Next Generation Air Transportation System
Progress and Challenges in Planning and Implementing the Transformation of the National Airspace System Gao ID: GAO-07-649T March 22, 2007The skies over America are becoming more crowded every day. The consensus of opinion is that the current aviation system cannot be expanded to meet this projected growth. Recognizing the need for system transformation, in 2003 Congress authorized the Joint Planning and Development Office (JPDO) and requires the office to operate in conjunction with multiple federal agencies, including the Departments of Transportation, Commerce, Defense, and Homeland Security; the Federal Aviation Administration (FAA); the National Aeronautics and Space Administration (NASA); and the White House Office of Science and Technology Policy. JPDO is responsible for coordinating the related efforts of these partner agencies to plan the transformation to the Next Generation Air Transportation System (NextGen): a fundamental redesign of the national airspace system. FAA will be largely responsible for implementing the policies and systems necessary for NextGen, while safely operating the current air traffic control system. GAO's testimony focuses on (1) the progress that JPDO has made in planning NextGen and some challenges it continues to face and (2) the challenges that FAA faces transitioning to NextGen. GAO's statement is based on our recent reports as well as ongoing work, all of which has been conducted in accordance with generally accepted government auditing standards.
JPDO has made substantial progress in planning NextGen, but continues to face several challenges. JPDO has established a framework to facilitate federal interagency collaboration and is involving nonfederal stakeholders in its planning efforts. JPDO has begun leveraging the resources of its partner agencies and is finalizing key planning documents such as the concept of operations and the enterprise architecture. The draft concept of operations has been posted to JPDO's Web site for public comment and the enterprise architecture is expected to be completed in the next few months. JPDO and FAA have improved their collaboration and coordination by expanding and revamping FAA's Operational Evolution Plan--renamed the Operational Evolution Partnership--which is intended to provide an implementation plan for FAA for NextGen. Among the challenges JPDO faces are institutionalizing the interagency collaboration that is so central to its mission, developing a comprehensive cost estimate, and addressing potential gaps in research and development for NextGen. In transitioning to NextGen, FAA faces several challenges. Although FAA has taken several actions to improve its management of current air traffic control modernization efforts, institutionalizing these improvements will require continued strong leadership, particularly since the agency will have lost two of its key agents for change by September 2007. Costs are another challenge facing FAA as it addresses the resource demands that NextGen will likely pose, while continuing to maintain the current air traffic control system. Finally, determining whether it has the technical and contract management expertise necessary to implement NextGen is a challenge for FAA.
GAO-07-649T, Next Generation Air Transportation System: Progress and Challenges in Planning and Implementing the Transformation of the National Airspace System
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Testimony:
Before the Subcommittee on Aviation Operations, Safety and Security,
Committee on Commerce, Science and Transportation, U.S. Senate:
United States Government Accountability Office:
GAO:
For Release on Delivery Expected at 9:30 a.m. EDT:
Thursday, March 22, 2007:
Next Generation Air Transportation System:
Progress and Challenges in Planning and Implementing the Transformation
of the National Airspace System:
Statement of Susan Fleming, Acting Director:
Physical Infrastructure Issues:
GAO-07-649T:
GAO Highlights:
Highlights of GAO-07-649T, a testimony before the Subcommittee on
Aviation Operations, Safety and Security, Committee on Commerce,
Science and Transportation, U.S. Senate
Why GAO Did This Study:
The skies over America are becoming more crowded every day. The
consensus of opinion is that the current aviation system cannot be
expanded to meet this projected growth. Recognizing the need for system
transformation, in 2003 Congress authorized the Joint Planning and
Development Office (JPDO) and requires the office to operate in
conjunction with multiple federal agencies, including the Departments
of Transportation, Commerce, Defense, and Homeland Security; the
Federal Aviation Administration (FAA); the National Aeronautics and
Space Administration (NASA); and the White House Office of Science and
Technology Policy. JPDO is responsible for coordinating the related
efforts of these partner agencies to plan the transformation to the
Next Generation Air Transportation System (NextGen): a fundamental
redesign of the national airspace system. FAA will be largely
responsible for implementing the policies and systems necessary for
NextGen, while safely operating the current air traffic control system.
