FAA Awards ATC Modernization Contract: What the Upgrade Could Mean for Drone Integration

When U.S. Transportation Secretary Sean P. Duffy announced plans on May 8, 2025 to rebuild the nation’s air traffic control system, he called it “a once-in-a-generation opportunity to build a brand-new, state-of-the-art air traffic control system.” He emphasized that “decades of neglect have left us with an outdated system that is showing its age,” adding that “the American people are counting on us, and we won’t let them down.”

On December 4, 2025 the Department of Transportation (DOT) and the Federal Aviation Administration (FAA) took the next major step by awarding Peraton the contract to serve as prime integrator for the effort. The project, known as the Brand New Air Traffic Control System (BNATCS), aims to replace radar, telecommunications networks, automation tools, and aging control-center infrastructure across the National Airspace System (NAS) by the end of 2028.

A National Infrastructure Rebuild

BNATCS represents one of the largest modernization efforts in the FAA’s history. The agency plans to introduce new high-speed network links, digital radios, surveillance systems, tower displays, voice switches, and surface-movement sensors for airports. Many of these updates will replace systems that have been in service for decades and have become harder to maintain. FAA officials have said that equipment failures now cause delays at a rate far higher than seen in previous years.

The overhaul also includes a new consolidated Air Route Traffic Control Center and a new Terminal Radar Approach Control facility. Alaska will receive expanded weather coverage through new stations and camera sites. The scale of the effort reflects the FAA’s goal of addressing outdated infrastructure while preparing for faster growth in airspace demand.

Peraton’s Role and Early Work

As prime integrator, Peraton is responsible for managing the delivery of new systems, coordinating deployment across thousands of locations, and ensuring the NAS continues operating safely during the transition. The contract ties the company’s profit to performance, with incentives for meeting milestones and penalties for delays.

Peraton’s Chairman, President & CEO Steve Schorer said the award reflects “a historic opportunity to fundamentally transform America’s air traffic control system.” He added that the company’s team is prepared “to hit the ground running” and deliver “a system Americans can count on — one that is more secure, more reliable, and a model for the world to follow.”

Some work is already in progress. The FAA reports that more than one-third of its copper communications backbone has been replaced with fiber, satellite, or wireless networks. Several towers have begun receiving upgraded information displays and automation tools that will align with the future architecture.

Why This Matters Now

The modernization comes amid clear signs of strain in the nation’s air traffic system. Outages, aging equipment, and staffing shortages have all contributed to increased delays. High-profile incidents, including a fatal collision early in 2025, have intensified scrutiny and added urgency to the overhaul.

Secretary Duffy framed the program as essential for maintaining U.S. airspace safety and efficiency. By replacing outdated systems with standardized, digital infrastructure, the FAA intends to strengthen resilience, reduce operational disruptions, and prepare for long-term aviation growth.

Implications for Drone Integration: Opportunities and Limits

For the drone and uncrewed aircraft systems (UAS) community, BNATCS raises important questions about how a modernized ATC backbone might support new airspace users. While the plan does not explicitly mention drones, UTM systems, or low-altitude traffic management, several aspects of the upgrade could enable future integration.

A more reliable communications and surveillance network may give the FAA greater flexibility to incorporate new forms of traffic. Enhanced automation tools could make it easier to manage mixed airspace environments that include conventional aircraft and drones. Greater standardization across towers and centers may also simplify the creation of digital interfaces between ATC and emerging UTM systems.

At the same time, BNATCS is not a drone-integration initiative. It does not propose detect-and-avoid services, new regulatory rules, or airspace procedures for high-volume drone operations. Those advances will require separate policy decisions, additional technology frameworks, and coordination with industry. For now, the modernization should be understood as foundational infrastructure that could support future integration rather than guarantee it.

What Comes Next

The next phase of work will determine how quickly the FAA and Peraton can deploy new systems at scale and how much of the NAS can be modernized within the 2028 timeframe. It will also show whether follow-on programs will explicitly address drone traffic management, beyond-visual-line-of-sight operations, and other UAS needs.

For the drone sector, the main takeaway is that the national air traffic system is about to change in fundamental ways. Those changes may create new opportunities for integration, but realizing them will depend on decisions that have not yet been made. As the FAA continues to define the future NAS architecture, the UAS community will be watching for signals that the upgrade is not only designed to fix legacy problems, but also to support new types of aircraft that are becoming a growing part of the aviation ecosystem.

Read more:

• FAA Chief Operating Officer ATC Highlights Public Safety Drone Advancements at National Public Safety UAS Conference
• FAA Under Transformation: Workforce Reductions, DOGE Involvement, and the Future of Air Traffic Control
• Unifly, Terra Drone, and Aloft Technologies Forge Alliance for Global Air Traffic Management