oversight

Air Traffic Control: Status of FAA's Effort to Modernize the System

Published by the Government Accountability Office on 1990-04-17.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

               United   States   General   Accounting   Office
               Fact Sheet for Congressional
GAO            Requesters



April   1990
               AIR TRAFFIC
               CONTROL
               Status of FAA’s Effort
               to Modernize the
               System
                                         -----   .-. ~~
      United States
GAO   General Accounting Offke
      Washington, D.C. PO548
                                                                                          --
      Resources, Community,   and
      Economic Development    Division


      B-239008.1


      April17,1990


      The Honorable    Frank R. Lautenberg
      Chairman,   Subcommittee   on Transportation
        and Related Agencies
      Committee on Appropriations
      United States Senate
      The Honorable  William    Lehman
      Chairman,  Subcommittee     on Transportation
      Committee on Appropriations
      House of Representatives
      This fact sheet responds to your December 15, 1989 request
      that we provide          information        on the status       of the Federal
      Aviation    Administration's             (FAA) air traffic        control       (ATC)
      modernization        program.         This program,       characterized         at its
      inception     in 1981 as the National               Airspace     System (NAS) Plan,
      is aimed at achieving              a significantly        safer and more
      efficient     air traffic          control     system while constraining
      costs incurred         by the government           and airspace      users.        It is
      meant to integrate            various      improvements      such as replacing
      computers,      increasing         automation,      consolidating       facilities
      and upgrading        navigational          aids.    As agreed with both of
      your offices,        this fact sheet provides              information        on (1)
      the overall       status      of the program in terms of projects
      completed     and funds allocated,               and (2) the projected           cost
      and schedule       of the program's             12 major systems as of January
      1990.
      In summary, we found that FAA has completed           28 projects,       or
      about 32 percent      of all NAS Plan projects.       However, because
      most of these completed       projects  have comparatively        lower
      costs than those being developed,        they represent      only 4
      percent  of total     NAS Plan costs.    Furthermore,     project
      delays in the 12 major systems have continued.             One of the
      longest   is that projected      for the Mode S surveillance         and
      communication     system-- a 20-month additional      delay in first-
      site implementation.
B-239008.1

2-l/2      years between the 1983 and 1987 NAS Plans.1                       Delays in
first-site        implementation       --when the first          system becomes
operational         in the field--       ranged from 1 to 4 years.              These
delays have continued--            eight     of    the   12  major   systems   we
reviewed       experienced      a delay of at least 200 days during the
past year.         For example, the scheduled                milestones    for the
first-site        implementation         of the Mode S surveillance             and
communication          system has been delayed about 20 months, from
March 1990 to November 1991.                   Additionally,        FAA anticipates
a 13-month delay in delivery                 of Initial       Sector Suite System
air traffic         controller     consoles,         the second phase of the
$4.4 billion          Advanced Automation            System.     According    to the
latest      monthly progress         report,       future    phases of the
Advanced Automation            System, such as the replacement                of the
air traffic         control    software,       may also be delayed pending
completion        of discussions         between FAA and the vendor.              Other
major projects          experiencing        significant       delays include      the
Voice Switching           and Control       System and the Microwave Landing
System.        Section      II of this fact sheet provides               cost and
schedule       data on FAA's major systems.


We obtained       the information         in this fact sheet by analyzing
data from various          sources.       Cost and schedule           information       on
individual      systems were obtained            from Project         Management
Status Reports prepared             for the FAA by its Systems
Engineering       and Integration         Contractor.         Information         on the
number of NAS Plan projects               in various       stages of progress
was obtained        through    interviews      with contractor           officials
and analyses        performed     by the contractor           for FAA. We
obtained     information       on the overall         cost of ATC
modernization,         as well as its appropriations                 and
obligations,        by analyzing       various     financial       reports      provided
by FAA and the contractor.                Our work was conducted              between
October 1989 and March 1990.
As you know, the information          in this fact sheet was
developed      during    our ongoing review of FAA's modernization
program,     which is being performed        at the request    of both of
your Subcommittees         and is in a series     of reports   and
testimonies       addressing   this subject.      This fact sheet will
supplement      our statement     on FAA's fiscal     year 1991
appropriations        request  to be separately      delivered  in
testimony      before both Subcommittees       this spring.

lAir Traffic Control: Continued Imnrovements Needed in FAA's
Manaqement of the NAS Plan (GAO/RCED-89-7, Nov. 10, 1988).
3
                                   CONTENTS
                                                                            Paqe_

LETTER                                                                        1

SECTION
   1       INFORMATION ON THE OVERALL STATUS                                  8
             OF MODERNIZATION
   2       MAJOR SYSTEM SCHEDULES AND COSTS                                  13

APPENDIX
   I       MAJOR CONTRIBUTORS TO THIS FACT SHEET                             30
TABLE
  1.1      NAS Plan      Project     Status                                  10
  1.2      Trends      in First     year   Obligation         Rates          12
  2.1      Project   Costs and NAS Plan Implementation                       14
             Milestones    for Major System Acquisitions
  2.2      Schedule Changes of Critical    Milestone                         16
             Dates for Advanced Automation     System
  2.3      Program Funding History             for     Advanced              17
             Automation  System
  2.4      Schedule Changes of Critical    Milestone                         17
             Dates for Air Route Surveillance      Radar
  2.5      Program Funding History             for     Air    Route          18
              Surveillance Radar
  2.6      Schedule Changes of Critical                  Milestone           19
             Dates for Air Route Traffic                  Control
             Center Plant Modernization
  2.7      Program Funding History     for Air                Route          19
              Traffic   Control Center Plant
             Modernization
  2.8      Schedule      of Critical       Milestone         Dates    for    19
             Airport      Surveillance        Radar
  2.9      Program Funding History             for      Airport              20
             Surveillance  Radar


