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Summary

On May 26, 2005, we issued our third annual report on the status of FAA’s major acquisitions, which are part of its modernization effort. We found that cost growth, schedule delays, and performance shortfalls with FAA’s major acquisitions continue to stall air traffic modernization. Overall, 11 of the 16 projects we reviewed will experience a total cost growth of about $5.6 billion, and 9 of the 16 projects will have schedule slips from 2 to 12 years, based on current estimates. Two programs have also been deferred. FAA is now emphasizing sustaining the National Airspace System (NAS), as opposed to increasing capacity, through its major acquisitions portfolio. Given the cost growth and schedule slips with major acquisitions and the declining level of facilities and equipment funds, FAA must determine how to get the most out of its limited resources.