Awarding agency: Department of Transportation
Who got paid, how much, for what, and whether it is defensible. Citizen opinion on the record, not a mandate.
Status and record
THE PURPOSE OF THIS CONTRACT IS TO ENHANCE AND MAINTAIN THE EN ROUTE AUTOMATION AND MODERNIZATION (ERAM), INCLUDING THE EN ROUTE INFORMATION DISPLAY SYSTEM (ERIDS), AND TO PRODUCE, IMPLEMENT, AND PROVIDE SUPPORT FOR A LIMITED NUMBER OF ERAM/ERIDS SYS
$890.9M · DEFINITIVE CONTRACT · Department of Transportation · MD
FEDERAL SPENDING · CITIZEN OPINION
Was this federal payment to LEIDOS, INC. worth it?
$890.9M · Department of Transportation to LEIDOS, INC.
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What this award is
AI analysis
This is a long-term contract where the federal government is paying Leidos, Inc., a technology company based in Maryland, to upgrade and maintain the computer systems that air traffic controllers use to track and manage airplanes flying across the United States. The company will also help create and support a limited number of additional systems of this kind.
DEEPER CONTEXTAnalysis · Risks · Arguments
WHY THIS MONEY IS BEING SPENT
WHY WAS THIS FUNDED?
The Federal Aviation Administration (FAA), which is part of the Department of Transportation, is required by law to provide safe and efficient air traffic control across the country, and modernizing its aging computer systems is a core part of that mission. The En Route Automation Modernization (ERAM) program is a long-running FAA initiative to replace older, outdated air traffic control technology.
WHAT PUBLIC PROBLEM IS IT TRYING TO SOLVE?
Air traffic controllers rely on computer systems to safely track thousands of aircraft flying across the country every day, and older systems can be slow, unreliable, or difficult to update. This contract is meant to keep those systems modern, accurate, and running without interruption so that flights remain safe.
WHO BENEFITS?
Air travelers across the entire United States benefit from safer and more reliable air traffic control. FAA air traffic controllers also benefit directly, since upgraded tools make their demanding jobs more effective and accurate.
Plain-language reading generated from the USASpending award record. Not legal or financial advice.
RISKS AND TRADEOFFS
WHAT ARE THE RISKS?
Given the very long contract period of roughly 20 years and the large dollar amount of nearly $891 million, there is a risk that costs could grow beyond initial estimates or that the technology delivered could become outdated before the contract ends. Long single-vendor contracts can also reduce competition and make it harder for the government to switch providers if performance problems arise.
WHAT HAPPENS IF FUNDING IS REMOVED?
If this contract were cancelled, the FAA would need to find another way to maintain and update the computer systems that air traffic controllers depend on, which could create gaps in system reliability. Disruptions to these systems could delay flights and, in serious cases, reduce the safety margins that protect aircraft from collisions.
FOR AND AGAINST
ARGUMENTS FOR
- •Keeping air traffic control software modern and well-maintained is directly linked to aviation safety for the millions of Americans who fly each year.
- •A long-term contract with a single experienced vendor can provide consistency and reduce the time and cost of repeatedly restarting the work with new contractors.
- •Investing in reliable technology infrastructure now can prevent far more costly emergency repairs or system failures in the future.
ARGUMENTS AGAINST
- •A nearly 20-year contract with one company limits competition, which can reduce incentives for the vendor to control costs or innovate over time.
- •Technology changes rapidly, and locking into a single long-term agreement risks paying for systems that may become obsolete well before the contract expires.
- •The large total cost and long timeline make it difficult for Congress and the public to monitor performance and hold the contractor accountable across different administrations.
SPENDING TIMELINE
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