                                     5
FIGURE
  1.1    NAS Plan and Other Projects     as Percentages                 8
           of Total Modernization    Effort
  1.2    F&E Funding     for   NAS Plan    and Non-NAS Plan             9
           Projects
  1.3    Changes in F&E Appropriations            and                  11
           Unobligated Balances
                         ABBREVIATIONS
AAS      Advanced Automation         System
ARSR-4   Air Route Surveillance           Radar
ARTCC    Air Route Traffic         Control     Center
ASOS     Automated Surface Observing             System
ASR-9    Airport     Surveillance      Radar
ATC      Air Traffic       Control
AWOS     Automated Weather Observing             System
CWP      Central     Weather Processor
F&E      Facilities       and Equipment
FAA      Federal Aviation         Administration
FSAS     Flight     Service Automation         System
MLS      Microwave Landing System
MWP      Meteorological        Weather Processor
NAS      National     Airspace     System
RCL      Radio Communications          Links
RWP      Real Time Weather Processor
SEIC     Systems Engineering         and Integration      Contractor
TDWR     Terminal     Doppler Weather Radar
vscs     Voice Switching        and Control      System




                                7
Figure   1.2:     F&E Funding     for   NAS Plan    and Non-NAS Plan Projects




           FAA's progress  in modernizing the Air Traffic    Control (ATC)
  system can be measured both in terms of (1) the number of projects
  complete,     and (2) the amount of F&E funds appropriated    and
  obligated.
  Most NAS Plan      Projects     Are in Production        But Few Are Comolete
          FAA states       that over 95 percent      of the original          NAS Plan
  projects     are under contract.          However, we recently           testified    that
  establishment        of contracts      is not an accurate      description         of when
  modernization        will    occur in the fie1d.l       Although       funding     for these
  projects     will    begin to decrease in fiscal         year 1993, many NAS Plan
  projects     will    not be complete until        much later.        For example,       F&E
  funding     for the most expensive          NAS Plan project,        the Advanced
  Automation       System, will      peak in fiscal    year 1993.          However, the
  entire    project,       which will    enhance both en route and terminal               ATC
  systems,     will    not be operational       in the field     until       at least the
  year 2000.
         Martin    Marietta,  FAA's      Systems Engineering            and Integration
  Contractor      (SEIC), classifies       NAS Plan projects            in four stages    of
  progress:


   1FAA Annronriation        Issues     (GAO/T-RCED-89-20,       Apr.     4, 1989).
                                               9
year 1982.       For fiscal      years 1982 through        1989, the Congress
appropriated       $7.2 billion       for FAA's F&E account.          Because F&E funds
are available        to FAA for 5 years under the full             funding   concept,2
obligations      lag behind appropriations.             As a result,      an unobligated
balance exists         in the F&E account.        Through the end of fiscal          year
1989, FAA had obligated            approximately     $5.8 billion      of the $7.2
billion     appropriated,       creating    an unobligated      balance of $1.4
billion     in the F&E account.           The unobligated     balance included        funds
appropriated       for fiscal      years 1986 through       1989.
      Figure 1.3 shows the direct          relationship      between F&E
appropriations     and the unobligated        balance.      During the early
198Os, the unobligated        balance increased         as appropriated    amounts
grew.     When appropriations      decreased      in fiscal    years 1986 and 1987
so did the unobligated        balance,   although       not until    the second year.
Fiqure 1.3:                  Chanqes           in F&E Appropriations                                and Unoblisated
Balances

       2600       Odlars in Millions
       2460
       2200
       2m
       16W
       1600
       1400
       1200

       1000
        600
        800
        4w
        2w
              0

              1962          1983       1964       1966       1966           1967      1966      1969        1990      1991
              Fiscal Years

                     -        F&E Appropriations
                     ---I     F&E unobligated balance, end of year

       F&E Appropriations          figure for fiscal year 1991 represents     FAA’s Congressional    budget request

       F&E unobligated         balances for fiscal years 1990 and 1991 are estimates.




2Under the full    funding concept, all the monies needed to procure
and install   a given number of systems are requested   in the first
year although   they may not all be used until   the 5 years have
elapsed.

                                                                       11
                                    SECTION 2
                         MAJOR SYSTEM SCHEDULES AND COSTS
        The Department        of Transportation         has designated         12 of FAA's
original       NAS Plan projects         as major system acquisitions             because of
either     their    high cost or critical           need.     Table 2.1 provides
implementation         milestones      for NAS Plan sites          on the 11 active      major
acquisitions,l         as well as the Air Route Traffic                Control    Center
 (ARTCC) modernization           project.       We included      the latter      project
because it represents            a significant       portion      of the total      cost of
the NAS Plan and much of its work is needed to begin the
implementation          of the Advanced Automation            System (AAS).         As noted
in the table,         all of the major systems in the 1983 Plan have
experienced        a major schedule        slippage     since the Plan was
published.2         These delays have continued              during    the past year.        In
addition,        8 of the 12 systems have experienced                a delay of at least
200 days between January 1989 and January 1990.




lThe   Host   Computer     project     was completed       in 1988.
2According    to     the Manager of the NAS Program Management Staff,              the
milestones    in     the 1981 NAS Plan were determined         without    an adequate
understanding        of the difficulties        that the NAS effort    entailed.
FAA believes       the milestones        in the 1983 Plan were better      defined
and represent        a more reasonable        baseline  from which to measure
progress.

