305594C6d01

305594C6d01 - AIR TRAFFIC CONTROL MODERNIZATION: FAA FACES...

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AIR TRAFFIC CONTROL MODERNIZATION: FAA FACES CHALLENGES IN MANAGING ONGOING PROJECTS, SUSTAINING EXISTING FACILITIES, AND INTRODUCING NEW CAPABILITIES Federal Aviation Administration Report Number: AV-2008-049 Date Issued: April 14, 2008
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Memorandum U.S. Department of Transportation Office of the Secretary of Transportation Office of Inspector General Subject: ACTION : Air Traffic Control Modernization: FAA Faces Challenges in Managing Ongoing Projects, Sustaining Existing Facilities, and Introducing New Capabilities Date: April 14, 2008 Federal Aviation Administration Report Number AV-2008-049 From: Lou E. Dixon Assistant Inspector General for Aviation and Special Program Audits Reply to Attn. of: JA-10 To: Acting Federal Aviation Administrator This report provides the results of our review of the Federal Aviation Administration’s (FAA) major acquisitions. At the request of the Chairman and Ranking Member of the House Committee on Transportation and Infrastructure, we updated our May 2005 status report 1 on FAA’s major acquisitions and examined how projects are impacted by plans for the Next Generation Air Transportation System (NextGen). Our objectives were to examine (1) overall trends affecting FAA’s Facilities and Equipment (F&E) or capital account, (2) recent changes in cost and schedule baselines of FAA’s major acquisition programs, and (3) the effect of NextGen plans on existing projects. Our review examined 18 projects valued at $17.5 billion 2 in capital costs. These projects include developing new automated controller tools, acquiring new technologies to prevent accidents on runways and taxiways, and modernizing FAA facilities that manage large segments of airspace over the Atlantic and Pacific oceans. We performed this audit in accordance with generally accepted Government Auditing Standards as prescribed by the Comptroller General of the United States. Exhibit A details the status of the 18 projects, and exhibit B lists 1 OIG Report Number AV-2005-061, “Status of FAA’s Major Acquisitions: Cost Growth and Schedule Delays Continue To Stall Air Traffic Modernization,” May 26, 2005. OIG reports and testimonies are available on our website: www.oig.dot.gov . 2 The $17.5 billion total for the 18 projects reviewed includes baselined, non-baselined, and technical refreshment cost estimates presented in FAA’s Capital Investment Plan. i
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their cost and schedule variances. Exhibit C contains our review scope and methodology. FAA’s modernization effort and plans for NextGen are central issues in the debate about how best to finance FAA as the current tax structure expires. While there is controversy about various financing mechanisms, there is almost universal agreement by stakeholders that significant change is needed to meet the anticipated demand for air travel. BACKGROUND
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305594C6d01 - AIR TRAFFIC CONTROL MODERNIZATION: FAA FACES...

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