DOT and FAA Select Peraton to Lead $32.5 Billion Air Traffic Control Overhaul

On December 4, 2025, U.S. Transportation Secretary Sean Duffy and Federal Aviation Administration (FAA) Administrator Bryan Bedford officially announced a major strategic shift in how the United States manages its aviation infrastructure. The agencies have selected Peraton, a national security and technology company, to serve as the “Prime Integrator” for a comprehensive modernization of the National Airspace System (NAS).

The initiative aims to replace aging air traffic control infrastructure with a “brand new” system by the end of 2028. This aggressive three-year timeline represents a departure from previous agency-led efforts, which officials noted often spanned decades. By centralizing project management under a single private contractor, the Department of Transportation (DOT) intends to accelerate the deployment of new radars, telecommunications, and automation systems.

The “Prime Integrator” Strategy

Historically, the FAA has managed individual technology programs in-house. However, Secretary Duffy emphasized that the complexity of modernizing the entire airspace requires a different approach. Under this new model, Peraton, a Virginia-based company owned by private equity firm Veritas Capital, will act as the general contractor. They will be responsible for overseeing subcontractors, managing risk, and integrating disparate technologies.

In the official announcement, Secretary Duffy highlighted the necessity of bringing in private-sector expertise for construction and integration tasks.

“We are thrilled to be working with Peraton because they share President Trump’s drive to modernize our skies safely at record speed… The FAA does a great job on safety, but they are not builders.”

, U.S. Transportation Secretary Sean Duffy

Peraton was selected based on its experience in defense and federal IT integration. The contract is described by the FAA as “first-of-its-kind,” featuring a performance-based structure designed to reward on-time delivery and penalize delays. This mechanism aims to ensure accountability and protect taxpayer interests throughout the rapid development cycle.

Scope of the Modernization

The project involves a sweeping overhaul of the physical and digital “backbone” of the NAS. According to the details released by the FAA, the scope of work includes replacing legacy copper wiring with fiber optic and satellite connections and upgrading critical hardware across the country.

Key technical upgrades slated for completion by 2028 include:

• Surveillance: Installation of 612 new state-of-the-art radars and the replacement of surface radars at 44 major airports.
• Communications: Deployment of 27,625 new radios and 462 digital voice switches.
• Connectivity: Establishment of approximately 5,170 new high-speed telecommunications connections.
• Facilities: Construction of a new consolidated Air Route Traffic Control Center (ARTCC), the first new center built since the 1960s, and information display upgrades at 435 control towers.

The initiative also targets specific regional safety concerns. In Alaska, the plan calls for the installation of 110 new weather stations and 64 weather camera sites to address the region’s unique aviation challenges.

Financials and Funding Gaps

The modernization effort carries a total estimated cost of approximately $32.5 billion. The administration has secured an initial $12.5 billion through the “One Big Beautiful Bill,” the administration’s flagship infrastructure legislation. However, officials were clear that significant additional funding is required to complete the full scope of the project.

FAA Administrator Bryan Bedford, a former airline executive, noted that while the initial funds provide a strong start, congressional action is needed to close the remaining $20 billion gap.

“The One Big Beautiful Bill gave us a strong $12.5 billion down payment… But to finish the job, and deliver the safer, more efficient system travelers deserve, we’re going to need another $20 billion.”

, FAA Administrator Bryan Bedford

AirPro News Analysis

The urgency behind this announcement is driven by deteriorating performance metrics within the current system. Administrator Bedford reported that flight delay minutes caused by equipment issues in 2025 were roughly 300% higher than the average recorded between 2010 and 2024. By shifting to a Prime Integrator model, the FAA is attempting to bypass the bureaucratic hurdles that plagued previous modernization programs like NextGen.

However, the request for an additional $20 billion may face scrutiny in Congress. While industry groups like Airlines for America (A4A) have supported the move to reduce delays, the feasibility of replacing such complex infrastructure in just three years without disrupting active air traffic remains a significant logistical challenge.

Sources

Sources: FAA Newsroom