                                             13
MAJOR PROJECT MILESTONES HAVE BEEN DELAYED
         Tables 2.2 through          2.25 provide      more detailed     information        on
changes in milestones            during   the last year for these 12 projects.
We selected       milestones       that were representative          of the various
phases of FAA's procurement              process.       As noted in the tables,           11 of
the 12 projects          have experienced       slippage     in at least one of their
milestones       between January 1989 and January 1990.                  FAA project
officials      attributed       delays to various        reasons,     as noted in the
tables.       Also,    in terms of funding          for these major systems,           much of
their     estimated      cost is based on future           changes.     As shown in
tables     2.2 through       2.25, through      fiscal     year 1990, more than half
of the total        F&E cost needs to be appropriated               for 7 of the 12
projects      we reviewed.         FAA has obligated        more than half of the
total     estimated      F&E costs for 4 of the 12 projects              through     fiscal
year 1989.
Advanced     Automation      Svstem    (Vendor:      IBM)
        The Advanced Automation           System (AAS) is a total       system concept
that includes       computer hardware and software           as well as improved
controller     workstations        at air traffic    control   (ATC) facilities.
FAA believes      that implementation          of the AAS will    increase
controller     productivity,         improve ATC system reliability,         and
provide    increased      capacity     to meet growing demand.
       The AAS will      be implemented            in five separate      phases.     The
first    phase is the replacement             of the Peripheral        Adapter Module
Replacement     Item, which will           provide      enhanced ability      to interface
with radars.       The second phase of AAS, the Initial                   Sector Suite
System (ISSS), will         replace      controller       work stations      at en route
air traffic     control     facilities        with color displays.          The third
phase, the Terminal         Advanced Automation             System, will     consist    of
computer hardware and software                deployed      to en route facilities         to
replace     a number of terminal           facilities.         The Area Control
Computer Complex, the fourth               phase, will        allow the consolidation         of
the remaining      terminal       functions        at the en route facilities.
Parallel     to its deployment,          the Tower Control          Computer Complex will
revamp hardware and software               at airport       towers.    This is the final
phase of the project.
       FAA anticipates    a 13-month slip   in the delivery       of the ISSS.
This delay is not yet reflected       in the schedules     listed    below.
Furthermore,     delays to other phases may also occur pending the
outcome of ongoing discussions       between FAA and IBM.




                                             15
Tower Control                 Computer       Complex
      Critical         design       review                     03/28/90                 09/28/90                 184
      Delivery    to first
      operational    site                                      06/13/94                 09/30/94                 109
      First       commissioning                                01/05/95                 08/31/95                 238
      Last       commissioning                                 11/30/99                 12/29/00                 394
aactual           completion         dates

Table         2.3:       Prosram      Fundins        History        for     Advanced        Automation         System
(Dollars             in Millions)
Total         estimated          F&E costs                                                  $4,430.9
F&E funds             appropriated           through      fiscal          year   1990           939.2
F&E funds             appropriated           through      fiscal          year   1989           574.2
F&E funds             obligated       through        fiscal        year     1989                559.4
F&E funds             requested       in fiscal         year       1991                         556.3

Air      Route        Surveillance           Radar     (Vendor:            Westinghouse         Electric        Co.)
      The Air Route Surveillance      Radar (ARSR-4) is a long range
search radar.      These radars provide     air traffic      controllers    with
their  primary   source of data for monitoring          en route aircraft.       The
ARSR-4s will    also be able to detect      hazardous weather conditions           at
long distances.      The FAA project    manager attributed         schedule
delays to a change in quantity       requirements       and a subsequent     delay
in the contract     award.   Subsequent milestones        were not updated
until  this year to reflect     these changes.
Table         2.4:     Schedule Chancres of Critical                         Milestone        Dates      for    Air
Route         Surveillance     Radar
                                                                Milestone          dates      as of        Change
Milestone             activity                                  Jan.89                     Jan.90          in davs
Contract             awarded                                   07/22/88a                07/22/88a                      0
Critical             design      review                        08/28/89                 06/29/90                 305



                                                          17
Table      2.6:    Schedule         Chanaes of Critical   Milestone                     Dates for          Air
Route      Traffic   Control         Center Plant Modernization
                                                       Milestone           dates     as of                Change
Milestone       activity                               Jan. 89                     Jan. 90                in davs
Design engineering
completed                                              01/29/93                    01/31/94                  367
Construction           and
modernization           completed                      01/31/94                    08/14/97                1291

Table 2.7:   Proaram Fundins                 History         for     Air    Route      Traffic          Control
Center Plant Modernization
(Dollars       in Millions)
Total      estimated       F&E costs                                                    $332.0
F&E funds       appropriated          through      fiscal          year    1990               99.2
F&E funds       appropriated          through      fiscal          year    1989               63.0
F&E funds       obligated       through      fiscal         year     1989                     43.0
F&E funds       requested       in fiscal         year      1991                              46.2

Airport      Surveillance           Radar   (Vendor:          Westinghouse             Electric          Co.)
         The Airport      Surveillance       Radar (ASR-9) is a short range,
highly     accurate     system for monitoring           aircraft     movement and
position     within     a radius      of 60 miles from the airport             terminal.
Air traffic       controllers       use the ASR-9 position           data to keep
aircraft      safely    separated      and control      their     movements into and out
of the airport.           According       to a project     official,     the radar
delivered       to the first       site did not meet hardware or software
specifications,         resulting       in delayed     implementation       dates.       As of
January 1990, three ASR-9s were operational.
Table 2.8:         Schedule         of Critical        Milestone           Dates      for     Airnort
Surveillance        Radar
                                                           Milestone        dates      as of            Change
Milestone       activity                                   Jan.89                   Jan.90              in davs
Contract       awarded                                   10/01/83a                 10/01/g3a                      0
Critical       design      review                        09/28/84a                 09/28/84a                      0


                                                      19
Table 2.10:  Schedule Chancres of Critical                              Milestone        Dates     for
Automated Weather Observins  Svstem
                                                          Milestone          dates     as of        Change
Milestone       activity                                  Jan.89                     Jan.90         in days
AWOS
  Contract        awarded                               08/30/8ga                08/30/88a                  0

