Next Generation Air Transportation System: Progress and 	 
Challenges in Planning and Implementing the Transformation of the
National Airspace System (22-MAR-07, GAO-07-649T).		 
                                                                 
The skies over America are becoming more crowded every day. The  
consensus of opinion is that the current aviation system cannot  
be expanded to meet this projected growth. Recognizing the need  
for system transformation, in 2003 Congress authorized the Joint 
Planning and Development Office (JPDO) and requires the office to
operate in conjunction with multiple federal agencies, including 
the Departments of Transportation, Commerce, Defense, and	 
Homeland Security; the Federal Aviation Administration (FAA); the
National Aeronautics and Space Administration (NASA); and the	 
White House Office of Science and Technology Policy. JPDO is	 
responsible for coordinating the related efforts of these partner
agencies to plan the transformation to the Next Generation Air	 
Transportation System (NextGen): a fundamental redesign of the	 
national airspace system. FAA will be largely responsible for	 
implementing the policies and systems necessary for NextGen,	 
while safely operating the current air traffic control system.	 
GAO's testimony focuses on (1) the progress that JPDO has made in
planning NextGen and some challenges it continues to face and (2)
the challenges that FAA faces transitioning to NextGen. GAO's	 
statement is based on our recent reports as well as ongoing work,
all of which has been conducted in accordance with generally	 
accepted government auditing standards. 			 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-07-649T					        
    ACCNO:   A67127						        
  TITLE:     Next Generation Air Transportation System: Progress and  
Challenges in Planning and Implementing the Transformation of the
National Airspace System					 
     DATE:   03/22/2007 
  SUBJECT:   Agency missions					 
	     Air traffic control systems			 
	     Air transportation 				 
	     Commercial aviation				 
	     Concept of operations				 
	     Enterprise architecture				 
	     Interagency relations				 
	     Program evaluation 				 
	     Program management 				 
	     Strategic planning 				 
	     Program implementation				 
	     FAA Operational Evolution Plan			 
	     Next Generation Air Transportation 		 
	     System						 
                                                                 

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GAO-07-649T

   

     * [1]JPDO Has Made Progress in Planning NextGen, but Faces Severa

          * [2]JPDO Has Made Progress in Planning NextGen by Facilitating C
          * [3]Challenges for JPDO Include Institutionalizing Interagency C

     * [4]FAA Faces Challenges in Transitioning to NextGen

          * [5]FAA Faces the Challenge of Institutionalizing Recent Progres
          * [6]Institutionalizing Change within FAA Will Require Continued
          * [7]FAA Faces a Cost Challenge of Implementing NextGen while Sus
          * [8]FAA Needs to Explore Whether It Has the Technical and Contra

     * [9]GAO Contact and Staff Acknowledgements
     * [10]GAO's Mission
     * [11]Obtaining Copies of GAO Reports and Testimony

          * [12]Order by Mail or Phone

     * [13]To Report Fraud, Waste, and Abuse in Federal Programs
     * [14]Congressional Relations
     * [15]Public Affairs

Testimony

Before the Subcommittee on Aviation Operations, Safety and Security,
Committee on Commerce, Science and Transportation, U.S. Senate

United States Government Accountability Office

GAO

For Release on Delivery Expected at 9:30 a.m. EDT
Thursday, March 22, 2007

NEXT GENERATION AIR TRANSPORTATION SYSTEM

Progress and Challenges in Planning and Implementing the Transformation of
the National Airspace System

Statement of Susan Fleming, Acting Director
Physical Infrastructure Issues

GAO-07-649T

Mr. Chairman and Members of the Subcommittee:

I appreciate the opportunity to testify before you today on efforts to
transform the current national airspace system to the Next Generation Air
Transportation System (NextGen). The skies over America are becoming more
crowded every day. Demand for air travel has increased in recent years,
with over 740 million passengers flying in fiscal year 2006, climbing
toward an estimated 1 billion passengers per year in 2015, according to
FAA estimates. The consensus of opinion is that the current aviation
system cannot be expanded to meet this projected growth. In 2003,
recognizing the need for system transformation, Congress authorized the
creation of the Joint Planning and Development Office (JPDO) and required
the office to operate in conjunction with multiple federal agencies,
including the Departments of Transportation, Commerce, Defense, and
Homeland Security; the Federal Aviation Administration (FAA); the National
Aeronautics and Space Administration (NASA); and the White House Office of
Science and Technology Policy.^1 JPDO is responsible for coordinating the
related efforts of these partner agencies to plan the transformation to
NextGen: a fundamental redesign of the air transportation system that will
entail precision satellite navigation; digital, networked communications;
an integrated weather system; layered, adaptive security; and more. FAA
will be largely responsible for implementing the policies and systems
necessary for NextGen, while safely operating the current air traffic
control system 24 hours a day, 7 days a week.

