Transportation and Telecommunications Issue Area Plan--Fiscal Years
1995-97 (Letter Report, 03/01/95, GAO/IAP-95-7).

GAO provided information on its Transportation and Telecommunications
issue area plan, focusing on: (1) investment in transportation
infrastructure; (2) competition in the transportation industry; (3)
consumer access to telecommunications services; (4) federal regulation
of telecommunications; and (5) competition in the telecommunications
industry.

GAO plans to: (1) assess how the Federal Aviation Administration (FAA)
can better establish and deploy an efficient safety work force; (2)
reinforce FAA implementation of prior GAO recommendations that will
improve air traffic management and industry oversight; (3) assess ways
to allow FAA to capitalize on breakthrough technologies; (4) improve the
Department of Transportation's (DOT) management of the Airport
Improvement Program; (5) recommend improvements aimed at reducing
transportation-related accidents; (6) assess DOT progress in
implementing safety provisions; (7) study the effect of foreign aviation
policies and competition on U.S. interests; (8) evaluate the benefits of
airline deregulation; (9) assess the high-speed ground transportation
options for freight and passengers; (10) review the Coast Guard's budget
and downsizing efforts; and (11) assess the proposal for restructuring
and streamlining DOT to ensure the continued emphasis on safety and
infrastructure concerns.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  IAP-95-7
     TITLE:  Transportation and Telecommunications Issue Area 
             Plan--Fiscal Years 1995-97
      DATE:  03/01/95
   SUBJECT:  Airline regulation
             Transportation safety
             Transportation operations
             Transportation industry
             Competition
             Telecommunications operations
             Consumer protection
             Program evaluation
             Air traffic control systems
IDENTIFIER:  National Highway System
             FAA Air Traffic Control Modernization Program
             FAA Advanced Automation System
             NAFTA
             North American Free Trade Agreement
             FAA Airport Improvement Program
             
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Cover
================================================================ COVER


Resources, Community, and Economic Development Division

March 1995

TRANSPORTATION AND
TELECOMMUNICATIONS ISSUE AREA PLAN
- FISCAL YEARS 1995-97

GAO/IAP-95-7



Abbreviations
=============================================================== ABBREV

  FAA -
  DOT -

FOREWORD
============================================================ Chapter 0

The Transportation and Telecommunications issue area is one of the
General Accounting Office's 35 issue areas.  Relying heavily on input
from congressional committees, as well as industry, academia, and
agency officials and other experts, GAO develops plans to ensure that
our resources are focused on the most important concerns of the
Congress. 

GAO serves as a source of timely, accurate information and unbiased
analysis for decisionmakers in the Congress and executive agencies. 
For each issue area, GAO's strategic plan describes the significance
of the issues, our objectives, and the focus of our work.  Our work
includes such products as reports, briefings, and testimonies. 

The Transportation and Telecommunications issue area reviews the
Department of Transportation (DOT) and its operating administrations,
Federal Communications Commission, Federal Maritime Commission,
Interstate Commerce Commission, National Railroad Passenger
Corporation (Amtrak), and National Transportation Safety Board. 

GAO's program evaluation and performance work in the transportation
sector generally focuses on safe and efficient travel, cost-effective
investment in infrastructure, and the promotion of industry
competition and financial health in a largely deregulated
environment.  In the telecommunications sector, we focus on consumer
access to services, the federal regulatory role, and competitiveness
in the industry.  The principal issues are

�maintaining the safety of the nation's air transport system and
improving the airport and air traffic control infrastructure;

�evaluating reorganization proposals for reforming the Federal
Aviation Administration's (FAA) air traffic control functions,
restructuring the Department of Transportation, and reexamining the
functions performed by other agencies, such as the Interstate
Commerce Commission;

�reducing the risk of fatalities and injuries in surface
transportation and the resulting economic costs;

�improving the nation's surface transportation infrastructure in
terms of quality and the cost-effectiveness of investments, enhancing
the use of innovative financing alternatives, and supporting the
development of the 160,000-mile National Highway System;

�sustaining an internationally competitive aviation industry and
financially viable domestic passenger rail service (Amtrak);

�maintaining an efficient and effective U.S.  Coast Guard and
Maritime Administration;

�analyzing cross-cutting and consumer protection issues that apply to
DOT agencywide, such as improving financial management, strengthening
oversight of "mega" infrastructure projects such as the Boston Harbor
Tunnel and Denver Airport, responding to public concerns, and
identifying opportunities to save funds in all transportation modes;
and

�encouraging the development of the telecommunications industry
through increased competition and facilitating the development of the
information superhighway. 

