FAA weighs reducing Peraton role in air traffic control overhaul

Federal Aviation Administration officials are frustrated with Peraton’s performance as lead systems integrator for the Trump administration’s air traffic control modernisation programme and may reduce the contractor’s role, according to people familiar with the matter. The Herndon, Virginia-based company won a $1.5 billion contract in December to coordinate the overhaul of the US air traffic control system, but internal tension has built over its experience and execution.

The dispute comes as the FAA pushes a nationwide upgrade of ageing aviation infrastructure, a programme accelerated after the January 2025 mid-air collision near Washington. Bryan Bedford, the FAA administrator, has previously described Peraton as an extension of his office, underscoring the company’s central place in the project’s management structure.

Peraton remains committed to meeting milestones and supporting the FAA mission, while the agency has not publicly confirmed any change to the contract. Any reduction in the firm’s responsibilities would represent a significant shift in how the multibillion-dollar overhaul is coordinated across contractors and technology suppliers.