My testimony today addresses issues concerning both JPDO and FAA as the
NextGen effort begins to move from conceptualization and planning to
implementation of systems and procedures. Specifically, my testimony
focuses on (1) the progress that JPDO has made in planning the NextGen
system and some challenges it continues to face and (2) the challenges
that FAA faces in transitioning to NextGen. My statement is based on our
recent reports as well as ongoing work for this subcommittee. We conducted
this work in accordance with generally accepted government auditing
standards.

In summary:

^1Pub. L. No. 108-176, Vision 100--Century of Aviation Reauthorization
Act, December 12, 2003.

           o JPDO has made substantial progress in planning NextGen, but
           continues to face several challenges. JPDO has established a
           framework to facilitate the federal interagency collaboration that
           is central to its mission, and is involving nonfederal
           stakeholders in its planning efforts. JPDO has begun leveraging
           the resources of its partner agencies and finalizing several key
           documents that form the fundamental plan for NextGen, including a
           concept of operations and an enterprise architecture. The draft
           concept of operations has been posted to JPDO's Web site for
           public comment and the enterprise architecture is expected to be
           completed in the next few months. JPDO and FAA have improved their
           collaboration and coordination by developing an expanded and
           revamped Operational Evolution Plan intended to provide a NextGen
           implementation plan for FAA. JPDO has faced a continuing challenge
           in institutionalizing interagency collaboration. JPDO also faces
           challenges in developing a comprehensive cost estimate, exploring
           potential gaps in research and development for NextGen,
           incorporating the expertise of all major stakeholders, researching
           human factors issues, and establishing credibility among
           stakeholders.
           o FAA faces challenges in institutionalizing recent management
           improvements and controlling costs as it begins the transition to
           NextGen. By creating the Air Traffic Organization (ATO) in 2003,
           and appointing a Chief Operating Officer (COO) to head ATO, FAA
           established a new management structure and adopted more leading
           practices of private sector businesses to address the cost,
           schedule, and performance shortfalls that have plagued its air
           traffic control modernization efforts. For example, FAA has taken
           steps to improve its acquisition workforce culture and work toward
           a results-oriented, high-performance organization. However,
           institutionalizing these changes will require continued strong
           leadership, particularly since the agency will have lost two of
           its significant agents for change--the FAA Administrator and the
           COO--by September 2007. Additionally, the costs of operating and
           maintaining the current air traffic control system while
           implementing NextGen will be another important challenge for FAA,
           as will having the technical and contract management expertise
           needed to implement a system as complex as NextGen.
			  
			  JPDO Has Made Progress in Planning NextGen, but Faces Several
			  Challenges

           JPDO has made progress in planning NextGen by facilitating
           collaboration among its partner agencies, working to finalize key
           planning documents, and improving its collaboration and
           coordination with FAA. Among the challenges JPDO faces are
           institutionalizing collaboration among the partner agencies, and
           identifying and exploring questions related to which entity will
           fund and conduct the research and development needed to meet
           NextGen requirements.
			  
			  JPDO Has Made Progress in Planning NextGen by Facilitating
			  Collaboration Among Partner Agencies, Working to Finalize Key
			  Planning Documents, and Improving Coordination with FAA

