Defense & Military
Peraton Secures Role in $980M US Air Force Automatic Test Systems Contract
Peraton wins a key position in the $980 million Air Force ATSA-I contract to support advanced automatic test systems for military aircraft readiness.
The recent award of a slot to Peraton in the U.S. Air Force’s $980 million Automatic Test Systems Acquisition-I (ATSA-I) contract marks a significant development in the defense technology sector. This ten-year, multiple-award contract, set to run from September 2025 through September 2035, enlists 33 companies to provide vital automatic testing systems for military aircraft and weapons platforms worldwide. The ATSA-I contract is designed to ensure the operational readiness of a broad range of Air Force assets, from fighter jets and bombers to unmanned aerial vehicles and helicopters, by supporting the full spectrum of electronic system diagnostics and maintenance.
For Peraton, a Reston, Virginia-based national security and technology company, this contract win reinforces its position as a trusted government partner and expands its presence in a market projected to see robust growth over the next decade. The contract’s reach extends beyond the Air Force to include the Air Force Reserve, Air National Guard, the F-35 Joint Strike Fighter program, and foreign military sales, highlighting its comprehensive and strategic importance. This article examines Peraton’s corporate background, the structure and significance of the ATSA-I contract, technical and market context, and the broader implications for defense readiness and technology innovation.
Peraton was established in 2017, following the acquisition of Harris Corporation’s government IT services division by private equity firm Veritas Capital. Since then, Peraton has rapidly expanded through a series of major acquisitions, including Northrop Grumman’s IT and mission support services and Perspecta Inc. These moves transformed Peraton from a relatively modest operation into a multi-billion-dollar government technology powerhouse, with an extensive national footprint and a workforce that, at its peak, exceeded 24,000 employees.
By 2021, Peraton’s annual revenues had grown from approximately $1 billion to between $7.0 and $7.2 billion, establishing it as a formidable competitor to industry leaders such as Leidos in the federal IT and defense contracting space. The company’s portfolio spans space, intelligence, cyber, defense, homeland security, and health, with Peraton Labs serving as its applied research arm. Strategic consolidation has enabled Peraton to streamline operations and focus on high-value, enterprise-level contracts, including major Department of Defense and Intelligence Community programs.
The ATSA-I contract is a natural extension of Peraton’s expertise in defense technology and engineering. Company leadership has emphasized the contract’s role in supporting proactive mission readiness, ensuring that U.S. military aircraft remain in optimal condition for operational deployment. This aligns with Peraton’s broader mission to deliver trusted, innovative solutions for critical government operations across multiple domains.
The ATSA-I contract is structured as a multiple-award indefinite delivery/indefinite quantity (IDIQ) vehicle, enabling the Air Force to rapidly procure both commercial and non-commercial testing products and services from a competitive pool of 33 selected vendors. The contract spans ten years, divided into two five-year phases, each with a base period and annual ordering periods. The Air Force Life Cycle Management Center (AFLCMC) at Warner Robins Air Logistics Complex in Georgia manages the contract, ensuring standardized processes and oversight across all participating companies.
The scope of ATSA-I covers testing for an extensive range of military aircraft and weapon systems, reflecting the Air Force’s need for robust, standardized diagnostic capabilities. The ATS Division within the AFLCMC is responsible for acquiring, modifying, and maintaining over 200 test systems and subsystems, supporting integrated weapon systems valued at $3.5 billion. The contract also accommodates foreign military sales, reinforcing U.S. defense partnerships and promoting interoperability with allied nations.
Competition for ATSA-I was intense, with 38 bidders vying for 33 contract slots. The awardees include both established defense giants and specialized technology firms, ensuring a mix of technical expertise and capacity. This diversity is intended to foster innovation, cost efficiency, and responsiveness to evolving Air Force requirements. “This contract goes beyond reliable test equipment and represents proactive mission readiness, ensuring America’s military aircraft are in mission-ready condition so that our servicemen and women can fly, fight, and win wherever they’re called.”, Tarik Reyes, Peraton Defense Mission and Health Solutions
Automatic Test Systems (ATS) are complex, integrated solutions comprised of three core elements: diagnostic software, hardware interfaces, and controlled testing environments. The software component executes diagnostic routines to verify the functionality of electronic components and systems, providing real-time feedback and identifying faults before they impact mission readiness. Hardware interfaces connect the test system to the aircraft or weapon system, ensuring reliable communication and measurement accuracy even in challenging operational environments.
