FAA Weighs Cutting Peraton’s Role After Reports of Little Progress on $1.5B ATC Overhaul

Overview

• Multiple sources reported Thursday that FAA officials are frustrated with Peraton’s performance and are considering reducing the company’s role as prime integrator on the $1.5 billion air-traffic-control modernization program.
• Both the FAA and Peraton have publicly denied that work is delayed and say the program is progressing as expected while the Department of Transportation notes the contract includes penalties for unnecessary delays or poor performance.
• Sources described specific problems including weak subcontractor oversight, schedule slips at an Alaska facility, and friction caused by the FAA retaining control over discrete projects that limits Peraton’s ability to coordinate work.
• Reporting earlier this summer showed a lobbyist who represented Peraton served on the nonprofit that funded Transportation Secretary Sean Duffy’s reality show and that Boeing and Toyota donated to the nonprofit, raising procurement-integrity questions tied to the contract award.
• If the FAA formally scales back Peraton’s integrator role the agency may need new contracting steps or tighter oversight, which could slow coordination on installations and affect the program’s 2028 completion goal and the safety upgrades those systems are meant to deliver.