AVIATION ACQUISITION: FURTHER CHANGES NEEDED IN FAA'S MANAGEMENT AND BUDGETING PRACTICES

The General Accounting Office (GAO) reviewed the Federal Aviation Administration's (FAA's) progress in incorporating federal acquisition principles in its acquisition process (for modernization) and FAA's budgeting procedures for its major acquisitions. Also, GAO compared FAA's appropriation account structure with similar account structures in the Department of Defense (DOD) because DOD has a history of acquiring major systems. The results of GAO's investigation, in brief, are as follows: Since early 1990, FAA has undertaken a number of acquisition reforms, ranging from appointing an Executive Director for Acquisitions to revising the agency's acquisition order to more closely comply with the Office of Management and Budget (OMB) guidance. It is too early to assess the full impact of these reforms. Nonetheless, they have already had the positive effect of postponing premature production contract awards for two projects. Even though FAA's revised order is more closely aligned than its former procedures with OMB's phases and key decision points, several problems still exist in FAA's acquisition process. For example, a critical requirement of all projects is a mission needs statement. However, FAA's fiscal year 1992 budget request included $116.7 million for 10 new projects that did not have approved mission needs statements when submitted to Congress. FAA also does not have approved mission needs statements for ongoing projects. Furthermore, FAA has not linked its budget with its process for acquiring major projects.

  • Supplemental Notes:
    • Report to the Chairman, Subcommittee on Transportation and Related Agencies, Committee on Appropriations, House of Representatives.
  • Corporate Authors:

    U.S. General Accounting Office

    441 G Street, NW
    Washington, DC  United States  20548
  • Publication Date: 1991-7

Media Info

  • Features: Appendices; Figures; Tables;
  • Pagination: 32 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00615743
  • Record Type: Publication
  • Report/Paper Numbers: GAO/RCED-91-159
  • Files: TRIS
  • Created Date: Sep 30 1991 12:00AM