Dow Jones Newswires | Boeing Co. (BA) said Thursday that its
subcontracting team won a U.S. research and development support contract
valued at up to $1.7 billion for upgrading the nation’s air traffic
management system.

Altogether the Federal Aviation Administration has handed out about $4.4
billion in contracts to install a satellite-based traffic management
system in the next decade. Two more contracts are expected to be awarded
under the Next Generation Air Transportation System program, or
NextGen, which has a $7 billion ceiling, making it the largest set of
awards in FAA history.

“NextGen is an economic opportunity that will challenge innovative companies to expand their workforce and help us modernize our National Airspace System,” U.S. Transportation Secretary Ray LaHood has said. “Under NextGen, air travelers will be able to fly to their destinations safer and faster.”

NextGen uses the Global Positioning System, or GPS, digital communications and data networking. The new system should allow aircraft to fly more closely and on more direct routes, reducing delays, fuel burn and emissions.

The current system uses ground-based radar and has been in use for some 60 years.

Last week, the FAA said it awarded contracts to General Dynamics Corp. (GD), ITT Corp. (ITT) and Boeing.

Chicago-based Boeing said its prime focus would be on modeling and simulation for NextGen, as well as developing full integration of ground and airborne technologies and operations across all vehicle types including commercial and military aircraft, general aviation, unmanned aerial systems and rotorcraft.

The Boeing subcontracting team includes Adacel Technologies Ltd. (ADA.AU), Ensco PLC (ESV), Embry-Riddle Aeronautical University, Harris Corp. (HRS), Honeywell International Inc. (HON), Boeing division Jeppesen, Jerry Thompson & Associates Inc., Mosaic ATM, Spectrum Software Technology Inc., Tetra Tech AMT and the Washington Consulting Group Inc.