The controlled test environment standardizes procedures and mitigates variables such as electromagnetic interference or temperature fluctuations, ensuring consistency and reliability across different platforms and locations. The ATS Division’s portfolio supports field operations worldwide, enabling rapid identification and resolution of technical issues to maintain high readiness rates.
Recent advances in ATS technology include the integration of artificial intelligence and machine learning for enhanced diagnostics and predictive maintenance. These capabilities allow for real-time monitoring, early fault detection, and data-driven maintenance scheduling, reducing unplanned downtime and extending equipment lifecycles. The adoption of IoT sensors and modular, portable test equipment further enhances flexibility and operational efficiency, particularly in deployed or austere environments.
The global automated test equipment market is projected to reach $11.54 billion by 2034, up from $7.29 billion in 2024, reflecting a compound annual growth rate of 4.7%. While the Asia Pacific region dominates in revenue share, North America is the fastest-growing segment, driven by increased defense and aerospace investment. The aviation test equipment market, specifically, is expected to expand to $15.19 billion by 2031, fueled by increased aircraft production, modernization of aging fleets, and the introduction of next-generation systems.
Key drivers include the rising complexity of electronic systems, stringent reliability requirements, and the adoption of advanced technologies such as AI and IoT. These trends are reshaping the competitive landscape, favoring companies capable of delivering innovative, scalable solutions. However, the market also faces challenges, including high initial setup costs, ongoing maintenance demands, and the need to address equipment obsolescence and integration with new aircraft technologies.
The defense and military sector remains the largest end-user, underscoring the strategic importance of ATS in maintaining mission readiness and operational effectiveness. The ATSA-I contract, by providing a stable and predictable procurement framework, enables ongoing investment in R&D and supports the continuous evolution of testing capabilities in response to emerging threats and technological advances.
“The integration of artificial intelligence and machine learning into automated test systems is revolutionizing diagnostics, enabling predictive maintenance and reducing operational costs across the defense sector.”, Industry Analysis, 2024
The ATSA-I contract is a cornerstone of the Air Force’s efforts to enhance readiness and reduce costs through enterprise-level, cross-cutting solutions. The establishment of the Combat Readiness Directorate within the AFLCMC reflects a strategic shift from platform-specific support to holistic, fleet-wide approaches. This directorate oversees five divisions, including the ATS division, and is tasked with identifying opportunities for increased efficiency and effectiveness across all weapon systems.
The contract’s support for foreign military sales and the F-35 Joint Strike Fighter program highlights its role in strengthening U.S. alliances and promoting interoperability. Standardized testing procedures and equipment facilitate joint operations and technology transfer among allied nations, supporting broader defense and diplomatic objectives. Technological innovation is central to the contract’s strategic value. The adoption of predictive maintenance, advanced diagnostics, and modular equipment designs positions the Air Force to respond rapidly to evolving operational requirements. The establishment of new test forces, such as the F-35 Lightning II Combined Test Force, further expands capabilities and underscores the importance of advanced testing infrastructure in maintaining air superiority.
With a total value of $980 million, the ATSA-I contract represents a substantial investment in U.S. air power and provides significant business opportunities for participating contractors. For Peraton, the contract supports continued growth following recent government contract wins and positions the company for further expansion in the defense technology sector.
Peraton’s financial trajectory has been marked by rapid growth, with annual revenues surpassing $8 billion and a reported backlog of $24.4 billion as of mid-2022. The ATSA-I contract adds to this momentum, offering predictable revenue streams and supporting ongoing investment in advanced capabilities.
