Understanding the air traffic control overhaul and the firm hired by FAA to oversee it

The U.S. government has selected Peraton, a company with limited experience working alongside the Federal Aviation Administration (FAA), to oversee the $31.5 billion overhaul of the nations aging air traffic control system. Transportation Secretary Sean Duffy explained on Thursday evening that Peraton was chosen because of its innovative approach, which is hoped to ensure the modernization is completed within the next three years, by the end of President Donald Trumps term. Peratons selection was made over Parsons Corp., a company with significant FAA contract experience.

Together, we will build on the remarkable progress already made and deliver a state-of-the-art air traffic control system that the American public and hardworking air traffic controllers deserve, Duffy stated in the announcement.

Key Details on the Modernization Effort and Peratons Role

A $12.5 Billion Down Payment
Earlier this year, Congress allocated $12.5 billion to kickstart the modernization project following significant technical issues that temporarily shut down radar systems managing air traffic near Newark Liberty International Airport. The year started with a major U.S. aviation disaster when a collision between an airliner and an Army helicopter in Washington, D.C. resulted in 67 fatalities. Secretary Duffy has indicated that around $20 billion more will be required to complete the upgrade. Unlike the previous NextGen initiative, which began at the turn of the century and failed to meet its goals despite a $36 billion investment, this new initiative comes with a much more aggressive timeline.

The Biden administration had previously suggested that upgrading the system could take more than a decade, but the new timeline aims for completion within three years.

Compensation and Incentives
While the FAA has not disclosed how much Peraton will be paid, it has stated that the contract includes incentives for good performance and penalties for underperformance.

The Need for Upgrades to Avoid Delays and Prepare for Future Aviation

The technical problems earlier this year highlighted the vulnerability of the nation's outdated air traffic control infrastructure. Duffy noted that these types of issues could arise anywhere unless the system is upgraded. Hundreds of flights were delayed or canceled at Newark due to radar failures, and subsequent staffing shortages at the Philadelphia facility, which controls flights to and from Newark, further reduced air traffic capacity.

The number of flights handled by the FAA is projected to increase, and drones are expected to proliferate across the U.S., with the rise of flying taxis. The air traffic control system must be modernized to meet the demands of the future.

Ambitious Timeline for Completion

John Rose, Chief Risk Advisor at global travel management company ALTOUR, acknowledged the aggressive three-year timeline but deemed it partially realistic. He suggested that building the foundational structure for a modern air traffic control system within the given timeframe is feasible, with more advanced features added afterward. Rose likened the effort to building a base for an iPhone system, where further upgrades can be seamlessly implemented later.

Stephen Creamer, President and CEO of the Air Traffic Control Association, emphasized that the technology for the new system is not cutting-edge and has been tested globally. This reduces the risks associated with its implementation, which would have been higher if the system were being built from scratch.

Why Peraton was Chosen for the Project

Secretary Duffy explained that entrusting a private company with the task would expedite the projects completion. Peratons expertise in managing complex technical systems and its work in artificial intelligence were key factors in its selection. Additionally, Peratons lack of prior FAA experience is seen as an advantage, as it is not bound by the same patterns of working with companies that have previously failed to deliver on modernization efforts.

Creamer pointed out that the FAA lacks the workforce to manage such a significant undertaking, following the earlier cuts to federal staff. He added that Peratons ability to quickly award contracts to other companies will speed up the process compared to the FAA's standard procedures, although the potential for mistakes exists. He expressed confidence in the oversight mechanisms to prevent waste or fraud.

Peratons Track Record with Government Tech Upgrades

Peraton has handled multibillion-dollar contracts for various government entities, including the Department of Homeland Security, the U.S. Special Operations Command, and the National Park Service. The company is owned by Veritas Capital, a private equity firm, and has a board comprising former military and intelligence officials. While the company declined interviews for this project, CEO Steve Schorer expressed a strong commitment to delivering a reliable and secure air traffic control system.

Our highly-skilled team is ready to deliver a system Americans can depend on one that is more secure, more reliable, and a global model, Schorer stated.

Peratons political action committee donated a substantial sum to political campaigns in the previous year, with more than half of the contributions directed toward Republicans.

Ongoing Improvements in Air Traffic Control

Secretary Duffy also reported that the FAA has already begun making improvements, with over one-third of the old copper wiring being replaced by fiber optics and modern communication systems. However, there is still much work to be done, such as installing over 27,600 new radios and 612 radar systems. The FAA plans to construct six new air traffic control centers, and additional facilities will need upgrades to accommodate the new system.

Author: Benjamin Carter