Parsons Secures Key Role in $3.5B WMD Defense Contract

CHANTILLY, VA – December 05, 2025

Parsons Corporation has solidified its long-standing position at the forefront of global security, announcing its selection for the Defense Threat Reduction Agency's (DTRA) Cooperative Threat Reduction Integration Contract IV (CTRIC IV). The massive indefinite-delivery, indefinite-quantity (IDIQ) contract carries a ceiling value of $3.5 billion and spans a potential ten-year period, underscoring the enduring nature of the mission to counter the proliferation of Weapons of Mass Destruction (WMD).

The award positions the Virginia-based technology firm to compete for task orders aimed at some of the world's most sensitive security challenges. These include the elimination and securing of chemical, biological, radiological, and nuclear (CBRN) materials, delivery systems, and related infrastructure. A key component of the work involves bolstering the capabilities of partner nations to prevent and detect the illicit trafficking of WMD technology, a critical element of U.S. foreign policy and national defense strategy. The contract includes a five-year base period with a five-year option, signaling a long-term commitment from DTRA.

“Parsons is a trusted DTRA partner and continues to advance the agency’s efforts to counter and mitigate threats to U.S. and global security through our skilled professionals and proven technical capabilities,” said Jon Moretta, President, Engineered Systems for Parsons, in a statement. “As we have for decades, we remain committed to leveraging our extensive national security solutions experience to support initiatives that prevent, reduce, and counter WMD and emerging threats anywhere in the world.”

A Crowded Field for a Critical Mission

The CTRIC IV contract is not an exclusive award. Parsons is one of six companies selected to compete for work under the $3.5 billion vehicle, highlighting both the scale of DTRA's mission and the intense competition among top-tier defense contractors. The government agency received seven bids for the contract, ultimately selecting a roster of incumbents and newcomers.

Alongside Parsons, fellow incumbents Amentum, Black & Veatch, and Jacobs also secured their spots, demonstrating a track record of reliable performance. Two newcomers, Fluor and V2X, have also entered the ring, diversifying the pool of expertise available to DTRA. This multiple-award structure allows the agency to solicit bids for specific tasks, fostering competition on price and technical approach throughout the contract's lifecycle.

The core objective of CTRIC is to provide sustainable CBRN threat reduction capabilities to partner nations across the globe. This is not just about dismantling old weapons systems; it involves a comprehensive approach that includes strengthening physical infrastructure, enhancing threat detection and deterrence technologies, and facilitating collaborative research projects. The contract vehicle is the primary mechanism through which DTRA executes its Cooperative Threat Reduction (CTR) program, a cornerstone of U.S. non-proliferation efforts for decades.

Building on a Legacy of Performance

For Parsons, the CTRIC IV award is a recompete, building directly on its work under the previous CTRIC III contract vehicle awarded in June 2018. That contract, with a ceiling of $970 million, saw the company secure numerous task orders and solidify its relationship with the agency. As of late 2025, over $782 million in work had been obligated through the CTRIC III vehicle across all its awardees.

One notable example of Parsons' past performance was a $27 million task order awarded in October 2024 to support the Proliferation Prevention Program in Eastern Europe. This initiative involved providing critical expertise, training, and resources to help partner nations counter WMD proliferation threats in a region of significant geopolitical tension. The scope of work was comprehensive, covering everything from program management and equipment logistics to sustainment and even construction management for secure facilities.

Under CTRIC III, Parsons provided technical support across five distinct DTRA programs, including Chemical Weapons Destruction, Global Nuclear Security, and the Biological Threat Reduction Program. This breadth of experience has evidently paid dividends, positioning the company as a proven and versatile partner capable of handling the diverse challenges inherent in WMD threat reduction. The new award is a powerful endorsement of that past performance and a signal of DTRA's confidence in the company's ability to deliver on future missions.

An Evolving Global Threat Landscape

The necessity for a contract of CTRIC IV's scale is rooted in a complex and dynamic global security environment. According to the Department of Defense’s 2023 Strategy for Countering Weapons of Mass Destruction, the U.S. is focused on degrading the ability of adversaries to develop, acquire, or use WMDs, with a strong emphasis on working with allies and partners.

DTRA's own strategic planning documents identify China as the "pacing WMD threat," with Russia as a close second. The agency’s strategy for 2022-2027 explicitly outlines a campaign-based approach to address these challenges, aligning its resources against the most pressing threats. The fear, echoed in reports from think tanks like the Center for Strategic & International Studies (CSIS), is that sophisticated weaponry and materials could proliferate to a wider range of state and non-state actors.

The CTRIC IV contract is a direct implementation of this strategy. It provides the mechanism for DTRA to execute its "Deter. Prevent. Prevail." mandate by empowering partner nations. By strengthening their domestic capabilities to secure materials and monitor their borders, the U.S. aims to build a global network of resistance against proliferation. This cooperative approach is seen as more sustainable and effective than unilateral action, fostering long-term security partnerships while reducing the direct burden on U.S. forces.

Financial Implications and Market Position

Beyond the strategic importance, the CTRIC IV award has significant financial implications for Parsons and its investors. While an IDIQ contract does not guarantee revenue, securing a spot on a $3.5 billion, decade-long vehicle provides a robust platform for future growth and significantly strengthens the company's sales pipeline.

Parsons entered the final quarter of 2025 with considerable momentum. The company reported a total backlog of $8.8 billion in its Q3 report, the highest level since its IPO, with 72% of that backlog funded. While Q3 revenue saw a year-over-year decrease due to the conclusion of a large confidential contract, the company's underlying organic growth remained strong at 9%, driven by its Critical Infrastructure and National Security segments.

This contract win reinforces Parsons' status as a premier provider in the national security market. The company has a pipeline of approximately $10 billion in contracts awaiting award, and the CTRIC IV vehicle will be a key component in converting that pipeline into booked business. For investors, the award offers long-term revenue visibility and stability, mitigating the risks associated with the often-unpredictable nature of government contracting. It validates the company's strategic focus on being a "disruptive technology provider" in high-priority sectors, ensuring its expertise remains indispensable to critical government missions for the foreseeable future. The stability offered by such a long-term contract vehicle is a valuable asset in a defense market that is increasingly focused on next-generation technology and enduring global challenges.