DOT, FAA pick Peraton for air traffic control system overhaul

The U.S. DOT and FAA have selected Peraton as the prime integrator for the $32.5 billion revamping the country’s air traffic control system, which they aim to complete by the end of 2028. The technology and national security company based in Reston, Va., will oversee the air traffic control (ATC) system overhaul, coordinating with contractors and the U.S. government to keep the project on track, according to a release from the DOT and FAA this month. [caption id="attachment_57148859" align="aligncenter" width="1920"] The air traffic control tower at Ronald Reagan Washington National Airport (DCA) in Arlington, Va. (Courtesy/Tierney L. Cross/Bloomberg)[/caption] Peraton declined to disclose to Cargo Facts how much it is being paid to be prime integrator, and the FAA did not respond to a request for comment. The United States’ ATC system is outdated, leading to equipment issues that cause delays at airports. The FAA is also trying to alleviate air traffic controller shortages with hiring and training initiatives . The issue gained nationwide attention in April and May when ATC experienced multiple communications outages, some lasting as long as ninety seconds, at its Philadelphia facility that oversees Newark Liberty Airport (EWR). The FAA responded by implementing flight caps at EWR and laying new fiber optic cable to improve ATC communications there. ATC equipment issues have tripled flight-delay minutes in 2025 compared with the average from 2010 to 2024, DOT said in a Dec. 4 fact sheet. System overhaul The ATC system overhaul aims to reduce outages, improve efficiency, increase safety and support growth of the U.S. national airspace, according to the release. The project consists of five main categories: Communications; Surveillance; Automation; Facilities; and Alaska. The overhaul was allotted $12.5 billion in the One Big Beautiful Bill , which President Donald Trump signed into law July 4. The project will require an additional $20 billion to be completed, FAA Administrator Bryan Bedford said in the release. Project upgrades include: Providing new high-speed network connections and radios; Replacing surface radar at forty-four airports and integrating surface awareness surveillance technology at 200 airports; Providing new terminal flight data manager tools at eighty-nine airports; Providing new information display systems at 435 ATC towers and tower simulation systems at 113 ATC towers; Adding 110 weather stations and sixty-four weather camera sites in Alaska; Implementing a consolidated terminal radar approach control; and Building a consolidated air route traffic control center, the nation’s first new one since the 1960s. The FAA has already completed some of the overhaul work, including converting one-third of ATC’s copper infrastructure to modern fiber, satellite and wireless. The National Air Traffic Controllers Association, the controllers’ union, told Cargo Facts it will “continue to be a productive and collaborative partner throughout development, testing, training and implementation of this new system.” Peraton’s contract The contract will reward Peraton for good performance, such as staying on schedule and controlling costs, and penalize the company for unnecessary delays and poor performance, according to the release. An executive steering committee comprising senior DOT and FAA officials will evaluate Peraton’s performance throughout the project. “We are focused on immediately ramping up work on the contract and getting started,” Peraton told Cargo Facts . Cargo Facts LATAM 2026, the essential event for stakeholders in Latin America, will take place Feb. 10-12 at the Marquis Reforma in Mexico City. Learn more and register by Dec. 26 to take advantage of early-bird pricing. Cargo Facts Asia 2026, the indispensable event for Asia-Pacific stakeholders, will take place March 23-25 at the W Shanghai. Learn more and register by Feb. 6 to take advantage of early-bird pricing. The inaugural Cargo Facts Routes and Airport Conference will take place April 27-28 at the Marriott Al Forsan Abu Dhabi. Learn more and register by March 13 to take advantage of early-bird pricing. Cargo Facts EMEA 2026, the key industry event for stakeholders in the EMEA region, will take place April 28-30 at the Marriott Al Forsan Abu Dhabi. Learn more and register by March 13 to take advantage of early-bird pricing.

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