  Delivery    to first
  operational    site                                   06/07/89                 05/03/8ga                -35
  Shakedown        test                                 06/26/89                 03/03/8ga               -115
  First       implementation                            06/30/89                 05/24/a9a                -37
  Last       implementation                             02/28/91                 03/29/91                  29
aactual       completion        dates

ASOS
  Contract        awarded                               06/29/90                 08/06/90                  38
  Critical        design      review                    05/14/89                 06/13/8ga                 30
  First       implementation                            01/31/91                 11/29/90                 -63
   Last      implementation                             08/31/94                 02/28/94                -184

Table 2.11:     Proqram           Fundino         History       for   Automated         Weather
Observins   System
(Dollars       in Millions)
Total      estimated       F&E costs                                                    $189.5
F&E funds        appropriated           through      fiscal      year    1990               72.6
F&E funds        appropriated           through      fiscal      year    1989               62.6
F&E funds        obligated       through      fiscal          year    1989                  43.5
F&E funds        requested       in fiscal         year       1991                          36.6




                                                     21
Table       2.13:          Procrram Fundina            History       for     Central      Weather         Processor
(Dollars        in Millions)
Total       estimated           F&E costs                                                   $134.9
F&E funds           appropriated             through      fiscal      year     1990               61.5
F&E funds           appropriated             through      fiscal      year     1989               52.8
F&E funds           obligated         through      fiscal          year    1989               46.6
F&E funds           requested         in fiscal         year       1991                           10.0

Flisht       Service           Automation        Svstem        (Vendor:        E-Systems          Inc.)
       The Flight      Service   Automation       System (FSAS) allows pilots          to
receive     automated weather data prior             to take off.       This system
eliminates      much of the time previously            spent in conversation        with a
flight     specialist.       It will     also provide     improved access to the
FAA system that notifies            pilots     of very recent     information
concerning      changes to any aspect of the National                Airspace   System.
As noted below, the schedule               for the Model 1 Full Capacity         system
is generally        on target.
Table       2.14:    Schedule Chancres of Critical                            Milestone      Dates         for
Flisht       Service   Automation System
                                                                 Milestone        dates    as of            Change
Milestone           activity                                     Jan.89                   Jan.90            in days
Contractor           turn       on                             07/31/87a               07/31/87a                  0
Critical        design          review                         09/30/88a               09/30/88a                  0
Delivery    to first
operational    site                                            04/18/90                04/18/90                   0
Shakedown           test                                       04/16/90                06/02/90                  47
First       implementation                                     05/31/90                07/15/90                  45
Last       implementation                                    04/18/94                  04/18/94                   0

aactual       completion             dates




                                                          23
Table       2.17:          Prosram      Fundins      History       for     Microwave      Landins      System
(Dollars        in Millions)
Total       estimated          F&E costs                                                 $1112.8
F&E funds           appropriated           through      fiscal      year     1990          166.3
F&E funds           appropriated           through      fiscal      year     1989          154.9
F&E funds           obligated         through     fiscal         year    1989              121.5
F&E funds           requested         in fiscal       year       1991                          35.2

Mode S (Vendors:                 UNISYS and Westinghouse                    Electric      Co.)
           Mode S employs a system of sensors and ground-based                      antennae
to exchange information             between aircraft           and air traffic     control
facilities.         Because Mode S addresses              individual      aircraft
separately,       signal    interference         is reduced and a clear message
channel is established            between aircraft           and ground installations.
Aircraft      equipped with new Mode S avionics                  will   also be able to
directly      obtain    weather information           now available        only through
controllers.         FAA project       officials      attributed       delays in the Mode S
to hardware and software             development       problems encountered         by the
contractor.         FAA plans to procure           additional        Mode S systems.       Their
cost is not included           in the F&E funding            estimates     below.
Table 2.18:                Schedule      Chanses      of Critical           Milestone      Dates      for
Mode S
                                                               Milestone        dates    as of         Change
Milestone           activity                                   Jan.89                   Jan.90         in davs
Contract        awarded                                      10/05/84a              10/05/84a                 0
Critical        design         review                        12/17/8ba              12/17/8ba                 0
Delivery    to first
operational    site                                          05/25/89               07/08/91                774
Shakedown           test                                     03/02/90               06/05/91                460
First       implementation                                   03/05/90               11/28/91                633
Last       implementation                                    08/05/92               02/26/95                935
aactual       completion           dates



                                                        25
Table      2.21:          Program      Funding     History        for      Radio    Communications
Links
(Dollars        in Millions)
Total      estimated          F&E costs                                                   $281.3
F&E funds          appropriated          through      fiscal        year     1990          259.6
F&E funds          appropriated          through      fiscal        year     1989          244.6
F&E funds          obligated         through     fiscal         year    1989               177.0
F&E funds          requested         in fiscal      year        1991                            21.0

