FAA accelerates ATC modernization with new procurement exemptions 

The Federal Aviation Administration (FAA) has moved to accelerate its air traffic control modernization program by exempting certain projects from standard acquisition rules and launching a search for vendors to design the next generation of traffic management systems. The changes are intended to speed the replacement of air traffic management technology that the agency has described as seriously out of date. 

A notice issued by FAA Administrator Bryan Bedford authorizes the use of special acquisition authorities for air traffic modernization projects. The directive allows program leaders to bypass traditional procurement rules and, in some cases, other FAA policies, to reduce delays and expand the pool of potential contractors.  

The exemption comes as the FAA seeks to replace its decades-old Traffic Flow Management System (TFMS), which collects and distributes data used to manage daily flight operations. Officials say TFMS has become increasingly difficult to maintain, prompting the agency to launch a competition for what it calls the Flow Management Data and Services (FMDS) program. According to FAA documents, FMDS is expected to provide a more scalable and reliable architecture that can integrate with emerging technologies while handling the growing demands of the ATC system. 

The FAA formally opened the competition in July with a “Request for Solutions,” asking industry teams to submit proposals outlining how they would build and manage the new platform. Interested companies were required to declare their intent to participate by late summer, with final submissions due on September 21. The agency is expected to award a contract by the end of October. 

According to Reuters, two groups are vying to serve as the lead systems integrator for the broader modernization effort: defense contractor Peraton and a joint team formed by Parsons and IBM. The winning bidder will oversee program management, subcontractor coordination, and integration of new hardware and software across multiple sites. The contract will be one of the largest technology procurements in FAA history. 

At the same time, the FAA has launched what it calls the TFM-AID Challenge, a design competition seeking new graphical user interfaces for traffic managers. The initiative, run through the National Institute of Aerospace, invites developers to create prototypes that improve usability and situational awareness under the FMDS framework. 

The procurement changes follow mounting pressure on the FAA to modernize its systems more quickly. In testimony before the House Transportation and Infrastructure Committee in March, agency officials reported that 51 of 138 air traffic systems currently in use are “unsustainable,” meaning they rely on obsolete components or vendors that no longer produce critical parts. Delays in upgrading those systems, lawmakers warned, could undermine the resilience of the national airspace. 

Industry groups have also called attention to the challenge. The National Business Aviation Association noted in July that the FAA accelerated its request timeline by several months, citing the urgent need to replace TFMS and asking for industry feedback on which acquisition rules should be waived. By using its special authorities, the FAA hopes to streamline that process and avoid the kind of delays that plagued previous modernization efforts. 

The contract award expected in October will mark the start of what is likely to be a multi-year transition. The FAA has not released detailed cost estimates, but the scale of the procurement suggests a multibillion-dollar program. Agency officials have said the intent is to build a modular, service-based architecture that can adapt to new requirements while reducing long-term maintenance burdens. 

As the modernization effort advances, the FAA faces several critical steps. It must ensure that new systems integrate seamlessly with legacy equipment, maintain continuous safety oversight, and manage the training and staffing required to operate the technology. The use of acquisition exemptions will shorten timelines, but it will also place added responsibility on program managers to demonstrate accountability. The post FAA accelerates ATC modernization with new procurement exemptions  appeared first on AeroTime.

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