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Summary

We publicly released our audit report, which found that FAA’s oversight of the National Airspace System Implementation Support Contract was seriously inadequate in that the contract did not acquire services efficiently or control costs. We found that: (1) of $97 million in obligated funds, about $10 million was not needed to fund current task orders; and (2) 22 percent of the contractor personnel reviewed did not meet specifications for education and experience. These workers charged approximately $4.5 million for about 98,000 hours of work. FAA needs to hold its managers accountable; adhere to principles of contract oversight and administration; and make more effective use of Defense Contract Audit Agency audits. It should also implement performance-based service contracting to reduce costs, improve performance, and increase accountability.