The US government has handed over the reins of a $31.5 billion overhaul of its antiquated air traffic control system to a company with limited experience working for the Federal Aviation Administration (FAA). Peraton, which lacks extensive ties to the FAA, will oversee the modernization project, aiming to complete it within the next three years.
Transportation Secretary Sean Duffy expressed optimism that Peraton's innovative approach would enable the system's upgrade before the end of President Donald Trump's term in office. The new contract is in contrast to Parsons Corp., which has extensive experience with FAA contracts but lost out on the bid.
The overhaul seeks to replace outdated technology and infrastructure, which have led to technical failures and flight disruptions. The recent worst American aviation disaster, an airliner collision over Washington D.C. killing 67 people, underscored the need for modernization.
Peraton will be paid a total of $12.5 billion upfront, with Duffy estimating an additional $20 billion needed to complete the project. The company's contract includes incentives to reward good performance and penalties for shortcomings.
The new system aims to address growing demands on air traffic control, including increasing numbers of flights and the proliferation of drones and flying taxis. Hundreds of flights were canceled or delayed at Newark Liberty International Airport following technical problems, highlighting the need for modernization.
Industry experts say that Peraton's expertise in complex technical systems and artificial intelligence could be beneficial, while also offering a fresh perspective. However, some express concerns about the company's limited experience working with the FAA.
The project's ambitious three-year timeline is considered "extremely aggressive" by some but may be partially realistic if it focuses on building the foundation for modern air traffic control capabilities. Others note that the new system will not require cutting-edge technology and can build upon existing advancements.
Critics argue that the private company's involvement could introduce potential risks, including mistakes or abuse of power. However, supporters see Peraton's neutral stance as an asset, allowing it to make decisions without being biased towards established contractors.
Peraton has experience working on multibillion-dollar government technology contracts for various agencies. The company's board of advisers includes former military and intelligence officials, and its CEO has vowed to complete the project.
While some improvements have already been made, significant work remains ahead, including installing new radios, radar systems, and air traffic control centers.
Transportation Secretary Sean Duffy expressed optimism that Peraton's innovative approach would enable the system's upgrade before the end of President Donald Trump's term in office. The new contract is in contrast to Parsons Corp., which has extensive experience with FAA contracts but lost out on the bid.
The overhaul seeks to replace outdated technology and infrastructure, which have led to technical failures and flight disruptions. The recent worst American aviation disaster, an airliner collision over Washington D.C. killing 67 people, underscored the need for modernization.
Peraton will be paid a total of $12.5 billion upfront, with Duffy estimating an additional $20 billion needed to complete the project. The company's contract includes incentives to reward good performance and penalties for shortcomings.
The new system aims to address growing demands on air traffic control, including increasing numbers of flights and the proliferation of drones and flying taxis. Hundreds of flights were canceled or delayed at Newark Liberty International Airport following technical problems, highlighting the need for modernization.
Industry experts say that Peraton's expertise in complex technical systems and artificial intelligence could be beneficial, while also offering a fresh perspective. However, some express concerns about the company's limited experience working with the FAA.
The project's ambitious three-year timeline is considered "extremely aggressive" by some but may be partially realistic if it focuses on building the foundation for modern air traffic control capabilities. Others note that the new system will not require cutting-edge technology and can build upon existing advancements.
Critics argue that the private company's involvement could introduce potential risks, including mistakes or abuse of power. However, supporters see Peraton's neutral stance as an asset, allowing it to make decisions without being biased towards established contractors.
Peraton has experience working on multibillion-dollar government technology contracts for various agencies. The company's board of advisers includes former military and intelligence officials, and its CEO has vowed to complete the project.
While some improvements have already been made, significant work remains ahead, including installing new radios, radar systems, and air traffic control centers.