit, develop, and retain top talent
• Communicate effectively with employees and customers
• Safety record
• Quality audit results
• Challenged/enthusiastic/engaged employees
• Annual sales and earnings growth
• Cash flow
• Backlog to gross profit conversion ratios
• Gross profit to overhead divergence ratio
• Share price
7/20/05 12:36:03 AM
Chairman’s Letter
Parsons has been delivering solutions to our customers for
over 60 years. In the post-World War II era, we designed
and built refineries and gas plants from the North Slope of
Alaska to the Middle East. We helped the developing nations
of Africa, Asia, and the Middle East solve their water supply
and treatment problems. During the Cold War, Parsons
designed missile launch complexes, shipyards, and nuclear
weapons production facilities. We provided the power,
transportation, and social infrastructure—including building
the entire city of Yanbu, in Saudi Arabia—necessary to help
our nation–customers better the lives of their citizens. Parsons
has improved the environment by developing innovative
methods to remediate the world’s contaminated sites. Today,
our brave and dedicated employees are helping the United
States deliver facilities and infrastructure to restore basic
services to the Iraqi people.
The advent of the global economy and advances in technology
have changed the problems and the requirements of our
customers. In response, we have redefined our business to
focus on developing, integrating, and managing resources
to satisfy these new requirements and solve our customers’
emerging problems. Defining our business in this manner
gives us the impetus to stretch our technical and managerial
skills and apply them in new, cutting-edge market sectors.
We are “rock-climbing” into developing markets such as
biotechnology, wireless communications, explosive ordnance
removal, and homeland security. We are simultaneously
working on the edge of the technical envelope to treat and
dispose of radioactive waste, neutralize nerve gas, and
modernize the world’s transportation infrastructure.
The key to our ability to deliver quality solutions for an
evolving set of customer requirements has always resided with our employees—they are remarkably talented
and dedicated individuals. Today, 10,000 employees are engaged in executing more than 3,000 projects in 49
states and 25 countries. These dedicated workers collectively speak 79 languages and hold over 5,700 college
degrees and professional registrations. For more than six decades, Parsons’ employees have gone anywhere
in the world, met every technical and management challenge, and persevered until the job was done.
As important as the “what” and “who” of Parsons’ business is the “how” as expressed in our statement of values:
• Safety: Every accident is avoidable and no accident is acceptable.
• Integrity: Honest, timely, and direct interactions with customers, subcontractors, and employees.
• Innovation: Cost-effective, creative solutions to our customers’ needs.
• Respect: An environment of dignity and consideration.
• Diversity: A workforce and management team reflecting our nation’s population.
• Competence: Satisfying customer requirements through our technical and managerial strengths.
The following pages illustrate how Parsons’ strategic evolution, employee expertise, and inherent values
have come together to deliver a safer and healthier world, interconnected and sustainable communities, and
a better environment.
James F. McNulty
Chairman and Chief Executive Officer
1
PARSONS DELIVERS
Financial Highlights
Through December 31, 2004
($000)
Current Assets
$
777,591
Net Property, Plant, and Equipment
179,121
Other Noncurrent Assets
124,063
TOTAL ASSETS
1,080,775
Current Liabilities
323,588
Noncurrent Liabilities
142,11 8
Shareholder’s Equity
615,069
TOTAL LIABILITY AND EQUITY
$1,080,775
BACKLOG
$ 3.6 billion
Stock Price
($)
40
30
20
10
1997
2
1998
1999
2000
2001
2002
2003
2004
PARSONS DELIVERS
A Solid Performance
PARSONS DELIVERS
Safety & Insurance Statistics: 2002—2004
Field Recordable Rate
Field Lost-Time Rate
1.60
0.8
1.25
0.6
0.80
0.4
0.45
0.2
0
0
2002
2003
2004
2002
2003
2004
Frequency of recordable injuries to
employees assigned to a field office
or project location.
Frequency of injuries involving field
employees missing at least 1 day of
work due to work-related injury.
Total Lost Workday
Case Rate
Workers’ Compensation
Total Incurred Costs
($ million)
0.8
2.4
0.6
1.8
0.4
1.2
0.2
0.6
0
0
2002
2003
2004
Reflects combined office and field
total time away from work due
to injury.
2002
2003
2004
Reflects our costs for claims as
assigned by our insurance carrier.
Our safety performance improved dramatically in 2004. Employee safety training combined with
the implementation of proactive safety management systems have created the foundation of a
solid safety process. Led by a strong management commitment, employees have taken ownership
of the safety process. Sending each employee home safely to their family after their workday is
a top priority and is achieved by increasing employee safety awareness.
3
PARSONS DELIVERS
A Safer World
Parsons is designing and building the infrastructure that will help make the world safer and
more secure. Our contributions include neutralizing the world’s chemical weapons stockpiles,
treating high-level radioactive waste, and designing secure ports, airports, transportation and
defense systems and facilities. Parsons delivers a safer world.
TSA OPERATION SAFE COMMERCE
TRANSPORTATION SECURITY ADMINISTRATION (TSA) OPERATION SAFE COMMERCE (OSC)
OSC’s layered security approach deters terrorism and illegal access to commercial supply chains through
U.S. ports.
OUR CONTRIBUTION
The Parsons team completed two OSC pilot projects for the Port of Los Angeles and the Port Authority
of New York & New Jersey. We installed CCTV and video recorders in factories in Manila and Scotland
and placed security systems in the shipping containers. We tracked 149 containers from those factories
to our ports. Our team validated container contents with CCTV and radio frequency identification,
monitored container integrity with internal sensors, reported intrusions or tampering via real-time global
wireless communication, and reported alarm and alert conditions. We performed all foreign/domestic
site management, engineering, and installation activities while managing foreign government relations
and requirements.
4
SALT RADIOACTIVE WASTE TREATMENT
SALT WASTE PROCESSING FACILITY
The DOE’s Savannah River Site has 49 underground steel tanks containing highly radioactive nuclear waste
that must be extracted, treated, and disposed.
