Deloitte Wins Potential $488M FAA ATLAS IT Modernization Contract

Deloitte Wins Potential $488M FAA ATLAS IT Modernization Contract

  • Deloitte was among six ATLAS Phase 2 selectees in April
  • The contract could run up to a decade with all options exercised
  • ATLAS calls for AI to speed up code refactoring and application analysis

Deloitte Consulting has won the potential 10-year, $488.2 million Accelerated Transformation of Legacy Applications and Systems, or ATLAS, contract from the Federal Aviation Administration to modernize the agency’s legacy IT applications and databases.

In a SAM.gov notice published Friday, the FAA said it awarded the contract as a result of the ATLAS challenge-based acquisition.

What Is the Scope of the FAA ATLAS Contract?

The FAA classified the work under IT business application development support services. The period of performance may extend up to 10 years if the agency exercises all option periods.

According to the ATLAS solicitation, the effort covers more than 200 applications and approximately 3,000 databases across the FAA’s mission-support portfolio.

What Is the FAA ATLAS Initiative?

ATLAS is a challenge-based acquisition effort that the FAA launched in February to rationalize, consolidate, modernize and sustain the legacy and operational systems in its application environment. The initiative seeks to shift the agency from a legacy sustainment model to an operating framework built on automated workflows, cloud-native architectures and AI integration. The FAA said it sought a strategic partner to improve user experience, reduce technical debt and strengthen security and resiliency.

The FAA structured ATLAS as a four-phase challenge-based acquisition under its Acquisition Management System. The phases covered corporate experience and concept paper submissions, portfolio rationalization strategies and modernization factory demonstrations, ending in a contract award based on a best-value tradeoff that weighted technical factors more heavily than price.

The agency identified eight objectives for ATLAS, including technical debt reduction, high-availability mission operations, DevSecOps, intelligent automation and proactive cybersecurity. The initiative also calls for using AI and machine learning to accelerate code refactoring and application analysis.

Which Companies Advanced to ATLAS Phase 2?

In an April 16 notice on SAM.gov, the FAA said it had completed its evaluation of ATLAS Phase 1 responses and selected six offerors to participate in Phase 2: Booz Allen Hamilton, Deloitte, EY, IBM, Kentro and KSGC Solutions.

Before the selection, the FAA issued three rounds of questions and answers and updated the Phase 1 announcement and self-score worksheet. In late February, the agency extended the Phase 1 response deadline from March 10 to March 13 and added an attachment detailing the current state of its legacy application portfolio.

What Other Modernization Work Has Deloitte Taken On?

The ATLAS award adds to Deloitte’s federal modernization portfolio. In May, Deloitte Consulting secured a potential five-year, $278.5 million Navy contract to modernize IT and operational technology systems across Naval Facilities Engineering Command operations worldwide.

Deloitte has also deployed a dual-track approach to public sector software development that pairs its software engineering platform with GovConnect.ai, letting agencies build new applications on top of legacy systems without a full replacement. Earlier this year, the company made TrueServe for Government and GovConnect available on AWS Marketplace to simplify how agencies procure mission-focused technologies.

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