GAO‘s testimony focuses on (1) the progress that JPDO has made in
planning NextGen and some challenges it continues to face and (2) the
challenges that FAA faces transitioning to NextGen. GAO‘s statement is
based on our recent reports as well as ongoing work, all of which has
been conducted in accordance with generally accepted government
auditing standards.
What GAO Found:
JPDO has made substantial progress in planning NextGen, but continues
to face several challenges. JPDO has established a framework to
facilitate federal interagency collaboration and is involving
nonfederal stakeholders in its planning efforts. JPDO has begun
leveraging the resources of its partner agencies and is finalizing key
planning documents such as the concept of operations and the enterprise
architecture. The draft concept of operations has been posted to JPDO‘s
Web site for public comment and the enterprise architecture is expected
to be completed in the next few months. JPDO and FAA have improved
their collaboration and coordination by expanding and revamping FAA‘s
Operational Evolution Plan”renamed the Operational Evolution
Partnership”which is intended to provide an implementation plan for FAA
for NextGen. Among the challenges JPDO faces are institutionalizing the
interagency collaboration that is so central to its mission, developing
a comprehensive cost estimate, and addressing potential gaps in
research and development for NextGen.
In transitioning to NextGen, FAA faces several challenges. Although FAA
has taken several actions to improve its management of current air
traffic control modernization efforts, institutionalizing these
improvements will require continued strong leadership, particularly
since the agency will have lost two of its key agents for change by
September 2007. Costs are another challenge facing FAA as it addresses
the resource demands that NextGen will likely pose, while continuing to
maintain the current air traffic control system. Finally, determining
whether it has the technical and contract management expertise
necessary to implement NextGen is a challenge for FAA.
Figure: Seven Partner Agencies For the Joint PLanning and Development
Office:
[See PDF for Image]
Source: GAO.
[End of figure]
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-07-649T].
To view the full product, including the scope and methodology, click on
the link above. For more information, contact Susan Fleming at (202)
512-2834, or flemings@gao.gov.
[End of section]
Mr. Chairman and Members of the Subcommittee:
I appreciate the opportunity to testify before you today on efforts to
transform the current national airspace system to the Next Generation
Air Transportation System (NextGen). The skies over America are
becoming more crowded every day. Demand for air travel has increased in
recent years, with over 740 million passengers flying in fiscal year
2006, climbing toward an estimated 1 billion passengers per year in
2015, according to FAA estimates. The consensus of opinion is that the
current aviation system cannot be expanded to meet this projected
growth. In 2003, recognizing the need for system transformation,
Congress authorized the creation of the Joint Planning and Development
Office (JPDO) and required the office to operate in conjunction with
multiple federal agencies, including the Departments of Transportation,
Commerce, Defense, and Homeland Security; the Federal Aviation
Administration (FAA); the National Aeronautics and Space Administration
(NASA); and the White House Office of Science and Technology
Policy.[Footnote 1] JPDO is responsible for coordinating the related
efforts of these partner agencies to plan the transformation to
NextGen: a fundamental redesign of the air transportation system that
will entail precision satellite navigation; digital, networked
communications; an integrated weather system; layered, adaptive
security; and more. FAA will be largely responsible for implementing
the policies and systems necessary for NextGen, while safely operating
the current air traffic control system 24 hours a day, 7 days a week.
My testimony today addresses issues concerning both JPDO and FAA as the
NextGen effort begins to move from conceptualization and planning to
implementation of systems and procedures. Specifically, my testimony
focuses on (1) the progress that JPDO has made in planning the NextGen
system and some challenges it continues to face and (2) the challenges
that FAA faces in transitioning to NextGen. My statement is based on
our recent reports as well as ongoing work for this subcommittee. We
conducted this work in accordance with generally accepted government
auditing standards.
