FAA Awards ATC Upgrade Integration Contract to Peraton

Taking the next key step forward on creating a “brand new” air traffic control system, the U.S. Department of Transportation (DOT) and the FAA selected Peraton as the prime integrator in the ambitious modernization project. Announced on Thursday, the selection of the integrator comes a little more than three months after the FAA issued a request for solutions for a prime integrator.

The prime integrator will oversee a new approach to modernization, providing central management, coordinating projects, and keeping them on track. Projects include replacing core infrastructure, including telecommunications networks, radar, software, and hardware. Peraton’s work begins immediately, focusing on the continued transition of copper infrastructure and establishing a new digital command center.

Peraton—which was spun out from the Harris Corporation in 2017 and has been involved in a range of space, defense, cyber, intelligence, communications, and other missions—immediately has $12.5 billion to tap into for the project, provided to the effort in the One Big Beautiful Bill.

Transportation Secretary Sean Duffy noted that Peraton shares the “drive to modernize our skies safely at record speed…Working together, we are going to build on the incredible progress we’ve already made and deliver a state-of-the-art air traffic control system that the American traveling public—and our hard-working air traffic controllers—deserve.”

FAA Administrator Bryan Bedford called the $12.5 billion a “strong down payment.” However, he added, “To finish the job—and deliver the safer, more efficient system travelers deserve—we’re going to need another $20 billion. This is a long-term investment in the future of air travel, and we’re committed to getting it right.”

Peraton brings expertise in integrating complex tech platforms and collaboration with federal government agencies, according to the FAA. It received a “first-of-its-kind” contract that is structured to reward good performance and incentivize smart usage of the taxpayer dollar, the agency added. Further, the contract calls for penalties for delays or poor performance.

The administration aims to overhaul the system in three years. This year, the agency has hit several milestones, including the conversion of one-third of the copper infrastructure to fiber, satellite, and wireless; deployment of 148 radios at facilities nationwide; installation of the first next-generation voice switch at Allegheny Tower; deployment of surface awareness systems to 44 towers; and deployment of electronic flight strips to 13 towers.

Industry groups praised the selection of the integrator, keeping modernization on the front burner.

“The business aviation community applauds DOT Secretary Sean Duffy and FAA Administrator Bryan Bedford for taking this critical step toward building a safer and more efficient ATC system—a national imperative we fully support,” said NBAA president and CEO Ed Bolen.

“This air traffic control modernization effort is long overdue, and I applaud DOT Secretary Sean Duffy and FAA Administrator Bryan Bedford for their leadership,” said AOPA president and CEO Darren Pleasance. “While the bulk of the work still lies ahead, I am confident that Peraton will deliver an integrated system that uses modern technology to make our airspace more efficient, resilient, and reliable. AOPA stands ready to support these efforts any way we can.”