INL supports a wide variety of rotary and fixed-wing aircraft. A comprehensive aviation fleet management planning process detailed in  guidance that OMB and GSA have issued can help federal aircraft  programs ensure that they acquire, manage, and modernize their aircraft in  a cost-effective manner. Sound fleet management decisions should be  based on a comprehensive process that relies on three key principles: (1)  assessing a program’s long-term fleet requirements, (2) acquiring the most  cost-effective fleet of aircraft to meet those requirements, and (3)  assessing fleet performance to determine if the needs are being effectively  met. State Did Not Employ a Systematic Process for Managing Its Aviation Fleet in Accordance with OMB and GSA Guidance, but Plans to Do So Are Under Way

Although INL has made limited progress since we first assessed the Air  Wing’s aviation fleet management in 2004 in adhering to OMB and GSA  guidance, the bureau plans to undertake a more systematic management  approach beginning in 2007. The bureau has not (1) conducted a strategic  assessment of all long-term fleet requirements, (2) justified new aircraft  investments in a systematic way that considers the range of alternatives  and life cycle costs, or (3) routinely reviewed the performance of the fleet  to ensure that its composition is the most appropriate and cost-effective to  achieve the bureau’s missions. Since 2004, INL has prepared a strategic plan and a Critical Flight Safety  Program for Air Wing operations. INL has recently taken steps to justify its aircraft investment decisions  better. We  found that INL has neither assessed the composition of its aviation fleet,  nor fully tracked cost and usage of its aircraft. Without such a review, INL cannot demonstrate that  the composition of its fleet and planned additions to it are appropriate and  cost-effective. If INL follows through, these analyses should result in a  long-term plan for aircraft investments and an assessment of the current  composition of the fleet to help ensure that it is the most cost-effective to  meet mission requirements. Since INL has undertaken a number of initiatives to address the  management weaknesses we observed, we are not making any  recommendations in this report. However, we will follow up with INL to  ensure that these initiatives have been completed in 2007, as planned. State highlighted the management reforms INL has  undertaken to enhance the efficiency and effectiveness of aviation fleet  management, as well as to improve INL’s adherence to OMB and GSA  guidance. State disagreed with our observation that INL did  not provide fleet investment justifications using cost-benefit and life-cycle  analyses of alternatives. However, the documentation INL provided did not include  the analyses called for by OMB guidance. Appendix I: Scope and Methodology

To assess the extent to which the Bureau of International Narcotics and  Law Enforcement Affairs (INL) has managed its aviation fleet in  accordance with Office of Management and Budget (OMB) and General  Services Administration (GSA) guidance, we reviewed the applicable  guidance and discussed progress in adhering to this guidance with State  and contractor officials at INL offices in Washington, D.C.; Melbourne,  Florida; and Colombia, reviewing relevant documents, where appropriate. GAO Comments

1. 2.
Why GAO Did This Study

The Department of State's (State) Bureau of International Narcotics and Law Enforcement Affairs (INL) owns 357 helicopters and fixed-wing aircraft (valued at over $340 million) primarily to help carry out its counternarcotics efforts, such as aerial eradication of drug crops in Colombia. INL relies on contractor support to help maintain and operate its aircraft. In 2004, GAO analysis showed that INL lagged behind other agencies in implementing Office of Management and Budget (OMB) and General Services Administration (GSA) aviation fleet management principles. GAO was mandated to review INL's management and oversight of this fleet. GAO specifically examined (1) the extent INL has complied with OMB and GSA aviation fleet management guidance and (2) how INL has overseen its aviation support contracts. Since INL has undertaken initiatives to address the weaknesses GAO observed, GAO makes no recommendations. GAO will follow up to ensure that these initiatives are completed, as planned. In comments on this report, State highlighted reforms under way. State also indicated that INL conducted analyses to justify most aviation investments. GAO notes, however, that the documentation provided did not reflect the key analyses called for by OMB guidance.

What GAO Found

Despite some improvements since 2004, INL has not yet employed a systematic process for managing its aviation fleet that adheres to OMB and GSA guidance intended to help federal programs ensure that they acquire, manage, and modernize their aircraft in a cost-effective manner. However, in October 2006, INL began a number of initiatives to improve compliance with this guidance. The guidance entails three key principles: (1) assessing a program's long-term fleet requirements, (2) acquiring the most cost-effective fleet of aircraft to meet those requirements, and (3) assessing fleet performance. INL's initiatives are intended to address weaknesses in the following three areas: (1) Long-term planning. Since 2004, INL has prepared a strategic plan and a Critical Flight Safety Program to refurbish certain aircraft and replace others to meet projected mission needs. However, this effort did not address the long-term aircraft needs of all INL aviation programs. (2) Fleet investment justifications. INL has funded multimillion dollar aircraft investments, including the acquisition of new aircraft and major overhauls of older assets, without documenting cost-benefit and life cycle cost analyses of alternatives. (3) Fleet composition assessment. INL has not reviewed the composition of its entire fleet to demonstrate that its aircraft are the most appropriate and cost-effective to meet mission requirements. INL is hampered in assessing the performance of its fleet because it does not have complete and reliable aircraft cost and usage data. INL has undertaken a study to assess the aviation fleet's overall composition, identify investment needs, and assess alternative approaches for meeting those needs. INL expects completion of this and other initiatives in 2007. Regarding contract oversight, INL has met applicable federal, agency, and contract-specific requirements for managing its aviation support contracts. In addition to direct contractor oversight, State has used quantitative measures, primarily aircraft readiness rates, to monitor and assess contractor performance.