In summary:
* JPDO has made substantial progress in planning NextGen, but continues
to face several challenges. JPDO has established a framework to
facilitate the federal interagency collaboration that is central to its
mission, and is involving nonfederal stakeholders in its planning
efforts. JPDO has begun leveraging the resources of its partner
agencies and finalizing several key documents that form the fundamental
plan for NextGen, including a concept of operations and an enterprise
architecture. The draft concept of operations has been posted to JPDO's
Web site for public comment and the enterprise architecture is expected
to be completed in the next few months. JPDO and FAA have improved
their collaboration and coordination by developing an expanded and
revamped Operational Evolution Plan intended to provide a NextGen
implementation plan for FAA. JPDO has faced a continuing challenge in
institutionalizing interagency collaboration. JPDO also faces
challenges in developing a comprehensive cost estimate, exploring
potential gaps in research and development for NextGen, incorporating
the expertise of all major stakeholders, researching human factors
issues, and establishing credibility among stakeholders.
* FAA faces challenges in institutionalizing recent management
improvements and controlling costs as it begins the transition to
NextGen. By creating the Air Traffic Organization (ATO) in 2003, and
appointing a Chief Operating Officer (COO) to head ATO, FAA established
a new management structure and adopted more leading practices of
private sector businesses to address the cost, schedule, and
performance shortfalls that have plagued its air traffic control
modernization efforts. For example, FAA has taken steps to improve its
acquisition workforce culture and work toward a results-oriented, high-
performance organization. However, institutionalizing these changes
will require continued strong leadership, particularly since the agency
will have lost two of its significant agents for change--the FAA
Administrator and the COO--by September 2007. Additionally, the costs
of operating and maintaining the current air traffic control system
while implementing NextGen will be another important challenge for FAA,
as will having the technical and contract management expertise needed
to implement a system as complex as NextGen.
JPDO Has Made Progress in Planning NextGen, but Faces Several
Challenges:
JPDO has made progress in planning NextGen by facilitating
collaboration among its partner agencies, working to finalize key
planning documents, and improving its collaboration and coordination
with FAA. Among the challenges JPDO faces are institutionalizing
collaboration among the partner agencies, and identifying and exploring
questions related to which entity will fund and conduct the research
and development needed to meet NextGen requirements.
JPDO Has Made Progress in Planning NextGen by Facilitating
Collaboration Among Partner Agencies, Working to Finalize Key Planning
Documents, and Improving Coordination with FAA:
JPDO has made progress in many areas in planning NextGen, as we
reported in November 2006.[Footnote 2] I will highlight just a few of
those areas in this testimony. First, JPDO has taken several actions
that are consistent with practices that facilitate interagency
collaboration--an important point given how critical such collaboration
is to the success of JPDO's mission. For example, the JPDO partner
agencies worked together to develop a high level plan for NextGen along
with eight strategies that broadly address the goals and objectives for
NextGen.[Footnote 3] JPDO has since issued two annual updates to this
plan, as required by Congress. Also, JPDO's organizational structure
involves federal and nonfederal stakeholders throughout. This structure
includes a federal interagency senior policy committee, an institute
for nonfederal stakeholders, and eight integrated product teams that
bring together federal and nonfederal experts to plan for and
coordinate the development of technologies that will address JPDO's
eight broad strategies. JPDO has also begun leveraging the resources of
its partner agencies in part by reviewing their research and
development programs, identifying work to support NextGen, and working
to minimize duplication of research programs across the agencies. For
example, one opportunity for coordination involves aligning aviation
weather research across FAA, NASA, and the Departments of Commerce and
Defense, developing a common weather capability, and integrating
weather information into NextGen.
In addition to developing and updating its high-level integrated plan,
first published in December 2004, JPDO has been working to develop
several critical documents that form the foundation of NextGen
planning, including a draft concept of operations and an enterprise
architecture. The concept of operations describes how the
transformational elements of NextGen will operate in 2025. It is
intended to establish general stakeholder buy-in to the NextGen end
state, a transition path, and a business case. The enterprise
architecture follows from the concept of operations and will describe
the system in more detail (using the federal enterprise architecture
framework). It will be used to integrate NextGen efforts of the partner
agencies. The draft concept of operations has been posted to JPDO's Web
site for stakeholder review and comment. According to JPDO, an expanded
version of the enterprise architecture is expected in mid-2007.
