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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.

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Peraton Secures Strategic Position in $980 Million Air Force Automatic Test Systems Contract

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.

Background and Corporate Context of Peraton

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.

Comprehensive Analysis of the ATSA-I Contract Structure

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.

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“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

Technical Specifications and Automatic Test Systems Components

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.

Market Dynamics and Industry Context

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

Strategic Significance for Defense Readiness

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.

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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.

Financial and Economic Implications

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.

Global Defense Technology Landscape

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.

Conclusion

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.

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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.

FAQ

What is the ATSA-I contract?
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.

What role does Peraton play in the ATSA-I contract?
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.

Why are automatic test systems important for the Air Force?
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.

How does the ATSA-I contract support international defense cooperation?
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.

What technological trends are shaping the future of automatic test systems?
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.

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Photo Credit: Peraton

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Firehawk Aerospace Expands Rocket Motor Production in Mississippi Facility

Firehawk Aerospace acquires a DCMA-rated facility in Mississippi to boost production of solid rocket motors using 3D-printing technology.

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This article is based on an official press release from Firehawk Aerospace.

Firehawk Aerospace Acquires Mississippi Facility to Scale Rocket Motor Production

On December 19, 2025, Firehawk Aerospace announced a significant expansion of its manufacturing capabilities with the acquisition of a specialized defense facility in Crawford, Mississippi. The Dallas-based defense technology company has secured a 20-year lease on the 636-acre site, which was formerly operated by Nammo Talley.

This acquisition marks a strategic pivot for Firehawk as it moves to address critical shortages in the U.S. defense supply chain. By taking over a facility that is already rated by the Defense Contract Management Agency (DCMA), the company aims to bypass the lengthy construction and certification timelines typically associated with greenfield defense projects. The site will serve as a hub for the full-system integration of solid rocket motors (SRMs), complementing the company’s existing R&D operations in Texas and energetics production in Oklahoma.

Strategic Asset Details

The Crawford facility is located in Lowndes County within Mississippi’s “Golden Triangle” region. According to the company’s announcement, the site is a “turnkey” defense asset designed specifically for handling high-grade explosives and munitions. The infrastructure includes assembly bays protected by one-foot-thick concrete walls and safety “blowout” walls designed to contain accidental detonations.

Because the facility was previously used by Nammo Defense Systems for the high-volume assembly of shoulder-launched munitions, such as the M72 LAW and SMAW systems, it retains the necessary regulatory certifications to allow for rapid operational ramp-up. Firehawk Aerospace CEO Will Edwards emphasized the urgency of this expansion in a statement regarding the deal.

“This acquisition strengthens Firehawk’s ability to address one of the nation’s most urgent defense challenges: rebuilding munition inventories that have been drawn down faster than they can be replaced.”

, Will Edwards, Co-founder and CEO of Firehawk Aerospace

Addressing the “Rocket Motor Crisis”

The acquisition comes at a time when the Western defense industrial base is grappling with a severe shortage of solid rocket motors, which power critical systems like the Javelin, Stinger, and GMLRS missiles. Traditional manufacturing methods, which involve casting propellant in large batches that take weeks to cure, have created production bottlenecks.

Firehawk Aerospace intends to disrupt this model by utilizing proprietary 3D-printing technology to manufacture propellant grains. According to the press release, this additive manufacturing approach reduces production times from weeks to hours. The company has explicitly stated that the new Mississippi facility is being designed to achieve a production tempo of “thousands of rockets per month,” a significant increase over legacy industry standards.

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“While the current industrial base is built to produce thousands of rockets per year, we are building this site… to operate at a much higher production tempo… designing for throughput measured in thousands per month, not years.”

, Will Edwards, CEO

Regional Economic Impact

The expansion is expected to bring skilled jobs to the Golden Triangle region, which is increasingly becoming a hub for aerospace and defense activity. Mississippi Governor Tate Reeves welcomed the investments, noting the dual benefits of economic growth and national security support.

“Their acquisition in Crawford will bring skilled jobs to the region while directly contributing to the production capacity our nation needs.”

, Tate Reeves, Governor of Mississippi

AirPro News Analysis

From R&D to Mass Production: This acquisition signals Firehawk’s transition from a development-focused startup to a volume manufacturer. By securing a pre-rated facility, Firehawk has effectively shaved 2–3 years off its timeline, the period typically required to build and certify a new explosives handling site. This speed is critical given the current geopolitical demand for tactical munitions.

Supply Chain Decentralization: The move also highlights a strategy of decentralization. By distributing operations across Texas (R&D), Oklahoma (Energetics), and now Mississippi (Integration), Firehawk is building a supply chain that may prove more resilient than centralized legacy models. This geographic diversity also allows the company to tap into distinct labor markets and state-level incentives, such as Mississippi’s aerospace initiatives.