           JPDO has made progress in many areas in planning NextGen, as we
           reported in November 2006.^2 I will highlight just a few of those
           areas in this testimony. First, JPDO has taken several actions
           that are consistent with practices that facilitate interagency
           collaboration--an important point given how critical such
           collaboration is to the success of JPDO's mission. For example,
           the JPDO partner agencies worked together to develop a high level
           plan for NextGen along with eight strategies that broadly address
           the goals and objectives for NextGen.^3 JPDO has since issued two
           annual updates to this plan, as required by Congress. Also, JPDO's
           organizational structure involves federal and nonfederal
           stakeholders throughout. This structure includes a federal
           interagency senior policy committee, an institute for nonfederal
           stakeholders, and eight integrated product teams that bring
           together federal and nonfederal experts to plan for and coordinate
           the development of technologies that will address JPDO's eight
           broad strategies. JPDO has also begun leveraging the resources of
           its partner agencies in part by reviewing their research and
           development programs, identifying work to support NextGen, and
           working to minimize duplication of research programs across the
           agencies. For example, one opportunity for coordination involves
           aligning aviation weather research across FAA, NASA, and the
           Departments of Commerce and Defense, developing a common weather
           capability, and integrating weather information into NextGen.

           In addition to developing and updating its high-level integrated
           plan, first published in December 2004, JPDO has been working to
           develop several critical documents that form the foundation of
           NextGen planning, including a draft concept of operations and an
           enterprise architecture. The concept of operations describes how
           the transformational elements of NextGen will operate in 2025. It
           is intended to establish general stakeholder buy-in to the NextGen
           end state, a transition path, and a business case. The enterprise
           architecture follows from the concept of operations and will
           describe the system in more detail (using the federal enterprise
           architecture framework). It will be used to integrate NextGen
           efforts of the partner agencies. The draft concept of operations
           has been posted to JPDO's Web site for stakeholder review and
           comment. According to JPDO, an expanded version of the enterprise
           architecture is expected in mid-2007.

           Progress has also been made in improving the collaboration and
           coordination between JPDO and FAA--the agency largely responsible
           for the implementation of NextGen systems and capabilities. FAA
           has expanded and revamped its Operational Evolution Plan
           (OEP)--renamed the Operational Evolution Partnership--to become
           FAA's implementation plan for NextGen.^4 The OEP is being expanded
           to apply to all of FAA and is intended to become a comprehensive
           description of how the agency will implement NextGen, including
           the required technologies, procedures, and resources. An ATO
           official told us that the new OEP is to be consistent with JPDO's
           key planning documents and partner agency budget guidance.
           According to FAA, the new OEP will allow it to demonstrate
           appropriate budget control and linkage to NextGen plans and will
           force FAA's research and development to be relevant to NextGen's
           requirements. According to FAA documents, the agency plans to
           publish the new OEP in June 2007.

           In an effort to further align FAA's efforts with JPDO's plans for
           NextGen, FAA has created a NextGen Review Board to oversee the
           OEP. This Review Board will be co-chaired by JPDO's Director and
           ATO's Vice President of Operations Planning. Initiatives, such as
           concept demonstrations or research, proposed for inclusion in the
           OEP, will now need to go through the Review Board for approval.
           Initiatives are to be assessed for relation to NextGen
           requirements, concept maturity, and risk. An ATO official told us
           that the new OEP process should also help identify some smaller
           programs that might be inconsistent with NextGen and which could
           be discontinued. Additionally, as a further step towards
           integrating ATO and JPDO, the administration's reauthorization
           proposal calls for the JPDO Director to be a voting member of
           FAA's Joint Resources Council and ATO's Executive Council.
			  
			  Challenges for JPDO Include Institutionalizing Interagency
			  Collaboration and Exploring Potential Gaps in Research and
			  Development Needs for NextGen

           Although JPDO has established a framework for collaboration, it
           has faced a challenge in institutionalizing this framework. As
           JPDO is a coordinating body, it has no authority over its partner
           agencies' key human and technological resources needed to continue
           developing plans and system requirements for NextGen. For example,
           JPDO has been working to establish a memorandum of understanding
           (MOU) with its partner agencies to more clearly define partner
           agencies' roles and responsibilities since at least August 2005.
           As of March 16, 2007, however, the MOU remained unsigned. Another
           key activity for strengthening the collaborative effort will be
           synchronizing the NextGen enterprise architecture with the partner
           agencies' enterprise architectures. These types of efforts, which
           would better institutionalize JPDO's collaborative framework
           throughout the partner agencies, will be critical to JPDO's
           ability to leverage the necessary funding for developing NextGen.
           Institutionalization would help ensure that, as administrations
           and staffing within JPDO change over the years, those coming into
           JPDO will have a clear understanding of their roles and
           responsibilities and of the time and resource commitments
           entailed.

