FAA Reportedly Frustrated With ATC Overhaul Contractor

Officials are reportedly considering reducing Peraton’s role eight months after the company received a $1.5 billion integration contract.

FAA Reportedly Frustrated With ATC Overhaul Contractor
[Credit: FAA]
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Key Takeaways:

  • The FAA is reportedly considering reducing Peraton's role as the prime integrator for the $1.5 billion air traffic control modernization program, just eight months after the contract was awarded.
  • Concerns cited by unnamed sources include Peraton's alleged lack of progress, issues with subcontractor oversight, and project delays, while also noting the FAA's role in hindering Peraton's integration efforts.
  • Both the FAA and Peraton deny these claims, stating that the modernization program is progressing as expected, and no formal warnings or penalties for underperformance have been issued.
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FAA officials are reportedly considering scaling back Peraton’s role in the government’s air traffic control modernization program. Politico reported the possibility Thursday, just eight months after the Department of Transportation and FAA selected the Virginia-based contractor as prime integrator under a $1.5 billion contract.

Questions Over Integration Role

“Peraton has basically not done any work since they got in,” a person familiar with the discussions told Politico.

The source also said the FAA bears some responsibility and has hindered Peraton’s efforts to work directly with agency personnel.

Concerns are said to include subcontractor oversight and schedule delays involving work at a facility in Alaska. Another source in the report described the FAA as retaining significant control over individual projects, limiting Peraton’s ability to operate as lead integrator.

According to an FAA spokesperson, the agency is making progress on the modernization effort and has neither penalized Peraton for underperformance nor issued a formal warning that could put the contract at risk. The company also said the program is moving along as expected, and comments saying otherwise were incorrect.

2028 Modernization Target

DOT announced Peraton’s selection Dec. 4 and tasked the company with coordinating contractors and technologies across the modernization program. FAA plans call for replacing aging telecommunications infrastructure, voice switches, radar, software and hardware as part of an effort targeted for completion by the end of 2028. DOT said when the contract was announced that its structure includes penalties for unnecessary delays or poor performance.

Matt Ryan

Matt is AVweb's lead editor. His eyes have been turned to the sky for as long as he can remember. Now a fixed-wing pilot, instructor and aviation writer, Matt also leads and teaches a high school aviation program in the Dallas area. Beyond his lifelong obsession with aviation, Matt loves to travel and has lived in Greece, Czechia and Germany for studies and for work.
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