Frequently Asked Questions

What is the significance of the DCMA rating?
A DCMA (Defense Contract Management Agency) rating verifies that a facility meets strict Department of Defense quality and safety standards. Acquiring a pre-rated facility allows Firehawk to begin production much faster than if they had to build and certify a new site from scratch.

How does Firehawk’s technology differ from traditional methods?
Traditional solid rocket motors are cast in large batches, a process that requires weeks for the propellant to cure. Firehawk uses 3D-printing technology to print propellant grains, which allows for custom geometries and reduces the manufacturing time to mere hours.

What was the facility used for previously?
The facility was formerly operated by Nammo Talley (now Nammo Defense Systems) for the assembly of shoulder-launched munitions, including the M72 LAW and SMAW systems.

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20 Years of the F-22 Raptor Operational Capability and Upgrades

Lockheed Martin celebrates 20 years of the F-22 Raptor’s operational service, highlighting its stealth, combat roles, readiness challenges, and modernization.

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Two Decades of the Raptor: Celebrating the F-22’s Operational Milestone

Lockheed Martin has launched a campaign commemorating the 20th anniversary of the F-22 Raptor achieving Initial Operational Capability (IOC). In December 2005, the 27th Fighter Squadron at Langley Air Force Base in Virginia became the first unit to field the fifth-generation fighter, marking a significant shift in global air superiority.

According to the manufacturer’s announcement, the aircraft continues to define the benchmark for modern air combat. In a statement regarding the milestone, Lockheed Martin emphasized the platform’s enduring relevance:

“The F-22 Raptor sets the global standard for capability, readiness, and mission success.”

While the airframe was designed in the 1990s and first flew in 1997, the F-22 remains a central pillar of U.S. air power. The fleet, which consists of approximately 185 remaining aircraft out of the 195 originally built, has evolved from a pure air superiority fighter into a multi-role platform capable of ground strikes and strategic deterrence.

Operational History and Combat Record

Since its operational debut, the F-22 has maintained a reputation for dominance, primarily established through high-end military aircraft exercises rather than direct air-to-air combat against manned aircraft.

Exercise Performance vs. Combat Reality

Data from the U.S. Air Force and independent observers highlights the discrepancy between the Raptor’s exercise performance and its real-world combat engagements. During the 2006 Northern Edge exercise, its first major test after becoming operational, the F-22 reportedly achieved a 108-to-0 kill ratio against simulated adversaries flying F-15s, F-16s, and F/A-18s.

Despite this lethality in training, the aircraft’s combat record is distinct. The F-22 made its combat debut in September 2014 during Operation Inherent Resolve, conducting ground strikes against ISIS targets in Syria. To date, the aircraft has zero confirmed kills against manned enemy aircraft. Its sole air-to-air victory occurred in February 2023, when an F-22 utilized an AIM-9X Sidewinder missile to down a high-altitude Chinese surveillance balloon off the coast of South Carolina.

Stealth Capabilities

The primary driver of the F-22’s longevity is its low observable technology. Defense analysts estimate the Raptor’s Radar Cross Section (RCS) to be approximately 0.0001 square meters, roughly the size of a steel marble. This makes it significantly stealthier than the F-35 Lightning II and orders of magnitude harder to detect than foreign competitors like the Russian Su-57 or the Chinese J-20.

AirPro News Analysis: The Readiness Paradox

While Lockheed Martin’s anniversary campaign highlights “readiness” as a key pillar of the F-22’s legacy, recent Air Force data suggests a more complex reality regarding the fleet’s health.

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We note that maintaining the world’s premier stealth fighter comes at a steep logistical cost. According to data published by Air & Space Forces Magazine regarding Fiscal Year 2024, the F-22’s mission capable (MC) rate dropped to approximately 40%. This figure represents a decline from roughly 52% in the previous fiscal year and indicates that, at any given time, fewer than half of the Raptors in the inventory are flyable and combat-ready.

This low readiness rate is largely attributed to the fragility of the aircraft’s stealth coatings and the aging avionics of the older airframes. The Air Force has previously attempted to retire 32 older “Block 20” F-22s used for training to divert funds toward newer programs, though Congress has blocked these efforts to preserve fleet numbers. The contrast between the jet’s theoretical dominance and its logistical availability remains a critical challenge for planners.

Modernization and Future Outlook

Contrary to earlier projections that might have seen the F-22 retired in the 2030s, the Air Force is investing heavily to keep the platform viable until the Next Generation Air Dominance (NGAD) fighter comes online.

The ARES Contract and Upgrades

In 2021, the Air Force awarded Lockheed Martin a $10.9 billion contract for the Advanced Raptor Enhancement and Sustainment (ARES) program. This decade-long modernization effort aims to update the fleet’s hardware and software.

