# FAA Awards Air Space Intelligence ATC Modernization Contract

The Federal Aviation Administration (FAA) awarded Air Space Intelligence (ASI) a **$875 million**, 12-year contract in June 2026 to modernize the National Airspace System's air traffic control software. This contract includes development and deployment of two AI-enabled platforms: the Flow Management Data and Services (FMDS) and the Strategic Management of Airspace, Routing, and Trajectories (SMART) system. These platforms aim to improve flight scheduling, reduce delays and congestion, enhance predictive traffic management, and increase airspace capacity. Initial deployment of SMART is planned for fall 2026, with full integration targeted by 2030 as part of the FAA's broader $12.5 billion modernization initiative.

- **Why this matters:** This contract represents a significant federal investment in AI-driven air traffic control modernization, creating opportunities for contractors specializing in aviation software, AI, and cloud-based systems.
- The FAA's focus on predictive analytics and data integration signals a shift toward proactive airspace management, requiring advanced technical capabilities from industry partners.
- Procurement professionals should note the long-term nature of this contract and the phased rollout, which may open subcontracting and technology integration opportunities over the next decade.
- Companies should consider aligning offerings with FMDS and SMART platform requirements, emphasizing AI, data analytics, and system resilience to meet FAA modernization goals.

**Jurisdictions:** federal
**Industries:** Transportation, Information Technology, Defense & Military
**Topics:** Artificial Intelligence, Digital Infrastructure
**Published:** June 25, 2026

### Government Entities
- Federal Aviation Administration (FAA)
- U.S. Department of Transportation (DOT)
- U.S. Air Force (USAF)
- Indo-Pacific Command

### Vendors
- Air Space Intelligence (prime contractor)
- Peraton (prime integrator)
- Palantir (competitor)
- Thales (competitor)
- RTX ()

### Key Quotes
> 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. 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.
> — Bryan Bedford, FAA Administrator

> We have invested nearly $100 million of our own resources to develop a platform that is operational today, and we are honored to bring that same proven capability to the FAA and to the American people at national scale.
> — Bernard Asare, President of Civil Aviation, Air Space Intelligence

> We’re already making remarkable progress on upgrading the radars, radios, and telecom wires, but to really improve the flying experience for the traveling public, we must change how flights are managed.
> — Sean Duffy, Transportation Secretary

### Sources
- [FAA Picks AI Partner for Sweeping ATC Software Overhaul](https://www.thetraveler.org/faa-picks-ai-partner-for-sweeping-atc-software-overhaul) - thetraveler.org
- [FAA Taps Air Space Intelligence for AI-Enabled ATC Software](https://www.meritalk.com/articles/faa-taps-air-space-intelligence-for-ai-enabled-atc-software) - meritalk
- [FAA selects Air Space Intelligence for $875M ATC software push](https://www.thetraveler.org/faa-selects-air-space-intelligence-for-875m-atc-software-push) - thetraveler.org