    Next Generation Air Transportation System: Preliminary Analysis
    of the Joint Planning and Development Office's Planning,
    Progress, and Challenges (29-MAR-06, GAO-06-574T).

    The health of our nation's air transportation system is critical
    to our citizens and economy. However, the current approach to
    managing air transportation is becoming increasingly inefficient
    and operationally obsolete. In 2003, Congress created the Joint
    Planning and Development Office (JPDO) to coordinate the federal
    and nonfederal stakeholders necessary to plan and implement a
    transition from the current air transportation system to the
    "next generation air transportation system" (NGATS). JPDO,
    although housed within the Federal Aviation Administration (FAA),
    has seven partner agencies: the Departments of Transportation,
    Commerce, Defense, and Homeland Security; FAA; the National
    Aeronautics and Space Administration (NASA); and the White House
    Office of Science and Technology Policy. This testimony provides
    preliminary results from GAO's ongoing study of the status of
    JPDO's efforts. GAO provides information on (1) the extent to
    which JPDO is facilitating the federal interagency collaboration
    and aligning the human and financial resources needed to plan and
    implement the NGATS, (2) the actions taken by JPDO to adequately
    involve stakeholders in the planning process, and (3) the extent
    to which JPDO is conducting the technical planning needed to
    develop the NGATS.
    -------------------------Indexing Terms-------------------------
    REPORTNUM:   GAO-06-574T
        ACCNO:   A50397
      TITLE:     Next Generation Air Transportation System: Preliminary
    Analysis of the Joint Planning and Development Office's Planning,
    Progress, and Challenges
         DATE:   03/29/2006
      SUBJECT:   Air transportation
    	     Interagency relations
    	     Program management
    	     Strategic planning
    	     Technology
    	     Stakeholder consultations
    	     Next Generation Air Transportation
    	     System

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    GAO-06-574T

         * Background
         * JPDO Is Engaging in Effective Practices for Interagency Coll
              * JPDO Has Articulated a Common Outcome, Established Mutually
              * JPDO Faces Challenges in Continuing to Leverage Resources an
         * JPDO Established Mechanisms to Involve Stakeholders but Face
              * JPDO Is Involving Federal and Nonfederal Stakeholders
              * JPDO Faces Challenges in Maintaining Nonfederal Stakeholder
         * JPDO Is Using an Iterative Technical Planning Process
              * JPDO Has Begun to Use System Performance Modeling
              * JPDO Has Taken the First Steps toward Developing an Enterpri
         * Concluding Observations
         * Contact and Acknowledgements
         * GAO's Mission
         * Obtaining Copies of GAO Reports and Testimony
              * Order by Mail or Phone
         * To Report Fraud, Waste, and Abuse in Federal Programs
         * Congressional Relations
         * Public Affairs

    Testimony

    Before the Subcommittee on Space and Aeronautics, Committee on Science,
    House of Representatives

    United States Government Accountability Office

    GAO

    For Release on Delivery Expected at 2:00 p.m. EST

    Wednesday, March 29, 2006

    NEXT GENERATION AIR TRANSPORTION SYSTEM

    Preliminary Analysis of the Joint Planning and Development Office's
    Planning, Progress, and Challenges

    Statement of Gerald L. Dillingham, Ph.D. Director, Physical Infrastructure
    Issues

    GAO-06-574T

    Mr. Chairman and Members of the Subcommittee:

    We appreciate the opportunity to participate in today's hearing to discuss
    the status of the Joint Planning and Development Office (JPDO) after its
    first 2 years of existence. The health of our nation's air transportation
    system is critical to our citizens and economy. However, the current
    approach to managing air transportation is becoming increasingly
    inefficient and operationally obsolete. In November 2002, the
    congressionally chartered Commission on the Future of the United States
    Aerospace Industry recommended transforming the U.S. air transportation
    system as a national priority.1 Transforming the system to accommodate
    what is expected to be three times the current amount of traffic by 2025,
    providing adequate security and environmental safeguards, and doing these
    things seamlessly while the current system continues to operate, will be
    an enormously complex undertaking.

    In 2003, Congress passed the Vision 100 - Century of Aviation
    Reauthorization Act, which created JPDO within the Federal Aviation
    Administration (FAA) to manage work related to the creation of a "next
    generation air transportation system" (NGATS). JPDO has responsibility for
    coordinating the research efforts of its partner agencies-the Departments
    of Transportation (DOT), Commerce (DOC), Defense (DOD), and Homeland
    Security (DHS); FAA; and the National Aeronautics and Space Administration
    (NASA). JPDO is also working with its final partner agency-the White House
    Office of Science and Technology Policy-to coordinate funding with the
    Office of Management and Budget. Additionally, JPDO has responsibility to
    consult with the public; to coordinate federal goals, priorities, and
    programs with those of aviation and aeronautical firms; and to ensure the
    participation of stakeholders from the private sector, including
    commercial and general aviation, labor, aviation research and development
    entities, and manufacturers. JPDO is jointly funded through FAA and NASA.
    The JPDO Director reports to the FAA Administrator and to the Chief
    Operating Officer of FAA's Air Traffic Organization.2

    1Commission on the Future of the United States Aerospace Industry, Final
    Report (Nov. 2002).

    2The Air Traffic Organization is FAA's business unit that is responsible
    for operating, maintaining, and modernizing the nation's current air
    traffic control system.

    Vision 100 directed JPDO to develop an integrated plan for the NGATS and
    to include in the plan, among other things, a vision statement for an air
    transportation system that meets potential air traffic demand by 2025; a
    description of the demand and required performance characteristics of the
    future system; and a high-level, multi-agency roadmap and concept of
    operations for the future system. Key tenets of the plan are transitioning
    from the current largely ground-based navigation system to one that is
    more focused on aircraft and satellite-based navigation, and automating
    many of the routine air traffic control functions. In addition, the
    integrated plan discusses a strategy to harmonize the NGATS with equipage
    and operations around the world to enhance safety and efficiency on a
    global scale. As directed by Vision 100, the FAA Administrator provided
    this integrated plan to Congress in December 2004 and issued the first
    annual progress report earlier this month.