According to budget documents for Fiscal Year 2026, the “Viability” upgrade package includes several key enhancements:

  • New Stealth Tanks: The development of low-drag external fuel tanks and pods designed to extend the aircraft’s range without compromising its radar signature.
  • Infrared Search and Track (IRST): The integration of new sensors capable of detecting heat signatures, a critical capability for engaging enemy stealth fighters that may not appear on radar.
  • Manned-Unmanned Teaming: Software upgrades intended to allow F-22 pilots to control “Collaborative Combat Aircraft”, autonomous drone wingmen, in future operational environments.

These investments suggest that while the F-22 is celebrating its past 20 years, the Air Force intends to rely on its capabilities well into the next decade.

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Sources: Lockheed Martin, U.S. Air Force

Photo Credit: Lockheed Martin

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U.S. Navy Zero-G Helmet System Completes Critical Design Review

Collins Elbit Vision Systems completes design review for the Zero-G Helmet Display, reducing pilot weight load and enhancing safety for Navy aircraft.

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This article is based on an official press release from Collins Elbit Vision Systems (RTX).

Critical Design Review Completed for Navy’s Next-Gen Helmet

Collins Elbit Vision Systems (CEVS), a joint venture between RTX’s Collins Aerospace and Elbit Systems of America, has officially announced the completion of the Critical Design Review (CDR) for the Zero-G Helmet Mounted Display System+ (HMDS+). This milestone, finalized on December 12, 2025, marks a pivotal step in the U.S. Navy’s Improved Joint Helmet-Mounted Cueing System (IJHMCS) program.

The successful CDR effectively freezes the system’s design, confirming that the helmet meets the Navy’s rigorous requirements for safety, performance, and platform integration. With the design locked, the program now transitions into the airworthiness testing and integration phase, bringing the system closer to deployment aboard the F/A-18E/F Super Hornet and EA-18G Growler fleets.

According to the press release, the Zero-G HMDS+ is engineered to address long-standing physiological challenges faced by naval aviators while introducing “6th-generation” digital capabilities to existing 4.5-generation aircraft.

Technical Leap: The Zero-G HMDS+

The Zero-G HMDS+ represents a significant departure from legacy analog systems. While previous iterations required pilots to physically attach heavy Night Vision Goggles (NVGs) for low-light operations, the new system integrates digital night vision directly into the visor. This integration streamlines cockpit operations and reduces the physical burden on the aircrew.

Weight Reduction and Pilot Safety

A primary driver for the Zero-G’s development is the reduction of head-borne weight. High-G maneuvers in fighter aircraft place immense strain on a pilot’s neck and spine, a hazard exacerbated by heavy, unbalanced legacy helmets. CEVS reports that the Zero-G system is more than 25 percent lighter than current market alternatives. Its name is derived from its optimized center of gravity, designed to minimize fatigue and long-term injury risks.

Capt. Joseph Kamara, the U.S. Navy Program Manager for Naval Aircrew Systems (PMA-202), emphasized the safety implications of the new design in a statement:

“Aircrew health and safety is our number one priority. The Zero-G being integrated through our IJHMCS program promises to relieve aircrew of neck and back strain and greatly improve ejection safety.”

Advanced Display Capabilities

Beyond ergonomics, the helmet utilizes a binocular waveguide display system. Unlike monocular reticles used in older models, this technology projects high-definition color symbology and video into both eyes, creating a fully immersive 3D view of the battlespace. The system is capable of “sensor fusion at the edge,” processing mission data and weapon information directly on the helmet to act as a primary flight instrument.

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Luke Savoie, President and CEO of Elbit Systems of America, highlighted the strategic necessity of this upgrade:

“Zero-G is providing sensor fusion at the edge… As fighter aircraft level-up, the HMDs of those systems need to as well.”

Program Timeline and Deployment

The Zero-G HMDS+ program has moved rapidly since CEVS was awarded a $16 million contract by the U.S. Navy in September 2023 for development and test support. Following the successful CDR in December 2025, the program is scheduled to undergo flight testing and Avionics integration throughout 2026 and 2027.

The U.S. Navy projects Initial Operational Capability (IOC) for the system in 2027. Once fielded, it is expected to equip aviators across the entire fleet of U.S. Navy and Royal Australian Air Force Super Hornets and Growlers, totaling more than 750 aircraft.

AirPro News Analysis

The completion of the CDR signals a critical maturity point for the Navy’s effort to modernize the human-machine interface in its tactical fleet. While much industry attention is focused on future platforms like NGAD (Next Generation Air Dominance), the Zero-G program illustrates the military’s commitment to maintaining the lethality and survivability of its existing backbone fleet.

By adapting technology originally matured for the F-35 Gen III helmet, CEVS is effectively retrofitting advanced situational awareness tools onto older airframes. This approach not only extends the combat relevance of the Super Hornet but also addresses the acute retention issue of pilot physical health. The shift to digital night vision and balanced weight distribution suggests that the Navy views pilot longevity as a critical component of fleet readiness.

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Photo Credit: RTX

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