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

The Federal Aviation Administration (FAA) has selected Peraton, a national security firm owned by Veritas Capital, to manage the United States’ ambitious $12.5-billion modernization of its aging air traffic control system. The decision follows congressional approval of the multi-billion-dollar upgrade in July, aimed at addressing decades of congestion issues, outdated technology, and rising flight delays. Peraton was chosen over competing bids from Parsons and IBM, becoming the single integrator responsible for delivering the project on time and without disruptions.

According to the FAA, the initiative will prioritize creating a new digital command center and shifting from obsolete copper infrastructure to modern fiber networks. FAA Administrator Bryan Bedford said the agency is taking “bold action” to make the U.S. air traffic system a global benchmark, while Peraton CEO Steve Schorer affirmed the company’s readiness to begin immediately. The contract is structured to reward performance and encourage efficient spending, as the agency works to resolve longstanding problems highlighted in recent reports, including outdated communications systems and deteriorating facilities.

Transportation Secretary Sean Duffy is seeking an additional $19–20 billion from Congress to further support air traffic control reforms. Industry leaders, including Airlines for America CEO Chris Sununu, have praised the modernization push, calling it long overdue. The overhaul is expected to be completed within three years, with the Transportation Department saying the upgrades will reduce outages, improve efficiency, strengthen safety, and support future growth of U.S. airspace.

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