The Federal Aviation Administration (FAA) has selected Peraton to lead a sweeping modernization of the nation’s aging air traffic control (ATC) infrastructure—an overhaul the agency is calling its “Brand New Air Traffic Control System.”
Transportation Secretary Sean Duffy and FAA Administrator Bryan Bedford announced the award on Dec. 4, marking what the agency described as a critical first step toward rebuilding the backbone of the National Airspace System.
The project begins with $12.5 billion in federal funding from this year’s “One Big Beautiful Bill,” enabling Peraton and the FAA to start replacing decades-old systems, including telecommunications networks, radar equipment, software platforms and the physical facilities air traffic controllers rely on.
Reston, VA-based Peraton, which has rapidly grown through acquisitions into a major federal integrator, was selected for its experience managing complex, large-scale technology programs across national security, cyber and IT sectors. The FAA said it needed a single systems integrator with the size, engineering capabilities and program management expertise to coordinate a modernization effort of this magnitude.
Bedford said the goal is to make the U.S. ATC system “the envy of the world.” But additional funding will be required—Duffy has indicated he will seek another $19–$20 billion from Congress to complete the initiative.
Under the new program, Peraton will immediately begin upgrading the foundational elements of the system, including replacing the remaining copper-wire network with fiber, developing a digital command center for network operations, acquiring new radar systems and designing next-generation facilities to support the updated architecture.
The need for modernization has been well documented. Government reports in recent years detailed FAA facilities with leaking roofs, outdated heating and cooling systems and radar technology nearing end-of-life. A 2023 review found 51 of the agency’s 138 telecom systems were unsustainable, and spare parts for many legacy components were no longer available.
To ensure accountability, Peraton’s compensation will be tied to performance benchmarks, with penalties for delays or missed milestones—an effort to avoid the cost overruns and long delays that plagued the FAA’s previous “NextGen” modernization push.
Industry leaders welcomed the move. Airlines for America CEO Chris Sununu said the U.S. must finally “eradicate antiquated floppy disks, copper wires and paper strips” and replace them with smarter, more efficient equipment.
According to the Transportation Department, the modernization effort is expected to be completed within three years, delivering a more reliable, efficient, and scalable air traffic system capable of supporting the future growth of U.S. aviation.
