DOT Taps Integrator to Lead ATC Overhaul

The wheels on the Department of Transportation’s (DOT) plan to overhaul the existing air traffic control (ATC) system into a brand-new, state-of-the art apparatus appear to be rapidly turning as officials have chosen a prime integrator to spearhead the project. 

On Friday, the DOT announced that Peraton, a Virginia-based national security and technology company, had landed a first-of-its-kind contract to oversee development and implementation of the upgrades across the Brand New Air Traffic Control System (BNATCS) project. Peratron was chosen in part due to its previous experience in leading major system integration projects, the FAA said. 

“We are thrilled to be working with Peraton because they share President [Donald] Trump’s drive to modernize our skies safely at record speed,” said U.S. Transportation Secretary Sean Duffy in a news release. “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 hardworking air traffic controllers—deserve.”

According to the FAA, Peraton will guide the ATC modernization effort by providing centralized leadership and supporting the agency as new technologies are deployed across the National Airspace System (NAS). The work is expected to begin immediately, with Peraton and the FAA establishing initial priorities that include transitioning copper wiring widely in place across the ATC system with fiber. 

The ambitious plan is expected to be completed by 2028 before the current administration leaves office. To expedite the process of choosing an integrator for the project, the DOT used a unique federal procurement contract that is structured to reward on-time deployment and efficient use of funds. There are also provisions that would penalize Peraton if it were to perform below par or lag behind on expected completion times. 

The current ATC system came under fire earlier this year, first in January when a military helicopter collided with a commercial jet over the Potomac River in Washington, D.C., then later in the summer when radar outages at Newark Liberty International Airport (KEWR) led to minute-and-a-half communications blackouts. 

During his tenure as transportation secretary, Duffy has repeatedly promised to completely revitalize the ATC system. Campaigning on behalf of the project began in the summer when Duffy urged congressional leaders to pass the One Big Beautiful Bill Act, which allocated $12.5 billion to modernization efforts. 

Even throughout the initial funding process Duffy made it clear that the $12.5 billion, which was appropriated as a down payment to the FAA, would not be enough, and additional funds would be required at a later date. FAA Administrator Bryan Bedford reiterated that sentiment during Friday’s announcement. 

“We are taking bold action to ensure our air traffic system is the envy of the world,” said Bedford. “The One Big Beautiful Bill gave us a strong $12.5 billion down payment to start this modernization effort. But to finish the job—and deliver the safer, more-efficient system travelers deserve—we’re going to need another $20 billion. This is a long-term investment in the future of air travel, and we’re committed to getting it right.”

Of the $12.5 billion allocated for the project, nearly $8 billion is explicitly dedicated to upgrading telecommunication and radar infrastructural systems, which will presumably be Peraton’s first priority. According to the FAA, flight-delay minutes caused by equipment issues are up 300 percent in 2025 from previous averages over the last 15 years. 

Peraton is used to earning government contracts of considerable scope and scale. In November, the company was awarded a near-$200 million contract to streamline technologies related to the Army Network Enterprise Technology Command (NETCOM). This comes on the heels of multiple awards in recent years across numerous government agencies—the Department of Homeland Security (DHS), the Centers for Disease Control and Prevention (CDC), and others—for similar technological integrations. 

“The FAA’s BNATCS initiative is not just about upgrading infrastructure. It’s ultimately about propelling America into the golden age of transportation,” said Peraton president Steve Schorer. “Peraton comes to the table with fresh thinking. Our scale, technical depth, and mission-first culture is well suited to support this transformational effort, and we are ready to stand with the FAA, and secretary Sean Duffy to rapidly deliver a safer, smarter air traffic system that meets the needs of today and anticipates tomorrow’s demands.”