Congress allocated more than $12 billion to FAA air-traffic-control modernization, with FAA expecting to obligate roughly half by the end of fiscal 2026 as a "down payment" on a complete ATC system replacement targeted within three years. Peraton named prime integrator; Collins Aerospace lands $438M radar work. Coverage from Federal News Network, FAA, and RTX.
Peraton as prime integrator
Per the FAA announcement, Peraton is responsible for designing, testing, deploying, and maintaining a "Brand New Air Traffic Control System." This is a marquee role — Peraton sits at the center of how the modernization actually rolls out across hundreds of facilities.
The Collins radar contract
Collins Aerospace (RTX business) was awarded a $438 million contract by FAA to support the Radar System Replacement program — a cornerstone of National Airspace System modernization.
The 3-year aggressive schedule
FAA is on a schedule to "completely replace the air traffic control system within the next three years." Industry skepticism is real — past FAA modernization programs have run over schedule and budget. But the funding signal is unambiguous.
Subcontract opportunities
Areas where small/mid firms can plug in:
- Specialty radar component manufacturing
- Cybersecurity for ATC systems (FAA has unique requirements)
- Software and integration testing
- Site survey and installation services at facilities
- Operator training and change management
- FENS (FAA Enterprise Network Services) integration — Verizon Public Sector won that contract
What to do
- If you do safety-critical software: FAA RTCA DO-278/278A (Software Integrity Levels for ATM systems) is the relevant standard — invest in DO-278 capability
- If you supply Collins or Peraton: tier-1 subcontract conversations should already be underway given the schedule
- Watch for follow-on solicitations as the modernization rolls out facility-by-facility