ITT Corp. has been selected by U.S. Federal Aviation Administration (FAA) to develop and deploy a satellite-based air traffic control system, the company and the FAA announced Aug. 30.

The Automatic Dependent Surveillance-Broadcast (ADS-B) system will replace the current system of ground-based radars and is a key component of the FAA’s Next Generation Air Transportation System program, which is intended to increase the safety and efficiency of the U.S. air transportation system.

Under an initial three-year contract with a value of $207 million, ITT will develop, deploy and test their system as well as install ground infrastructure, said Bobby Sturgell, FAA deputy administrator. ITT, which has brought together a team of 15 different companies including AT&T, Thales, Aviation Communications and Surveillance Systems, and Sandia Aerospace, will be developing a nationwide air traffic control surveillance network that includes field radio sites, data processing centers, network operations centers and equipment to enable delivery of surveillance data to air traffic control facilities. The system will give pilots graphical weather information, terrain maps and flight information including temporary flight restrictions and notices to airmen. It will allow controllers and pilots to know the precise location of aircraft, resulting in more direct flight routes and airspace efficiency, as well as reduced delay and improved safety.

ITT, which won the contract in a competition with Lockheed Martin Corp. and Raytheon Co., was the “best value solution combined with the least amount of risk for the agency,” said Vinnie Capezzuto, the FAA director of surveillance and broadcast services.

The FAA has been testing the ADS-B system in Juno, Alaska, since 2000, and the advanced equipment has reduced fatal accidents by 47 percent, Capezzuto said. ADS-B is nearly 10 times more accurate than radar.

ITT already has infrastructure in place that can provide the base of the system, said John Kefaliotis, the company’s director of business development, FAA and air traffic control programs. They can leverage AT&T data systems and data centers, for example. Kefaliotis, who led the bid team, said ITT already has completed a significant amount of work and testing during the proposal period.

“We have stood up an instance of our system, so we do have radios on the West Coast and radios here at Herndon, [Va.],” Kefaliotis said. “We have radar system providing data from California, and we have those connected to data processing here at Herndon via an AT&T MPLS network, which is what we plan to us in our production system. We have an interface to our weather service provider; we’re bringing in weather data here, so we have done a significant amount of development effort during the proposal period to insure that we minimize schedule risk for the contract portion of the program.”

Phase one of the system is scheduled be rolled out by 2010 and will include about 300 ground stations around the Gulf of Mexico; Juno, Alaska; Louisville, Ky.; and Philadelphia. The United Postal Service will be voluntarily equipping their aircraft with the technology in Louisville and Philadelphia.

ITT Corp is required to enable the system to cover the entire nation by 2013, and the contract includes options for operation and maintenance of the system through September 2025. If all options are exercised, the contract could be worth $1.9 billion.