Engility (NYSE: EGL) has received a potential five-year, $369 million contract from the U.S. Transportation Department to provide technical and engineering services in support of the Federal Aviation Administrationâs efforts to update the countryâs air traffic management system.
The cost-plus-fixed-fee contract awarded by DOTâs Volpe National Transportation Systems Center also covers program and financial management services to help the FAA program management office modernize the NextGen system, Engility said Monday.
Engility CEO Lynn Dugle said the contract award seeks to reflect the companyâs previous performance and technical capabilities to help DOT develop and deploy technology platforms that seek to ensure the safety of the U.S. aviation transportation system.
The FAA PMOÂ oversees the procurement and deployment of the NextGen system and is also responsible for the agencyâs communications, weather, navigation, automation and surveillance modernization initiatives.
The company booked the contract in the fourthÂ quarter of 2016.
Shares in Engility were up 2 percent as of 10:15 a.m. Eastern time and rose as high as 4 percent after the New York Stock Exchange’s open.