The Federal Aviation Administration announced on Monday that it awarded Air Space Intelligence a 12-year, $875 million contract for new software and artificial intelligence capabilities, part of the agency’s ambitious effort to modernize the nation’s outdated air traffic control system.
The software company will provide “two complementary, cutting-edge technologies that will improve how flights are scheduled and managed throughout the National Airspace System,” according to the FAA.
These include Flow Management Data and Services, which the agency said will serve as “the new technological backbone” of a modernized Air Traffic Control System Command Center. ASI is also tasked with delivering a Strategic Management of Airspace, Routes and Trajectories — or SMART — system.
In a fact sheet, the agency said “Using AI, SMART analyzes airline schedules, weather, airport capacity, airspace conditions, and operational constraints to predict traffic flows and identify potential conflicts before they occur.”
The FAA said it is hoping to begin initial deployments of SMART as soon as this fall. ASI said it expects both systems to be rolled out over the next 12 to 24 months.
“Every day, our air traffic professionals knowingly manage thousands of scheduling conflicts across the National Airspace System, which ultimately end up as delays for the traveling public,” FAA Administrator Bryan Bedford said in a statement. “FMDS with the SMART capabilities will help us address that challenge by improving how we manage airspace before flights depart, reducing congestion, easing controller workload, and directly cutting down delays across the system.”
The contract is a part of the FAA and the Transportation Department’s broader push to upgrade the nation’s air traffic control system.
Transportation Secretary Sean Duffy announced the launch of the ambitious effort in May 2025, saying at the time that it would entail some brick-and-mortar upgrades but that “everything else that controls the airspace is going to be brand new.” A key part of this effort, he said, will be replacing legacy systems and antiquated technologies with new capabilities, such as a modernized flight management system and updated ground radar systems at U.S. airports.
The initiative’s launch came on the heels of several high-profile air traffic control outages in the last few years, as well as the crash of an Army Black Hawk helicopter and a commercial airliner near Ronald Reagan Washington National Airport in January 2025 that killed all 67 people on both aircraft.
During an April event held just shy of the modernization effort’s one-year anniversary, Duffy said a few project workstreams were a “little behind,” but added that “for the most part, we’re on track to have this project completed before President [Donald] Trump leaves office.”
The FAA announced in December that it had selected Peraton as the project’s prime integrator to oversee the new Air Traffic Control System contract.
The One Big Beautiful Bill, which Trump signed into law in July 2025, allocated $12.5 billion for the air traffic control modernization effort, although the agency in December called that amount a “down payment” and said at the time that it would need an additional $20 billion for the initiative.