Terminal        Donnler        Weather      Radar     (Vendor:             Raytheon      Co.)
       The Terminal       Doppler Weather Radar (TDWR) is designed                      to
detect    wind shear and microbursts             around airports.           The   FAA     is
planning     to procure      47 TDWRs to function           as the primary        ground-
based wind shear warning system.                 FAA originally        included       funds for
an additional        purchase of TDWRs under a contract                option     in its
previous     project     estimates.        However, FAA has eliminated              the
funding    for the additional          systems,      lowering     the total     project
cost.     The FAA project         manager told us that the production
contract     was awarded before the results                of operational       tests were
complete.       When testing       results    required      changes to system
software,      FAA granted      the contractor         a 3-month delay for system
delivery     to the first       operational      site,     which,    in turn,     affected
subsequent      milestones.
Table 2.22:       Schedule Chances of Critical                              Milestone      Dates       for
Terminal  DODDler      Weather Radar
                                                               Milestone       dates     as of         Change
Milestone          activity                                    Jan.89                  Jan.90          in Days
Contract        awarded                                    11/02/88a                11/02/88a                   0
Critical        design        review                       07/20/90                 11/06/8ga                -256
Delivery    to first
operational    site                                        08/29/92                 12/02/92                   95
Shakedown          test                                    08/21/92                 01/29/93                  161
First       implementation                                 01/04/93                 03/31/93                   86
Last       implementation                                  12/29/95                 03/31/96                   93
aactual       completion            dates
                                                          27
Table 2.25:    Prosram            Fundins     History           for    Voice        Switchino      and
Control  System
(Dollars       in Millions)
Total      estimated    F&E costs                                                        $892.4
F&E funds       appropriated        through      fiscal          year        1990         235.7
F&E funds       appropriations         through         fiscal         year     1989         63.5
F&E funds       obligated        through     fiscal       year        1989                  60.1
F&E funds       requested        in fiscal      year      1991                            185.1




                                                  29
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        <
APPENDIX I                                                    APPENDIX I
                      MAJOR CONTRIBUTORS TO THIS FACT SHEET
PESOURCES. COMMUNITY, AND ECONOMIC DEVELOPMENT DIVISION,
WASHINGTON. D.C.
Allen   Li, Assistant     Director
Robert D. Wurster,       Evaluator-in-Charge
Sara Magoulick,      Senior Evaluator
Kathleen    Johnson,   Evaluator
Philip   Willis,   Evaluator

ATLANTA REGIONAL OFFICE
Ray Bush,    Senior     Evaluator




(341262)


                                          30
Table       2.23:          Prooram      Fundins      History          for     Terminal       Doppler   Weather
Radar
(Dollars        in Millions)
Total       estimated          F&E costs                                                      $348.6
F&E funds           appropriated          through        fiscal        year     1990           211.1
F&E funds           appropriated          through        fiscal        year     1989           104.1
F&E funds           obligated        through        fiscal         year     1989                95.9
F&E funds           requested        in    fiscal      year        1991                         83.7

Voice       Switchinq          and Control          System
        The Voice Switching         and Control        System (VSCS) integrates         the
various     communications       systems--intercom,          interphone,     and air-
ground --which      are needed to monitor            and control      en route and
terminal      air traffic.       Use of the VSCS will           enhance voice
communications       and facilitate          switching     of communications       between
controllers       and pilots.       FAA anticipates         achieving     the dual
benefits      of increased      productivity        and lower costs since the system
will    be owned rather       than leased as in the past.                The schedule
listed     below is currently        under review.
Table 2.24:    Schedule                   Chanses      of Critical             Milestone       Dates   for   Voice
Switchinq   and Control                   System
                                                                  Milestone        dates     as of     Change
Milestone           activity                                      Jan.89                   Jan.90      in days
Contract        awarded                                       09/11/89                   11/29/89             79
Critical        design         review                         10/31/89                   03/29/90            149
Delivery    to first
operational    site                                           01/14/91                   08/29/91            227
Shakedown           test                                      06/18/90                   08/29/91            437
First       implementation                                    10/18/91                   05/29/92            224
Last       implementation                                     12/17/93                   03/29/94            102




                                                             28
Table      2.19:       Proaram      Fundins         History       for   Mode S
(Dollars       in Millions)
Total      estimated          F&E funds                                                 $495.3
F&E funds          appropriated           through      fiscal      year    1990          328.5
F&E funds          appropriated           through      fiscal      year    1989          304.7
F&E funds          obligated       through      fiscal          year    1989             276.7
F&E funds          requested       in fiscal         year       1991                      37.0

Radio      Communications           Links      (Vendor:           AT&T Technologies)
       FAA intends      to install    Radio Communications          Links (RCL) to
replace    and upgrade existing        Radio Microwave Link communications
lines   used to transmit        voice and radar data nationwide.                The
desired    objectives      of this replacement     are to provide          reliable
transmission       of data, improved system availability,                and reduced
costs for interfacility           communications.       In addition,       the RCL
replacement     will    provide    the system flexibility         to meet the
requirements       of the NAS plan and facility           consolidation.
Table 2.20:    Schedule              Chanaes of Critical                  Milestone      Dates   for   Radio
Communications   Links
                                                            Milestone      dates     as of       Change
Milestone          activity                                 Jan.89                  Jan.90       in davs
Contract       awarded                                      05/03/85a              05/03/85a             0
Delivery    to first
operational    site                                         01/06/86a              01/06/86a             0
First      implementation                                   05/07/8ba              05/07/8ba             0
Last      implementation                                    12/31/91               12/31/91              0

aactual       completion          dates




                                                         26
Table 2.15:             Proqram      Fundins        History       for      Fliaht       Service       Automation
System
(Dollars        in Millions)
Total       estimated       F&E costs                                                        $474.3
F&E funds        appropriated             through      fiscal       year      1990            425.7
F&E funds        appropriated             through      fiscal       year      1989            414.7
F&E funds        obligated         through      fiscal          year    1989                  352.5
F&E funds        requested         in fiscal         year       1991                           47.8