           JPDO faces a challenge in developing a comprehensive cost estimate
           for the NextGen effort. In its recent 2006 Progress Report,^5 JPDO
           reported some cost estimates related to FAA's NextGen investment
           portfolio, which I will discuss in more detail later in this
           statement. However, JPDO is still working to develop an
           understanding of the future requirements of its other partner
           agencies and the users of the system. JPDO stated that it sees its
           work in estimating costs as an ongoing process. The office notes
           that it will gain additional insight into the business,
           management, and technical issues and alternatives that will go
           into the long-term process of implementing NextGen as it continues
           to work with industry, and that it expects its cost estimates to
           continue to evolve.

           Another challenge facing JPDO is exploring potential gaps in the
           research and development necessary to achieve some key NextGen
           capabilities and to keep the development of new systems on
           schedule. In the past, a significant portion of aeronautics
           research and development, including intermediate technology
           development, has been performed by NASA. However, our analysis of
           NASA's aeronautics research budget and proposed funding shows a 30
           percent decline, in constant 2005 dollars, from fiscal year 2005
           to fiscal year 2011. To its credit, NASA plans to focus its
           research on the needs of NextGen. However, NASA is also moving
           toward a focus on fundamental research and away from developmental
           work and demonstration projects. FAA is currently assessing its
           capacity to address these issues. Currently it is unknown how all
           of the significant research and development activities inherent in
           the transition to NextGen will be conducted or funded.

           Still another challenge facing JPDO is ensuring that all relevant
           stakeholders are involved in the effort. Some stakeholders, such
           as current air traffic controllers and technicians, will play
           critical roles in NextGen, and their involvement in planning for
           and deploying the new technology will be important to the success
           of NextGen. In November 2006, we reported that air traffic
           controllers were not involved in the NextGen planning effort.^6
           Controllers are beginning to become involved as the controllers'
           union is now represented on a key planning body. However,
           technicians are currently not participating in NextGen efforts.
           Input from current air traffic controllers who have recent
           experience controlling aircraft and current technicians who will
           maintain the new equipment is important is considering human
           factors and safety issues. Our work on past air traffic control
           modernization projects has shown that a lack of stakeholder or
           expert involvement early and throughout a project can lead to cost
           increases and delays.

           Addressing human factors issues is another key challenge for JPDO.
           For example, the NextGen concept of operations envisions that
           pilots will take on a greater share of the responsibility for
           maintaining safe separation and other tasks currently performed by
           controllers--raising human factors questions about whether pilots
           can safely perform these additional duties. According to JPDO, the
           change in the roles of controllers and pilots is the most
           important human factors issue involved in creating NextGen but
           will be difficult to research because data on pilot behavior are
           not readily available for use in creating models.

           Finally, we reported in November 2006 that establishing
           credibility was viewed by the majority of the expert panelists we
           consulted as a challenge facing JPDO. This view partially stems
           from past experiences in which the government has stopped some
           modernization efforts after industry invested in supporting
           technologies. Stakeholders' belief that the government is fully
           committed to NextGen will be important as efforts to implement
           NextGen technologies move forward. Another credibility challenge
           for JPDO is convincing stakeholders that the collaborative effort
           is making progress toward facilitating implementation. To address
           this challenge, the new Director of JPDO is planning to implement
           some structural and procedural changes to the office. For example,
           the Director has proposed changing JPDO's integrated product teams
           into "working groups" that would task small teams with exploring
           specific issues and delivering discrete work products. These
           changes have not yet been implemented at JPDO and it will take
           some time before the effectiveness of these changes can be
           evaluated.
			  
			  FAA Faces Challenges in Transitioning to NextGen

           FAA is a principal player in JPDO's efforts and will be the chief
           implementer of NextGen. Successful implementation will depend, in
           part, on how well FAA addresses its challenges of
           institutionalizing its recent improvement in managing air traffic
           control modernization efforts, addressing the cost challenges of
           implementing NextGen while safely maintaining the current air
           traffic control system, and obtaining the expertise needed to
           implement a system as complex as NextGen. I turn now to these
           challenges.
			  
