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Fri, Dec 06, 2024

FAA Distributes $1.4 Billion to Support ATC Services

Four Vendors Awarded Contracts to Assist 264 Airports

The Federal Aviation Administration recently named four recipients for new Air Traffic Control (ATC) service contracts, totaling $1.44 billion. The companies will cover around 265 airports throughout the US, Puerto Rico, Guam, Saipan, and the Virgin Islands under the agency’s Contract Tower (FCT) program.

The agreements include a 14-month base performance period plus six option years. Services are split throughout 10 designated areas.

The first contract, for Area 2, was reserved for a small business. It is worth $142.6 million and was given to CI2 Aviation. The company first joined the FCT program in 1999 and is the nation’s only small business to operate 21 ATC towers in the US, Puerto Rico, and the Virgin Islands.

Midwest Air Traffic Control Services earned deals for Areas 1,4, and 5 valued at a total of $518.2 million. Midwest ATC has been an ATC provider since 1978 and currently serves 100 towers across the globe. It has worked under the FAA, Department of Defense, Canadian Department of National Defense, Transport Canada, NATO, and other agencies throughout its history.

Areas 3, 6, 8, and 10 were given to Robinson Aviation, or RVA. This was the largest payout, set at $560.3 million for the four regions. RVA has served the FCT program since 1994, now operating 102 towers in Areas 2 and 5 with its more than 600 controllers.

The fourth and final contract was booked with Serco’s US branch for Areas 7 and 9, worth $182.9 million. Serco runs 60 ATC towers in 11 states of the Western US, including Alaska.

The FAA’s FCT Program was established in 1982, allowing the agency to commission private companies for the operation of control towers. Contracts are chosen through a benefit-cost analysis, weighing safety and efficiency perks against spending to determine eligibility. FCT agreements operate 265 towers, covering 51% of all Federal towers in the US.

FMI: www.faa.gov

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