The air traffic control tower at Chicago O'Hare International Airport is pictured on the day passengers board their flights for the Thanksgiving holidays, in Chicago, Illinois, U.S., November 26, 2025. REUTERS/Jim Vondruska

WASHINGTON, Dec 4 (Reuters) - The Federal Aviation Administration said Thursday it has picked Peraton, a national security company owned by Veritas Capital, to become the project manager of a $12.5 billion effort to overhaul the aging U.S. air traffic control system.

In September, the FAA confirmed it had received two bids for the job -- Peraton and a joint bid by Parsons and IBM. The FAA said Peraton will be the single integrator that will manage the massive project and delivering it on time without disruptions to air traffic.

(Reporting by David Shepardson; Editing by Leslie Adler)