FAA Awards $12.5B Contract to Peraton for New ATC System

UPDATE: In a groundbreaking initiative, the Federal Aviation Administration (FAA) has just awarded a colossal $12.5 billion contract to Peraton for the development of the new Brand New Air Traffic Control System (BNATCS). This ambitious project, announced on December 4, 2023, aims to replace the outdated air traffic control infrastructure that has long plagued U.S. aviation.

The FAA’s decision comes at a critical juncture, as air travel is rebounding post-pandemic. Projections indicate a staggering 80% increase in air traffic over the next two decades. The urgency for this modernization has never been clearer, especially following multiple air traffic outages earlier this year at Newark Liberty International Airport due to software issues.

The BNATCS initiative seeks to overhaul the fragmented, radar-based air traffic control system, which has roots dating back to the 1960s. By introducing a satellite-based surveillance system, BNATCS will enable real-time aircraft tracking across vast areas, including oceans and remote regions.

Key features of the new system include:

  • A unified Terminal Automation System for over 500 facilities, enhancing communication and operations.
  • Advanced software frameworks using machine learning to optimize traffic flow, potentially cutting delays by up to 30%.
  • Robust security measures to prevent hacks and ensure continuity during outages.
  • Predictive safety features aimed at eliminating mid-air collisions.
  • Modular architecture for future upgrades and innovations.

Peraton, a Virginia-based national security company owned by Veritas Capital, will serve as the single integrator for this massive project. CEO Steve Schorer expressed gratitude for the opportunity, emphasizing the responsibility to modernize the U.S. air traffic control system for enhanced safety and efficiency.

Founded in 2017, Peraton has quickly established itself as a leader in national security and technology solutions, boasting over 18,000 employees and annual revenues exceeding $7 billion. This contract marks a significant milestone for the company, further establishing its role in supporting vital government initiatives.

The FAA aims to have BNATCS operational by the end of 2028, with a timeline structured into phases. Initial design and prototyping will begin in 2026, followed by testing and integration in 2027. Key milestones include awarding subcontracts by mid-2026 and pilot programs launching at select facilities by late 2026.

While the initial $12.5 billion is a “down payment,” total costs could reach between $20 billion and $30 billion over the project’s lifecycle, considering maintenance and upgrades. This funding will be sourced from federal appropriations, user fees, and potential public-private partnerships.

As the FAA embarks on this historic modernization, the impact on air travel efficiency and safety could be monumental. The urgency for reform in air traffic management is clear, and with the BNATCS project, the FAA is poised to significantly enhance the future of aviation in the United States.