Progress has also been made in improving the collaboration and
coordination between JPDO and FAA--the agency largely responsible for
the implementation of NextGen systems and capabilities. FAA has
expanded and revamped its Operational Evolution Plan (OEP)--renamed the
Operational Evolution Partnership--to become FAA's implementation plan
for NextGen.[Footnote 4] The OEP is being expanded to apply to all of
FAA and is intended to become a comprehensive description of how the
agency will implement NextGen, including the required technologies,
procedures, and resources. An ATO official told us that the new OEP is
to be consistent with JPDO's key planning documents and partner agency
budget guidance. According to FAA, the new OEP will allow it to
demonstrate appropriate budget control and linkage to NextGen plans and
will force FAA's research and development to be relevant to NextGen's
requirements. According to FAA documents, the agency plans to publish
the new OEP in June 2007.
In an effort to further align FAA's efforts with JPDO's plans for
NextGen, FAA has created a NextGen Review Board to oversee the OEP.
This Review Board will be co-chaired by JPDO's Director and ATO's Vice
President of Operations Planning. Initiatives, such as concept
demonstrations or research, proposed for inclusion in the OEP, will now
need to go through the Review Board for approval. Initiatives are to be
assessed for relation to NextGen requirements, concept maturity, and
risk. An ATO official told us that the new OEP process should also help
identify some smaller programs that might be inconsistent with NextGen
and which could be discontinued. Additionally, as a further step
towards integrating ATO and JPDO, the administration's reauthorization
proposal calls for the JPDO Director to be a voting member of FAA's
Joint Resources Council and ATO's Executive Council.
Challenges for JPDO Include Institutionalizing Interagency
Collaboration and Exploring Potential Gaps in Research and Development
Needs for NextGen:
Although JPDO has established a framework for collaboration, it has
faced a challenge in institutionalizing this framework. As JPDO is a
coordinating body, it has no authority over its partner agencies' key
human and technological resources needed to continue developing plans
and system requirements for NextGen. For example, JPDO has been working
to establish a memorandum of understanding (MOU) with its partner
agencies to more clearly define partner agencies' roles and
responsibilities since at least August 2005. As of March 16, 2007,
however, the MOU remained unsigned. Another key activity for
strengthening the collaborative effort will be synchronizing the
NextGen enterprise architecture with the partner agencies' enterprise
architectures. These types of efforts, which would better
institutionalize JPDO's collaborative framework throughout the partner
agencies, will be critical to JPDO's ability to leverage the necessary
funding for developing NextGen. Institutionalization would help ensure
that, as administrations and staffing within JPDO change over the
years, those coming into JPDO will have a clear understanding of their
roles and responsibilities and of the time and resource commitments
entailed.
JPDO faces a challenge in developing a comprehensive cost estimate for
the NextGen effort. In its recent 2006 Progress Report,[Footnote 5]
JPDO reported some cost estimates related to FAA's NextGen investment
portfolio, which I will discuss in more detail later in this statement.
However, JPDO is still working to develop an understanding of the
future requirements of its other partner agencies and the users of the
system. JPDO stated that it sees its work in estimating costs as an
ongoing process. The office notes that it will gain additional insight
into the business, management, and technical issues and alternatives
that will go into the long-term process of implementing NextGen as it
continues to work with industry, and that it expects its cost estimates
to continue to evolve.
Another challenge facing JPDO is exploring potential gaps in the
research and development necessary to achieve some key NextGen
capabilities and to keep the development of new systems on schedule. In
the past, a significant portion of aeronautics research and
development, including intermediate technology development, has been
performed by NASA. However, our analysis of NASA's aeronautics research
budget and proposed funding shows a 30 percent decline, in constant
2005 dollars, from fiscal year 2005 to fiscal year 2011. To its credit,
NASA plans to focus its research on the needs of NextGen. However, NASA
is also moving toward a focus on fundamental research and away from
developmental work and demonstration projects. FAA is currently
assessing its capacity to address these issues. Currently it is unknown
how all of the significant research and development activities inherent
in the transition to NextGen will be conducted or funded.
