FAA Contract Goes to ITT

ITT Industries Inc. has been awarded the Federal Aviation Administration's Next Generation Air/Ground Communications, or Nexcom, contract. The contract is worth $20.5 million over 15 months, but could be worth as much as $580 million if options are exercised over 10 years.

The first part of the contract will replace in phases air traffic controllers' aging analog radios with digital radios. The digital system will enhance the FAA's ability to meet expanding air traffic control communications demands.

The contract also is intended to reduce logistical costs, such as
supplies, maintenance and training, by replacing high-maintenance VHF
radios while reducing air-to-ground radio frequency interference and
enhancing security against unauthorized users.