	Leveraging Surface Transportation Investments to Further National Interests

Given the condition and needs of the transportation system and the  federal government’s fiscal outlook, DOT faces several challenges in  leveraging investment in surface transportation networks to further  national interests. More specifically, DOT faces challenges related to   (1) transitioning to a goal-oriented, performance-based approach,   (2) targeting funds to national priorities such as our freight network,   (3) effectively managing discretionary grant and credit assistance  programs, and (4) effectively overseeing programs and spending. In July  2012, the President signed into law the Moving Ahead for Progress in the  21st Century Act (MAP-21) that included provisions to move toward a  more performance-based highway and transit program. Successfully implementing a performance-based approach entails new  responsibilities for DOT and its operating administrations. First, its administration and  oversight of programs have tended to be process-oriented, rather than  outcome-oriented. DOT has not implemented this recommendation. DOT also faces challenges overseeing other programs going forward. To enhance safety,  the Federal Aviation Administration (FAA) is shifting to a data-driven, risk- based safety oversight approach—called a safety management system  (SMS) approach. Our recent work on transportation safety across all modes has highlighted  the need for improvement in data and oversight. Data are also critical for the Federal Motor Carrier Safety  Administration (FMCSA) to target resources and identify which of the  hundreds of thousands of commercial motor vehicles operating on our  nation’s roads pose the highest safety concerns. We recommended that  FMCSA develop a data-driven approach to target new carriers  attempting to disguise their former identities and expand this new  approach to examine all motor carriers. For example, while we can draw some  conclusions about general aviation accident characteristics, limitations  in flight activity (e.g., flight hours) and other data preclude a complete  assessment of general aviation safety. GAO has recommended,  among other things, that FAA require the collection of general aviation  aircraft flight-hour data in ways that minimize the impact on the  general aviation community, set safety improvement goals for  individual general aviation-industry segments, and develop  performance measures for significant activities that aim to improve  general aviation safety. FAA is currently working to implement these  recommendations. Effectively Implementing the Next Generation Air Transportation System (NextGen)

Another area that I would like to address is the implementation of  NextGen. This complex multiagency undertaking is intended to transform  the current radar-based system into an aircraft-centered, satellite  navigation-based system and is estimated to cost between $15 billion and  $22 billion through 2025. FAA has taken several steps to improve  NextGen implementation and is continuing to address critical issues that  we, stakeholders, and others have identified, including three key  challenges that affect NextGen implementation: delivering and  demonstrating NextGen benefits, keeping key NextGen acquisitions  within cost estimates and on schedule, and balancing NextGen  implementation with maintaining and operating the current air traffic  control system during the transition. Delivering and Demonstrating NextGen Benefits

FAA must deliver systems, procedures, and capabilities that provide  aircraft operators with a return on their investments in NextGen avionics. However, past delays with the En  Route Automation Modernization (ERAM) program—a critical program for  NextGen—illustrate how delays can affect overall acquisition and  maintenance costs as well as time frames for other programs. The successful  implementation of NextGen—both in the midterm (through 2020) and in  the long term (beyond 2020)—will be affected by how well FAA manages  such program interdependencies. Managing the Transition to NextGen

Particularly in light of constrained budget resources, FAA will have to  balance its priorities to help ensure that NextGen implementation stays on  course. For example, FAA’s NextGen modeling  indicates that even if all ongoing and planned NextGen technologies are  implemented, 14 airports—including some of the 35 busiest—may not be  able to meet the projected increases in demand (table 1). Effective  information security controls are required to ensure that financial and  sensitive information is adequately protected from inadvertent or  deliberate misuse, fraudulent use, and improper disclosure, modification,  or destruction. DOT has been challenged to effectively protect its computer systems and  networks. In summary, as the principal agency responsible for implementing  national transportation policy and administering most federal  transportation programs, DOT faces several key challenges going forward  in leveraging surface transportation investments, improving surface and  aviation transportation safety, effectively implementing NextGen, and  improving information security. Addressing these challenges in an  environment of increasing need and increasing fiscal challenges will  require looking at the entire range of federal activities and reexamining  federal spending and tax expenditures to improve and enhance these  systems that are vital to the nation’s economy. Next Generation Air Transportation System: FAA Faces Implementation  Challenges.
Why GAO Did This Study