Microwave        Landins       System        (Vendor:           Hazeltine           Corp.)
           The Microwave Landing System (MLS) is designed                       to guide
 aircraft       to safe landings         in conditions         of reduced visibility.            The
MLS's ability           to guide approaching          aircraft      from a wider angle than
permitted         by the Instrument         Landing System currently            in use may
 allow aircraft           to follow     a variety     of approach paths,          including
 curved approaches.              FAA contends that this added flexibility                    could
 help increase          an airport's       capacity    to accept landing          aircraft     and
help to alleviate              some of the undesirable           noise effects       of
 approaching         aircraft.       All schedule data for the MLS first                   buy is
 currently        on hold because FAA sent a termination                 letter      to the
'contractor        in August 1989.          Plans for a second buy of MLSs have
 also been delayed pending the results                     of demonstration         program that
will      validate      agency projections          of benefits.
Table 2.16:   Schedule Chancres of Critical                                 Milestone         Dates     for   First
BUY of Microwave Landino System
                                                              Milestone        dates      as of           Change
Milestone        activity                                     Jan.89                     Jan.90           in davs
Contract        awarded                                     01/12/84a                 01/12/84a                    0
Critical        design      review                          09/12/85a                 09/12/85a                    0
Delivery    to first
operational    site                                         04/09/88a                 04/09/88a                    0
Shakedown        test                                       11/14/88                  05/04/90                536
First       implementation                                  03/04/88                  05/15/90                802
Last       implementation                                   06/29/90                  08/31/92                794
aactual       completion          dates
                                                        24
Central       Weather       Processor   (Vendors:         NASA, Harris       Corp.      (MWP))
        The Central     Weather Processor         (CWP) is designed       to collect,
synthesize,       and disseminate      weather data from various             sources and
produce data that are tailored               to users'    specific    needs.       This
program is comprised         of two components:         the   Meteorologist        Weather
Processor      (MWP), and the Real Time Weather Processor                   (RWP). The
MWP is an off-the-shelf           commercial     service,     while the RWP is
expected to provide        added capabilities.            FAA's CWP project         office
attributed      delays in the MWP to (1) a need to go through                     a
deployment      readiness    review that it did not originally                plan,     and
(2) minor technical        changes made by higher organization                  levels
during     the review process.
Table 2.12:    Schedule Chanses              of Critical         Milestone      Dates     for
Central  Weather Processor
                                                     Milestone     dates      as of       Change
Milestone        activity                            Jan.89                Jan.90         in davs
MWP
   Contract        awarded                          06/01/89             09/29/8ga               120
   Delivery    to first
   operational    site                              10/02/89             06/29/90                270
   Shakedown        test                            03/12/90             08/15/90                156
   First       implementation                       11/01/89             09/28/90                331
   Last       implementation                        02/01/90             04/30/91                453
RWP
   Contract        awarded                          04/30/93             04/30/93
   Critical        design      review               05/23/94             05/23/94
   Delivery    to first
   operational    site                              01/06/95             01/06/95
   Shakedown        test                            02/17/95             02/17/95
   First       implementation                       03/16/95             03/16/95
   Last       implementation                        06/24/96             06/24/96
aactual        completion       date



                                               22
Delivery    to first
operational    site                                       06/27/88a                  06/27/88a                     0

Shakedown          test   complete                        06/U/88                    03/18/8ga                   277

First      implementation                                 06/30/88                   05/02/8ga                   306

Last      implementation                                  12/31/90                   06/30/92                    547


aactual       completion          dates

Table      2.9:       Proaram      Fundina      Historv        for     Airport        Surveillance              Radu
(Dollars          in Millions)
Total      estimated         F&E costs                                                      $700.8

F&E funds          appropriated           through    fiscal          year    1990               630.3

F&E funds          appropriated           through    fiscal          year    1989               620.8

F&E funds          obligated       through      fiscal        year     1989                     435.3

F&E funds          requested       in fiscal        year      1991                               47.4


Automated          Weather       Observino      Svstem        (Vendor:           Qualimetrics           Inc.)
        The Automated Weather Observing              System (AWOS) is primarily
intended    to fulfill     an immediate        need at non-towered          airports.                                  At
some towered airports,        the system        will      be used to replace        the
current    system of human observers.               Utilizing       a computer
synthesized     voice,   the system       will   provide       information     directly                                to
pilots    on nine different      critical       airport       weather elements.
      The AWOS program also includes         FAA funds that the National
Weather Service     uses for procuring     Automated Surface Observing
Systems (ASOS).      The ASOS system    collects      weather information,
which is transmitted     to the AWOS and provided          to pilots   in a timely
manner.   The ASOS system will       be installed       at both towered and non-
towered facilities.      ASOS systems will        provide    a similar   function
to AWOS at different     sites.




                                                      20
Delivery    to first
operational    site                                       09/30/91                    05/29/92           242
First      implementation                                 09/30/92                    06/30/93           273
Last      implementation                                  09/29/94                    09/05/95           341

aactual      completion           dates

Table      2.5:       Prooram      Fundino      History          for     Air    Route     SUXVeillanCe
Radar
(Dollars          in Millions)
Total      estimated         F&E costs                                                     $349.4
F&E funds          appropriated           through      fiscal          year    1990         131.6
F&E funds          appropriated           through      fiscal          year    1989              92.6
F&E funds          obligated       through      fiscal          year     1989                    45.0
F&E funds          requested       in fiscal        year        1991                             75.2

Air     Route      Traffic       Control      Center       Plant        Modernization
         Modernization        of Air Route Traffic        Control        Centers      (ARTCC) iS
needed to house the Advanced Automation                   System.         The current
facilities        lack essential      space and power requirements                 to
accommodate the AA.9 and other projects.                     The total       F&E funding
shown below does not include              $574 million         in ARTCC modernization
funding      included      in other F&E projects,         which, when included,
raises     the total       funding   needed to $906 million.                The majority      of
these additional           funds are included        in the Advanced Automation
System project.           Although    standardization          of ARTCCs is desired,
some latitude         for site specific        exemptions        has been included          in the
project      plan.      In the 1983 NAS Plan, the program addressed                      only
modernization         of the ARTCCs. The 1989 Plan includes                     both
modernization         and expansion      of the facilities           to support        components
of the AAS. FAA's project              manager attributes            schedule      delays to a
lack of funds, construction              problems,      and other unanticipated
problems       characteristic       of building      rehabilitations.            According     to
the project         manager, the modernization           project       may not provide
adequate space for the total              number of Initial             Sector Suites at
some sites.          This could eventually         increase       total     costs of the
project.