Still another challenge facing JPDO is ensuring that all relevant
stakeholders are involved in the effort. Some stakeholders, such as
current air traffic controllers and technicians, will play critical
roles in NextGen, and their involvement in planning for and deploying
the new technology will be important to the success of NextGen. In
November 2006, we reported that air traffic controllers were not
involved in the NextGen planning effort.[Footnote 6] Controllers are
beginning to become involved as the controllers' union is now
represented on a key planning body. However, technicians are currently
not participating in NextGen efforts. Input from current air traffic
controllers who have recent experience controlling aircraft and current
technicians who will maintain the new equipment is important is
considering human factors and safety issues. Our work on past air
traffic control modernization projects has shown that a lack of
stakeholder or expert involvement early and throughout a project can
lead to cost increases and delays.
Addressing human factors issues is another key challenge for JPDO. For
example, the NextGen concept of operations envisions that pilots will
take on a greater share of the responsibility for maintaining safe
separation and other tasks currently performed by controllers--raising
human factors questions about whether pilots can safely perform these
additional duties. According to JPDO, the change in the roles of
controllers and pilots is the most important human factors issue
involved in creating NextGen but will be difficult to research because
data on pilot behavior are not readily available for use in creating
models.
Finally, we reported in November 2006 that establishing credibility was
viewed by the majority of the expert panelists we consulted as a
challenge facing JPDO. This view partially stems from past experiences
in which the government has stopped some modernization efforts after
industry invested in supporting technologies. Stakeholders' belief that
the government is fully committed to NextGen will be important as
efforts to implement NextGen technologies move forward. Another
credibility challenge for JPDO is convincing stakeholders that the
collaborative effort is making progress toward facilitating
implementation. To address this challenge, the new Director of JPDO is
planning to implement some structural and procedural changes to the
office. For example, the Director has proposed changing JPDO's
integrated product teams into "working groups" that would task small
teams with exploring specific issues and delivering discrete work
products. These changes have not yet been implemented at JPDO and it
will take some time before the effectiveness of these changes can be
evaluated.
FAA Faces Challenges in Transitioning to NextGen:
FAA is a principal player in JPDO's efforts and will be the chief
implementer of NextGen. Successful implementation will depend, in part,
on how well FAA addresses its challenges of institutionalizing its
recent improvement in managing air traffic control modernization
efforts, addressing the cost challenges of implementing NextGen while
safely maintaining the current air traffic control system, and
obtaining the expertise needed to implement a system as complex as
NextGen. I turn now to these challenges.
FAA Faces the Challenge of Institutionalizing Recent Progress in
Managing Air Traffic Control Modernization Efforts:
A successful transition to NextGen will depend, to a great extent, on
FAA's ability to manage the acquisition and integration of multiple
NextGen systems. Since 1995, we have designated FAA's air traffic
control modernization program as high risk because of systemic
management and acquisition problems. In recent years, FAA has taken a
number of actions to improve its management of acquisitions.
Realization of NextGen goals could be severely compromised if FAA's
improved processes are not institutionalized and carried over into the
implementation of NextGen, which is an even more complex and ambitious
undertaking than past modernization efforts.