In the pages that follow, we describe our key planned work on these
issues. 

Because events may significantly affect even the best of plans, our
planning process allows for updating the plan and responding quickly
to emerging issues.  If you have any questions or suggestions about
this plan, please call me at (202) 512-2834. 

Kenneth M.  Mead
Director
Transportation and Telecommunications Issues


CONTENTS
============================================================ Chapter 1


   TABLE I:  KEY ISSUES
---------------------------------------------------------- Chapter 1:1

1


   TABLE II:  PLANNED MAJOR WORK
---------------------------------------------------------- Chapter 1:2

2


   TABLE III:  GAO CONTACTS
---------------------------------------------------------- Chapter 1:3

4


TABLE I:  KEY ISSUES
============================================================ Chapter 2

Issue                                    Significance
---------------------------------------  ---------------------------------------
Aviation safety: Does FAA adequately     Over the next several years, FAA faces
oversee the aviation industry's          major challenges in how to deal with
compliance with federal safety and       the effects of a downsized work force,
security regulations?                    air traffic control corporatization
                                         proposals, and increased globalization
                                         of the aviation industry, all within
                                         the context of continuing to maintain a
                                         high level of safety in the U.S. air
                                         transportation system.





Aviation infrastructure: How can FAA     FAA is at a critical juncture in its
enhance the safety, capacity, and        air traffic control modernization
efficiency of the nation's airport and   program because (1) ongoing
airway system?                           acquisitions are being fielded, (2) the
                                         automation plan for air traffic control
                                         facilities is undergoing radical
                                         restructuring, and (3) new, costly
                                         major acquisitions (e.g., the wide-
                                         area augmentation system for satellite
                                         navigation) are in the earliest
                                         phases.





Surface transportation safety: How can   Although the number of people who die
surface transportation be improved to    in transportation accidents is lower
promote safety and reduce program and    than it has been in 30 years, 40,000
societal costs?                          people still die on highways each year.
                                         In addition, nearly $15 billion is
                                         spent annually on health care related
                                         to traffic accidents.








Surface transportation infrastructure:   The focus on highways is changing from
Do the current highway, bridge, mass     building interstates to shaping the
transit, and rail programs adequately    160,000-mile National Highway System.
meet the nation's surface                There are many unresolved
transportation needs?                    implementation issues, including
                                         funding implications and priorities of
                                         the new system, protecting the existing
                                         investment, and synchronizing the often
                                         conflicting goals of clean air, energy
                                         conservation, and reduced traffic
                                         congestion.





--------------------------------------------------------------------------------
Objectives                               Focus of Work
---------------------------------------  ---------------------------------------
� Assess how FAA can better establish    � FAA's certification and oversight of
and deploy the required safety work      new aircraft and airlines
force so that it is both efficient and   � Oversight of commuter airlines and
effective.                               general aviation
� Reinforce FAA's greater                � Implementation of prior safety
implementation of prior recommendations  recommendations
from GAO, the National Transportation    � Technology/automation development,
Safety Board, and the DOT Inspector      deployment, and impact on air traffic
General that will enhance the            controller work force
efficiency and effectiveness of its air
traffic management and industry
oversight functions.
� Assess ways to better position FAA to
capitalize on technological
breakthroughs that can enhance the
safety and security of the U.S. air
transportation system.


� Propose FAA acquisition management     � Evaluation of various alternative
reforms that minimize schedule           structures for FAA's air traffic
slippages/cost overruns.                 control functions
� Recommend improvements to FAA's        � Scrub of FAA's fiscal year 1996
automation program in light of the       facilities and equipment budget
cancelled segments of the Advanced       � Status of FAA's air traffic control
Automation System acquisition.           modernization program
� Improve DOT's management of the        � Evaluation of FAA's acquisition
Airport Improvement Program and          management
passenger facility charges.              � Review of innovative and alternative
                                         funding mechanisms for airport
                                         development




� Recommend improvements to federal      � Methods to deal effectively with
regulations aimed at reducing            problem drivers
transportation-related accidents,        � Effect of Amtrak's financial problems
deaths, and serious injuries.            on safety and service quality
� Assess DOT's progress in implementing  � Rail and truck safety issues relating
safety provisions of the Intermodal      to NAFTA and the National Highway
Surface Transportation Efficiency Act    System
(ISTEA) and pipeline and hazardous       � Methods to improve safety around
materials legislation.                   dangerous rail/highway grade crossings
                                         � Federal/state/local oversight of
                                         commuter rail safety