                                                         18
Table 2.2:   Schedule                   Chanses of Critical            Milestone     Dates   for
Advanced Automation                   System

                                                           Milestone       dates as of        Change
Milestone         activitv                                 Jan.89              Jan.90         in davs
Contract         awarded                               07/25/88a               07/25/88a             0
Peripheral  Adapter
Module Replacement                   Item

   Delivery    to first
   operational    site                                 11/21/90                06/28/91            219
   First        implementation                         05/22/91                12/31/91            223
   Last        implementation                          02/22/93                09/30/93            220

Initial         Sector       Suite      System

   Critical          design      review                09/16/88                04/20/8ga           216
   Delivery    to first
   operational    site                                 03/31/92                10/30/92            213
   First        implementation                         08/11/93                03/31/94            232
   Last        implementation                          05/12/95                12/29/95            231

Terminal   Advanced
Automation   System

   Delivery    to first
   operational    site                                 02/10/94                09/30/94            232
   First        implementation                         01/20/95                08/31/95            223
    Last       implementation                          10/10/96                05/30/97            232

Area       Control       Computer           Complex
    Critical         design      review                08/07/89                08/31/90            389

    Delivery    to first
    operational    site                                08/10/94                05/31/95            294
    First       implementation                         02/12/96                09/30/96            231
    Last       implementation                          01/13/98                08/31/98            230
                                                      16
Table 2.1:          Project    Costs and NAS plan              Implementation   Milestones   For
Major      System    Acquisitions

(Dollars      in Millions)
                                                                   Year of first-site                Year of last-site
                                               Total                 implementation                    implenentation
sqstem      name                               F&E cost           1983 plan     1989 plan          1983 plan    1989 plan
Advanced Autanatioc
systen (AAS)                                   $4,430.9             1990           1994               1994        2000
Air Route Surveillance
Radar (APSR-4)                                         349.4        1985           1988               1995        1996
Air Route Traffic Control
Center (ARICC) Modernization                           332.0        1985           1984               1987        1997

Airport Surveillance
Radar (ASR-9)                                          700.8        1985           1989               1992        1993

Autanated Weather
Observing
system (AwD.5)                                         189.5        1986           1989               1990        1994

Central Weather
Processor (CWP)                                        134.9        1990           1990               1991        1996

Flight Service
Autanation
systen (ESAS)                                          474.3        1984           1986               1989        1994

Microwave Landing
System (MIS)                                     1,112.8            1985           1988               1999        2004
Mode S                                                 495.3        1986           1992               1993        2000
Radio Cmunication
Links (XL)                                             281.3        1985           1986               1989        1993
Terminal Doppler
Weather Radar (TDWR)                                   348.6                       1993                           1996
Voice Switching
and Control
systen (vscs)                                          892.4        1989           1993               1992        1995
Source:       FAA National          Airspace    Systen Plans issued in 1983 and 1989.
Note: NAS Plan milestones listed in this table may differ                             fran dates in subsequent tables
because the former were last updated in Septenber 1989.




                                                                      14
        FAA received         increased       F&E appropriations         in fiscal     year 1990
and expects a further              increase     in fiscal     year 1991.         However, it
plans to keep the unobligated                  balance at about the current              level
by removing some projects                 from full    funding     and increasing
obligation        rates.       It is premature       to speculate         whether FAA will
achieve       its goal: however FAA has already                 altered      its obligation
plans for fiscal            year 1990.        At the time it delivered            its fiscal
year 1990 budget request                to the Congress,        FAA planned to obligate
during the first            year of the appropriation            about 78 percent          of the
$2 billion        it sought.         This is a much higher           rate than
traditionally          obligated,       an amount which has ranged from about 37
to 60 percent          over the last 5 years (see table                 1.2).     FAA has
altered       its plans,       however, and now expects to obligate,                  in the
first     year, about 65 percent              of the $1.7 billion          the Congress
appropriated         for fiscal       year 1990.
    Table      1.2:      Trends     in First   Year Obliqation    Rates
    (Dollars          in Thousands)
    Fiscal      Year        Appropriation         Obliqations    in first   year
                                                    Amount       Percentace
    1985                      $1,358,000            $723,314        53.3
    1986                            937,780          347,648        37.1
    1987                            804,584          479,255        59.6
    1988                          1,108,056          516,260        46.6
    1989                          1,384,184          662,964        47.9




    /                                              12

J
         --     projects       in the requirements   definition      phase, in which
                systems       are still  being developed      before contract  award:
         --     projects        in development   or production,  for which a
                contract        has been awarded for development     of either
                prototype         or final system:
         --     projects in implementation,    for which at least                                   one system
                has been delivered  to a field    site; and
         --     projects   completed,               for       which    all       systems    are operational
                in the field.
       Table 1.1 shows the number of NAS Plan projects         in each
stage,   as well as the percentage   of total   cost they represent.        As
noted in the table,    most of the NAS Plan is in implementation,         both
in terms of cost and number of projects.        Although    approximately    32
percent    of the NAS Plan projects  are now complete,      they account for
Only   about 4 percent   of the FAA's $15.8 billion     estimated    NAS Plan
cost.