To its credit, FAA has taken a number of actions to improve its
acquisition management. By creating the Air Traffic Organization (ATO)
in 2003, and appointing a Chief Operating Officer (COO) to head ATO,
FAA established a new management structure and adopted more leading
practices of private sector businesses to address the cost, schedule,
and performance shortfalls that have plagued air traffic control
acquisitions. ATO has worked to create a flatter organization, with
fewer management layers, and has reported reducing executive staffing
by 20 percent and total management by 16 percent. In addition, FAA uses
a performance management system to hold managers responsible for the
success of ATO. More specifically, to better manage its acquisitions
and address problems we have identified,[Footnote 7] FAA has:
* established strategic goals to improve its acquisition workforce
culture and build towards a results-oriented, high-performing
organization;
* developed and applied a process improvement model to assess the
maturity of its software and systems acquisitions capabilities
resulting in, among other things, enhanced productivity and greater
ability to predict schedules and resources; and:
* reported that it has established a policy and guidance on using
Earned Value Management (EVM) in its acquisition management system and
that 19 of its major programs are currently using EVM.[Footnote 8]
Institutionalizing these improvements throughout the agency (i.e.,
providing for their duration beyond the current leadership by ensuring
that reforms are fully integrated into the agency's structure and
processes and have become part of its organizational culture) will
continue to be a challenge for FAA. For example, the agency has yet to
implement its cost estimating methodology, although, according to the
agency, it has provided training on the methodology to employees.
Furthermore, FAA has not established a policy to require use of its
process improvement model on all major acquisitions for the national
airspace system. Until the agency fully addresses these legacy issues,
it will continue to risk program management problems affecting cost,
schedule, and performance. With a multi-billion dollar acquisition
budget, addressing these issues is as important as ever.
Institutionalizing Change within FAA Will Require Continued Strong
Leadership:
While FAA has implemented many positive changes to its management
processes, it currently faces the loss of key leaders. We have reported
that the experiences of successful transformations and change
management initiatives in large public and private organizations
suggest that it can take 5 to 7 years or more until such initiatives
are fully implemented and cultures are transformed in a sustainable
manner. Such changes require focused, full-time attention from senior
leadership and a dedicated team.[Footnote 9] FAA's management
improvements are relatively recent developments, and the agency will
have lost two of its significant agents for change--the Administrator
and the COO--by the end of September. The administrator's term ends in
September 2007; the COO left in February 2007, after serving 3 years.
This situation is exacerbated by the fact that the current Director of
JPDO is also new, having assumed that position in August 2006. For the
management and acquisition improvements to further permeate the agency,
and thus provide a firm foundation upon which to implement NextGen,
FAA's new leaders will need to demonstrate the same commitment to
improvement as the outgoing leaders. This continued commitment to
change is critical over the next few years, as foundational NextGen
systems begin to be implemented. Expeditiously moving to find a new COO
will help sustain this momentum.
FAA Faces a Cost Challenge of Implementing NextGen while Sustaining the
Current Air Traffic Control System:
JPDO recently reported some estimated costs for NextGen, including
specifics on some early NextGen programs.[Footnote 10] JPDO believes
the total federal cost for NextGen infrastructure through 2025 will
range between $15 billion and $22 billion. JPDO also reported that a
preliminary estimate of the corresponding cost to system users, who
will have to equip with the advanced avionics that are necessary to
realize the full benefits of some NextGen technologies, ranges between
$14 and $20 billion. JPDO noted that this range for avionics costs
reflects uncertainty about equipage costs for individual aircraft, the
number of very light jets that will operate in high-performance
airspace, and the amount of out-of-service time required for
installation.
In its Capital Investment Plan for fiscal years 2008-2012, FAA includes
estimated expenditures for eleven line items that are considered
NextGen capital programs.[Footnote 11] The total 5-year estimated
expenditures for these programs are $4.3 billion. In fiscal year 2008,
only six of the line items are funded for a total of roughly $174
million; funding for the remaining five programs would begin with the
fiscal year 2009 budget. According to FAA, in addition to capital
spending for NextGen, the agency will also spend an estimated $300
million on NextGen-related research and development from fiscal years
2008 through 2012. Also, the administration's budget for fiscal year
2008 for FAA includes $17.8 million to support the activities of JPDO.