    My statement today provides preliminary results from our ongoing study of
    the status of JPDO and focuses on three specific questions. (1) To what
    extent is JPDO facilitating the federal interagency collaboration and
    aligning the human and financial resources needed to define and perform
    the centralized planning function for the detailed implementation of the
    NGATS? (2) What actions or initiatives has JPDO implemented to ensure
    adequate involvement of stakeholders in the planning process? (3) To what
    extent is JPDO conducting the technical planning needed to develop the
    NGATS? My statement is based on our analysis of documents provided by JPDO
    and its partner agencies; the perspectives of agency officials and
    stakeholders with whom we have spoken; the results of a panel of experts
    that we convened earlier this month; and our review of relevant
    literature, including the integrated plan and the progress report. We also
    draw upon our prior work on FAA's national airspace system modernization
    program, which we have listed as a high-risk program since 1995. To assess
    JPDO's prospects for facilitating collaboration among its partner
    agencies, we compared its practices to those that we have found to be
    effective in facilitating other federal interagency collaborative
    efforts.3 We also reviewed the National Research Council's 2005 report on
    JPDO, which provided a technical assessment of the research, development,
    and technology components of JPDO's integrated plan.4 In addition, we
    reviewed relevant documents and interviewed officials and stakeholders
    regarding Europe's effort to harmonize and modernize its air traffic
    management system. Later this year, we expect to issue a detailed report
    that will provide our assessment of the status of JPDO's efforts as it
    works to develop the NGATS. We are performing our work in accordance with
    generally accepted government auditing standards.

    3GAO, Results-Oriented Government: Practices That Can Help Enhance and
    Sustain Collaboration among Federal Agencies, GAO-06-15 (Washington, D.C.:
    Oct. 21, 2005).

    4National Research Council, Technology Pathways: Assessing the Integrated
    Plan for a Next Generation Air Transportation System (Washington, D.C.:
    2005).

    In summary:

               o  JPDO is implementing a number of practices that our work has
               shown facilitates collaboration among federal agencies, but faces
               a challenge in maintaining this collaboration over the long term.
               These practices include defining and articulating a common
               outcome, establishing mutually reinforcing or joint strategies to
               achieve that outcome, and identifying and addressing needs by
               leveraging resources among partner agencies. JPDO's legislation
               established a common outcome-a transformed national airspace
               system by 2025-that JPDO expanded on in its integrated plan, which
               establishes an overarching framework and goals for its activities.
               The plan also laid out eight joint strategies for partner agencies
               to use as they help develop the NGATS. Additionally, JPDO is
               leveraging partner agency resources by staffing its organization
               with employees of the partner agencies, many of whom work for JPDO
               as a collateral duty. JPDO has also reviewed these agencies'
               research and development programs to identify work that could
               support the NGATS. By using these practices for facilitating
               collaboration, JPDO has gotten off to a positive start. However,
               because JPDO is fundamentally a planning and coordinating body, it
               does not have authority over the partner agencies' human and
               financial resources that it needs to continue performing the
               centralized, interagency planning function for detailed
               implementation of the NGATS. Consequently, leveraging resources
               will continue to be critical to JPDO's success, particularly in
               future years as partner agencies begin to implement projects on a
               larger scale. JPDO was successful in prompting FAA to request
               funding to accelerate system development for two key NGATS systems
               in its fiscal year 2007 budget request. However, JPDO officials
               told us that, while FAA did receive an increase, it did not
               receive the full amount requested in the budget formulation
               documents submitted to the Office of Management and Budget. Our
               work on FAA's current air traffic control modernization program
               has shown that receiving fewer resources than planned was a
               contributing factor in schedule delays and subsequent cost
               increases. To its credit, JPDO is working with its partner
               agencies to align their fiscal year 2008 budget requests to
               support the NGATS. JPDO has also opened a dialog with the Office
               of Management and Budget to develop a systematic means of
               reviewing partner agency budget requests so that NGATS-related
               programs can be easily identified.
               o  JPDO has incorporated representatives from federal and
               nonfederal stakeholders throughout its organization. Federal
               stakeholders from the partner agencies work with JPDO throughout
               multiple levels of the organization. The NGATS Institute was
               created as the mechanism for involving nonfederal stakeholders and
               has obtained their participation and assigned them to work with
               JPDO's federal stakeholders. The NGATS Institute Management
               Council, composed of top officials and representatives from the
               aviation community, provides a means for advancing consensus
               positions on critical NGATS issues. However, a critical
               stakeholder in the nation's air traffic control system has yet to
               become an active participant in this forum. Air traffic
               controllers, who work in the current system and will play a key
               role in the NGATS, have not been involved in JPDO's efforts. In
               the past, FAA's failure to adequately involve air traffic
               controllers in its acquisition of new technologies, such as the
               Standard Terminal Automation Replacement System-a workstation for
               air traffic controllers-contributed to costly rework and schedule
               delays. A challenge for JPDO could be sustaining nonfederal
               stakeholders' participation in an effort where tangible benefits
               may not be realized until several years in the future. JPDO also
               faces the challenge of convincing nonfederal stakeholders that the
               government is financially committed to the NGATS. Additionally,
               JPDO could face a challenge in resolving the divergent
               perspectives that are represented by its nonfederal stakeholders.

               o  JPDO is using an iterative process to address the technical
               planning needed to develop the NGATS that appears reasonable in
               light of the system's complexity. The office has assembled a suite
               of models to iteratively analyze and understand the interactions
               among system performance parameters, demand, and economic factors,
               and has developed an enterprise architecture, or "blueprint," for
               the NGATS. JPDO is testing the adequacy of its suite of models,
               publishing the results, and seeking peer review opportunities.
               However, these modeling efforts, including those addressing human
               factors, are currently in the early stages, and more time and
               field testing will be needed to increase confidence that the final
               range of solutions for the NGATS is based on realistic
               assumptions. With respect to enterprise architecture, JPDO has
               established the organizational structure for enterprise
               architecture development-an important first step-and anticipates
               having an initial version of the architecture by the end of fiscal
               year 2006. Recognizing that further work will be required, JPDO is
               using a multiyear phased planning approach in which the enterprise
               architecture will be continuously refined. This "build a little,
               test a little" approach is similar to a process that we have
               previously advocated for FAA's major system acquisition programs.

