The U.S. Department of Transportation (USDOT) and Federal Aviation Administration (FAA) have selected Peraton as the prime integrator for a major modernisation of the country’s air traffic control (ATC) system. The announcement was made by Transportation Secretary Sean P. Duffy and FAA Administrator Bryan Bedford, marking what is described as the most significant aviation infrastructure project in decades.
The initiative, supported by a $12.5 billion initial investment through President Trump’s “One Big Beautiful Bill”, aims to deliver a state-of-the-art ATC system by the end of 2028. The project is designed to enhance safety, reduce delays caused by ageing equipment and support future growth of the National Airspace System (NAS).
Secretary Duffy said: “We are thrilled to be working with Peraton because they share President Trump’s drive to modernise our skies safely at record speed. Working together, we are going to build on the incredible progress we’ve already made and deliver a system that the American travelling public — and our hard-working air traffic controllers — deserve.”
FAA Administrator Bedford added: “The One Big Beautiful Bill gave us a strong $12.5 billion down payment to start this modernisation effort. But to finish the job — and deliver the safer, more efficient system travellers deserve — we’re going to need another $20 billion.”
Peraton will oversee the integration of new technologies and infrastructure, including replacing copper networks with fibre, upgrading radar systems, and deploying next-generation voice switches and electronic flight strips. The contract includes performance incentives and penalties to ensure timely delivery and cost efficiency.
Airlines for America (A4A) welcomed the announcement, with President and CEO Christopher T. Sununu stating: “We applaud the Administration’s commitment to ensuring the United States remains the world leader in aviation safety. It is past time to eradicate antiquated floppy disks, copper wires and paper strips and replace them with smarter, more efficient 21st-century technology.”
The modernisation programme is expected to reduce outages, improve operational efficiency and strengthen resilience across the NAS. Next steps include transitioning remaining copper infrastructure to fibre and establishing a new digital command centre.
Additional Background:
To meet the ambitious goal of implementing a new system by the end of 2028, the Department of Transportation and Federal Aviation Administration used an innovative and first-of-its kind federal procurement contract to expedite selecting an integrator.
Why it’s necessary: The system is safe but the equipment is old. To maintain safety, flights are slowed when equipment failures occur. The FAA says it is experiencing significantly more equipment issues today than in the past. The new system will provide new and more reliable systems that will reduce equipment-related delays throughout the National Airspace System (NAS).
The Prime Integrator will: oversee this new approach to innovation, providing centralised leadership to ensure change happens in a coordinated, effective way. They will guide the modernisation effort, keep it on track, and support the FAA as new capabilities and technologies are deployed across the NAS.
The project includes: Replacing core infrastructure including telecommunications networks, radar, software and hardware to support modern air travel.
Next steps include: Peraton will begin work immediately, partnering with the FAA on initial priorities which include transitioning the system’s remaining copper infrastructure to modern fiber and establishing a new digital command centre. We will continue advancing other modernisation initiatives including buying new radar systems and development of next-generation facilities as outlined in the One Big Beautiful Bill.
For more information, view the fact sheet.