			  FAA Faces the Challenge of Institutionalizing Recent Progress in
			  Managing Air Traffic Control Modernization Efforts

           A successful transition to NextGen will depend, to a great extent,
           on FAA's ability to manage the acquisition and integration of
           multiple NextGen systems. Since 1995, we have designated FAA's air
           traffic control modernization program as high risk because of
           systemic management and acquisition problems. In recent years, FAA
           has taken a number of actions to improve its management of
           acquisitions. Realization of NextGen goals could be severely
           compromised if FAA's improved processes are not institutionalized
           and carried over into the implementation of NextGen, which is an
           even more complex and ambitious undertaking than past
           modernization efforts.

           To its credit, FAA has taken a number of actions to improve its
           acquisition management. By creating the Air Traffic Organization
           (ATO) in 2003, and appointing a Chief Operating Officer (COO) to
           head ATO, FAA established a new management structure and adopted
           more leading practices of private sector businesses to address the
           cost, schedule, and performance shortfalls that have plagued air
           traffic control acquisitions. ATO has worked to create a flatter
           organization, with fewer management layers, and has reported
           reducing executive staffing by 20 percent and total management by
           16 percent. In addition, FAA uses a performance management system
           to hold managers responsible for the success of ATO. More
           specifically, to better manage its acquisitions and address
           problems we have identified,^7 FAA has

           o established strategic goals to improve its acquisition workforce
           culture and build towards a results-oriented, high-performing
           organization;
           o developed and applied a process improvement model to assess the
           maturity of its software and systems acquisitions capabilities
           resulting in, among other things, enhanced productivity and
           greater ability to predict schedules and resources; and
           o reported that it has established a policy and guidance on using
           Earned Value Management (EVM) in its acquisition management system
           and that 19 of its major programs are currently using EVM.^8

           Institutionalizing these improvements throughout the agency (i.e.,
           providing for their duration beyond the current leadership by
           ensuring that reforms are fully integrated into the agency's
           structure and processes and have become part of its organizational
           culture) will continue to be a challenge for FAA. For example, the
           agency has yet to implement its cost estimating methodology,
           although, according to the agency, it has provided training on the
           methodology to employees. Furthermore, FAA has not established a
           policy to require use of its process improvement model on all
           major acquisitions for the national airspace system. Until the
           agency fully addresses these legacy issues, it will continue to
           risk program management problems affecting cost, schedule, and
           performance. With a multi-billion dollar acquisition budget,
           addressing these issues is as important as ever.
			  
			  Institutionalizing Change within FAA Will Require Continued
			  Strong Leadership

           While FAA has implemented many positive changes to its management
           processes, it currently faces the loss of key leaders. We have
           reported that the experiences of successful transformations and
           change management initiatives in large public and private
           organizations suggest that it can take 5 to 7 years or more until
           such initiatives are fully implemented and cultures are
           transformed in a sustainable manner. Such changes require focused,
           full-time attention from senior leadership and a dedicated team.^9
           FAA's management improvements are relatively recent developments,
           and the agency will have lost two of its significant agents for
           change--the Administrator and the COO--by the end of September.
           The administrator's term ends in September 2007; the COO left in
           February 2007, after serving 3 years. This situation is
           exacerbated by the fact that the current Director of JPDO is also
           new, having assumed that position in August 2006. For the
           management and acquisition improvements to further permeate the
           agency, and thus provide a firm foundation upon which to implement
           NextGen, FAA's new leaders will need to demonstrate the same
           commitment to improvement as the outgoing leaders. This continued
           commitment to change is critical over the next few years, as
           foundational NextGen systems begin to be implemented.
           Expeditiously moving to find a new COO will help sustain this
           momentum.
			  
			  FAA Faces a Cost Challenge of Implementing NextGen while
			  Sustaining the Current Air Traffic Control System

           JPDO recently reported some estimated costs for NextGen, including
           specifics on some early NextGen programs.^10 JPDO believes the
           total federal cost for NextGen infrastructure through 2025 will
           range between $15 billion and $22 billion. JPDO also reported that
           a preliminary estimate of the corresponding cost to system users,
           who will have to equip with the advanced avionics that are
           necessary to realize the full benefits of some NextGen
           technologies, ranges between $14 and $20 billion. JPDO noted that
           this range for avionics costs reflects uncertainty about equipage
           costs for individual aircraft, the number of very light jets that
           will operate in high-performance airspace, and the amount of
           out-of-service time required for installation.

