Parsons Corporation announced a $91 million contract extension in February 2026 — the seventh option year on the State Department's Overseas Security Installation Services II (OSIS II) workstream. Total value of the 10-year OSIS II contract: ~$1.12 billion. Coverage from Parsons and GovCon Wire.
What's in scope
Parsons supports security at 265+ U.S. diplomatic facilities worldwide — embassies, consulates, and related sites. Specific services:
- Technical security installation
- Operations support
- Access control systems
- Counter-Unmanned Aircraft Systems (CUAS)
- Biometric security technologies
- Integrated security solutions
The DiPSS II opportunity coming
Separately, the State Department released a sources-sought notice for a follow-on to the Diplomatic Platform Support Services (DiPSS) IDIQ. Industry input is being collected to gauge interest and acquisition approaches for a planned DiPSS II multiple-award contract. Firms providing diplomatic-security or facility-services capabilities should engage with the sources-sought process.
What this signals
- State Department's diplomatic-security spending continues despite federal hiring freezes
- CUAS at U.S. embassies is a growth area as drone threats proliferate
- Biometric security technologies are becoming standard at diplomatic sites — adjacent firms should prepare for DiPSS II competition
What to do
- Submit responses to the DiPSS II sources-sought notice if you have relevant capabilities
- Pursue Parsons subcontract relationships on OSIS II for specialty installation work
- For CUAS and biometrics specialists: State Department is a real growth market