It is important to note that while FAA must manage the costs associated
with the NextGen transformation, it must simultaneously continue to
fund and operate the current national airspace system. In fact, the
Department of Transportation's Inspector General has reported that the
majority of FAA's capital funds go toward the sustainment of current
air traffic systems and that, over the last several years, increasing
operating costs have crowded out funds for the capital account. Efforts
to sustain the current system are particularly important given the
safety concerns that could be involved with system outages--the number
of which has increased steadily over the last few years as the system
continues to age.
For example, the adequacy of FAA's maintenance of existing systems was
raised following a power outage and equipment failures in Southern
California that caused hundreds of flight delays during the summer of
2006. Investigations by the DOT Inspector General into these incidents
identified a number of underlying issues, including the age and
condition of equipment. Nationwide, the number of scheduled and
unscheduled outages of air traffic control equipment and ancillary
support systems has been increasing (see fig. 1). According to FAA,
increases in the number of unscheduled outages indicate that systems
are failing more frequently. FAA also notes that the duration of
unscheduled equipment outages has also been increasing in recent years
from an average of about 21 hours in 2001 to about 40 hours in 2006,
which may indicate, in part, that maintenance and troubleshooting
activities are requiring more effort and longer periods of time.
However, the agency considers user impact and resource efficiency when
planning and responding to equipment outages, according to an FAA
official. As a result, although some outages will have longer
restoration times, FAA believes that they do not adversely affect air
traffic control operations. It will be important for FAA to monitor and
address equipment outages to ensure the safety and efficiency of the
legacy systems and a smooth transition to NextGen.
Figure 1: Number of Scheduled and Unscheduled Equipment Outages,
Calendar Years 2001-2006:
[See PDF for image]
Source: GAO analysis of FAA's NASPAS data.
[End of figure]
As part of managing the costs of system sustainment and system
modernization, FAA is seeking ways to reduce costs by introducing
infrastructure and operational efficiencies. For example, FAA plans to
produce cost savings through outsourcing and facility consolidations.
FAA is outsourcing flight service stations and estimates a $2.2 billion
savings over 12 years. Similarly, FAA is seeking savings through
outsourcing its planned nationwide deployment of Automatic Dependent
Surveillance-Broadcast (ADS-B), a critical surveillance technology for
NextGen. FAA is planning to implement ADS-B through a performance-based
contract in which FAA will pay "subscription" charges for the ADS-B
services and the vendor will be responsible for building and
maintaining the infrastructure. (FAA also reports that the ADS-B
rollout will allow the agency to remove 50 percent of its current
secondary radars, saving money in the ADS-B program's baseline.) As for
consolidating facilities, FAA is currently restructuring its
administrative service areas from nine offices to three offices, which
FAA estimates will save up to $460 million over 10 years.
We have previously reported that FAA should pursue further cost control
options, such as exploring additional opportunities for contracting out
services and consolidating facilities. However, we recognize that FAA
faces challenges with consolidating facilities, an action that can be
politically sensitive. In recognition of this sensitivity, the
administration has proposed in FAA's reauthorization proposal that the
Secretary of Transportation be authorized to establish an independent,
five-member Commission, known as the Realignment and Consolidation of
Aviation Facilities and Services Commission, to independently analyze
FAA's recommendations to realign facilities or services. The Commission
would then send its own recommendations to the President and to
Congress. In the past, we have noted the importance of potential cost
savings through facility consolidations; however, it must also be noted
that any such consolidations must be handled through a process that
solicits and considers stakeholder input throughout, and fully
considers the safety implications of any proposed facility closures or
consolidations.
FAA Needs to Explore Whether It Has the Technical and Contract
Management Expertise Necessary to Implement NextGen:
In the past, a lack of expertise contributed to weaknesses in FAA's
management of air traffic control modernization efforts, and industry
experts with whom we spoke questioned whether FAA will have the
technical expertise needed to implement NextGen. In addition to
technical expertise, FAA will need contract management expertise to
oversee the systems acquisitions and integration involved in NextGen.
In November, we recommended that FAA examine its strengths and
weaknesses with regard to the technical expertise and contract
management expertise that will be required to define, implement, and
integrate the numerous complex programs inherent in the transition to
NextGen.[Footnote 12] In response to our recommendation, FAA is
considering convening a blue ribbon panel to study the issue and make
recommendations to the agency about how to best proceed with its
management and oversight of the implementation of NextGen. We believe
that such a panel could help FAA begin to address this challenge.