               FAA, with research assistance from NASA, has had the primary
               responsibility for planning and implementing national airspace
               system modernization since these efforts began more than 20 years
               ago. Recently, FAA placed the modernization program under a new
               Air Traffic Organization, headed by a Chief Operating Officer.
               JPDO's approach differs from FAA's past modernization efforts in
               that its scope is "curb-to-curb," encompassing in-terminal
               passenger and baggage security screening and environmental issues.
               Additionally, JPDO's approach will require unprecedented consensus
               and cooperation among many stakeholders-federal and
               nonfederal-about necessary system capabilities, equipment,
               procedures, and regulations. JPDO seeks to leverage the resources
               of NASA and the Departments of Transportation, Commerce, Defense,
               and Homeland Security, each of which has expertise and technology
               that will play a part in the NGATS. For example, the Department of
               Defense has deployed "network centric" systems, originally
               developed for the battlefield, which are being considered as a
               framework to provide all users of the national airspace system-FAA
               and the Departments of Defense and Homeland Security-with a common
               view of that system.

               Concurrent with JPDO's efforts, the European Commission5 is
               conducting a project to harmonize and modernize the pan-European
               air traffic management system. Known as the Single European Sky
               Air Traffic Management Research Programme (SESAR), the project is
               being managed by the Air Traffic Alliance, an industry partnership
               that was awarded the management contract by the European
               Organisation for the Safety of Air Navigation (Eurocontrol).6
               Eurocontrol develops, coordinates, and plans for the
               implementation of pan-European air traffic management strategies.
               While the U.S. and European efforts are both directed at
               modernization, Europe faces the additional challenge of
               harmonizing its air traffic control system-currently operated
               through a patchwork of national air navigation service providers.
               The work of the SESAR effort, which was scheduled to officially
               start this month, is being done by a 30-member consortium of
               airlines, air navigation service providers, airports,
               manufacturers, and others. The consortium is receiving 60 million
               euros ($73 million)7 to conduct a 2-year definition phase and
               produce a master plan for SESAR. The next steps following the
               definition phase, from 2008 to 2013, are currently under
               discussion. One proposal would develop the technologies for the
               new system and would be funded annually at 300 million euros ($363
               million) per year, with equal contributions being provided by the
               European Commission, Eurocontrol, and other parties.

               Our work to date shows that JPDO has engaged in practices to
               facilitate federal interagency collaboration, including defining
               and articulating a common outcome; establishing mutually
               reinforcing or joint strategies; and beginning to leverage the
               partner agency resources needed to perform the centralized,
               interagency planning function for the detailed implementation of
               the NGATS. However, JPDO faces a challenge in leveraging resources
               because it is fundamentally a planning and coordinating body that
               lacks authority over the key human and financial resources needed
               to continue developing plans and system requirements for the
               NGATS. Additionally, JPDO faces the challenge of clearly defining
               roles and responsibilities among its partner agencies. Our work
               has shown that collaborating agencies should work together to
               define and agree on their respective roles and responsibilities,
               including how the collaborative effort will be led. To its credit,
               JPDO is taking some actions to mitigate these challenges.

               JPDO's integrated plan provides a vision statement that elaborates
               on the broadly stated common outcome set forth by the Vision 100
               legislation-an air transportation system that meets potential air
               traffic demand by 2025. In working together to develop JPDO's
               integrated plan, the partner agencies agreed upon a broad
               statement of future system goals, performance characteristics, and
               operational concepts. Our research shows that, for interagency
               collaborative efforts to overcome significant differences in
               agency missions, cultures, and established ways of doing business,
               the agencies must have a clear and compelling rationale to work
               together. JPDO's partner agencies agreed to a vision statement: a
               transformed air transportation system that provides services
               tailored to individual customer needs, allows all communities to
               participate in the global economy, and seamlessly integrates civil
               and military operations.

               The plan also provides eight strategies-again developed by the
               partner agencies-that broadly address the goals and objectives for
               the NGATS. JPDO has formed eight integrated product teams (IPTs),
               one for each strategy. Our work has shown that mutually
               reinforcing or joint strategies help in aligning the partner
               agencies' activities, core processes, and resources to accomplish
               the common outcome. In addition to jointly identifying the
               strategies for the NGATS, the various partner agencies have taken
               the lead on specific strategies. (See table 1.) JPDO is currently
               reevaluating whether all of these IPTs should be expected to
               create products. For example, the IPT that is addressing the
               global interoperability strategy might be more likely to have
               cross-cutting influence over the other seven IPTs, rather than
               developing a product of its own, according to JPDO officials.

               Table 1. JPDO's Strategies and Responsible Agencies

               Source: GAO presentation of JPDO data.

               The National Research Council, in its recent study of JPDO, noted
               the IPT structure is oriented by discipline, which the Council
               believes works against a product orientation. The Council
               recommended that JPDO reorganize into three IPTs that parallel the
               way FAA currently organizes its operations-airport, terminal, and
               en route/oceanic. JPDO officials do not agree with this
               recommendation. They told us that the existing airspace
               segmentation by phase of flight-airport , terminal, and en
               route-creates inefficiencies. As aircraft transition from one
               phase of flight to the next, they encounter a "speed bump." For
               example, operations are slowed as en route air traffic controllers
               transfer responsibility for aircraft to terminal controllers. This
               segmentation is not part of JPDO's vision for the NGATS. In our
               view, if JPDO's IPT structure begins to show evidence that it is
               hindering rather than promoting progress toward achieving NGATS
               goals, JPDO might look again at the Council's recommendations to
               determine whether a different structure or fewer IPTs would help
               it achieve its goals. In the end, the progress and outcomes
               achieved by the structure are as important, if not more important,
               than the organizational model selected.