OUR CONTRIBUTION
Parsons proved that a cost-effective processing facility could be built by designing, fabricating, and testing
the first industrial-scale prototype to validate the DOE’s separation process. We are now designing and will
build, commission, and operate a first-of-its-kind salt waste processing facility to separate the high hazard
actinide, strontium, and cesium portions of the waste, permitting the DOE to meet its objectives for safe
and cost-effective disposal.
5
SHIPYARD MODERNIZATION
NORTHROP GRUMMAN SHIP SYSTEMS FACILITIES MODERNIZATION PROGRAM
The Navy and Coast Guard selected Northrop Grumman Ship Systems, one of the world’s largest shipbuilders,
to strengthen their aging fleets. In turn, Northrop Grumman engaged Parsons to assist them in modernizing
their shipyards to meet new environmental requirements and improve shipyard operational efficiency.
6
PARSONS DELIVERS
A Safer World
OUR CONTRIBUTION
We are the engineer, designer, construction manager, and program manager for this 5-year, $460 million
program at three shipyards in Mississippi and Louisiana. Parsons’ multisite design and construction expertise
is instrumental in the successful modernization and expansion of the Northrop Grumman shipyards. Because
our START (supervisor training accident reduction technique) program emphasizes all levels of management
commitment, this project has achieved over 1 million manhours without a single lost workday incident. Parsons
helped broker a project labor agreement spanning all three shipyards in support of local hires and the “Helmets
to Hardhats” program, which recruits military personnel.
7
IRAQ MUNITIONS CLEARANCE
IRAQ COALITION MUNITIONS CLEARANCE (CMC) PROJECT
After Saddam Hussein’s fall, large stockpiles of munitions remain a major threat to stability. Insurgents use
these munitions against the Coalition and government forces.
OUR CONTRIBUTION
Under this U.S. Army Corps of Engineers project—the largest of its type since WWII— Parsons is providing life
support, communications, equipment, vehicles, supplies, and transportation for the collection and disposition
of the munitions. We constructed seven modular camps and set up satellite communication systems with highspeed internet and voice over IP (VOIP) phone service. The program has successfully classified, transported,
stored, and destroyed over 400,000 tons of munitions.
8
PARSONS DELIVERS
A Safer World
PASCO
PARSONS FABRICATION FACILITY (PFF)
In 1999, Parsons established the PFF in Pasco, Washington, now one of the most expansive and best-equipped
machine shop and specialty equipment fabrication facilities in the Pacific Northwest.
OUR CONTRIBUTION
Parsons, the largest equipment supplier for the Army’s Chemical Weapons Demilitarization programs, designs,
fabricates, and tests one-of-a-kind process systems at the PFF. Customers include DoD sites at Aberdeen,
Pueblo, Bluegrass, and Newport, as well as DOE sites at Hanford and Savannah River. By locating our technical
staff with Pasco’s craft workers we have streamlined production. Our integrated systems and modularized
equipment are tested before site installation, thereby reducing facility startup and certification time. The PFF
is ideally configured to respond to our clients’ specialized process needs.
9
CHEMICAL WARFARE AGENT DISPOSAL
NEWPORT CHEMICAL AGENT DISPOSAL FACILITY
Obsolete VX chemical nerve gas has been stored at the U.S. Army’s Newport, Indiana, depot since 1968,
and the U.S. government has signed an international treaty to eliminate these chemicals. Abolishing more
than 1,200 tons of the hazardous material will provide a safer environment for local communities.
10
PARSONS DELIVERS
A Safer World
OUR CONTRIBUTION
In 1999, the Army selected Parsons to design, build, operate, and ultimately close a first-of-its-kind disposal
facility to destroy Newport’s VX stockpile. Parsons completed the facility in just 13 months. We self-performed
modularized equipment fabrication and facility construction. Our construction work force peaked at over 1,000,
and we achieved 4 million plus manhours without a lost-time accident during design-build activities. In the
words of our client, our preoperational training and facility demonstrations “set a new standard in operational
readiness” for safety. The Newport plant began destroying agent in May 2005.
11
IRAQ SECURITY & JUSTICE
IRAQ SECURITY & JUSTICE PROGRAM
One of the first steps in stabilizing Iraq is providing modern facilities that will support a strong internal security
system. This program is rehabilitating and constructing border control and fire stations, courthouses, prisons,
and training academies for the new Iraqi security forces.
OUR CONTRIBUTION
In 2004, Parsons was awarded a not-to-exceed, $900 million design-build contract for new security and justice
facilities in Iraq. With the introduction of modern construction management techniques and safety procedures, we
are designing and building over 200 essential facilities. Parsons is executing this work with a peak construction
force exceeding 4,000 local workers largely provided by subcontracted Iraqi firms and suppliers.
RUSSIAN CHEMICAL WARFARE AGENT DISPOSAL
RUSSIAN CHEMICAL WEAPONS
DEMILITARIZATION COMPLEX (RCWDC)
In 1991, Congress passed the Nunn–Lugar Act to help eliminate
the former Soviet Union’s weapons of mass destruction
such as chemical weapons. The 40,000-metric-ton Russian
stockpile of chemical agent is stored throughout seven sites
across the Russian Federation.
12
OUR CONTRIBUTION
Parsons is the engineering, management, and support
contractor for the $1 billion RCWDC, the first large-scale
chemical weapons destruction facility in Russia. We are
planning, designing, and constructing a plant to destroy
chemical weapons in a safe and ecological manner. The
RCWDC will use process equipment designed by Russian
design firms and Parsons to neutralize the chemicals. The
facility is on schedule to begin eliminating Russia’s stockpile
by 2008.
