FAA selects Peraton to lead nationwide overhaul of US ATC system 

The FAA has named Peraton as the prime integrator for a sweeping, multi-year effort to replace the United States’ aging air traffic control infrastructure. Transportation Secretary Sean Duffy and FAA Administrator Bryan Bedford announced the award on December 4, 2025, calling it the central step in building what the agency now bills as the “Brand New Air Traffic Control System.” 

The project begins with a $12.5 billion federal investment provided earlier this year under the so-called “One Big Beautiful Bill.” The FAA said the initial funding allows the agency and Peraton to start replacing key elements of the National Airspace System architecture, including telecommunications networks, radar systems, software, and the physical facilities that support controllers around the US. 

Peraton, based in Reston, Virginia, has become a major government contractor through a series of acquisitions and expansions over the past decade. The company now operates across national security, cyber, defense, and federal IT sectors, with experience coordinating large, complex technology programs. That background aligned with what the FAA sought in its use of a single integrator for modernization on this scale. 

“We are thrilled to be working with Peraton because they share President Trump’s drive to modernize our skies safely at record speed,” Secretary Duffy said in the announcement.   FAA Administrator Bedford added that the agency aims to make the US ATC system “the envy of the world,” but he stressed the need for more resources. “The One Big Beautiful Bill gave us a strong $12.5 billion down payment to start this modernization effort. But to finish the job — and deliver the safer, more efficient system travelers deserve — we’re going to need another $20 billion.” 

Peraton’s work will begin immediately. The FAA says early priorities include transitioning the remaining copper-wire backbone of the air traffic system to modern fiber and establishing a new digital command center to manage operations across the network. The agency also plans to continue buying new radar systems and advancing the design of next-generation facilities that will support the new architecture. 

The FAA points to early progress as evidence that the program is gaining momentum. Technicians have already converted one-third of the country’s 5,170 copper connections to fiber, satellite, or wireless technology. The agency has deployed 148 new radios across facilities nationwide, expanded surface-awareness systems to 44 airports, and introduced electronic flight strips at 13 towers. 

By naming a single integrator, the FAA aims to coordinate modernization more tightly than in past efforts. Peraton will guide engineering, acquisition, testing, and rollout of new capabilities, while the FAA oversees progress through a committee of senior DOT and FAA officials. The contract ties Peraton’s profit directly to performance benchmarks and includes penalties for delays or underperformance. The FAA expects that structure to keep the program on schedule and aligned with the agency’s broader modernization goals. 

Industry groups quickly backed the decision. Airlines for America welcomed the move and said it “looks forward to working with the Trump Administration, Congress and Peraton to make long-overdue upgrades to our nation’s ATC technologies.” The group called the $12.5 billion allocation a “vital down payment” and urged sustained federal investment to complete the transition and prepare the system for future demands. The Aircraft Owners and Pilots Association also voiced support and said it “stands ready to support these efforts any way we can.” 

The FAA argues the overhaul is essential as the current system faces increasing equipment failures that force controllers to slow traffic to maintain safety. The new architecture will replace outdated components and create a more reliable, resilient platform for airlines, cargo operators, business aviation, and emerging entrants such as drones and advanced air mobility vehicles. 

Peraton’s selection puts a relatively young but rapidly consolidated federal contractor at the center of a multibillion-dollar national infrastructure program. The company was formed in 2017 when private equity firm Veritas Capital purchased Harris Corporation’s government services business, then expanded through major acquisitions including Northrop Grumman’s IT services unit in 2021 and Perspecta Inc. later that same year. Those deals transformed Peraton into one of the largest federal systems integrators, giving it the scale and engineering depth the FAA sought for the program.   The agency expects the new air traffic control system to enter service by the end of 2028, an ambitious schedule that depends on sustained funding and steady progress on early milestones. The FAA says work begins immediately, with Peraton leading integration efforts as Washington prepares additional funding requests to keep the modernization effort on track. The post FAA selects Peraton to lead nationwide overhaul of US ATC system  appeared first on AeroTime.

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