Air Traffic Control: Observations on Proposed Corporation (Testimony,
05/12/94, GAO/T-RCED-94-210).

GAO testified that exemption from procurement regulations would not
necessarily result in air traffic control equipment being installed more
quickly in the field.  Modernization delays have been caused by other
factors, such as underestimating the technical complexity of system
development.  Regarding the issue of the Federal Aviation
Administration's (FAA) positioning itself for the future, GAO found
inconsistent signals.  The proposal to create a government-owned air
traffic control corporation, one that is exempt from federal procurement
and personnel regulations and the appropriations process, suggests a
hamstrung FAA struggling to update its air traffic control system.
However, FAA's recently issued plans for modernizing the system describe
a different FAA--one that has already accomplished a great deal and has
several new technologies coming on line.  Finally, among the financing
issues raised by the proposal, revenue and expenditure assumptions
deserve a closer look and close scrutiny of how safety will be ensured
is warranted.

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

 REPORTNUM:  T-RCED-94-210
     TITLE:  Air Traffic Control: Observations on Proposed Corporation
      DATE:  05/12/94
   SUBJECT:  Federal agency reorganization
             Federal corporations
             Air traffic control systems
             Air transportation operations
             Safety standards
             Transportation safety
             Procurement procedures
             Safety regulation
             Procurement regulation
             Mission budgeting
IDENTIFIER:  National Performance Review
             FAA Advanced Automation System
             FAA Voice Switching and Control System
             FAA Initial Sector Suite System
             FAA Capital Investment Plan
             FAA National Airspace System Plan
             Airport and Airway Trust Fund
             Farm Credit System
             NAVSTAR Global Positioning System
             GPS
             
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