           In its Capital Investment Plan for fiscal years 2008-2012, FAA
           includes estimated expenditures for eleven line items that are
           considered NextGen capital programs.^11 The total 5-year estimated
           expenditures for these programs are $4.3 billion. In fiscal year
           2008, only six of the line items are funded for a total of roughly
           $174 million; funding for the remaining five programs would begin
           with the fiscal year 2009 budget. According to FAA, in addition to
           capital spending for NextGen, the agency will also spend an
           estimated $300 million on NextGen-related research and development
           from fiscal years 2008 through 2012. Also, the administration's
           budget for fiscal year 2008 for FAA includes $17.8 million to
           support the activities of JPDO.

           It is important to note that while FAA must manage the costs
           associated with the NextGen transformation, it must simultaneously
           continue to fund and operate the current national airspace system.
           In fact, the Department of Transportation's Inspector General has
           reported that the majority of FAA's capital funds go toward the
           sustainment of current air traffic systems and that, over the last
           several years, increasing operating costs have crowded out funds
           for the capital account. Efforts to sustain the current system are
           particularly important given the safety concerns that could be
           involved with system outages--the number of which has increased
           steadily over the last few years as the system continues to age.

           For example, the adequacy of FAA's maintenance of existing systems
           was raised following a power outage and equipment failures in
           Southern California that caused hundreds of flight delays during
           the summer of 2006. Investigations by the DOT Inspector General
           into these incidents identified a number of underlying issues,
           including the age and condition of equipment. Nationwide, the
           number of scheduled and unscheduled outages of air traffic control
           equipment and ancillary support systems has been increasing (see
           fig. 1). According to FAA, increases in the number of unscheduled
           outages indicate that systems are failing more frequently. FAA
           also notes that the duration of unscheduled equipment outages has
           also been increasing in recent years from an average of about 21
           hours in 2001 to about 40 hours in 2006, which may indicate, in
           part, that maintenance and troubleshooting activities are
           requiring more effort and longer periods of time. However, the
           agency considers user impact and resource efficiency when planning
           and responding to equipment outages, according to an FAA official.
           As a result, although some outages will have longer restoration
           times, FAA believes that they do not adversely affect air traffic
           control operations. It will be important for FAA to monitor and
           address equipment outages to ensure the safety and efficiency of
           the legacy systems and a smooth transition to NextGen.

           Figure 1: Number of Scheduled and Unscheduled Equipment Outages,
           Calendar Years 2001-2006

           As part of managing the costs of system sustainment and system
           modernization, FAA is seeking ways to reduce costs by introducing
           infrastructure and operational efficiencies. For example, FAA
           plans to produce cost savings through outsourcing and facility
           consolidations. FAA is outsourcing flight service stations and
           estimates a $2.2 billion savings over 12 years. Similarly, FAA is
           seeking savings through outsourcing its planned nationwide
           deployment of Automatic Dependent Surveillance-Broadcast (ADS-B),
           a critical surveillance technology for NextGen. FAA is planning to
           implement ADS-B through a performance-based contract in which FAA
           will pay "subscription" charges for the ADS-B services and the
           vendor will be responsible for building and maintaining the
           infrastructure. (FAA also reports that the ADS-B rollout will
           allow the agency to remove 50 percent of its current secondary
           radars, saving money in the ADS-B program's baseline.) As for
           consolidating facilities, FAA is currently restructuring its
           administrative service areas from nine offices to three offices,
           which FAA estimates will save up to $460 million over 10 years.

           We have previously reported that FAA should pursue further cost
           control options, such as exploring additional opportunities for
           contracting out services and consolidating facilities. However, we
           recognize that FAA faces challenges with consolidating facilities,
           an action that can be politically sensitive. In recognition of
           this sensitivity, the administration has proposed in FAA's
           reauthorization proposal that the Secretary of Transportation be
           authorized to establish an independent, five-member Commission,
           known as the Realignment and Consolidation of Aviation Facilities
           and Services Commission, to independently analyze FAA's
           recommendations to realign facilities or services. The Commission
           would then send its own recommendations to the President and to
           Congress. In the past, we have noted the importance of potential
           cost savings through facility consolidations; however, it must
           also be noted that any such consolidations must be handled through
           a process that solicits and considers stakeholder input
           throughout, and fully considers the safety implications of any
           proposed facility closures or consolidations.
			  