PARSONS DELIVERS
A Safer World
HOUSTON AIRPORT EXPLOSIVE DETECTION SYSTEM
BUSH INTERCONTINENTAL AIRPORT (IAH) AND
HOUSTON HOBBY AIRPORT (HOU) INLINE EXPLOSIVE DETECTION SYSTEMS (EDS)
Airport security is a primary focus of the Department of Homeland Security. As a key international gateway
and one of the top five cities designated as a possible terrorist target, Houston initiated an aggressive security
program at the city’s airports.
OUR CONTRIBUTION
In 2003, the city awarded a 5-year contract to Parsons to conduct an airport security assessment and manage
the design and construction of Inline EDS baggage-handling systems at IAH and HOU. The installation of an
EDS baggage system for IAH’s new international terminal was initially projected to require at least 9 months.
Parsons completed the task in 90 days. This fast-track schedule established a new benchmark for EDS delivery
capabilities, thereby greatly enhancing security for the traveling public, IAH, and key stakeholders.
13
PARSONS DELIVERS
Interconnected Communities
The demand for faster and more efficient transportation and data transmission continues to
grow exponentially. Parsons meets this demand with traditional links such as bridges, roads, and
airports and also with the latest cellular and digital data technologies. We are providing shorter
commute times, reliable water supplies, improved mail services, more efficient air transportation,
and expanded electronic data networks. Parsons delivers interconnected communities.
EXi PARSONS
ERICSSON 2.5G/3G WIRELESS ROLLOUT
Access to voice, text, video, music, and data via a cell phone anywhere in the world is what enhanced
second-generation (2.5G) and third-generation (3G) wireless provide.
OUR CONTRIBUTION
At over 5,700 sites nationwide, EXi Parsons installed upgraded hardware and software to enable the
existing GSM network to handle 2.5G/3G at base station controllers and radio base stations. As Ericsson’s
lead service provider in many of its GSM overlay and network rollout projects, EXi Parsons installed
cutting-edge 2.5G/3G technology in the United States. This technology allows wireless carriers like
Cingular Wireless and T-Mobile to interconnect their customers with a vast array of wireless applications
worldwide. Parsons’ accomplishments won Ericsson’s “Customer Satisfaction Award” in 2004.
14
SF BAY BRIDGE
SAN FRANCISCO–OAKLAND BAY BRIDGE EAST SPAN REPLACEMENT PROJECT
This bridge, connecting San Francisco and Alameda counties, was severely damaged by the 1989 Loma
Prieta earthquake when parts of the upper deck collapsed onto the lower deck.
OUR CONTRIBUTION
Parsons is providing construction engineering for the new $1 billion Skyway, a precast segmental bridge
and the longest element of the project. Before construction of the segments started, Parsons identified
and resolved reinforcement, post-tensioning, and embedded-item conflicts in the original Skyway design
documents, which saved significant costs and prevented schedule delays. Working with the designer, Caltrans,
and the contractor, our constructible solutions proved essential to efficient construction progress.
15
TACOMA NARROWS BRIDGE
NEW TACOMA NARROWS BRIDGE
Rush hour traffic is above capacity on the fifth-longest suspension bridge in the United States, linking
the Seattle–Tacoma region to the Olympic Peninsula. A new, parallel suspension bridge, designed to
accommodate a future lower deck, will carry eastbound traffic, while the existing bridge will be redesigned
for westbound traffic. Combined, the two bridges will add the required capacity, improve safety, provide a
separate bicycle/pedestrian path, and enhance access to outlying communities.
16
PARSONS DELIVERS
Interconnected Communities
OUR CONTRIBUTION
A Parsons-led joint venture, as subcontractor to the design-builder, Tacoma Narrows Constructors, designed
the new bridge, located just 200 feet south of the existing bridge. Using the design-build delivery method
for the first time on a major suspension bridge, Parsons developed value engineering changes, eliminated
tunnels, reduced grading work, and saved money on materials. We overcame significant technical challenges,
using resources from throughout North America, to deliver this fast-track project ahead of schedule and
under budget.
17
OPTI-FI RAIL ON-BOARD WI-FI
CAPITOL CORRIDOR ON-BOARD WI-FI
Wireless internet access is available to passengers on this California rail corridor serving Sacramento, Oakland, and
San Jose. Busy commuters traveling on the Capitol Corridor rail line are now able to become more productive.
OUR CONTRIBUTION
Parsons approached the Capitol Corridor Joint Powers Authority, its managing agency Bay Area Rapid Transit
(BART), and its operator (Amtrak) with an innovative concept to provide the first commercial Wi-Fi internet
access on a passenger rail system in North America. In partnership with a Parsons affiliate company, Opti-Fi,
we installed Wi-Fi internet access on one-third of the corridor’s trains, allowing commuters to stay connected
during their commute.
DUBAI AIRPORT TUNNEL
DUBAI INTERNATIONAL AIRPORT TUNNEL
Dubai’s airport expansion incorporates additional runways that are
impacting local highway patterns. This landmark project includes
the construction of one of the longest and widest cut-and-cover
vehicular tunnels under an airport runway.
OUR CONTRIBUTION
Parsons performed traffic studies, preliminary and detailed
design, and is now managing construction of the tunnel. To meet
a demanding construction schedule, Parsons developed and
delivered the cut-and-cover tunnel design in record time. Our
design incorporates a precast concrete solution and state-of-the-art
intelligent transportation and safety systems. The 1.5-kilometer
tunnel connects Dubai’s roadway network to the communities
adjacent to the airport, resulting in substantially reduced travel
times for commuters.
18
PARSONS DELIVERS
Interconnected Communities
USPS
UNITED STATES POSTAL SERVICE (USPS) PROGRAM MANAGEMENT SERVICES
Vast changes in the communications and delivery services markets require the USPS to transform itself into
a commercial, efficient, and flexible institution.