               JPDO has begun leveraging the resources of its partner agencies,
               which is another practice that we have found helps facilitate
               interagency collaboration. Our research shows that collaborating
               agencies should identify the human, information technology,
               physical, and financial resources needed to initiate or sustain
               their collaborative effort. To leverage human resources, JPDO has
               staffed its organization with partner-agency employees, many of
               whom work for JPDO as a collateral duty. The JPDO board, which
               provides coordination between partner agencies and JPDO, is
               composed of key executives of the partner agencies who can
               facilitate bringing agency resources to bear on NGATS development.
               JPDO's eight IPTs, which are developing the plans and requirements
               for the NGATS, include staff from the partner agencies.
               Additionally, Vision 100 created the Next Generation Air
               Transportation Senior Policy Committee, composed of partner agency
               senior executives, to provide ongoing policy review and identify
               resource needs from the partner agencies. (See fig. 1.)

               Figure 1: JPDO Organization Chart

               To further begin leveraging resources, during the past year JPDO
               conducted an interagency program review of its partner agencies'
               research and development programs to identify the work that could
               support the NGATS, as well as identify areas for more effective
               interagency collaboration. Through this process, JPDO identified
               early opportunities that could be pursued during fiscal year 2007
               to produce tangible results for the NGATS. For example, JPDO noted
               that FAA had amassed considerable technical expertise in the
               standards, protocols, and near-term air traffic applications for
               Automatic Dependent Surveillance-Broadcast (ADS-B). ADS-B is a
               technology through which an aircraft broadcasts information on its
               position to ground-based transceivers, rather than having its
               position detected by ground-based radars. JPDO envisions FAA
               beginning to purchase ADS-B transceivers, decommission obsolete
               ground-based radars, and develop air traffic procedures that would
               permit ADS-B-equipped aircraft to obtain near-term operational
               benefits such as routings that save fuel.

               Although JPDO's legislation, integrated plan, and established
               governance structure provide the framework for institutionalizing
               collaboration among multiple federal agencies, JPDO is
               fundamentally a planning and coordinating body that lacks
               authority over the key human and financial resources needed to
               continue developing plans and system requirements for the NGATS.
               Consequently, leveraging resources on a continuing basis will be
               critical to JPDO's success. Our research has also shown that
               agreement on roles and responsibilities facilitates interagency
               collaboration. However, in JPDO's situation, some important roles
               and responsibilities have not yet been clearly defined.

               The challenge of leveraging resources will likely intensify
               beginning in 2008, when JPDO expects a significant increase in the
               workload of its IPTs. JPDO anticipates needing more resources for
               the IPTs to, among other things, plan demonstrations of potential
               technologies to illustrate some of the early benefits that could
               be achieved from the transformation to the NGATS. JPDO officials
               told us that, although the partner agencies have not yet expressed
               concerns over the time that their employees spend on JPDO work, it
               remains to be seen whether partner agencies are willing to allow
               their staff to devote larger portions of their time to JPDO as the
               office develops more detailed plans and requirements for the
               NGATS. Partner agencies have a variety of missions and priorities
               other than supporting the NGATS. Some partner agency employees,
               including some IPT directors, have been told by their partner
               agencies that their work for JDPO is approved so long as it does
               not interfere with their regular assigned duties. Such resource
               issues would ultimately go to the Senior Policy Committee for
               resolution. However, the role of the committee's members, as
               stated in Vision 100, is only to make recommendations to their
               respective agencies for the required resources.

               The challenge of leveraging financial resources has already
               manifested itself. As JPDO requested, FAA included in its fiscal
               year 2007 budget request to the Office of Management and Budget
               funding to accelerate systems development of ADS-B and System Wide
               Information Management (SWIM),8 which are two key systems
               identified for the NGATS. However, JPDO officials told us that,
               while FAA did receive an increase, it did not receive the full
               amount requested in the budget formulation documents submitted to
               the Office of Management and Budget.9 Our past work on FAA's
               national airspace modernization program has shown that, among
               other factors, receiving fewer resources than planned contributed
               to delays in implementing technologies and significant cost
               increases. For example, reduced funding was one factor that caused
               FAA to reduce the initial deployment of its ASR-11 digital radar
               system from 111 systems to 66 systems, and defer decisions on
               further deployment pending additional study. In the meantime, FAA
               will have to continue to maintain the aging analog radars that the
               new system was intended to replace.

               JPDO also faces the challenge of clearly defining roles and
               responsibilities among its partner agencies. Our work has shown
               that collaborating agencies should work together to define and
               agree on the respective roles and responsibilities, including how
               the collaborative effort will be led. In JPDO's case, there is no
               formalized long-term agreement on the partner agencies' roles and
               responsibilities in creating the NGATS. According to JPDO
               officials, a memorandum of understanding that would define partner
               agency relationships was being developed as of August 2005, but
               has not yet been completed.

               Defining roles and responsibilities is particularly important
               between JPDO and FAA's Air Traffic Organization, since both
               organizations have responsibilities related to planning national
               airspace system modernization. JPDO's planning must build upon the
               Air Traffic Organization's existing modernization program, while
               the Air Traffic Organization must ensure that its ongoing
               modernization efforts are consistent with JPDO's plans. JPDO's
               former director served concurrently as the Air Traffic
               Organization's Vice President for Operations Planning, which
               helped with coordination between the two organizations. However,
               FAA now plans to establish separate positions for the JPDO
               Director and the Air Traffic Organization Vice President for
               Operations Planning. Doing so increases the importance of having a
               clearly defined relationship between these organizations.