Table         1.1:       NAS Plan       Project      Status
(Dollars             in Billions)
Stage of                                          Number of           Percent          Estimated           Percent
proaress                                          projects            of total           cost              of total
Requirements              definition                      3              3.4               $ 0.3               1.7
Development/production                               15                 16.9                 7.1             45.1
Implementation                                       43                48.3                  7.8             49.2
Completed                                            28                31.5                  0.6              4.0
Total                                                8e               ilL!sula             S15.8b           1OO.Q


"Percentages              do not       add to total            due to rounding.
bThis is the total     cost FAA estimates        for the original   NAS Plan
projects.     There are additional       modernization   projects   that need to
be undertaken.     Their inclusion       raises   total ATC modernization
costs to approximately      $27 billion.

Chanses in F&E Avprooriations                             and Unobligated            Balances       Have
Paralleled Each Other
         ATC modernization   progress    can also be measured                                   in terms of
the     amount of F&E funding    appropriated    and obligated                                  since fiscal
                                                              10
                                        SECTION 1
            INFORMATION ON THE OVERALL STATUS OF MODERNIZATION
         Although    the 1981 NAS Plan was originally              envisioned       as a lo-
year, $12-billion          undertaking,      it has grown in both length             and
cost.       FAA now estimates        the total     modernization      funding     in the
Facilities        and Equipment       (F&E) account for fiscal          years 1982
through       2000 at approximately         $27 billion      (as measured in current
year dollars),         while it estimates        the cost of the original            NAS Plan
projects        at $15.8 billion.        Figure 1.1 shows, as of September 1989,
both the original          NAS Plan projects         and new categories       of ATC
modernization        projects--which        FAA classifies       as llnon-NAS1'--as      a
percentage        of the total      number of F&E projects.           The original       NAS
Plan projects        account for about 55 percent             of FAA's total
modernization        projects.       Expressed     in another way, estimated
funding       for projects      FAA categorizes       as l'non-NAS1' will     begin to
exceed funding         for the original        NAS Plan projects        in fiscal     year
1993, as shown in Figure 1.2.

Figure 1.1:    NAS Plan and Other            Projects          as Percentages   of   the
Total Modernization    Effort




                                                 NAS Plan Projects (89)




                                                 Other Capital Needs (22)




                                             8
2.10   Schedule Changes of Critical  Milestone                     21
         Dates for Automated Weather
         Observing System
2.11   Program Funding History    for       Automated              21
         Weather Observing   System
2.12   Schedule Changes of Critical          Milestone             22
         Dates for Central Weather          Processor
2.13   Program Funding     History   for    Central      Weather   23
          Processor
2.14   Schedule Changes of Critical          Milestone             23
         Dates for Flight Service          Automation
         System
2.15   Program Funding History       for    Flight     Service     24
         Automation  System
2.16   Schedule Changes of Critical  Milestone                     24
         Dates for First Buy of Microwave
         Landing System
2.17   Program Funding History       of Microwave                  25
         Landing System
2.18   Schedule Changes of Critical          Milestone             25
         Dates for Mode S
2.19   Program   Funding   History   for    Mode S                 26
2.20   Schedule Changes of Critical   Milestone                    26
         Dates for Radio Communications     Links
2.21   Program Funding     History   for    Radio                  27
          Communications    Links
2.22   Schedule Changes of Critical          Milestone             27
         Dates for Terminal Doppler          Weather Radar
2.23   Program Funding History       for    Terminal               28
         Doppler Weather Radar
2.24   Schedule Changes of Critical          Milestone             28
         Dates for Voice Switching          and Control
         System
2.25   Program Funding History       for Voice                     29
         Switching  and Control      System
 B-239008.1

We are also providing       copies of this fact sheet to the
Secretary   of Transportation,       the FAA Administrator,    and
other interested    parties.      If you have questions     about this
fact sheet, please contact        me at (202) 275-1000.
Major        contributors    to this     report   are listed   in appendix   I.




'Kenneth       M. Mead
 Director,       Transportation        Issues




 4
B-239008.1

OVERALL STATUS OF MODERNIZATION
FAA has thus far measured its progress           in modernizing       the
ATC system by (1) the number of projects            it has completed        and
 (2) the amount of funding       it has received      and used.      We
found many NAS Plan projects         are in production       but few are
complete.     About 32 percent      of NAS Plan projects        were
complete   as of January 1990.        However, the cost of those
completed    projects   represents    only 4 percent      of the total
estimated    cost of all NAS Plan projects.           Section    1 contains
more details      on the total   cost and scope of modernization.
Since the NAS Plan was initiated            in 1981, two major changes
have occurred.        First,  projects    had to be added to the Plan
and existing     projects    had to be modified        in order to counter
project    delays and increased        demand on the ATC system.
Second, these additions         increased     the scope of what had to
be acquired,     more than doubling       the initial     NAS Plan cost
estimate    of $12 billion.        As a result,     the projects      in the
original    NAS Plan now account for about 55 percent               of the
total    number of estimated       ATC modernization      projects.
The agency's        ATC modernization           program is funded by Airport
and Airway Trust Fund revenues through                     the Facilities       and
Equipment appropriation.                 Another measure of FAA's progress
is the amount of Facilities                 and Equipment      funds appropriated
and obligated         to date as compared to the total                estimated
modernization         cost of $27 billion.             Between fiscal      year 1982
and the end of fiscal             year 1989, FAA received            about $7.2
billion     in appropriations            for ATC modernization.           FAA
obligated       about $5.8 billion           of those funds through          the same
time period,        leaving     it with an unobligated            balance of $1.4
billion.        Aware of the concerns associated                with the level      of
appropriated        yet unobligated          funds, FAA has stated         its
intention       to increase       Facilities       and Equipment      spending
rates in the next few years.                   Section    1 of this fact sheet
provides      further     details     on Facilities        and Equipment
appropriations          and unobligated         balances.
STATUS OF MAJOR SYSTEMS
All of the major modernization           projects     in the original    NAS
Plan have experienced        significant      schedule   delays since the
inception    of the Plan.       In November 1988, we reported         that
implementation     milestones       had slipped    an average of about