The broader automated test equipment market is expected to see sustained growth, particularly in defense and aerospace applications. The contract’s structure, with multiple phases and ordering periods, provides flexibility for the Air Force while encouraging innovation and cost optimization among vendors. The economic benefits extend beyond direct contract value to include improved operational efficiency, reduced maintenance costs, and enhanced readiness across the Air Force fleet.
The ATSA-I contract is situated within a dynamic global defense technology environment, characterized by rapid advancements in aircraft systems and increasing demand for sophisticated testing solutions. Countries such as the United States, United Kingdom, European Union members, Japan, and South Korea are leading the development and adoption of advanced aviation test equipment, reflecting their substantial investments in military and civilian aviation.
International cooperation and standardization are critical for ensuring interoperability and maintaining competitive advantages. The inclusion of foreign military sales in ATSA-I supports allied modernization efforts and creates additional market opportunities for U.S. contractors.
Emerging technologies, including AI, quantum computing, and advanced materials, present both opportunities and challenges for defense technology providers. Companies that can successfully integrate these innovations into practical testing solutions will be well-positioned to support next-generation military capabilities and maintain technological superiority in an increasingly complex security environment.
The award of an ATSA-I contract slot to Peraton represents a pivotal step in the company’s evolution as a leading defense technology provider and addresses critical Air Force requirements for advanced automatic test systems. This $980 million contract establishes a robust framework for supporting U.S. air power across all major platforms, fostering technological innovation and operational readiness over the next decade. For the Air Force and its partners, the ATSA-I contract is more than a procurement vehicle, it is a strategic investment in the future of air superiority, readiness, and international cooperation. As aircraft and weapon systems continue to evolve, the capabilities developed and delivered under this contract will be central to maintaining operational effectiveness and meeting the challenges of a rapidly changing global security landscape.
What is the ATSA-I contract? What role does Peraton play in the ATSA-I contract? Why are automatic test systems important for the Air Force? How does the ATSA-I contract support international defense cooperation? What technological trends are shaping the future of automatic test systems?
Peraton Secures Strategic Position in $980 Million Air Force Automatic Test Systems Contract
Background and Corporate Context of Peraton
Comprehensive Analysis of the ATSA-I Contract Structure
Technical Specifications and Automatic Test Systems Components
Market Dynamics and Industry Context
Strategic Significance for Defense Readiness
Financial and Economic Implications
Global Defense Technology Landscape
Conclusion
FAQ
The Automatic Test Systems Acquisition-I (ATSA-I) contract is a $980 million, ten-year multiple-award contract awarded by the U.S. Air Force to 33 companies. It supports the acquisition and maintenance of automatic test systems for military aircraft and weapon systems.
Peraton is one of the 33 companies awarded a slot on the ATSA-I contract, providing technical expertise and solutions for automated testing and diagnostics to support Air Force readiness and operational effectiveness.
Automatic test systems ensure that electronic components and systems on military aircraft function correctly, enabling rapid diagnostics, predictive maintenance, and reduced downtime, all of which are critical for maintaining mission readiness.
The contract includes provisions for foreign military sales, allowing allied nations to procure standardized testing equipment and procedures, thereby promoting interoperability and strengthening defense partnerships.
Key trends include the integration of artificial intelligence, machine learning, IoT sensors, modular equipment design, and software-defined testing platforms, all aimed at enhancing diagnostic accuracy, flexibility, and predictive maintenance capabilities.
Sources
Photo Credit: Peraton
Defense & Military
Babcock France Wins L-39 Jet Contract to Support French Test Pilot School
Babcock France secures contract for 11 L-39 jets to support French test pilot training at EPNER and DGA EV in Dijon, enhancing defense training capacity.
This article is based on an official press release from Babcock International.
Babcock France has officially strengthened its partnership with the French Ministry of Armed Forces through a new contract to support the École du Personnel Navigant d’Essais et de Réception (EPNER), the French test pilot school. According to a company press release, the agreement involves the deployment of a fleet of L-39 Albatros jet trainers to assist the Direction Générale de l’Armement, Essais en Vol (DGA EV).
