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ARRA Advisory - FAA's Process for Awarding ARRA Airport Improvement Program Grants  
The Office of Inspector General is working to ensure that the more than $48 billion in stimulus funds allocated to the Department of Transportation is committed to infrastructure projects that meet ARRA requirements. We issued this advisory to alert the Department that FAA’s process for awarding ARRA grants for Airport Improvement Program (AIP) projects did not ensure all ARRA requirements were met.

Specifically, FAA’s guidance to regional officials for selecting airport projects did not adequately reconcile national ARRA goals with the Agency’s National Priority Rating (NPR) process for scoring potential AIP projects, and the economic merit of some lower–ranked projects may be questionable. Additionally, some projects may involve recipients with histories of grant management problems. As a result, some of these grants may not fully comply with ARRA requirements calling for transparent, merit–based selections and effective administration of funds.

We offer proposed actions for change for the Department’s consideration. Most broadly, to ensure only projects of the highest priority and economic merit receive ARRA funds, FAA needs to reconcile its guidance to regional officials with ARRA requirements and provide a transparent selection process. We suggest that until FAA can demonstrate their economic merit, it should refrain from awarding additional grants for lower–ranked projects. For such projects that have been approved but for which no ARRA funds have been expended, FAA should show their economic merit or consider withdrawing those grants. Finally, FAA should increase its oversight over ARRA grant recipients that historically have not administered AIP funds effectively. We plan to follow up on the information in this advisory with a full audit.

OIG Testimony on Challenges in Implementing Performance-Based Navigation in the U.S. Air Transportation System  
On July 29, the Principal Assistant Inspector General for Auditing and Evaluation (PAIGAE) testified before the House Subcommittee on Aviation regarding FAA’s efforts to modernize airspace through Area Navigation (RNAV) and Required Navigation Performance (RNP). The PAIGAE noted that RNAV and RNP are key to NextGen’s success and have shown some benefits, but fundamental issues need to be addressed. While RNAV and RNP have considerable industry support, some stakeholders are dissatisfied with the Agency’s overall method for implementing these initiatives. Of particular concern is FAA’s practice of laying most “new” routes over existing routes and the fact that air carriers are not using them. Stakeholders and FAA also disagree on the potential role and responsibilities of non–Government third parties in speeding the adoption of RNP. Unless these are clearly defined, it will be difficult to establish an effective oversight framework for third parties.

To ensure the safe and effective implementation of RNAV and RNP–and to realize their full benefits–the PAIGAE stated that FAA will need to focus on the following areas: (1) aligning Agency goals with producing quality RNP procedures that have significant benefits rather than focusing on the number of procedures, (2) establishing priorities for new routes and funding requirements for related airspace redesign projects and systems that controllers rely on to manage traffic, (3) performing cost–benefit analyses in close coordination with all stakeholders before and after implementing RNP procedures, (4) ensuring controllers and pilots are aware of and trained on procedures before they are implemented, and (5) developing and establishing a policy on how and to what extent third parties will be used to help support FAA’s NextGen efforts and ensure an effective oversight approach.

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Last updated: August 19 2009

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Related Information: DOT * FAIR Act * FOIA * FY 2010 Budget Request * IGNet * USA.gov * Web Publication Schedule