			  FAA Needs to Explore Whether It Has the Technical and Contract
			  Management Expertise Necessary to Implement NextGen

           In the past, a lack of expertise contributed to weaknesses in
           FAA's management of air traffic control modernization efforts, and
           industry experts with whom we spoke questioned whether FAA will
           have the technical expertise needed to implement NextGen. In
           addition to technical expertise, FAA will need contract management
           expertise to oversee the systems acquisitions and integration
           involved in NextGen. In November, we recommended that FAA examine
           its strengths and weaknesses with regard to the technical
           expertise and contract management expertise that will be required
           to define, implement, and integrate the numerous complex programs
           inherent in the transition to NextGen.^12 In response to our
           recommendation, FAA is considering convening a blue ribbon panel
           to study the issue and make recommendations to the agency about
           how to best proceed with its management and oversight of the
           implementation of NextGen. We believe that such a panel could help
           FAA begin to address this challenge.

           To conclude, transforming the national airspace system to
           accommodate much greater demand for air transportation services in
           the years ahead will be an enormously complex undertaking. JPDO
           has made strides in meeting its planning and coordination role as
           set forth by Congress, and FAA has taken several steps in recent
           years that better position it to successfully implement NextGen.
           If JPDO and FAA can build on their recent achievements and
           overcome the many challenges they face, the transition to NextGen
           stands a much better chance for success.
			  
^2GAO, Next Generation Air Transportation System: Progress and Challenges
Associated with the Transformation of the National Airspace System,
[23]GAO-07-25 (Washington, D.C.: Nov. 13, 2006).

^3The eight strategies are: (1) Develop airport infrastructure to meet
future demand; (2) establish an effective security system without limiting
mobility or civil liberties; (3) establish an agile air traffic system
that quickly responds to shifts in demand; (4) establish shared
situational awareness--where all users share the same information; (5)
establish a comprehensive and proactive approach to safety; (6) develop
environmental protection that allows sustained aviation growth; (7)
develop a systemwide capability to reduce weather impacts; and (8)
harmonize equipage and operations globally.

^4Prior to expansion of the OEP, the document centered around plans for
increasing capacity and efficiency at 35 major airports.

^5JPDO, Making the NextGen Vision a Reality: 2006 Progress Report to the
Next Generation Air Transportation System Integrated Plan, (Washington,
D.C.; March 2007).

^6 [24]GAO-07-25 .

^7GAO, Federal Aviation Administration: Stronger Architecture Program
Needed to Guide Systems Modernization Efforts, [25]GAO-05-266 (Washington,
D.C.: Apr. 29, 2005); Air Traffic Control: System Management Capabilities
Improved, but More can be Done to Institutionalize Improvements,
[26]GAO-04-901 (Washington, D.C.: Aug. 20, 2004); and Information
Technology: FAA Has Many Investment Management Capabilities in Place, but
More Oversight of Operational Systems is Needed, [27]GAO-04-822
(Washington, D.C.: Aug. 20, 2004).

^8EVM is a project management technique that combines measurements of
technical performance, schedule performance, and cost performance with the
intent of providing an early warning of problems while there is time for
corrective action.

^9GAO, National Airspace System: Transformation will Require Cultural
Change, Balanced Funding Priorities, and Use of All Available Management
Tools, [28]GAO-06-154 (Washington, D.C.: Oct. 14, 2005).

^10JPDO, Making the NextGen Vision a Reality: 2006 Progress Report to the
Next Generation Air Transportation System Integrated Plan, (Washington,
D.C.: March 2007)

^11FAA has six capital investment programs that it considers
transformational NextGen programs slated to receive funding in fiscal year
2008: ADS-B nationwide implementation, System Wide Information Management
(SWIM), NextGen Data Communications, NextGen Network Enabled Weather,
National Airspace System Voice Switch, and NextGen Technology
Demonstration. In addition, five other programs are slated to begin
funding in 2009: NextGen System Development, NextGen High Altitude
Trajectory Based Operations, NextGen High Density Airports, NextGen
Networked Facilities, and NextGen Cross-Cutting Infrastructure.