The contract marks a significant expansion of Babcock’s operational footprint in the French defense sector. While the company has previously secured major contracts for basic and advanced turboprop training, this agreement represents its first operation of the L-39 jet platform for the French government. The operations will be centered at a facility in Dijon, utilizing a fleet of 11 Military-Aircraft acquired specifically for this purpose.
Under the terms of the new deal, Babcock will provide a comprehensive service that includes the provision and maintenance of the aircraft. The primary mission of the L-39 fleet is to support the training of test pilots, flight test engineers, and flight test technicians. These trainees will utilize the jets to assess flight characteristics and performance in complex, realistic scenarios.
Beyond standard test pilot curriculum support, the press release highlights several other critical roles for the fleet:
Pierre Basquin, CEO of Babcock France, emphasized the strategic nature of the agreement in a statement accompanying the announcement:
“The partnership reflects Babcock’s commitment to supporting the French armed forces in its critical missions by providing high-performance aerial assets tailored to the demands of training and testing. The contract is the first involving our L-39 aircraft and paves the way for further opportunities, particularly in operational Training and the training of international pilots.”
Pierre Basquin, CEO of Babcock France
The 11 L-39C Albatros aircraft utilized in this contract carry a unique pedigree. According to background information regarding the acquisition, Babcock purchased these jets in December 2024 from Apache Aviation. Prior to their military service role, these specific airframes were operated by the Breitling Jet Team, the world’s largest civilian aerobatic display team.
The L-39 Albatros is a Czech-made high-performance jet trainer known for its reliability and cost-effectiveness. It serves as a bridge between turboprop trainers and high-performance frontline fighters like the Rafale, offering a jet environment at a lower operating cost than supersonic platforms. This latest contract solidifies Babcock’s position as a dominant partner in the modernization of French military pilot training. The L-39 deal complements a series of major wins for the company in recent years, creating a near-monopoly on outsourced pilot training platforms in France.
Babcock’s portfolio in the region now includes:
By securing the EPNER contract, Babcock has effectively closed the loop, providing platforms for basic training, advanced turboprop training, and now jet-based test pilot and aggressor support. This aligns with the broader “Project MENTOR” initiative by the French Air and Space Force, which seeks to modernize training pipelines and reduce costs by outsourcing platform availability while retaining military instruction.
What is EPNER?
EPNER (École du Personnel Navigant d’Essais et de Réception) is the French test pilot school responsible for training test pilots, flight test engineers, and technicians for the French military and DGA.
Where will the aircraft be based?
The operations will be based at a former military site in Dijon, France.
What is “Red Air”?
“Red Air” refers to adversary support, where aircraft act as enemy targets during training exercises to help friendly forces practice air-to-air combat tactics.
Babcock France Secures L-39 Jet Contract to Support French Test Pilot School
Operational Scope and Capabilities
Fleet History and Specifications
AirPro News Analysis: Consolidating French Training
Frequently Asked Questions
Sources
Photo Credit: Babcock
Defense & Military
Australia Signs A$1 Billion Contract for Boeing Ghost Bat Drones
Australia will acquire six Block 2 MQ-28A Ghost Bat drones from Boeing under a A$1 billion contract, marking a shift to operational combat drones.
This article summarizes reporting by Reuters, and publicly available elements/data from related industry releases.
The Australian government is poised to execute a historic advancement in its sovereign air defense capabilities. According to reporting by Reuters, Australia will sign a contract valued at approximately A$1 billion (US$663 million) with Boeing Defence Australia to acquire an initial fleet of six Block 2 MQ-28A Ghost Bat drones. This agreement signals a major transition for the program, moving the platform from a developmental prototype into an “operational test asset” capable of combat scenarios.
The deal, expected to be formally announced on Tuesday, December 9, represents a significant deepening of the relationship between the Royal Australian Air Force (RAAF) and Boeing. As the first military combat aircraft designed and manufactured in Australia in over 50 years, the Ghost Bat serves as the centerpiece of the nation’s strategy to develop autonomous systems that can operate alongside crewed assets.
