Air Traffic Control

This annual report provides information on the status of the Federal Aviation Administration's efforts to modernize the air traffic control system, which now include 158 projects funded through the facilities and equipment appropriation account. This information includes changes in total modernization costs, number of completed projects, and trends for unobligated funds. GAO also provides detailed information on cost and schedules estimated for 15 major modernization projects that account for more than 40 percent of FAA's 1996 facilities and equipment budget request. FAA is seeking $1.9 billion in its budget request, or nine percent below its 1995 appropriation.

GAO found that: (1) FAA estimates that ATC modernization costs will total $37.3 billion from FY 1982 through FY 2003, a $1.5 billion decrease from the 1994 estimate; (2) although Congress has appropriated $19.8 billion through FY 1995 for ATC modernization, FAA expects lower funding levels and will have to extend development schedules beyond FY 2003 or terminate some projects; (3) 18 of the current 158 projects under CIP will extend beyond FY 2003 and cost an additional $842 million; (4) FAA has completed 64 projects at a cost of $3.8 billion and has decreased its unobligated F&E balance for the second straight year, partly due to appropriation expirations and rescissions; (5) FAA has added 5 new projects to CIP at a cost of $232 million; (6) estimated F&E costs for 11 of the 15 major project have increased by $219 million in the past year; (7) FAA has made progress in fielding equipment for some of its projects, but implementation schedules for 9 projects have slipped by an average of 5 years; (8) because of substantial cost increases and schedule slippages, FAA has restructured its Advanced Automation System (AAS) into 3 more manageable projects that are expected to cost less, but these projects will provide lesser capabilities; and (9) although FAA has strengthened its control of the restructured AAS, it continues to experience software problems.