UPDATE: The Federal Aviation Administration (FAA) has just awarded a groundbreaking contract worth $12.5 billion to Peraton for the creation of the Brand New Air Traffic Control System (BNATCS). Announced on December 4, this initiative aims to revolutionize the United States’ outdated air traffic control infrastructure in response to a soaring demand for air travel, projected to increase by up to 80% over the next two decades.
This urgent modernization effort comes as air traffic rebounds post-pandemic, and recent system failures at major airports like Newark Liberty International Airport have underscored the critical need for reform. The current radar-based system, dating back to the 1960s, has proven inadequate for managing the complexities of modern aviation.
The BNATCS will introduce a state-of-the-art satellite-based infrastructure, enhancing safety and reducing delays by streamlining communication between over 500 air traffic facilities nationwide. Key features include a consolidated Terminal Automation System for efficient operations, advanced machine learning algorithms to predict congestion, and built-in redundancies to safeguard against cyber threats.
Peraton, a national security powerhouse based in Virginia, will serve as the prime integrator, overseeing the project’s design and deployment. CEO Steve Schorer stated, “Today, the US government has entrusted Peraton with a historic opportunity to fundamentally transform America’s air traffic control system.” This pivotal role positions Peraton to manage the complexities of this ambitious project, ensuring timely delivery without disrupting air traffic.
The FAA has set an aggressive timeline for implementation, targeting full operational capability by 2028. The project will unfold in phases, with initial design and prototyping slated for 2026, followed by testing and nationwide rollout. Key milestones include awarding subcontracts by mid-2026 and pilot programs at select facilities by late 2026.
Despite the urgency, concerns linger over potential delays similar to those faced by past projects like NextGen. Nevertheless, the FAA has secured procurement exemptions to expedite the process, aiming to bypass traditional bidding hurdles.
Funding for this monumental project will initially rely on the allocated $12.5 billion, with total lifecycle costs projected to range from $20 billion to $30 billion. This financial backing will come from federal appropriations, user fees, and possible public-private partnerships. While cost overruns remain a risk, efficiencies and reduced operational costs are expected to yield a return on investment within a decade.
As the aviation industry prepares for a major transformation, the BNATCS represents a critical step toward modernizing America’s airspace, enhancing safety, and accommodating future growth. Stay tuned for further updates as this developing story unfolds.
