In a landmark move for the aviation industry, the Federal Aviation Administration (FAA) has embarked on one of the most ambitious modernization projects in its history: the Brand New Air Traffic Control System (BNATCS). Announced on December 4, this initiative aims to overhaul the United States’ aging air traffic control infrastructure, which has long been criticized for its reliance on outdated technology dating back decades.

The FAA has awarded the contract for prime integrator to Peraton, a Virginia-based national security company owned by Veritas Capital. Valued initially at $12.5 billion, the project promises to transform how air traffic is managed, reducing delays, enhancing safety, and accommodating the growing demands of commercial, private, and unmanned aviation.

What The New ATC System Is All About

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The BNATCS comes at a critical time, with air travel rebounding post-pandemic, and the FAA projecting that air traffic will increase by up to 80% over the next two decades. The current system, primarily radar-based and fragmented, traces its roots back to the 1960s and is ill-equipped to handle this complexity. The multiple ATC outages experienced at Newark Liberty International Airport and other airports earlier this year due to software glitches and equipment failures have highlighted the urgency for reform.

The new system will represent a radical departure from the current patchwork of ATC tools. At its core, BNATCS aims to create a state-of-the-art, resilient infrastructure that replaces antiquated radar with satellite-based surveillance, enabling precise tracking of aircraft in real time across vast expanses, including oceanic and remote areas. Key features of BNATCS include:

• A consolidated Terminal Automation System, which will unify operations at over 500 air traffic facilities nationwide, streamlining communication and allowing for seamless handoffs between en-route centers and airport towers.
• Advanced software frameworks like the Common Automation Platform (CAP), which uses machine learning to predict traffic congestion and suggest optimal reroutes, cutting delays by up to 30%.
• Resiliency and security is a top priority, with built-in redundancies to protect against hacks and ensure continuity during outages.
• Enhanced safety features, such as predictive conflict resolution, wioth the aim of eliminating the risk of mid-air collisions and runway incursions.
• A modular architecture, allowing for easier upgrades and scalability to incorporate future innovations. For instance, the system will support Performance-Based Navigation (PBN), enabling curved approaches that save fuel and reduce noise pollution around airports.

Peraton will be the single integrator to manage the massive project and deliver it on time without air traffic disruptions, said the FAA, which picked the firm over a joint bid by Parsons and IBM. Peraton CEO Steve Schorer acknowledged the receipt of the contract, saying:

“Today, the US government has entrusted Peraton with a historic opportunity to fundamentally transform America’s air traffic control system, which will modernize our national airspace to ensure it remains the safest, most efficient, and most advanced in the world.”

Peraton And Its Role In The Project

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Peraton is a powerhouse in national security and technology solutions, despite its relatively short history as an independent entity. Founded in 2017 through the divestiture of Harris Corporation’s government services business, Peraton has rapidly grown into a major player, employing over 18,000 people and generating annual revenues exceeding $7 billion. Headquartered in Reston, Virginia, with operations worldwide, the firm specializes in cybersecurity, intelligence, defense, and space technologies.

The FAA maintains that Peraton has the right level of expertise in systems integration and mission-critical IT to make it an ideal partner for the ambitious project. Peraton has certainly secured numerous high-profile government contracts in recent years, including support for the US Navy, Department of Homeland Security, Department of Defense and intelligence agencies, but the $12.5 billion BNATCS is its largest win by far.

For the BNATCS contract, Peraton serves as the prime integrator, overseeing the design, development, and deployment of the new system. This role involves coordinating with subcontractors, ensuring compliance with FAA standards, and integrating cutting-edge technologies to create a unified platform. Peraton’s prior work with the FAA includes data communications and systems engineering contracts, as well as experience in resilient facility designs and NextGen components, which positions it well for this new project.

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The Timelines And Costs For Implementation

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The implementation of BNATCS is structured around an aggressive timeline, with the FAA targeting full operational capability by the end of 2028. This three-year window reflects the urgency driven by the Department of Transport, which has prioritized rapid modernization to address ongoing air travel disruptions. The project will unfold in phases: initial design and prototyping in 2026, followed by testing and integration in 2027, and nationwide rollout in 2028.

Key milestones include the award of subcontracts by mid-2026 and pilot programs at select facilities by late 2026. The FAA has secured procurement exemptions to accelerate the process, bypassing some traditional bidding hurdles. However, this compressed schedule raises concerns about potential delays, as seen in similar projects like NextGen, which faced extensions due to technical challenges.

On the cost front, Congress has allocated the initial $12.5 billion as a “down payment,” with additional funds required in future fiscal years. Total projected expenses are estimated to range from $20–30 billion over the lifecycle, including maintenance and upgrades. This funding comes from a mix of federal appropriations, user fees, and potential public-private partnerships. Cost overruns are a risk, but the long-term savings from efficiencies as well as reduced overheads, delays, and fuel consumption are expected to offset this, with a return on investment projected within a decade.