FAA Has Fielded Some Equipment but Key Projects Continue to Experience Cost and Schedule Problems

The Congress has appropriated over $25 billion for ATC modernization between fiscal years 1982 and 1998. FAA has fielded some equipment, most recently a new voice communications system. However, delays in other projects have caused the agency to implement costly interim projects. III for data on changes in their cost and schedules.) Major Acquisitions Continue to Face Delays and Cost Increases

Two key components of the modernization effort—the Wide Area Augmentation System (WAAS) and the Standard Terminal Automation Replacement System (STARS)—have encountered delays and cost increases. In developing WAAS, FAA has also encountered delays. FAA Has Begun to Implement Recommendations to Correct Root Causes of Modernization Problems

Our reviews have identified some of the root causes of long-standing problems with FAA’s modernization and have recommended solutions to them. A Complete Systems Architecture Is Key to Guiding and Constraining ATC Modernization Investments

FAA has proceeded to modernize its many ATC systems without the benefits of a complete systems architecture, or overall blueprint, to guide their development and evolution. We identified shortcomings in two main areas. FAA concurred with part of our recommendation and has initiated efforts to improve its software acquisition processes. FAA Is Revising the Modernization Program and Implementing Acquisition Reform but Faces New Challenges

While FAA is involving external and internal stakeholders in revising its approach to the modernization program, it will need to stay focused on implementing solutions to the root causes of past problems, ensure that all aspects of its acquisition management system are effectively implemented, and quickly address the looming crisis with the year 2000 date requirements. FAA faces both opportunities and challenges as it revises the modernization program. Urgent Action Needed to Ensure Computers Recognize the Year 2000

On January 1, 2000, computer systems worldwide could malfunction or produce inaccurate information simply because the century has changed.
Why GAO Did This Study

Pursuant to a congressional request, GAO discussed the Federal Aviation Administration's (FAA) program to modernize its National Airspace System (NAS), focusing on: (1) the status of key modernization projects; (2) FAA's actions to implement recommendations to correct modernization problems; and (3) the opportunities and challenges facing FAA as it embarks upon its new modernization approach.

What GAO Found

GAO noted that: (1) since 1982, Congress has appropriated over $25 billion to the modernization program; (2) while FAA has fielded some equipment, historically, the agency has experienced considerable difficulty in delivering systems with promised cost and schedule parameters; (3) as a result, FAA has been forced to implement costly interim projects; (4) meanwhile, two key systems--the Wide Area Augmentation System and the Standard Terminal Automation Replacement System--have encountered cost increases and schedule delays; (5) GAO's work has pinpointed the root causes of FAA's modernization problems and has recommended actions to overcome them; (6) most recently, GAO found shortcomings in the areas of systems architecture or the overall modernization blueprint, cost estimating and accounting, software acquisition, and organizational culture; (7) although FAA has begun to implement many of GAO's recommendations, sustained management attention is required to improve the management of the modernization program; (8) FAA is collaborating with and seeking commitment from users in developing a new approach to make the modernization less costly and to provide earlier user benefits; (9) the challenge for FAA is to have disciplined processes in place in order to deliver projects as promised; and (10) FAA will also need to quickly address the looming year 2000 computer crisis to ensure that critical air traffic control systems do not malfunction or produce inaccurate information simply because the date has changed.