The nation's transportation system--including highways, airways, pipelines, and rail systems that move both people and freight--is critical to the economy and affects the daily lives of most Americans. However, this system is under growing strain, and estimates of the cost to repair and upgrade the system to meet current and future demands are in the hundreds of billions of dollars. At the same time, traditional funding sources--in particular motor fuel and truck-related taxes--are eroding and the federal government faces long-term fiscal challenges. Addressing these challenges will require looking across federal activities and reexamining all types of federal spending and tax expenditures.
DOT is the principal agency responsible for implementing national transportation policy and administering most federal transportation programs. This statement discusses four key management challenges facing DOT: (1) leveraging surface transportation investments to further national interests, (2) improving surface and aviation transportation safety, (3) effectively implementing the Next Generation Air Transportation System and (4) improving information security. This statement is based on GAO's previous reports and testimonies, which are listed at the end of the statement. GAO has made a number of recommendations to DOT to more effectively leverage the departments' investments and enhance the safety of the traveling public, among other areas. DOT actions underway to address these recommendations are described in this statement.

What GAO Found

Leveraging surface transportation investments to further national interests : The Department of Transportation (DOT) faces several challenges leveraging investment in surface transportation networks to meet national goals and priorities. For example, DOT has to transition to a goal-oriented, performance-based approach for highway and transit programs, as required by the Moving Ahead for Progress in the 21st Century Act (MAP-21). Successfully implementing a performance-based approach entails new responsibilities for DOT since, as GAO has previously reported, its program oversight has generally been process-oriented rather than outcome-oriented. DOT also faces challenges related to targeting funds to priorities like the nation's freight network, effectively managing discretionary grant and credit assistance programs, and effectively overseeing other programs, such as the federal-aid highway program.
Improving surface and aviation transportation safety : GAO's recent work on safety across all modes has highlighted the need for improved data reliability and oversight. For example, data are critical for identifying commercial motor vehicles that pose the highest safety concerns. In 2012, GAO recommended that the Federal Motor Carrier Safety Administration (FMCSA) develop a data-driven approach to target carriers operating illegally by attempting to disguise their former identities and expand this approach to examine all new motor carriers. FMCSA is currently working to develop such a data-driven approach. Aviation safety-data collection and oversight also can be improved. For example, limitations in flight activity (e.g., flight hours) and other data preclude a complete assessment of general aviation safety. GAO recommended, among other things, that the Federal Aviation Administration (FAA) require the collection of general aviation aircraft flight-hour data in ways that minimize the impact on the general aviation community and set safety improvement goals for individual general aviation-industry segments, which FAA is working to address.
Effectively implementing the Next Generation Air Transportation System (NextGen) : NextGen is intended to transform the current radar-based system to an aircraft-centered, satellite navigation-based system. FAA faces three key challenges going forward. One challenge is delivering procedures and capabilities that provide aircraft operators with a return on investment in NextGen avionics to incentivize further investments. FAA also faces challenges keeping key NextGen acquisitions within cost estimates and on schedule. NextGen implementation will be affected by how well FAA manages the program's interdependencies, as delays in one program can affect timeframes for other programs and overall acquisition and maintenance costs. Finally, FAA faces challenges managing the transition to NextGen. FAA will have to balance its priorities to ensure that NextGen implementation stays on course while continuing to maintain current equipment and facilities. FAA's modeling indicates that even if all NextGen technologies are implemented, 14 airports--including some of the 35 busiest--may not be able to meet projected increases in demand.
Improving information security : DOT faces challenges effectively protecting its computer systems and networks. GAO and others have found that DOT has not consistently implemented effective controls to ensure that financial and sensitive information is adequately protected from unauthorized access and other risks.