� Recommend cost-saving strategies that  � Metropolitan planning organizations'
(1) maximize federal, state, and local   roles in post-ISTEA planning
governments' investments in highways,    � Use of private sector financing
mass transit, and high-speed rail        � Conformity provisions of the Clean
development; (2) encourage public/       Air Act
private partnerships to finance          � Options for allocating federal
transportation needs; and (3) advance    highway funds
passenger rail alternatives.
� Recommend strategies for improving
federal, state, and local government
management of highway and transit
programs, including integration with
energy and environmental issues.



--------------------------------------------------------------------------------
Issue                                    Significance
---------------------------------------  ---------------------------------------
Competition and financial health: How    The globalization of the economy and
does the federal role in transportation  the formation of international trading
ensure adequate competition in a         blocs like the European Union present a
worldwide environment and affect the     challenge to the financial health and
economic welfare of travelers and        competitive position of U.S.
shippers?                                transportation interests. Seeking
                                         maximum benefits from deregulation in
                                         trucking, rail, and aviation while
                                         ensuring competitive rates and quality
                                         service may be an important part of the
                                         nation's strategy to meet this
                                         challenge. In addition, providing
                                         nationwide, economically viable
                                         passenger rail service within the
                                         available resources may be the subject
                                         of considerable congressional interest.

Coast Guard and Maritime                 The Coast Guard has developed plans to
Administration: How efficient and        downsize the agency. The Congress may
effective are the U.S. Coast Guard and   need assurances that this plan is
Maritime Administration in carrying out  fiscally and organizationally sound and
their programs and policies?             includes the appropriate mix of
                                         military and civilian personnel to meet
                                         the agency's numerous missions.







Cross-cutting issues and consumer        The Congress and the administration
protection: How can agencywide DOT       have mandated that federal agencies,
management and organization be improved  including DOT, improve their
and how well does DOT respond to the     accountability for the effective and
public's concerns?                       efficient use of budgetary resources
                                         and their responsiveness to the public
                                         in carrying out their missions.
                                         Particularly on "mega" infrastructure
                                         projects, the federal government has a
                                         vital stake in ensuring that projects
                                         such as the Denver Airport and Boston
                                         Harbor Tunnel are completed efficiently
                                         and promptly.




Telecommunications, competition, and     The telecommunications industry is in
regulation: What role should federal,    the midst of a technological
state, and local governments play and    revolution. The boundaries between
what regulations are needed for          various sectors such as telephone and
telecommunications and the information   cable are blurring, suggesting the need
superhighway?                            for a reassessment of existing federal
                                         and state regulatory structures. Other
                                         issues of national concern are the
                                         equity of access to services, privacy,
                                         security, and domestic and
                                         international competitiveness.






--------------------------------------------------------------------------------
Objectives                               Focus of work
---------------------------------------  ---------------------------------------
� Study the effect of foreign aviation   �Analysis of the critical issues in the
policies and competition on U.S.         reauthorization of Amtrak, including
interests.                               restructuring the route system

� Assess threats to competition and the  �Assessment of benefits and costs of
well-being of shippers and travelers.    high-speed ground transportation

� Evaluate options to ensure the         �Evaluation of Passenger/freight rail
benefits of deregulation.                trackage issues

� Assess the costs/benefits of high-     �Impact of deregulation on
speed ground transportation options for  transportation labor
freight and passengers.



� Review the Coast Guard's downsizing    �Cost-saving and downsizing strategies
efforts to ensure that they are          that may be useful for congressional
fiscally and organizationally sound.     oversight of the agencies' budgets for
                                         operating expenses and acquisitions,
� Recommend potential improvements in    construction, and improvements
the Coast Guard's and Maritime
Administration's use of resources,       � A descriptive analysis of safety
priority setting, oversight and          enforcement and environmental
management of programs, and acquisition  protection activities.
and planning processes.

�. Determine the impact of the Coast
Guard's budget on implementing key
legislation on pollution and safety.


�. Assess DOT's proposal for             �DOT's restructuring proposal
restructuring and streamlining the
department to ensure appropriate         �DOT's use of working capital funds
continued emphasis on safety and
infrastructure concerns.                 �Federal oversight of Denver Airport
                                         and Boston Harbor Tunnel projects
�. Aid the Congress in defining the
appropriate federal role in financing    �Effectiveness of DOT's Office of
and oversight of "mega" infrastructure   Commercial Space Transportation
projects.