               Ultimate decisionmaking authority is another role and
               responsibility that has not been clearly defined. According to
               JPDO, decisions are the collective responsibility of the
               government agencies. The Senior Policy Committee makes decisions
               through consensus of the members. If there are any issues that the
               committee cannot resolve among themselves, JPDO officials expect
               that the Secretary of Transportation would elevate these issues to
               the appropriate White House-level policy council, such as the
               Domestic Policy Council. Although JPDO strives to make decisions
               and resolve disputes through its collaborative bodies, its
               experience thus far is limited. It is not clear whether this
               process will be effective as the NGATS planning and implementation
               effort moves forward. As part of our ongoing work, we will further
               explore the decisionmaking and dispute resolution mechanisms
               within JPDO.

               To its credit, JPDO, in concert with the Air Traffic Organization,
               has begun to address these challenges. To assist with leveraging
               resources, JPDO has issued guidance to its partner agencies
               identifying areas that JPDO would like to see emphasized in their
               fiscal year 2008 budget requests. The Air Traffic Organization, in
               recognition of the need to align its plans with the 20-year
               planning horizon of JPDO, has extended its planning horizon.
               Finally, JPDO is working with the Office of Management and Budget
               to develop a systematic means of reviewing partner agency budget
               requests so that the NGATS-related funding in each budget request
               is easily identified. Such a process would help the Office of
               Management and Budget consider NGATS as a unified program rather
               than as disconnected line items across partner agency budget
               requests. To better define roles and responsibilities, JPDO
               planned to transmit the proposed memorandum of understanding to
               the JPDO board this month.

               As required by Vision 100, JPDO developed and implemented
               mechanisms for soliciting the expertise and views of federal and
               nonfederal stakeholders as it plans the NGATS. Although JPDO has
               obtained the involvement of over 180 participants from over 70
               organizations for the IPTs, the current air traffic
               controllers-who will play a key role in the NGATS-have not been
               involved in JPDO's efforts. In addition, JPDO may face challenges
               in sustaining stakeholder involvement over the long term.

               JPDO has structured itself in a way that involves federal and
               nonfederal stakeholders throughout its organization. Vision 100
               directed JPDO to involve federal and nonfederal stakeholders as it
               fulfills its mission. Our work shows that involving stakeholders
               can, among other things, increase their support for the
               collaborative effort. Federal stakeholders from the partner
               agencies participate with JPDO through the Senior Policy
               Committee, the JPDO board, and the IPTs. To incorporate the
               expertise and views of stakeholders in private industry, state and
               local governments, and academia, the NGATS Institute (the
               Institute) was created by an agreement between the National Center
               for Advanced Technologies and FAA.10

               Within the Institute, the Institute Management Council (the
               Council), composed of top officials and representatives from the
               aviation community, oversees the policy and recommendations of the
               Institute. The Council provides a means for advancing consensus
               positions on critical NGATS issues. It is co-chaired by the
               president of the Air Transport Association, which represents
               commercial airlines, and the president of the Air Line Pilots
               Association, which represents airline pilots. The Institute has
               solicited participation from nonfederal stakeholders and assigned
               them to each IPT. Additionally, the Institute planned to hold its
               first public meeting on March 28, 2006, to solicit information
               from other interested stakeholders who are not involved in the
               Council or the IPTs.

               JPDO officials are generally pleased with the quality of
               stakeholder participation. Through the Institute, JPDO obtained
               the participation of over 180 stakeholders from over 70
               organizations for the IPTs. The Institute received positive
               feedback from IPT directors on the skills, insight, and expertise
               of the private sector volunteers. Additionally, an official
               affiliated with the Institute told us that the collective quality
               and breadth of expertise of applicants for the IPTs has exceeded
               expectations.

               However, JPDO has experienced difficulties with soliciting the
               participation of current air traffic controllers, who will play a
               key role in the NGATS. The current air traffic control system is
               based primarily on the premise that air traffic controllers direct
               pilots to maintain safe separation between aircraft. In the NGATS,
               this premise could change and, accordingly, JPDO has recognized
               the need to conduct human factors research on such issues,
               including how tasks should be allocated between humans and
               automated systems, and how the existing allocation of
               responsibilities between pilots and air traffic controllers might
               change. JPDO is tapping the expertise of former air traffic
               controllers, but current air traffic controllers are not yet
               involved with JPDO.

               Specifically, the National Air Traffic Controllers Association
               (NATCA)-the labor union that represents air traffic controllers-is
               not participating in the development of the NGATS. In July 2005,
               FAA terminated the controller liaison program, wherein active
               controllers were assigned to, among other things, provide input on
               national airspace modernization projects. At that time, the union
               disengaged from participating on all FAA workgroups and
               technological projects, including JPDO. Although the Institute
               Management Council includes a seat for the union, an official of
               that union told us that the union's head had been unable to attend
               the Council's meetings. According to JPDO officials, the Council
               has left a seat open in hopes that the controllers will
               participate in the NGATS effort at the end of the contract
               negotiations between FAA and NATCA.

               The lack of current air traffic controllers' participation could
               result in future problems. The input of current air traffic
               controllers who have recent experience controlling aircraft is
               important in considering human factors and safety issues. Our work
               on FAA's current national airspace modernization program has shown
               that early and continuing stakeholder input is important,
               particularly concerning human factors, in avoiding costly rework
               and schedule delays late in system development efforts. For
               example, as FAA procured new air traffic controller workstations
               (known as Standard Terminal Automation Replacement Systems
               (STARS)), not adequately including stakeholders during the
               development phase contributed to unplanned work which, in turn,
               contributed to cost growth, schedule delays, and eventually a
               reduction in the number of systems to be deployed.11

               Another method for stakeholder involvement is through JPDO's
               facilitation of technology transfer in its requests for studies to
               be contracted out through the Institute. For example, at JPDO's
               request, the Institute plans to analyze trade-offs between
               potential technologies to narrow the range of options that are
               most critical for the NGATS. JPDO has sent to the Institute its
               first request for studies, including an analysis of satellite
               navigation backup technology.