OUR CONTRIBUTION
Parsons is the program manager providing ongoing design, real estate, and construction services nationwide
for the USPS’ extensive facilities portfolio. Placing all program management under one company simplifies
the process and allows the USPS to deliver facilities faster and more efficiently. We have acquired real estate
and have performed design, program management, construction, and construction management for new and
existing USPS facilities in practically every state in the nation. On the recently completed Automated Postal
Center program, we streamlined project delivery by packaging several tasks at different facilities into larger
construction contracts.
19
MIAMI AIRPORT SOUTH TERMINAL
SOUTH TERMINAL EXPANSION PROGRAM AT MIAMI INTERNATIONAL AIRPORT (MIA)
Miami is a major gateway for international passengers and cargo. In 2001, Miami–Dade County began this
$700 million portion of its $4.8 billion capital improvement program.
OUR CONTRIBUTION
Parsons is responsible for managing the construction of a 1.2-million-square-foot terminal expansion, gate
modifications to an adjacent concourse, a new 15-gate, 900-foot concourse, and enhanced baggage-handling and
security-screening facilities. As the construction manager at-risk for this program, the Parsons-led joint venture
manages 10 major contractors, while achieving a strong safety record and maintaining the schedule.
20
PARSONS DELIVERS
Interconnected Communities
WTC PATH STATION
WORLD TRADE CENTER (WTC) PORT AUTHORITY TRANS-HUDSON (PATH) TRANSPORTATION HUB
From the former WTC site’s devastation will rise a station of beauty and function created by the world’s
architectural and engineering community. Renowned architect Santiago Calatrava conceived the new station as
a dove rising from ashes. The new station incorporates natural light with long-span/shallow parabolic arches,
a movable roof, a column-free tension ring transit hall, high performance concrete, and a novel underpinning
scheme. The WTC PATH hub is Lower Manhattan’s gateway for 250,000 daily commuters.
OUR CONTRIBUTION
A Parsons team is providing engineering design services for the proposed intermodal hub while maintaining
the existing level of service for PATH and the New York City Transit. Parsons is managing the infrastructure
group, providing systems/communications design, and supporting other engineering disciplines to create a
design that incorporates advanced security strategies and blast-resistant structures.
21
WOODROW WILSON BRIDGE
WOODROW WILSON BRIDGE
As a vital link in the Washington, D.C., transportation infrastructure, the current Woodrow Wilson Bridge
carries I-95 and Capital Beltway traffic across the Potomac River at nearly three times its intended volume.
Two new, parallel 6,075-foot-long bridges, each with 6 lanes, will alleviate congestion and enhance mobility
while addressing community and environmental concerns.
22
PARSONS DELIVERS
Interconnected Communities
OUR CONTRIBUTION
Selected through an innovative international design competition, Parsons’ design features 32 fixed spans
supported on V-shaped piers—a dramatic visual and functional innovation. We also developed an 8-leaf
bascule span that has the largest moveable mass of any U.S. bridge. We designed a unique combination of
structural steel and segmental concrete construction that met complex aesthetic, technical, economic, and
environmental objectives.
23
SEA-TAC
SEATTLE–TACOMA INTERNATIONAL AIRPORT (Sea-Tac)
Originally designed for 25 million passengers, Sea-Tac served over 28 million passengers in 2004. The airport’s
three-phase, 12-year, $4 billion expansion project is one of the United States’ largest aviation projects.
Sea-Tac’s new terminal opened with the latest baggage security features.
OUR CONTRIBUTION
As the lead program management support consultant, we are adding new and renovated terminals, a third
runway/taxiway system, and new major electrical and mechanical systems for the entire airport. We also
implemented new communications systems throughout the terminal, an upgraded baggage system, and a
light rail interface. Fully integrated into the Port of Seattle team, Parsons defined 120 discrete projects and
then provided design and construction management services. Parsons’ aviation cost trend system was put
online early to establish baseline measures in order to track the program’s costs and record deviations, giving
the client visibility to prevent surprises and maintain budget accountability.
24
PARSONS DELIVERS
Interconnected Communities
HIAWATHA LIGHT RAIL
HIAWATHA LIGHT RAIL TRANSIT PROJECT
Minnesota’s first light rail system links downtown Minneapolis, the Minneapolis/St. Paul International Airport,
and the Mall of America, and it serves Minneapolis’ Longfellow, Phillips, and Seward neighborhoods. This
innovative design-build project has greatly exceeded ridership estimates and was completed on time and
on budget.
OUR CONTRIBUTION
As a partner on the design-build team, Parsons was the lead engineer for the project—designing the
trackbed, track, stations, bridges, maintenance facility, and the train control and traction power systems. Parsons’
cost-saving design resulted in completing the 12-mile line in less than 4 years. Our design-build team’s
geotechnical approval process jump-started construction, positively affecting budget and schedule. Our use of
concrete box girder bridges, uncommon in Minnesota, resulted in a cost savings of several million dollars.
FAA
FEDERAL AVIATION ADMINISTRATION (FAA)
TECHNICAL SUPPORT SERVICES CONTRACT III
The U.S. national airspace system (NAS) is the largest,
busiest, and most complex and technologically advanced
aviation operation in the world. The FAA provides the NAS
infrastructure to support all air operations within the United
States and certain oceanic areas.
OUR CONTRIBUTION
In December 2001, the FAA awarded Parsons a 10-year,
$1 billion plus contract to design and construct facilities
and perform electronic installation services at hundreds
of FAA locations across the U.S. and its possessions.
From Washington, D.C., to Juneau, Alaska (pictured here),
Parsons is teaming with the FAA to make air travel safer
and more efficient.
25
PARSONS DELIVERS
A Better Environment
While sophisticated weapons systems, chemical fertilizers and pesticides, and fossil fuel
combustion provide benefits, these integral aspects of the modern world sometimes also have
unintended negative side effects that harm our environment. Mitigating these side effects
requires sophisticated techniques and processes. Parsons delivers a better environment.
