	FAA Has Implemented Aspects of NextGen That Have Produced Measurable Benefits, but Delays Threaten to Increase Costs and Impact Overall Implementation

FAA has made progress in several areas to improve its implementation of  NextGen. For example, FAA has begun work to streamline its procedure  approval processes—including its environmental reviews of new  procedures—and has expanded its capacity to develop new performance- based navigation routes and procedures. However, aircraft operators have complained that FAA has not produced  the most useful or beneficial routes and procedures to date. To address  these concerns, FAA has undertaken thorough reviews in a number of  areas. With respect to the continuing implementation of NextGen systems and  capabilities, our ongoing work has preliminarily found that some key  NextGen-related programs are generally proceeding on time and on  budget (see table 1). ERAM  is also pivotal to the on-time implementation of two other key NextGen  acquisitions—Data Communications and SWIM. The long-term result of this  decision is not yet known but it could delay certain SWIM capabilities and  hinder the progress of other capabilities that depend, in turn, on the  system integration that SWIM is intended to provide. Most of this proposed reduction is  on NextGen and NextGen-related spending, as reflected in FAA’s revised  5-year Capital Investment Plan for fiscal years 2012 through 2016. FAA Faces Several Ongoing Issues That Will Affect NextGen Implementation

To maintain credibility with aircraft operators that NextGen will be  implemented, FAA must deliver systems and capabilities on time so that  operators have incentives to invest in the avionics that will enable  NextGen to operate as planned. That industry skepticism,  which we have found lingers today, could delay the time when significant  NextGen benefits—such as increased capacity and more direct, fuel- saving routing—are realized. For this statement, we would like to highlight  a few specific areas: the potential effect of program delays on  international harmonization efforts, the need for FAA to ensure that it  addresses human factors and workforce training issues to successfully  transition to a new air transportation system, the need for FAA to continue  to address potential environmental impacts, and the need for FAA to  improve the management and governance of NextGen. Delays to NextGen programs, and potential reductions in the budget  for NextGen activities, could delay the schedule for harmonization  with Europe’s air traffic management modernization efforts and the  realization of these benefits. In addition to integrating human factors research into NextGen  systems, FAA and NASA will have to identify and develop the training  necessary to address controllers’ and pilots’ changing roles, and have  this training in place before NextGen is fully realized (when some  aircraft will be equipped with NextGen systems and others will not). To its credit, FAA  has been working to develop procedures for streamlining  environmental review processes that affect NextGen activities. Need to improve management and governance. We have previously reported on problems with  FAA’s management and oversight of NextGen acquisitions and  implementation. Specifically, FAA plans to abolish and merge a  number of committees to improve decision making and reduce time  requirements of senior FAA executives. In addition,  contact points for our Offices of Congressional Relations and Public  Affairs may be found on the last page of this statement.
Why GAO Did This Study

This testimony discusses the current progress toward implementing the Next Generation Air Transportation System (NextGen). NextGen will impact nearly every aspect of air transportation and will transform the way in which the air transportation system operates today. It will do so, in part, by (1) using satellite-based surveillance as opposed to ground-based radars, (2) using performance-based navigation instead of cumbersome step-by-step procedures, (3) replacing routine voice communications with data transmissions, and (4) organizing and merging the disjointed data that pilots, controllers, airports, airlines, and others currently rely on to operate the system. The Federal Aviation Administration (FAA) has been planning and developing NextGen since 2003, and is now implementing near-term (through 2012) and mid-term (through 2018) capabilities. Over the years, concerns have been raised by the Congress and other stakeholders that despite years of effort and billions of dollars spent, FAA has not made sufficient progress in deploying systems and producing benefits. In past reports, we have made a number of recommendations to FAA to address delays in development and acquisitions, improve its processes, and focus on accountability and performance. Others have also made recommendations to FAA to improve its implementation of NextGen. For example, the Department of Transportation's Office of the Inspector General recently made recommendations regarding specific NextGen programs, and the NextGen Midterm Implementation Task Force--whose creation was requested by FAA--resulted in consensus recommendations from industry on specific capabilities FAA should prioritize. Over the last 2 years, FAA has taken several steps and instituted many changes to address several of these issues. This statement today discusses (1) the results of NextGen programs and improvements to date and (2) ongoing issues that will affect NextGen implementation. This statement today is based on our NextGen-related reports and testimonies over the last 2 years; ongoing work for this subcommittee that includes our analysis of selected NextGen acquisitions and our analysis of FAA's efforts to harmonize NextGen with air traffic control modernization efforts in Europe; our review of FAA's 2025 Strategic Plan, 2011 NextGen Implementation Plan, 2012 Budget Submission, and other documents; and selected program updates from FAA officials.

What GAO Found

In summary, FAA has improved its efforts to implement NextGen and is continuing its work to address critical issues that we, stakeholders, and others have identified over the years. In some areas, FAA has implemented NextGen capabilities that have demonstrated measurable benefits for system users, such as fuel savings. FAA has also made progress in streamlining its processes, improving its capacity to develop new flight procedures, and focusing its efforts on specific procedures that are needed in key metropolitan areas. Furthermore, we found that several NextGen-related acquisitions are generally on time and on budget. However, some acquisitions have been delayed, which has impacted the timelines of other dependent systems, and the potential exists for other acquisitions to also encounter delays. These delays have resulted in increased costs and reduced benefits. Going forward, FAA must focus on delivering systems and capabilities in a timely fashion to maintain its credibility with industry stakeholders, whose adoption of key technologies is crucial to NextGen's success. FAA must also continue to monitor how delays will affect international harmonization issues, focus on human factors issues, streamline environmental approvals, mitigate environmental impacts, and focus on improving management and governance.