To conclude, transforming the national airspace system to accommodate
much greater demand for air transportation services in the years ahead
will be an enormously complex undertaking. JPDO has made strides in
meeting its planning and coordination role as set forth by Congress,
and FAA has taken several steps in recent years that better position it
to successfully implement NextGen. If JPDO and FAA can build on their
recent achievements and overcome the many challenges they face, the
transition to NextGen stands a much better chance for success.
Mr. Chairman, this concludes my statement. I am pleased to answer any
questions you or members of the Subcommittee might have.
GAO Contact and Staff Acknowledgements:
For further information on this testimony, please contact Susan Fleming
at (202) 512-2834 or flemings@gao.gov. Individuals making key
contributions to this testimony include Gerald Dillingham, Matthew
Cook, Anne Dilger, Sharon Dyer, Colin Fallon, Heather Krause, Edmond
Menoche, Faye Morrison, and Carrie Wilks.
FOOTNOTES
[1] Pub. L. No. 108-176, Vision 100--Century of Aviation
Reauthorization Act, December 12, 2003.
[2] GAO, Next Generation Air Transportation System: Progress and
Challenges Associated with the Transformation of the National Airspace
System, GAO-07-25 (Washington, D.C.: Nov. 13, 2006).
[3] The eight strategies are: (1) Develop airport infrastructure to
meet future demand; (2) establish an effective security system without
limiting mobility or civil liberties; (3) establish an agile air
traffic system that quickly responds to shifts in demand; (4) establish
shared situational awareness--where all users share the same
information; (5) establish a comprehensive and proactive approach to
safety; (6) develop environmental protection that allows sustained
aviation growth; (7) develop a systemwide capability to reduce weather
impacts; and (8) harmonize equipage and operations globally.
[4] Prior to expansion of the OEP, the document centered around plans
for increasing capacity and efficiency at 35 major airports.
[5] JPDO, Making the NextGen Vision a Reality: 2006 Progress Report to
the Next Generation Air Transportation System Integrated Plan,
(Washington, D.C; March 2007).
[6] GAO-07-25.
[7] GAO, Federal Aviation Administration: Stronger Architecture Program
Needed to Guide Systems Modernization Efforts, GAO-05-266 (Washington,
D.C.: Apr. 29, 2005); Air Traffic Control: System Management
Capabilities Improved, but More can be Done to Institutionalize
Improvements, GAO-04-901 (Washington, D.C.: Aug. 20, 2004); and
Information Technology: FAA Has Many Investment Management Capabilities
in Place, but More Oversight of Operational Systems is Needed, GAO-04-
822 (Washington, D.C.: Aug. 20, 2004).
[8] EVM is a project management technique that combines measurements of
technical performance, schedule performance, and cost performance with
the intent of providing an early warning of problems while there is
time for corrective action.
[9] GAO, National Airspace System: Transformation will Require Cultural
Change, Balanced Funding Priorities, and Use of All Available
Management Tools, GAO-06-154 (Washington, D.C.: Oct. 14, 2005).
[10] JPDO, Making the NextGen Vision a Reality: 2006 Progress Report to
the Next Generation Air Transportation System Integrated Plan,
(Washington, D.C.: March 2007)
[11] FAA has six capital investment programs that it considers
transformational NextGen programs slated to receive funding in fiscal
year 2008: ADS-B nationwide implementation, System Wide Information
Management (SWIM), NextGen Data Communications, NextGen Network Enabled
Weather, National Airspace System Voice Switch, and NextGen Technology
Demonstration. In addition, five other programs are slated to begin
funding in 2009: NextGen System Development, NextGen High Altitude
Trajectory Based Operations, NextGen High Density Airports, NextGen
Networked Facilities, and NextGen Cross-Cutting Infrastructure.
[12] GAO-07-25.
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