While previous iterations of the MQ-28A focused on proving flight physics and basic airworthiness, the new contract specifically targets the “Block 2” variant. Reports indicate that these airframes are not merely experimental; they are designed to be operationally relevant. The investment is part of a broader A$10 billion commitment by the Australian government to develop drone and autonomous systems over the next decade.
According to details emerging alongside the Reuters report, the production of these aircraft will take place at a new facility in Toowoomba, Queensland, with component manufacturing supported in Melbourne. This distributed manufacturing approach underscores the government’s intent to solidify a domestic defense supply chain.
In a statement highlighted by industry media, Australian Minister for Defence Industry Pat Conroy emphasized the program’s progress:
This platform is hitting every major milestone… it is the cutting edge of air power.
Pat Conroy, Australian Minister for Defence Industry
The transition to Block 2 involves substantial technical upgrades designed to make the Ghost Bat survivable in modern high-threat environments. Unlike the Block 1 “developmental test asset,” the Block 2 is engineered as an “operational test asset.” Based on available technical specifications, the Block 2 variant includes several critical enhancements:
The “Loyal Wingman” concept relies on these drones acting as force multipliers. They are designed to fly in formation with high-value crewed aircraft, such as the F-35A Lightning II or the E-7A Wedgetail, effectively extending the sensor range and defensive perimeter of the human pilots.
The Ghost Bat is designed to act as a force multiplier, providing the Royal Australian Air Force with affordable mass and flexibility…
Boeing Australia Spokesperson
The confirmation of the Block 2 contract validates a shift in global air power doctrine toward “affordable mass.” Modern crewed fighters are prohibitively expensive and slow to manufacture. By procuring the Ghost Bat at roughly 10% of the cost of a manned fighter, the RAAF can deploy greater numbers of sensors and effectors without the linear cost increase associated with traditional jets.
Furthermore, the specific mention of navigation systems for “denied environments” suggests that the RAAF is preparing for conflicts where electromagnetic dominance is contested. This capability is essential for the Ghost Bat to serve as a forward-deployed sensor node, operating inside threat rings that would be too dangerous for crewed assets like the E-7A Wedgetail.
While the Ghost Bat is an Australian program, its development is being closely monitored by the United States. The U.S. Department of Defense is utilizing the Ghost Bat technology as a feeder for its own Collaborative Combat Aircraft (CCA) program. The U.S. Navy has also expressed strong interest in the platform’s autonomy architecture and modular payload design.
This bi-national interest suggests that the A$1 billion investment may eventually yield export opportunities, positioning Australia as a key exporter of advanced autonomous military technology. The RAAF aims to have these drones operationally deployable within the next few years, with potential armed variants to follow the initial ISR-focused models.
Australia Set to Finalize A$1 Billion Contract for Operational “Ghost Bat” Fleet
From Prototype to “War-Fighting” Platform
Technical Evolution: The Block 2 Advantage
AirPro News Analysis: The Strategic Value of “Affordable Mass”
Global Implications and US Interest
Sources
Photo Credit: GPCAPT – Darren Clare
Defense & Military
Congress Mandates Military Helicopter Tracking Near DC After Fatal Crash
Congress requires U.S. military helicopters to use ADS-B near Reagan Washington National Airport following a deadly 2025 collision.
This article summarizes reporting by Reuters.
Following a year marked by tragedy and alarming safety lapses in the National Capital Region, Congress has unveiled legislation requiring U.S. military helicopters to broadcast their positions when operating near Reagan Washington National Airport (DCA). The provision, included in the National Defense Authorization Act (NDAA) for Fiscal Year 2026, aims to close a critical information gap between military pilots and commercial air traffic controllers.
According to reporting by Reuters, the legislation was released late Sunday, December 7, 2025. It mandates that military helicopters on training missions in the crowded airspace around Washington, D.C., utilize safety alerts to prevent collisions with commercial aircraft. This legislative move comes nearly a year after a catastrophic mid-air collision and a subsequent series of near-miss incidents that have drawn intense scrutiny from lawmakers and safety regulators.
