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
ADVANCED TECHNOLOGIES AND OCEANIC PROCEDURES (ATOP)
$667.4M · DELIVERY ORDER · Department of Transportation · MD
FEDERAL SPENDING · CITIZEN OPINION
Was this federal payment to LEIDOS, INC. worth it?
$667.4M · Department of Transportation to LEIDOS, INC.
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What this award is
AI analysis
This is a long-term contract between the U.S. Department of Transportation and Leidos, Inc., a technology and engineering company based in Maryland, to build and maintain advanced computer systems used by air traffic controllers. The money pays Leidos to develop and support the ATOP (Advanced Technologies and Oceanic Procedures) system, which helps guide aircraft flying over the ocean where radar does not reach.
DEEPER CONTEXTAnalysis · Risks · Arguments
WHY THIS MONEY IS BEING SPENT
WHY WAS THIS FUNDED?
The Federal Aviation Administration (FAA), which operates under the Department of Transportation, is required by law to maintain safe and efficient control of all aircraft in U.S.-managed airspace, including vast oceanic regions. This contract supports that mission by modernizing the technology used to track and communicate with planes flying over the Atlantic and Pacific Oceans.
WHAT PUBLIC PROBLEM IS IT TRYING TO SOLVE?
Thousands of flights cross the oceans every day, but traditional radar does not work over open water, making it harder to track planes and keep them safely separated. The ATOP system provides controllers with modern tools to monitor these flights, reducing the risk of dangerous situations and improving the efficiency of transoceanic air travel.
WHO BENEFITS?
Travelers on international flights crossing the Atlantic and Pacific Oceans benefit directly from safer and more efficient air traffic management. Air traffic controllers gain better tools to do their jobs, and Leidos employees involved in building and maintaining the system benefit from the employment this contract provides.
Plain-language reading generated from the USASpending award record. Not legal or financial advice.
RISKS AND TRADEOFFS
WHAT ARE THE RISKS?
Because this contract spans more than three decades and involves a single company, there is a risk of over-reliance on one vendor, which can limit competition and make it harder to control costs over time. A project of this length and complexity also carries risks of cost overruns, delays, or technology becoming outdated before the contract ends.
WHAT HAPPENS IF FUNDING IS REMOVED?
If this contract were cancelled, the FAA could lose the technical support needed to keep the oceanic air traffic control system running reliably, potentially creating safety gaps for flights over the ocean. Finding a replacement contractor and rebuilding the system from scratch would likely take years and could cost significantly more.
FOR AND AGAINST
ARGUMENTS FOR
- •Oceanic air traffic control is a genuine public safety need, and modern technology helps prevent mid-ocean aircraft incidents that could be catastrophic.
- •A long-term contract with one experienced vendor can provide continuity and stability for a critical national infrastructure system.
- •Efficient oceanic routing enabled by ATOP can save airlines fuel and time, which may lower costs for passengers and reduce environmental impact.
ARGUMENTS AGAINST
- •A contract lasting over 30 years with a single company reduces competition and may result in higher costs and less innovation than a more open bidding process would produce.
- •The total value of $667.4 million is a significant public expenditure, and without detailed performance data it is difficult for taxpayers to verify they are getting good value.
- •Technology changes rapidly, and locking into a decades-long agreement risks the government paying for systems that may become outdated well before the contract expires.
SPENDING TIMELINE
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