FORT ORD
FORT ORD MILITARY MUNITIONS RESPONSE PROGRAM
A former Army training facility from 1917 to 1994, Fort Ord is adjacent to Monterey Bay, a popular tourist
destination and a national marine sanctuary. This 43-square-mile site represents the largest unexploded
ordnance cleanup project within the continental United States. After the site’s cleanup, land will be available
for local housing and recreational use.
OUR CONTRIBUTION
Through a contract with the U.S. Army Corps of Engineers, we are providing technical and management
support, digitizing historic data, and removing munitions and explosives. We worked over one-half million
manhours performing both surface (2,200 acres) and subsurface (850 acres) removals without a single
lost-time accident while recycling over 2 million pounds of recovered metal. The Parsons-designed towed
array system tripled the digital geophysical survey data that can be collected at one time. We consolidated
tens of thousands of historic and current records into a comprehensive database and developed a paperless
data field collection system.
26
DENVER RADIUM REMOVAL
DENVER RADIUM STREETS PROGRAM
Through the 1920s, tailings from radium processing plants were used to pave several streets in Denver. In
the 1970s, 30 blocks of Denver streets were designated by the Environmental Protection Agency (EPA) as
a Superfund Site. These streets have cost the city of Denver millions of dollars to maintain and monitor
over the last decade alone.
OUR CONTRIBUTION
Parsons is assisting the city of Denver by removing these contaminated materials and rebuilding residential
streets. We design, survey, monitor radiation, and reconstruct the streets and add new curbs, gutters,
handicapped accesses, storm sewers, and utility lines with minimal disruption to the residents.
27
OCSD
ORANGE COUNTY SANITATION DISTRICT (OCSD) CAPITAL IMPROVEMENT PROGRAM (CIP)
In its proactive commitment to public health and the environment, OCSD embarked on a 10-year, 179-project
multibillion dollar CIP in 2002.
28
PARSONS DELIVERS
A Better Environment
OUR CONTRIBUTION
A Parsons-led joint venture is providing OCSD with program and construction management support services
to upgrade two wastewater treatment plants as well as upgrade/replace regional pump stations and largediameter pipelines. The Parsons/OCSD team developed a web-based program controls system that integrates
OCSD’s finance/accounting and scheduling systems with project data. We are helping to manage wastewater
projects that will improve and conserve Orange County’s water resources.
29
SANTA CLARA WATER TREATMENT
SANTA CLARA VALLEY WATER DISTRICT (SCVWD) WATER TREATMENT IMPROVEMENT PROGRAM
Strict new federal regulations under the Safe Drinking Water Act will help prevent serious outbreaks of
waterborne illnesses plaguing many communities. SCVWD’s Santa Teresa Water Treatment Plant (pictured)
and Penitencia Water Treatment Plant are connected hydraulically to the same distribution system. Concurrent
construction at each plant requires careful shutdown coordination to prevent schedule impacts.
OUR CONTRIBUTION
Parsons is the construction manager for the two existing SCVWD water treatment plants being upgraded
with ozone treatment facilities to improve water disinfection and operate more efficiently through
automated controls. Our successful preconstruction partnering session enhanced communication between
Parsons and the SCVWD staff. Parsons’ negotiations with the contractor resulted in a $7 million savings
for SCVWD. The project will be completed on schedule and will result in the rapid delivery of cleaner
water to the community.
30
PARSONS DELIVERS
A Better Environment
MOTOR VEHICLE INSPECTION
NEW JERSEY MOTOR VEHICLE INSPECTION SYSTEM (NJMVIS)
In the mid-1990s, New Jersey’s air quality was noncompliant with EPA standards due largely to vehicle emissions.
To remedy this situation, the state of New Jersey committed to upgrade its vehicle inspection program and
make it the most comprehensive and advanced program in the United States.
OUR CONTRIBUTION
Parsons was selected in 1998 to design, build, and operate the NJMVIS. State-of-the-art technology at 31
stations enables Parsons to inspect 2.5 million vehicles each year on the NJMVIS program. Our equipment
maintains a 99% up-time rating, and our staff of over 700 has created a friendly and efficient atmosphere,
resulting in our receiving a 94% customer satisfaction rating. Parsons also maintains the electronic data transfer
and storage systems, which generate inspection reports for the entire program. New Jersey has realized a
significant improvement in air quality thanks to the NJMVIS.
SAND ISLAND WASTEWATER TREATMENT
SAND ISLAND WASTEWATER TREATMENT PLANT
Hawaii’s largest wastewater facility, which serves Oahu’s most heavily
populated areas (Honolulu and Waikiki), is undergoing its most
extensive system modification since beginning operations over two
decades ago. The upgraded facility is an important part of the city
and county of Honolulu’s efforts to continue to meet federal Clean
Water Act regulations.
OUR CONTRIBUTION
Parsons/RCI is the constructor upgrading the facility’s sewage treatment
technology to increase existing capacity from 82- to 90-mgd average
design flow capacity. Parsons/RCI’s plant upgrades include installing
a 300-foot-long, twin 96-inch concrete pipe preceding an ultraviolet
treatment system that kills organic pathogens before releasing effluent
into the ocean through an existing 84-inch outfall pipe.
31
ENERGY TECHNOLOGY R&D
NATIONAL ENERGY TECHNOLOGY LABORATORY (NETL)
As oil demand and costs increase, energy is at the core of our national interest and security. At NETL, the
DOE is implementing an R&D demonstration program for alternative energy sources, including clean burning
hydrogen as a potential energy source for the future.
OUR CONTRIBUTION
During the last decade, Parsons provided program planning, design, construction, and operation support of
NETL’s R&D facilities. Parsons is now assisting NETL in hydrogen studies to evaluate advances in production
methods such as membrane technology, which are needed to improve efficiency of hydrogen separation
and recovery, thereby reducing costs. From computer modeling to experimentation, Parsons’ scientists and
technicians are working to provide answers that could lead to commercially viable energy solutions.