^12 [29]GAO-07-25 .

           Mr. Chairman, this concludes my statement. I am pleased to answer
           any questions you or members of the Subcommittee might have.
			  
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Highlights of [31]GAO-07-649T , a testimony before the Subcommittee on
Aviation Operations, Safety and Security, Committee on Commerce, Science
and Transportation, U.S. Senate

March 2007

NEXT GENERATION AIR TRANSPORTATION SYSTEM

Progress and Challenges in Planning and Implementing the Transformation of
the National Airspace System

The skies over America are becoming more crowded every day. The consensus
of opinion is that the current aviation system cannot be expanded to meet
this projected growth. Recognizing the need for system transformation, in
2003 Congress authorized the Joint Planning and Development Office (JPDO)
and requires the office to operate in conjunction with multiple federal
agencies, including the Departments of Transportation, Commerce, Defense,
and Homeland Security; the Federal Aviation Administration (FAA); the
National Aeronautics and Space Administration (NASA); and the White House
Office of Science and Technology Policy. JPDO is responsible for
coordinating the related efforts of these partner agencies to plan the
transformation to the Next Generation Air Transportation System (NextGen):
a fundamental redesign of the national airspace system. FAA will be
largely responsible for implementing the policies and systems necessary
for NextGen, while safely operating the current air traffic control
system.

GAO's testimony focuses on (1) the progress that JPDO has made in planning
NextGen and some challenges it continues to face and (2) the challenges
that FAA faces transitioning to NextGen. GAO's statement is based on our
recent reports as well as ongoing work, all of which has been conducted in
accordance with generally accepted government auditing standards.

JPDO has made substantial progress in planning NextGen, but continues to
face several challenges. JPDO has established a framework to facilitate
federal interagency collaboration and is involving nonfederal stakeholders
in its planning efforts. JPDO has begun leveraging the resources of its
partner agencies and is finalizing key planning documents such as the
concept of operations and the enterprise architecture. The draft concept
of operations has been posted to JPDO's Web site for public comment and
the enterprise architecture is expected to be completed in the next few
months. JPDO and FAA have improved their collaboration and coordination by
expanding and revamping FAA's Operational Evolution Plan--renamed the
Operational Evolution Partnership--which is intended to provide an
implementation plan for FAA for NextGen. Among the challenges JPDO faces
are institutionalizing the interagency collaboration that is so central to
its mission, developing a comprehensive cost estimate, and addressing
potential gaps in research and development for NextGen.

In transitioning to NextGen, FAA faces several challenges. Although FAA
has taken several actions to improve its management of current air traffic
control modernization efforts, institutionalizing these improvements will
require continued strong leadership, particularly since the agency will
have lost two of its key agents for change by September 2007. Costs are
another challenge facing FAA as it addresses the resource demands that
NextGen will likely pose, while continuing to maintain the current air
traffic control system. Finally, determining whether it has the technical
and contract management expertise necessary to implement NextGen is a
challenge for FAA.

Seven Partner Agencies Form the Joint Planning and Development Office

References

Visible links
  23. file:///home/webmaster/infomgt/d07649t.htm#http://www.gao.gov/cgi-bin/getrpt?GAO-07-25
  24. file:///home/webmaster/infomgt/d07649t.htm#http://www.gao.gov/cgi-bin/getrpt?GAO-07-25
  25. file:///home/webmaster/infomgt/d07649t.htm#http://www.gao.gov/cgi-bin/getrpt?GAO-05-266
  26. file:///home/webmaster/infomgt/d07649t.htm#http://www.gao.gov/cgi-bin/getrpt?GAO-04-901
  27. file:///home/webmaster/infomgt/d07649t.htm#http://www.gao.gov/cgi-bin/getrpt?GAO-04-822
  28. file:///home/webmaster/infomgt/d07649t.htm#http://www.gao.gov/cgi-bin/getrpt?GAO-06-154
  29. file:///home/webmaster/infomgt/d07649t.htm#http://www.gao.gov/cgi-bin/getrpt?GAO-07-25
  31. file:///home/webmaster/infomgt/d07649t.htm#http://www.gao.gov/cgi-bin/getrpt?GAO-07-649T
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