The core of the new legislation addresses the military’s historical exemption from using Automatic Dependent Surveillance-Broadcast (ADS-B) technology during certain domestic operations. ADS-B allows aircraft to broadcast their altitude, velocity, and position to ground controllers and other nearby planes. Without this technology active, military helicopters can effectively appear invisible to the automated collision avoidance systems used by commercial airliners.
Under the proposed NDAA provisions, the Department of Defense (DoD) must ensure that helicopters conducting training missions near DCA broadcast this vital data. The goal is to ensure that commercial pilots and air traffic controllers have real-time visibility of military assets operating in one of the nation’s busiest flight corridors.
In addition to the immediate mandate for the Capital region, the bill requires the Pentagon to conduct a feasibility study within 180 days. This study will analyze the implications of installing ADS-B technology across the broader military helicopter fleet, weighing the costs and combat readiness concerns against the imperative for civilian safety.
The legislative push is a direct response to the fatal events of January 29, 2025. On that day, a U.S. Army Black Hawk helicopter collided with American Airlines (American Eagle) Flight 5342 near DCA. The crash resulted in 67 fatalities, 64 on the commercial jet and three on the helicopter. Investigations revealed that the Black Hawk was on a training mission and was not broadcasting its position via ADS-B, leaving the commercial pilots unaware of the converging threat until it was too late.
The urgency of the legislation was further underscored by a second incident in May 2025. According to reports summarized by the Washington Post, another Army Black Hawk was involved in a “near miss” with two airliners at DCA. In that instance, the helicopter reportedly took a “scenic route” near the commercial flight path, forcing jets to abort landings. These repeated lapses suggested a systemic failure rather than an isolated error. While the January crash was the catalyst for the new bill, data from the National Transportation Safety Board (NTSB) indicates that the airspace has been hazardous for years. NTSB records show approximately 15,000 close-proximity events between military and civilian aircraft near DCA between October 2021 and December 2024.
To address this historical lack of transparency, the NDAA includes a retroactive reporting requirement. The Pentagon must disclose to Congress the number of near-miss incidents between military and commercial aircraft over the last 10 years. This provision suggests lawmakers suspect that the scale of the risk has been underreported for a decade.
The legislation has drawn strong support from lawmakers who have criticized the Army’s safety culture. Senator Ted Cruz (R-Texas) has been a vocal proponent of “technological transparency” in domestic airspace.
“The Army chose to protect its bureaucratic [interests]… those deaths will be on the Army’s hands.”
, Senator Ted Cruz (R-Texas), via Senate Commerce Committee records
Senator Maria Cantwell (D-Washington) also condemned the May incident, labeling it “outrageous” and demanding immediate action from the Federal Aviation Administration (FAA) and the Defense Secretary.
Historically, the Army has resisted universal ADS-B adoption, citing Operational Security (OPSEC). The military argument posits that broadcasting movements could compromise sensitive mission profiles. However, the new legislation attempts to bypass this objection by specifically targeting training missions in domestic airspace, where the threat of enemy surveillance is negligible compared to the risk of collision with civilian traffic.
The inclusion of these mandates in the NDAA signals a significant shift in the balance of power between military autonomy and civilian aviation safety. For years, the “see and avoid” principle was deemed sufficient for visual flight rules (VFR) traffic, including military helicopters. However, the density of modern air traffic and the speed of commercial approach patterns have rendered unassisted visual separation obsolete in complex terminal areas like DCA.
By forcing a 10-year retrospective report, Congress is likely preparing to audit the military’s internal safety reporting culture. If the Pentagon’s internal numbers differ significantly from the NTSB’s data on “close-proximity events,” it could trigger further oversight hearings regarding military aviation conduct in the National Capital Region. Sources: Reuters, National Transportation Safety Board (NTSB), Washington Post, Senate Commerce Committee
Congress Moves to Mandate Military Helicopters Tracking Near DC Following Fatal Collision
Closing the “Stealth” Gap in Domestic Airspace
A Response to Tragedy: The January 2025 Collision
Data Reveals a Decade of Risk
Stakeholder Reactions and Military Pushback
AirPro News Analysis
Sources
Photo Credit: Sikorsky
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