32
PARSONS DELIVERS
A Better Environment
ONONDAGA LAKE
HONEYWELL ONONDAGA LAKE REMEDIATION
Honeywell is working with the New York State Department of Environmental Conservation on its proposed
$451 million plan to clean up Onondaga Lake and adjacent properties, which would reverse the 100-year
legacy of industrial operations of predecessor companies. The Onondaga Lake cleanup is one of the largest,
most complex U.S. sediment remediation projects.
OUR CONTRIBUTION
Parsons, as project manager, brought together a team of over 100 environmental professionals representing
29 firms, including leading experts from industry and academia, to conduct this challenging project. The
proposed solution combines dredging and capping to both remediate the lake and restore a diverse natural
habitat, thereby returning this valuable natural resource to the Syracuse community.
TACOMA WATER PIPELINE
TACOMA WATER SECOND SUPPLY PIPELINE
Tacoma Public Utilities–Water Division needs new water sources as
growth and competing demand stretch existing supplies. The Tacoma
Water Second Supply Pipeline will provide up to 65 million gpd from the
Green River to Tacoma, Seattle, and South King County, Washington.
OUR CONTRIBUTION
Parsons/RCI is constructing 28.3 miles of potable water transmission
pipeline that includes 30-foot-deep trenching and 60-foot-deep
microtunnel shafts in an urban and suburban setting. We are also
constructing a chemical feed facility and upgrading Tacoma Water’s
headworks and fish bypass facility. Parsons/RCI’s work on this
project provides for the Puget Sound Region’s water supply and
wildlife conservation needs in an efficient and environmentally
sensitive manner.
33
PARSONS DELIVERS
Sustainable Communities
Thoughtful planning, timeless architecture, durable materials, and environmentally sensitive
infrastructure create neighborhoods and cities that have lasting value and will nurture the
environment. Parsons delivers sustainable communities.
ABU DHABI DEVELOPMENT
NEW CORNICHE DEVELOPMENT
Abu Dhabi’s population has grown exponentially in the last three decades. A new Corniche Road will create
an attractive buffer between the waterfront and a congested cityscape. This and other transportation
improvements, along with scores of parks, water features, and public amenities, will solidify Abu Dhabi’s
reputation as a model city and world-class tourist destination.
OUR CONTRIBUTION
Parsons has been the chief roads and bridges consultant, addressing the city’s accelerated growth and
need for infrastructure. As part of our services, Parsons designed and is supervising construction of one
of Abu Dhabi’s largest single development projects, creating 6 kilometers of new roadway, tripling area
parking, and creating recreation areas unequalled in the region. Our designs included 700,000 square
meters of reclaimed surface area, 10 pedestrian underpasses, 3 tunnels, and 1 bridge.
34
T-REX
SOUTHEAST CORRIDOR TRANSPORTATION EXPANSION PROJECT (T-REX)
Denver’s rapid growth created a need to expand its southeast traffic corridor. This $1.67 billion project, the
nation’s largest multimodal effort, requires highway improvements, expanded light rail transit, and new
pedestrian and bicycle facilities.
OUR CONTRIBUTION
As part of the design-build joint venture, Parsons is the lead designer/design manager for the transit system
and highway expansion. Our design innovations of the I-25/I-225 interchange moved light rail trains from
the highest level to the lowest, resulting in cost savings and improved aesthetics and traffic control. During
construction, the community benefited from a Parsons-designed traffic scheme to add HOV lanes, increase
lane capacity, and reduce congestion. T-REX’s positive public approval ratings are a direct result of our
team’s commitment to minimal inconvenience.
35
L.A. SCHOOLS
LOS ANGELES UNIFIED SCHOOL DISTRICT (LAUSD) FACILITIES MODERNIZATION AND NEW CONSTRUCTION PROGRAM
The last time LAUSD built a new high school was in 1973, and many of its schools are nearly 60 years old.
The nation’s second-largest school district is executing a $14.4 billion modernization program, one of the
largest U.S. public works projects. New “high performance” schools will create environments that are energy
efficient, comfortable, well-lit, and use environmentally sensitive, yet durable, products such as Brazilian hard
wood (pictured here).
36
PARSONS DELIVERS
Sustainable Communities
OUR CONTRIBUTION
Parsons’ personnel manage five LAUSD construction contracts totaling over $4 billion and are fully integrated
with LAUSD’s project management team. We also developed and implemented a districtwide labor stabilization
agreement. Our packaged project approach, selecting one contractor to provide the same service at multiple schools,
has resulted in lower costs and higher quantity discounts. As a result of our work, LAUSD’s 750,000 students
and their families will see a marked improvement in the learning environment and in their communities.
37
CAMP CREEK WATER RECLAMATION
CAMP CREEK DESIGN-BUILD
To expand its Camp Creek Water Reclamation Facility, Georgia’s Fulton County developed a procurement
strategy to design, build, and operate (DBO) a modernized plant. The county shortened the project’s delivery
schedule by 2 years using this innovative DBO approach.
OUR CONTRIBUTION
Parsons is providing design, permitting, and engineering services on this contract. We completed design
and permitting in 9 months and expedited activities that allowed construction to commence within 4
months of notice to proceed, facilitating a 30-month overall construction schedule. Our design maximized
the return on the county’s existing capital investment, and a compact layout minimized land disturbance
and earthwork requirements.
38
PARSONS DELIVERS
Sustainable Communities
DUBAI HOUSING
EMIRATES HILLS, MEADOWS & SPRINGS, AND ARABIAN RANCHES DEVELOPMENTS
A rapidly growing population and an influx of expatriates working in Dubai have created the need for new,
modern housing developments. Irrigation to streetscapes and parks is provided by reclaimed wastewater.
Emirates Hills, designed as the “Beverly Hills” of Dubai, has opulent villas and tranquil scenery. Arabian Ranches
(pictured) boasts an 18-hole Ian Baker-Finch golf course, an equestrian center, and polo club.
