DOT announces winner in air traffic control system overhaul.

The Department of Transportation has announced that Peraton, a technology and national security company based in Northern Virginia, will lead the Trump administrations high-profile, multibillion-dollar effort to create a completely new air traffic control system. Peraton secured the role after competing with a joint proposal from Parsons Corp. and IBM for the prime integrator contract.

Peratons involvement will be central to the administrations goal of completing the modernization by the end of 2028, according to Transportation Secretary Sean Duffy. The initiative gained urgency following a midair collision in January between a commercial aircraft and an Army helicopter near Ronald Reagan Washington National Airport. In March, Duffy emphasized the need to develop an entirely new system for air traffic management.

The overhaul plans to upgrade outdated technology and infrastructure across the national airspace. Congress approved an initial $12.5 billion investment over the summer for telecommunications improvements, radar replacements, and the consolidation of several large air traffic control centers. The administration is seeking an additional $20 billion to fully realize the project.

Duffy expressed enthusiasm about the partnership with Peraton, noting the companys alignment with the administrations goal of modernizing air traffic operations rapidly and safely. A DOT release highlighted that the contract is structured to reward efficiency and effective use of taxpayer funds, while penalizing delays or poor performance.

Progress has already been made, including converting one-third of the systems copper wiring to fiber, satellite, and wireless technology. Peraton will begin work immediately in collaboration with the FAA, focusing initially on the copper-to-fiber transition and establishing a new digital command center. Neither Peraton nor Parsons provided immediate comments on the announcement.

The FAA had initially aimed to select an integrator by the end of October, but the process experienced delays. Secretary Duffy and FAA chief Bryan Bedford are consulting with the president on next steps.

Peraton faces significant challenges in upgrading the complex network of technology and facilities that support national airspace, including navigating construction permitting and logistical hurdles. The project also follows the FAAs previous NextGen initiative, which sought to move from radar-based to satellite-based flight guidance but encountered delays and cost overruns.

Industry leaders welcomed the news. Chris Sununu, president of Airlines for America, praised the move, stating that outdated equipment such as floppy disks, copper wiring, and paper strips must be replaced with advanced 21st-century technology. He emphasized that consistent federal investment is critical to ensure a complete and well-staffed system overhaul.

Sources:

• DOT selects winner in overhaul of air traffic control system