DOT Taps Engility for Potential $369M FAA Air Traffic Mgmt System Update Contract

Engility-LogoEngility (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 Administration’s efforts to update the country’s air traffic management system.

Lynn Dugle
Lynn Dugle

The cost-plus-fixed-fee contract awarded by DOT’s 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 company’s 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 PMO oversees the procurement and deployment of the NextGen system and is also responsible for the agency’s communications, weather, navigation, automation and surveillance modernization initiatives.

The company booked the contract in the fourth 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.

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