OUR CONTRIBUTION
We are planning, designing, and managing construction for all infrastructure projects on sites that began as
open desert. Parsons has designed three new Dubai developments with an interconnected system of forty lakes
using groundwater for supply. Our designs were finished on a fast-track delivery schedule, and construction
has begun executing multiple contracts with staged start and completion dates.
STUDENT HOUSING
UTAH STATE UNIVERSITY (USU) STUDENT HOUSING
As with most universities, USU faces an increased student population
and aging existing housing. Additional student housing is needed
on campus.
OUR CONTRIBUTION
Parsons is designing and building modern, 500 plus student living/
learning and parking facilities that emphasize state-of-the-art technology,
energy conservation, and environmental protection. Our design includes
low-maintenance materials, energy-efficient heating and cooling
systems, low-water usage plumbing, and green space preservation.
Working with USU, we strategically placed all new structures to preserve
existing mature trees and constructed model units that allowed USU to
prelease the housing units for the following school year.
39
FULTON COUNTY WATER
FULTON COUNTY PM/CM
Population growth and stricter regulations in Georgia’s largest county and the metropolitan areas
surrounding Atlanta prompted the need for greater water/wastewater capacity. Various studies and reports on
water/wastewater requirements led to Fulton County’s $290 million capital improvements program in 2004.
OUR CONTRIBUTION
A Parsons-led joint venture is providing program and construction management services. We are managing
the county’s water/wastewater infrastructure expansion and establishing management techniques and controls
for administering the program. Through simultaneous project execution, Parsons is helping Fulton County
minimize cost, improve quality of life, and provide an infrastructure to support economic development.
ALL-AMERICAN CANAL
ALL-AMERICAN CANAL (AAC)
The AAC conveys 3.1 million acre-feet of water per year
down from the Colorado River to the Imperial Irrigation
District. Constructed in the 1930s through sand, the
existing 82-mile-long canal is not lined, resulting in
substantial water loss due to seepage.
OUR CONTRIBUTION
Parsons is the project and construction manager for a new,
23-mile-long, parallel, concrete-lined portion of this
canal, which will substantially reduce the seepage
of water. Nearly 30 million cubic yards of primarily
sandy material must be excavated prior to lining the
new canal with concrete. As one of the United States’
largest water conservation projects, the new canal will
conserve enough water to supply the annual needs of
500,000 California residents.
40
PARSONS DELIVERS
Sustainable Communities
MILITARY HOUSING
MOUNTAIN HOME AIR FORCE BASE FAMILY HOUSING
Mountain Home AFB has existing housing for approximately 1,300 families. The U.S. Air Force Air Combat
Command and the U.S. Army Corps of Engineers have specified the requirements for new attractive and
sustainable communities that will totally replace the existing aged and deteriorating housing at the base.
OUR CONTRIBUTION
Parsons developed a “corner house” concept in which a single structure has two homes, each facing one of
the intersecting streets. This solution increases the community’s density and reduces infrastructure costs,
which benefits the Air Force while also providing a very livable and private home. Each home features
drought-resistant landscaping and innovative hot water and climate control systems. Our imaginative concepts
won the 2004 U.S. Air Force Concept Design Award and the 2005 U.S. Air Force Completed Project Award.
STAPLETON BROWNFIELD REMEDIATION
DENVER STAPLETON REMEDIATION PROJECT
Closed in 1995, the former Stapleton Airport is now a landmark
brownfield redevelopment.
OUR CONTRIBUTION
As the city and county of Denver’s prime remediation contractor,
Parsons has excavated more than 5 million cubic yards of soil in order
to remediate contamination that resulted from 65 years of aviation
activity at Stapleton. Using the strictest environmental standards,
Parsons remediated the site, which is now Denver’s newest thriving
community and a shining example of sustainable development.
41
PARSONS DELIVERS
A Healthier World
From San Diego to Baghdad, all communities require safe water supplies, modern healthcare
facilities, and access to the latest pharmaceutical products. Through the design and construction
of new medical facilities and infrastructure, we are providing for the needs of established and
developing communities. Parsons delivers a healthier world.
IRAQ BUILDINGS & HEALTH
IRAQ BUILDINGS, HEALTH, AND EDUCATION (BHE) DESIGN–BUILD CONTRACT
No new hospitals have been built in Iraq since 1984, and millions of its people do not have primary
healthcare. The BHE program is renovating and/or constructing new hospitals, clinics, and other public
buildings to bring modern healthcare to over 6 million Iraqis.
OUR CONTRIBUTION
Parsons is designing and constructing 150 new primary healthcare centers (PHCs) and clinics, modernizing
20 hospitals throughout Iraq, and renovating three ministry buildings in Baghdad. Our architects and
engineers work alongside Iraqi architects, engineers, and construction managers to design the new PHCs
and renovate medical facilities. In addition, Parsons is ensuring that all technicians are trained so hospitals
and PHCs can conduct routine and preventive maintenance on all project-installed equipment.
42
LONZA BIOLOGICS
LONZA LARGE SCALE BUILD-OUT
Advances in biotechnology and customer demand led Lonza Biologics (part of the Swiss-based Lonza
Group) to expand its manufacturing facility in Portsmouth, New Hampshire.
OUR CONTRIBUTION
Parsons, as program manager, oversaw an engineering, procurement, and construction management
project that more than doubled the size of the facility. We are currently working on a further expansion of
this manufacturing complex. Parsons teamed with Lonza to address and resolve every challenge the project
faced and deliver this successful project within budget on a hyper-tracked schedule. Successfully completing
this concept-to -startup project has facilitated faster delivery of life-saving pharmaceuticals to the public.
43
SOUTHERN NEVADA WATER
SOUTHERN NEVADA WATER AUTHORITY (SNWA)
Water is the most critical resource in the Las Vegas Valley—one of the fastest growing U.S. communities.
