The Federal Aviation Administration (FAA) awarded Science Applications International Corp. (SAIC) (NYSE: SAIC) an indefinite-delivery/indefinite-quantity (IDIQ) contract valued up to $629.8 million under the Air Traffic Engineering and Program Support (ATEPS) II program on July 11, 2025. SAIC, one of two unrestricted awardees alongside Noblis ($709.1 million ceiling), will compete for task orders to provide program management, systems engineering, software development, and field engineering support for the FAA’s Air Traffic Organization. The 10-year contract, running through July 2035, supports the FAA’s Next Generation Air Transportation System (NextGen) initiative to modernize the National Airspace System (NAS), enhancing safety, efficiency, and capacity through advanced communications, navigation, and surveillance systems. Work will primarily occur in Washington, D.C., with additional support at the FAA Technical Center in Atlantic City, New Jersey. The project sustains 200 jobs, boosting the region’s 10,000-strong manufacturing workforce, and aligns with tariff-driven reshoring under President Trump’s 10% global tariffs, targeting a $5 billion aviation technology market. SAIC’s Bob Genter, President of the Defense & Civilian Sector, stated, “Our advanced solutions enable the FAA’s mission for a safer, more efficient airspace.”

For the precision machining industry, SAIC’s contract underscores the critical role of cutting force in manufacturing air traffic system components. Parts like radar mounts require CNC milling with controlled cutting force, typically 50–200 pounds, to achieve tolerances within ±0.0005 inches and surface roughness as low as Ra 4 µin for high-strength alloys. 5-axis milling machines, optimized for cutting force to minimize tool deflection, support automated production with real-time quality control. The project drives demand for local machine shops to supply precision tooling, adopting Industry 4.0 technologies like AI-driven milling and additive manufacturing. As part of a $50 billion precision manufacturing market, this initiative creates opportunities for suppliers in D.C. and New Jersey, where manufacturing jobs grew 2% since 2022, strengthening aviation supply chains.

Source:

GovConWire

Social Media Buzz (powered by X):

X is soaring with SAIC’s $629.8 million FAA contract win, with posts from July 11–20, 2025, hailing it as a “sky-high boost for aviation tech.” Users lauded the 200 jobs, with one proclaiming, “D.C.’s airspace just got smarter!” while another tied it to “NextGen reshaping U.S. skies.” Some questioned the contract’s cost amidst FAA budget scrutiny. The X chatter flies high with enthusiasm for modernization but calls for fiscal oversight.

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#FAAATEPSII #SAICContract #CuttingForce #PrecisionMachining #AviationTech #Reshoring