�. Recommend potential improvements in
DOT's and the operating
administrations' contracting,
acquisition, and approval of licenses
for commercial space.


�. Provide information to the Congress   � Implementation of legislation to
on                                       manage the transition to more
                                         competitive telecommunications markets
--competitive and regulatory options,
                                         � The U.S. government's ability to
--improvements in the organization and   manage the new telecommunications
management at the federal, state, and    landscape
local levels,
                                         � State efforts to promote advanced
--security, privacy, and intellectual    telecommunications technologies
property rights and consumers' access
to the information superhighway, and

--the nature and impact of other
nations' telecommunications policies
and management.

--------------------------------------------------------------------------------

TABLE II:  PLANNED MAJOR WORK
============================================================ Chapter 3

Issue                      Planned major job starts
-------------------------  -----------------------------------------------------
Aviation safety            --Evaluate FAA's efforts to develop and deploy new
                           safety technologies
                           --Review FAA's collection and use of aviation safety
                           indicators
                           --Assess FAA's certification and oversight of new
                           aircraft and airlines
                           --Evaluate oversight of commuter airlines and general
                           aviation
                           --Assess implementation of GAO, NTSB & DOT IG prior
                           safety recommendations

Aviation                   --Review restructuring proposals for FAA's air
infrastructure             traffic control functions
                           --Review savings in FAA's fiscal year 1996 facilities
                           and equipment budget
                           --Identify status of FAA's air traffic control
                           modernization program
                           --Evaluate FAA's acquisition management
                           --Review passenger facility charge funding of airport
                           development
                           --Assess FAA's automation program plan

Surface                    --Evaluate programs dealing with repeat problem
transportation             drivers
safety                     --Review impact of Amtrak's financial problems on
                           safety and service quality
                           --Review rail and truck safety issues relating to
                           NAFTA and NHS
                           --Assess ways to improve safety around dangerous
                           rail/highway grade crossings
                           --Evaluate ways to achieve goal of 75 percent seat
                           belt use goal and ensure reliable data
                           --Assess federal/state and local oversight of
                           commuter rail safety
                           --Assess implementation of safety provisions in 1990
                           Hazardous Materials Transport Act
                           --Review effectiveness of DOT's Office of Pipeline
                           Safety

Surface                    --Evaluate metropolitan planning organizations' role
transportation             in post-ISTEA planning
infrastructure             --Assess use of private sector finance
                           --Review conformity provisions of the Clean Air Act
                           --Assess options for allocating federal highway
                           funds
                           --Review federal investment in northeast corridor/
                           other high-speed rail projects

Competition and            --Assess ability of intercity buses to replace
financial health           Amtrak
                           --Assess benefits and costs of high-speed ground
                           transportation
                           --Evaluate passenger/freight rail trackage issues
                           --Review transportation labor under deregulation

Coast Guard and Maritime   --Assess MARPOL V enforcement
Administration             --Review Coast Guard's use of marine safety billets
                           --Assess Coast Guard downsizing efforts
                           --Review implementation status of the Oil Pollution
                           Control Act of 1990

Cross-cutting              --Review DOT's reorganization proposal
and consumer               --Review federal oversight of the Boston Harbor
protection                 Tunnel project
                           --Review federal oversight of the Denver Airport
                           project
                           --Review effectiveness of DOT's Office of Commercial
                           Space Transportation
                           --Assess DOT's use of working capital funds,
                           reimbursable agreements, and inter-appropriation
                           transfers

Telecommunications,        --Assess U.S. government's ability to manage new
competition, and           telecommunications landscape
regulation                 --Review state efforts to promote advanced
                           telecommunications technologies
                           --Review issues that affect the competitiveness of
                           U.S. companies in the global market
--------------------------------------------------------------------------------

TABLE III:  GAO CONTACTS
============================================================ Chapter 4


      DIRECTOR
-------------------------------------------------------- Chapter 4:0.1

Kenneth Mead (202) 512-2834


      ASSOCIATE DIRECTORS
-------------------------------------------------------- Chapter 4:0.2

Gerald L.  Dillingham (202) 512-4803

�Responsible for aviation, Coast Guard and maritime issues. 

Barry Hill (202) 512-9775

�Responsible for surface transportaion, telecommunications and
cross-cutting issues. 


*** End of document. ***