The Federal Aviation Administration is moving forward with a Global Positioning System (GPS)-based landing-guidance system that will improve aircraft safety during airport approaches and landings. The agency has awarded the Local Area Augmentation System (LAAS) contract to Honeywell International [NYSE: HON] of Minneapolis.

The contract has three phases. Phase I, valued at $16.7 million, provides for the software and hardware design of the Category I LAAS. Phase II and III contract options, which total an additional $340 million, cover the development and production of the Category I system. Category I precision landing provides a level of service in poor weather conditions down to a ceiling of 200 feet and visibility of a half mile.