               The Institute also creates industry-government partnerships
               through advanced-technology demonstrations. These demonstrations
               provide a mechanism for collaboratively testing operational
               concepts, refining requirements, and sharing technology between
               the public and private sectors. To date, two demonstration
               projects have been conducted by JPDO partner agencies, including
               demonstrations on the Small Aircraft Transportation System and
               Network Enabled Operations.

               Although JPDO has developed the mechanisms for involving
               stakeholders and brought stakeholders into the process, JPDO faces
               challenges in sustaining nonfederal stakeholder participation over
               the long term. Much as with the federal partner agencies, JPDO has
               no direct authority over the human and financial resources of its
               nonfederal stakeholders. To date, these stakeholders' investment
               in the NGATS effort has been through their pro bono participation
               on the IPTs and the Institute Management Council. The nonfederal
               stakeholders' participation varies from approximately 10 to 25
               percent of their time per week on the IPTs and involves
               approximately one meeting per month for members of the Council.
               The challenge for JPDO is to maintain the interest and enthusiasm
               of these nonfederal stakeholders, who will have to juggle their
               own multiple priorities and resource demands in order to maintain
               this level of participation, when some tangible benefits may not
               be realized for several years. For example, stakeholder support
               will be important for programs such as SWIM, which is a necessary
               prerequisite to future benefits, but may not produce tangible
               benefits in the near term.

               Rather than obtaining voluntary, pro bono participation from
               nonfederal stakeholders, several members of our expert panel
               suggested JPDO should outsource the NGATS planning efforts, as
               Europe has done. As previously noted, the European SESAR effort is
               led by an industry consortium under a contract with Eurocontrol.
               The contract calls for the consortium to deliver a master plan at
               the end of a 2-year definition phase. JPDO officials told us that
               they considered various ways to structure their work, such as
               having the government formulate plans with industry comment, or
               having industry formulate plans and provide them to the
               government. JPDO settled on the existing model, which is a hybrid
               that involves initial government work with close industry
               participation. Because of the different circumstances surrounding
               the U.S. and European approaches (such as the European need to
               harmonize various national systems), we have not taken a position
               on which approach might be more effective.

               In the wake of past national airspace modernization efforts, JPDO
               also faces the challenge of convincing nonfederal stakeholders
               that the government is financially committed to the NGATS. While
               FAA's major air traffic control acquisitions programs are
               currently on track, earlier attempts at modernizing the national
               airspace system encountered many difficulties. In one instance,
               for example, FAA developed a controller-pilot datalink
               communications system that transmitted scripted e-mail-like
               messages between controllers and pilots. One airline equipped its
               aircraft with this new technology, but because of funding cuts,
               FAA ended up canceling the program.12 In a similar vein, we have
               reported that some aviation stakeholders expressed concern that
               FAA may not follow through with its airspace redesign efforts and
               are hesitant to invest in equipment unless they are sure that
               FAA's efforts will continue.13 One expert with whom we spoke
               suggested that a way to mitigate this issue would be for the
               government to make an initial investment in a specific technology
               before requesting that airlines or other industry stakeholders
               purchase equipment.

               Finally, JPDO could face a challenge in resolving the potentially
               divergent perspectives that are represented by its nonfederal
               stakeholders. The range of nonfederal interests that JPDO has
               solicited for this effort is broad and varied, and potentially
               conflicting (for example, the interests of commercial airlines
               versus the interests of general aviation aircraft owners and
               pilots). While the intent is to ensure that all stakeholders are
               given the opportunity to participate in developing the NGATS,
               dissension among these stakeholders is nevertheless possible. A
               large portion of the nonfederal stakeholder participation is
               through the IPTs. JPDO officials told us that they expect IPT
               directors to resolve potential disputes among stakeholders and
               obtain a "convergence of opinion," which is defined by JPDO as
               working toward as close to a single position as possible while
               recognizing that the IPT director might need to make a final
               decision. JPDO officials told us that depending on the issue, the
               IPT director may elect to elevate the different views to the
               collection of IPT directors and senior JPDO officials for
               resolution. In such a situation, JPDO will be challenged to settle
               the dispute without alienating those nonfederal stakeholders who
               might believe themselves to be adversely affected by the decision.

               JPDO is using an iterative technical planning process that appears
               to be reasonable in light of the complexity of the NGATS. The
               planning process includes conducting modeling-a technique that
               mathematically represents the NGATS' system performance
               parameters, demand, and economic factors-as well as developing an
               enterprise architecture-a blueprint to guide NGATS development.

               JPDO has formed an Evaluation and Analysis Division (EAD),
               composed of FAA and NASA employees, and contractors, to assemble a
               suite of models that mathematically represent the interactions
               among system performance parameters, demand, and economic factors
               for the NGATS. These models iteratively test the relationships and
               interactions among factors based on a set of assumptions. For
               example, using models based on broad assumptions concerning fleet
               mix and passenger and flight demand, EAD has evaluated how the
               current air transportation system and proposed NGATS alternatives
               react. EAD has also used modeling to determine whether current
               airport capacity is sufficient to support a tripling of air
               traffic. The modeling results will help JPDO further refine its
               plans for the NGATS, leading to additional modeling that uses more
               precisely defined assumptions, all the while narrowing the range
               of potential solutions. In addition, EAD is modeling costs and
               benefits of proposed NGATS solutions, as well as interactions
               among system performance parameters, demand, and economic factors,
               to demonstrate to JPDO management and the Office of Management and
               Budget that the proposed solutions are a cost-effective way to
               meet strategic goals and objectives.

