FAA Selects Peraton to Lead $12.5 Billion Air Traffic Control Overhaul

Peraton will serve as the primary integrator for this expansive project, overseeing its design, development, and deployment. The FAA selected Peraton over a joint proposal from Parsons and IBM, citing the company’s extensive expertise in systems integration and mission-critical IT. Steve Schorer, CEO of Peraton, commented on the contract, stating, “Today, the US government has entrusted Peraton with a historic opportunity to fundamentally transform America’s air traffic control system.”

Peraton’s Background and Government Contracts

Founded in 2017, Peraton has quickly established itself as a leader in national security and technology solutions. The company employs over 18,000 individuals and generates annual revenues exceeding $7 billion. Headquartered in Reston, Virginia, Peraton specializes in cybersecurity, intelligence, defense, and space technologies, making it well-suited for the BNATCS project.

Peraton has secured several significant government contracts in recent years, including:

• US Navy: A $4 billion contract for the Consolidated Afloat Networks and Enterprise Services (CANES).
• Department of Homeland Security: A $2.7 billion contract for data center and cloud optimization.
• Department of Defense: Various classified contracts valued at $1.2 billion.
• US Central Command: A $1 billion task order for operational support services.
• Department of Defense: A $850 million contract for intelligence systems support.

For the BNATCS contract, Peraton will coordinate closely with subcontractors to ensure compliance with FAA standards while integrating cutting-edge technologies into a unified platform. The firm’s previous experience with the FAA in data communications and resilient facility designs strengthens its position for this extensive project.

Implementation Timeline and Financial Considerations

The FAA has set an ambitious timeline for the BNATCS implementation, targeting full operational capability by the end of 2028. The project is structured in phases, starting with design and prototyping in 2026, followed by testing and integration in 2027, and culminating in a nationwide rollout in 2028. Key milestones include awarding subcontracts by mid-2026 and initiating pilot programs at select facilities by late 2026.

To expedite the project, the FAA has obtained procurement exemptions, bypassing traditional bidding processes. While this compressed timeline presents potential risks for delays—a concern illustrated by past projects like NextGen—the FAA is prioritizing rapid modernization to alleviate ongoing disruptions in air travel.

Financially, Congress has allocated the initial $12.5 billion as a down payment, with total projected costs estimated between $20 billion and $30 billion over the project’s lifecycle. This funding will come from a combination of federal appropriations, user fees, and possible public-private partnerships. Despite the risk of cost overruns, the anticipated long-term savings from improved efficiencies and reduced operational delays are expected to yield a favorable return on investment within a decade.