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Summary

While parallel development and production activities continue for WAAS, FAA must be judicious about how it spends funds on a system that has an uncertain end-state. WAAS is a cost-plus contract, and all the risk for developing the new satellite-based system is now with the Government. In addition to our prior recommendation that the contract burn rate of about $4 million a month be reduced significantly, we also recommend that FAA:



1. Task the Defense Contract Audit Agency to conduct a cost incurred audit of the WAAS contract and a series of unannounced floor/labor checks. We will work with FAA to structure these audits accordingly.



2. Defer developing and reporting WAAS cost, schedule, and performance baselines to the Congress and aviation community until technical and independent reviews of the satellite-based system are complete in January 2001.