               Rather than creating its own models, EAD is assembling a suite of
               existing models from FAA, other agencies, and contractors. To
               assess the adequacy of these models, EAD has compared the results
               obtained from them to known previous conditions. For example, to
               assess how accurately a model reflects the impact of adverse
               weather on airport capacity, EAD has compared the model's results
               to what actually happened in a previous bad-weather event. In this
               case, the model proved to be accurate, thereby validating its
               further use.

               EAD recognizes the importance of human factors in designing the
               NGATS, but has just begun studying this issue. Specifically, EAD
               has used modeling to study how possible changes in the duties of
               key individuals, such as air traffic controllers, could affect the
               workload and performance of others, such as airport ground
               personnel. NGATS could shift some tasks now done by air traffic
               controllers to pilots. However, EAD has not yet begun to model the
               effect of this shift on pilot performance because, according to an
               EAD official, a suitable model has not yet been incorporated into
               the modeling tool suite. According to EAD, addressing this issue
               is difficult because data on pilot behavior are not readily
               available to use in creating such models. Furthermore, EAD has not
               studied the training implications of various NGATS-proposed
               solutions because further definition of the concept of operations
               for these solutions has not been completed. As the concept of
               operations matures, it will be important for air traffic
               controllers and other affected stakeholders to provide their
               perspectives on these modeling efforts.

               EAD plans to use outside experts to review the adequacy of its
               work. EAD will continue to publish results of its work in
               peer-reviewed journals. EAD officials said they are also exploring
               the possibility of pursuing a peer review relationship with SESAR
               officials. So far, however, EAD's modeling efforts are in the
               early stages and more time will be needed to conduct additional
               modeling and field testing to increase confidence that the final
               range of solutions for the NGATS is based on realistic
               assumptions.

               An enterprise architecture is a tool, or blueprint, for
               understanding and planning complex systems. It can facilitate
               NGATS planning by providing a strategic and integrated approach to
               decisionmaking. For example, enterprise architecture can help
               planners decide between various scenarios that involve flight
               takeoff, flight landing, and en route flight in bad weather. The
               NGATS enterprise architecture will provide the means for
               coordinating among the partner agencies and private sector
               manufacturers, aligning relevant research and development
               activities, and integrating equipment. The enterprise architecture
               will describe the current national airspace system, the NGATS, and
               the sequence of steps needed to transition between them.

               JPDO has taken the initial steps towards developing an enterprise
               architecture and plans to have an early version by the end of
               fiscal year 2006. The office has established and filled a chief
               architect position and established an NGATS Architecture Council
               composed of representatives from each partner agency's chief
               architect office. This provides the organizational structure and
               oversight needed to develop an enterprise architecture. While this
               is an important first step and consistent with effective practices
               that we have identified in enterprise architecture development,
               JPDO's enterprise architecture development is currently a work in
               progress. JPDO is working toward completing two tasks that we have
               also identified as effective practices. First, JPDO is planning to
               use the Federal Enterprise Architecture Security and Privacy
               Profile, currently under development by the Federal Chief
               Information Officer Council, to help ensure effective integration
               of security and privacy requirements across NGATS enterprise
               architecture. Second, JPDO is developing metrics that are to be
               compliant with guidance from us and the Office of Management and
               Budget to measure the enterprise architecture's progress in
               development and effectiveness-in-use by the end of fiscal year
               2006. JPDO recognizes that the development of the NGATS
               architecture will be a multiyear process that will involve a
               series of interim architectures.

               JPDO's phased "build a little, test a little" approach for
               developing and refining its enterprise architecture is similar to
               a process that we have advocated for FAA's major
               system-acquisition programs. After completing the initial version
               of its enterprise architecture, JPDO plans to undertake a
               comprehensive assessment to determine if additional efforts are
               necessary to improve the architecture and address any gaps that
               may have been identified. In addition, this phased development
               process will allow JPDO to incorporate evolving market forces and
               technologies in its architecture, and thus, to better manage
               change.

               In closing, Mr. Chairman, ultimate responsibility for the success
               of JPDO and the broader NGATS effort is shared among JPDO and its
               partner agencies, nonfederal stakeholders, and the Congress. JPDO
               and its partner agencies have responsibility to develop a plan,
               test technologies through demonstrations, and implement
               technologies to transform the current national airspace system in
               a timely and cost-efficient manner. Nonfederal stakeholders,
               including industry representatives, state and local government
               officials, and members of academia, must actively participate in
               developing the plan. Some of these stakeholders-such as commercial
               airlines and general aviation operators-will have to follow
               through by equipping their aircraft to realize the benefits of the
               NGATS. Finally, the success of the NGATS will undoubtedly require
               support from Congress to obtain the resources and authority
               necessary to complete the planning and testing stage, acquire the
               necessary technologies, and develop procedures. Consequently,
               Congress will face difficult decisions on how to prioritize
               funding to support the NGATS with other national priorities. These
               responsibilities are substantial, but failure in any one of these
               areas will significantly affect JPDO's chances of achieving a
               three-fold increase in airspace capacity by 2025.

               This concludes my statement. I would be pleased to respond to any
               questions that you or other Members of the Subcommittee may have
               at this time.

               For further information on this testimony, please contact Gerald
               Dillingham at (202) 512-2834 or by e-mail at dillinghamg@gao.gov .
               Individuals making key contributions to this testimony include
               Nabajyoti Barkakati, Colin Fallon, David Hooper, Heather Krause,
               Elizabeth Marchak, Edmond Menoche, Faye Morrison, Richard Scott,
               and Sarah Veale.

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                                       Background

    5The European Commission is a politically independent institution that
    prepares and implements legislative instruments.

    6Eurocontrol is an autonomous organization established in 1963 with the
    intention of creating a single upper airspace.

