Federal Aviation Administration officials are reportedly dissatisfied with aspects of Peraton’s performance as lead systems integrator for the nation’s air traffic control modernization effort, raising the possibility that the contractor’s responsibilities could be reduced.
By yourNEWS Media Newsroom
Federal Aviation Administration officials are considering whether to scale back the role of Peraton, the primary contractor coordinating the Trump administration’s sweeping modernization of the U.S. air traffic control system, amid concerns about project management, subcontractor oversight and delays.
Peraton, a Herndon, Virginia-based government contractor, received a $1.5 billion contract in December to serve as lead systems integrator for the modernization program, putting the company in charge of coordinating multiple contractors, technologies and work streams across the massive effort.
Three people familiar with the project told Politico that difficulties have emerged since Peraton assumed the role.
Two of those sources said they had heard directly from FAA officials who expressed frustration with the contractor and discussed the possibility of reducing its responsibilities.
“The big issues here are threefold,” one person familiar with the discussions said, adding that “Peraton has basically not done any work since they got in.”
That source also said the FAA shares some responsibility for the problems, arguing that the agency has restricted Peraton’s ability to work effectively with FAA personnel.
The dispute comes as the government attempts to carry out one of the most ambitious upgrades of the nation’s aviation infrastructure in decades, with the administration seeking to have major portions of the new system operating by 2028.
FAA spokesperson Hannah Walden defended the pace of the modernization effort and said accountability between the agency and its contractors is expected during a project of such scale.
“As with any once-in-a-generation project, the FAA and its partners want to deliver historic results for the American people, so we hold each other accountable,” Walden said.
She said the FAA is “making unprecedented progress” on major elements of the replacement system.
Walden also said the agency has not formally penalized Peraton for poor performance and has not issued the company a “cure letter,” a formal government notice warning a contractor that deficiencies could place its agreement at risk.
Peraton similarly rejected suggestions that the company is failing to fulfill its responsibilities.
The contractor described itself as “a proud, trusted partner in the FAA’s historic effort to modernize America’s air traffic control system.”
Peraton said it is “working side by side with their team every day and [is] fully committed to delivering results, meeting milestones, and supporting the FAA’s mission.”
One person familiar with the project disputed that assessment, arguing that the core problem involves Peraton’s failure to perform the management function it was brought in to provide.
“It’s what they’re not doing: They’re not managing the project,” the source said. “And that’s the problem.”
The modernization initiative was announced by Transportation Secretary Sean Duffy in May 2025 as the administration sought to replace aging equipment and infrastructure throughout the national airspace system.
The program is intended to improve aviation safety while preparing the system for increasingly complex demands, including the expanding use of drones, commercial spacecraft and other emerging technologies alongside conventional passenger and cargo aircraft.
The effort gained additional urgency after the January 2025 midair collision near Ronald Reagan Washington National Airport that killed 67 people.
Congress provided the FAA with $12.5 billion for the modernization initiative in legislation passed last year.
Duffy has sought as much as another $20 billion from lawmakers to continue the overhaul.
The FAA says substantial physical improvements are already underway.
According to the agency, 62% of obsolete copper wiring at air traffic facilities has been replaced with fiber, new surface-awareness technology has been installed at 96 control towers, and 380 radio sites have been converted as part of the broader modernization program.
Peraton’s assignment reaches across nearly a dozen separate work streams.
The company is responsible for coordinating numerous contractors and technical projects while overseeing how the different components of the new system fit together.
Major subcontractors working on the modernization include L3Harris, RTX and AT&T.
Peraton has extensive experience handling national security and federal government programs, but it had comparatively limited previous experience working directly with the FAA before receiving the lead integration contract.
The company strongly denied claims that the air traffic modernization project is slipping behind schedule.
“The program remains on track, and any comments to the contrary are false,” Peraton said.
A company spokesperson said Peraton and the FAA remain aligned on the overall mission despite the complexity of the undertaking.
“There is no daylight between the FAA and Peraton in our collective effort to deliver the most transformative government modernization program in our nation’s history,” the spokesperson said. “With 330,000 independent projects and a half-million dependencies, individual project tasks can shift and fluctuate.”
Some officials and others familiar with the project have placed significant responsibility for the difficulties on the FAA itself.
They said career agency employees have at times been skeptical of Peraton and that the FAA has continued exercising considerable control over decisions that the contractor was expected to coordinate.
According to those accounts, Peraton has not always been given the freedom or access necessary to carry out the systems-integrator role as envisioned.
That disagreement highlights the challenge of attempting to overhaul a massive federal aviation network while simultaneously determining how authority should be divided among government officials, contractors and subcontractors.
The administration’s 2028 target also gives the FAA and its industry partners a particularly compressed schedule for a modernization program involving hundreds of thousands of individual projects and dependencies.
For now, the FAA has taken no formal enforcement action against Peraton, and the company maintains that the program remains on schedule.
The reported discussions about potentially narrowing Peraton’s role nevertheless indicate that federal officials are closely examining whether the current management structure can deliver the upgraded air traffic control system within the administration’s timetable.
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