Federal Manager's Daily Report

The Federal Aviation Administration has made progress with

its multibillion-dollar effort to modernize the national

air traffic control system but it still faces systems

acquisition problems, the Government Accountability Office

has said in a new report.

It said FAA’s performance-based Air Traffic Organization

was created in February 2004, partly to address cost,

schedule, and performance shortfalls in its system

acquisitions that stretch back over two decades and landed

the program on GAO’s high-risk list where it has remained

since 1995.

The agency met acquisition goals for 2004 but only because

they were based on revised program milestones and cost

targets and they are not a reliable benchmark that can be

used in isolation to measure progress, according to

GAO-05-331.

It said however, that while additional steps are necessary,

FAA has managed to cut funding for some major systems

after failing to meet goals and it reassessed capital

investments to channel funds to priority systems.

The report also noted improved management of

software-intensive acquisitions and IT investments and

said the ATO has begun to more effectively involve

stakeholders in the modernization effort, and at GAO’s

recommendation, ATO is planning an overall policy for

applying a process improvement model to

software-intensive acquisitions.

Despite these improvements, ATO needs to use “a

knowledge-based approach to managing system

acquisitions, characteristic of best commercial

practices, to help avoid cost, schedule, and

performance problems,” said GAO.