    JPDO Is Engaging in Effective Practices for Interagency Collaboration, but Faces
            Challenges in Leveraging Resources and Defining Responsibilities

    JPDO Has Articulated a Common Outcome, Established Mutually Reinforcing or Joint
    Strategies, and Begun to Leverage Resources

    7A portion of this funding is in-kind services from Eurocontrol. To
    convert euros to U.S. dollars, we used 1.2098, the foreign exchange rate
    for Tuesday, March 21, 2006, as published in The Washington Post.

    Strategy                                   Lead agency
    Develop airport infrastructure to meet     Federal Aviation Administration
    future demand
    Establish an effective security system     Department of Homeland Security
    without limiting mobility or civil
    liberties
    Establish an agile air traffic system that National Aeronautics and Space
    quickly responds to shifts in demand       Administration
    Establish shared situational               Department of Defense
    awareness-where all users share the same
    information
    Establish a comprehensive and proactive    Federal Aviation Administration
    approach to safety
    Develop environmental protection that      Federal Aviation Administration
    allows sustained aviation growth
    Develop a systemwide capability to reduce  Department of Commerce
    weather impacts
    Harmonize equipage and operations globally Federal Aviation Administration

    JPDO Faces Challenges in Continuing to Leverage Resources and Defining Roles and
    Responsibilities

    8SWIM would support the transition to network-centric operations by
    providing the infrastructure and associated policies and standards to
    enable information sharing among all authorized users, such as the
    airlines, other government agencies, and the military.

    9FAA's fiscal year 2007 budget request for research and development
    includes about $18 million for JPDO, which is supplemented by matching
    funds from NASA. NASA has committed to continuing this match in the
    future, according to a JPDO official. JPDO uses these funds to conduct
    planning and studies. Outyear funding plans for JPDO show a slight decline
    through fiscal year 2010. Vision 100 authorized $50 million annually for
    seven years for JPDO.

        JPDO Established Mechanisms to Involve Stakeholders but Faces Challenges

    JPDO Is Involving Federal and Nonfederal Stakeholders

    10The National Center for Advanced Technologies is a nonprofit unit within
    the Aerospace Industries Association.

    JPDO Faces Challenges in Maintaining Nonfederal Stakeholder Support Over the
    Long Term

    11GAO, 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).

    12JPDO noted that FAA used this technology to conduct an operational
    datalink demonstration that will provide valuable information for
    developing future requirements and reducing development and implementation
    risks.

    13GAO-06-154.

                 JPDO Is Using an Iterative Technical Planning Process

    JPDO Has Begun to Use System Performance Modeling

    JPDO Has Taken the First Steps toward Developing an Enterprise Architecture

                                Concluding Observations

                              Contact and Acknowledgements

    (540121)

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    To view the full product, click on the link above. For more information,
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    Highlights of GAO-06-574T , testimony before the Subcommittee on Space and
    Aeronautics, Committee on Science, House of Representatives

    March 29, 2006

    NEXT GENERATION AIR TRANSPORTATION SYSTEM

    Preliminary Analysis of the Joint Planning and Development Office's
    Planning, Progress, and Challenges

    The health of our nation's air transportation system is critical to our
    citizens and economy. However, the current approach to managing air
    transportation is becoming increasingly inefficient and operationally
    obsolete. In 2003, Congress created the Joint Planning and Development
    Office (JPDO) to coordinate the federal and nonfederal stakeholders
    necessary to plan and implement a transition from the current air
    transportation system to the "next generation air transportation system"
    (NGATS). JPDO, although housed within the Federal Aviation Administration
    (FAA), has seven partner agencies: the Departments of Transportation,
    Commerce, Defense, and Homeland Security; FAA; the National Aeronautics
    and Space Administration (NASA); and the White House Office of Science and
    Technology Policy. This testimony provides preliminary results from GAO's
    ongoing study of the status of JPDO's efforts. GAO provides information on
    (1) the extent to which JPDO is facilitating the federal interagency
    collaboration and aligning the human and financial resources needed to
    plan and implement the NGATS, (2) the actions taken by JPDO to adequately
    involve stakeholders in the planning process, and (3) the extent to which
    JPDO is conducting the technical planning needed to develop the NGATS.

    JPDO is implementing a number of practices that GAO's work has shown
    facilitates collaboration among federal agencies, but faces a challenge in
    sustaining this collaboration over the longer term. These practices
    include defining and articulating a common outcome, establishing mutually
    reinforcing or joint strategies to achieve that outcome, and identifying
    and addressing needs by leveraging resources among partner agencies.
    However, JPDO faces a challenge in leveraging resources because it is
    fundamentally a planning and coordinating body that lacks authority over
    the key human and financial resources needed to continue developing plans
    and system requirements for the NGATS. To its credit, JPDO is working with
    its partner agencies to align their fiscal year 2008 budget requests to
    support NGATS and is working with the Office of Management and Budget to
    develop a budget review process that easily identifies partner agencies'
    NGATS-related programs.

    JPDO has involved federal and nonfederal stakeholders throughout its
    organization. Federal stakeholders from the partner agencies work with
    JPDO throughout multiple levels of the organization. The NGATS Institute
    has been established as the mechanism for involving nonfederal
    stakeholders. The Institute has obtained participation from industry and
    other nonfederal stakeholders and has assigned them to work with JPDO.
    However, JPDO has experienced difficulties with soliciting the
    participation of current air traffic controllers, who will play a key role
    in the NGATS. Additionally, JPDO could face a challenge in sustaining
    nonfederal stakeholders' participation in an effort where tangible
    benefits may not be realized until several years in the future.

    JPDO is using an iterative technical planning process that appears to be
    reasonable in light of the NGATS' complexity. The process includes
    iterative modeling-a technique that mathematically represents the NGATS'
    system performance parameters, demand, and economic factors-to narrow the
    range of potential options. This fall, JPDO plans to have an initial
    version of its enterprise architecture-a blueprint to guide NGATS
    development-and will refine the architecture as the NGATS effort moves
    forward.

    Seven Partner Agencies Form the Joint Planning and Development Office
    *** End of document. ***