Recent drought conditions in the western United States have prompted SNWA to propose a new, deeper water
intake in Lake Mead and to identify other potential water resources within Nevada.
44
PARSONS DELIVERS
A Healthier World
OUR CONTRIBUTION
For more than a decade, Parsons has been the program and construction manager for SNWA’s $2 billion
Capital Improvements Program (CIP). Working with SNWA, Parsons has helped shepherd this CIP to where
it is today: 85% complete, $111 million under budget, and on schedule—all with a safety record better than
the national average. Parsons will be involved in the projected $650 million new deep intake project and is
supporting two EISs being prepared as SNWA embarks on its in-state water resource program.
45
IRAQ WATER
USAID IRAQ INFRASTRUCTURE RECONSTRUCTION PROGRAM PHASE II (IIRP2)
As part of its rebuilding program, USAID is improving the quality and reliability of Iraq’s water and wastewater
facilities. The IIRP2 projects will directly improve sanitation and health for 6 million Iraqis.
OUR CONTRIBUTION
As a subcontractor to Bechtel, Parsons is providing design-build reconstruction of major water and wastewater
systems throughout Iraq. Using a management information system, we track over 70 rural water projects
simultaneously. Our internet portal allows staff worldwide to have immediate access to project documents while,
at the same time, providing control of the document revision process. Parsons’ contributions are improving
construction safety and quality, developing the skills of Iraqi engineers, and providing system operations and
maintenance capabilities for the future.
46
PARSONS DELIVERS
A Healthier World
SAN DIEGO WATER
CITY OF SAN DIEGO WATER DEPARTMENT CAPITAL IMPROVEMENT PROGRAM (CIP)
Outdated equipment, rapid population growth, and new federal regulations set forth by the 1996 Safe Drinking
Water Act prompted the city to upgrade its three water treatment plants.
OUR CONTRIBUTION
Parsons and the city of San Diego’s Water Department staff are a fully integrated team, tracking and managing
an $800 million CIP comprising over 200 projects, using scheduling, cost, and database systems developed by
Parsons. We are also providing project engineering, safety, design review, and environmental staff support.
Several of the projects have won awards, including seven from the American Society of Civil Engineers.
47
Our Values
SAFETY
48
INTEGRITY
INNOVATION
Our Business
Our Goals
• Provide technical and management solutions
- Develop, integrate, and manage resources
- Satisfy requirements
- Solve problems
• Continuously improve safety
• Continuously enhance the value of Parsons Corporation
- Increase sales by at least 10% annual average
- Increase net income by at least 10% annual average
• Be recognized as one of the best corporations in the world
• Provide an ethical, challenging, diverse, rewarding, “fun” workplace
BOARD OF DIRECTORS
Seated, left to right
Standing, left to right
Admiral R.J. “Zap” Zlatoper
Molly C. Broad
James S. Marlen
James F. McGovern
C. Michael Armstrong
James F. McNulty
Lawrence V. Jackson
William L. Kimsey
James F. McNulty
Lawrence V. Jackson
James S. Marlen
Chairman and Chief Executive Officer,
Parsons Corporation
Executive Vice President, People Division,
Wal-Mart Stores, Inc.
Chairman and Chief Executive Officer,
Ameron International Corporation
President and Chief Operating Officer,
Dollar General Corporation (former)
Director, Ameron International Corporation
C. Michael Armstrong
Chairman, Johns Hopkins Medicine
Chairman, Comcast Corporation (former)
Chairman and Chief Executive Officer,
AT&T (former)
Senior Vice President, Operations,
PepsiCo Food Systems (former)
James F. McGovern
Director, RadioShack Corporation
CEO and President, Dunhill Technologies LLC
Senior Managing Director, Alagem Capital Group
CEO and President, Calpoint LLC
Director, Citigroup
President, Teledyne Brown Engineering (former)
Director, Hospital Corporation of America
Chief Executive Officer and Global
Executive Board Member,
Ernst & Young Global, Ltd. (former)
Admiral R.J. “Zap” Zlatoper, USN (retired)
Trustee, Johns Hopkins University
Member, SV Partners, U.S. Advisory Board
Visiting Professor,
Massachusetts Institute of Technology
Deputy Chairman and
Chief Operating Officer,
Ernst & Young (former)
Director, Accenture Ltd.
Director, NAVTEQ Corporation
Molly C. Broad
Director, Royal Caribbean Cruises, Ltd.
President and Chief Executive Officer,
University of North Carolina
Director, Western Digital Corporation
Executive Vice Chancellor and
Chief Operating Officer,
California State University (former)
COMPETENCE
Director, A. Schulman, Inc.
William L. Kimsey
Director, International Handling Services
DIVERSITY
Senior Vice President, Supply Operations,
Safeway Inc. (former)
Chairman and Chief Executive Officer,
Hughes (former)
R2_COVER.indCS 2
RESPECT
Trustee, Estate of James Campbell
Co-Chairman of the Board
and Chief Executive Officer,
Sanchez Computer Associates, Inc. (former)
Commander in Chief, U.S. Pacific Fleet (former)
Director, Fort Street Investment Corporation
Trustee, Rensselaer Polytechnic Institute
Regent, Chaminade University, Hawaii
Our Strategies
Our Performance Measures
• Provide responsive, high-quality service to our customers
• Widen capabilities/markets
• Maintain financial strength
• Emphasize total solutions
• Grow through strategic alliances/acquisitions
• Identify, recruit, develop, and retain top talent
• Communicate effectively with employees and customers
• Safety record
• Quality audit results
• Challenged/enthusiastic/engaged employees
• Annual sales and earnings growth
• Cash flow
• Backlog to gross profit conversion ratios
• Gross profit to overhead divergence ratio
• Share price
7/20/05 12:36:03 AM
DELIVERING
Innovative Solutions
PARSONS CORPORATION
100 West Walnut Street
Pasadena, CA 91124
U.S.A.
Phone: +1.626.440.2000
www.parsons.com