FAA reportedly weighs scaling back Peraton's role in ATC modernization

The Federal Aviation Administration is reportedly weighing a reduced role for Peraton, the contractor chosen last December to lead integration work on the agency's air traffic control modernization program, according to a report citing people familiar with the matter.

One source said Peraton has done little work since being brought on, while also noting the FAA shares some blame for limiting the company's direct access to agency staff. Cited concerns include how subcontractors are being overseen and delays tied to work at a facility in Alaska. Another source said the FAA has kept tight control over individual projects, which has constrained Peraton's ability to act as the overall integrator.

An FAA spokesperson pushed back on the characterization, saying the modernization effort is progressing and that the agency has not penalized Peraton or issued any formal warning that could jeopardize the contract. Peraton itself said the program is on track and disputed suggestions to the contrary.

The Department of Transportation announced Peraton's selection on December 4 under a $1.5 billion contract, with the company tasked with coordinating contractors and technology across the modernization effort. The plan involves replacing aging telecommunications systems, voice switches, radar equipment, and related software and hardware, with a completion target set for the end of 2028. When the contract was announced, the department said its structure included penalties tied to delays or underperformance.

No formal action against Peraton has been confirmed at this stage, and both the FAA and the company maintain that work is continuing as planned.