The US Federal Aviation Administration (FAA) has appointed a relatively unknown contractor to spearhead a colossal, multi-billion dollar modernisation of the nation's ageing air traffic control network. The government has selected Peraton to oversee the $31.5 billion overhaul, despite the firm having little prior experience working directly with the aviation regulator.
A Bold Choice for an Ambitious Timeline
Transportation Secretary Sean Duffy announced the decision on Thursday evening, expressing hope that Peraton's innovative approach would enable the completion of critical upgrades within a remarkably tight three-year timeframe. This would see the project concluded before the end of President Donald Trump's current term. Peraton was chosen over Parsons Corp., a company with extensive existing FAA contract experience.
"Working together, we are going to build on the incredible progress we’ve already made and deliver a state-of-the-art air traffic control system that the American traveling public — and our hard-working air traffic controllers — deserve," Duffy stated.
The push for modernisation follows a series of alarming incidents. Earlier this year, Congress approved a $12.5 billion down payment for the project after technical failures twice disabled radar for controllers around Newark Liberty International Airport. The year also began with the worst US aviation disaster in years: a mid-air collision over Washington D.C. that killed 67 people. Duffy has indicated a further $20 billion will be needed to finish the job.
Why the Urgent Upgrade is Essential
The technical fragility of the current system, which in parts still relies on outdated copper wires and floppy disks, was starkly highlighted by the Newark disruptions. These failures caused hundreds of flight cancellations and delays. Furthermore, the FAA must prepare for a future with significantly more air traffic, including the proliferation of drones and the anticipated introduction of flying taxis.
This new effort represents a far more aggressive schedule than the previous NextGen modernisation programme, which began around the year 2000. NextGen failed to deliver all its promised benefits despite an investment of $36 billion. The Biden administration had previously estimated that a full system upgrade could take more than a decade.
Industry experts have reacted to the three-year goal. John Rose, chief risk adviser for travel management firm ALTOUR, called the timeline "extremely aggressive" but partially realistic. He suggested the FAA could build a foundational network within three years, with more advanced features added later, akin to updating a smartphone's operating system.
Peraton's Role and the Road Ahead
Secretary Duffy argued that placing a private company in charge would accelerate progress, citing Peraton's expertise in complex technical systems and artificial intelligence. Peraton itself has suggested its lack of an FAA history could be an advantage, preventing bias towards previously underperforming contractors.
The company is no stranger to large government tech projects, having worked on multibillion-dollar contracts for the Department of Homeland Security and the US Special Operations Command, among others. Owned by the private equity firm Veritas Capital, Peraton's board includes numerous former military and intelligence officials.
Stephen Creamer, President of the Air Traffic Control Association, noted that the FAA, after workforce reductions and early retirements, lacks the internal staff to manage such a huge project alone. He also expressed confidence that sufficient checks and balances exist to prevent substantial waste or fraud in the contracting process.
Some work is already underway. Duffy confirmed that over one-third of old copper wires have been replaced with fibre optics. However, a massive task remains: installing more than 27,600 new radios, 612 new radar systems, and building six new air traffic control centres.
