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Tuesday, May 15, 2007

FAA's Capital Project Success Claims are "Misleading"

The Head of the Federal Aviation Administration's claims of a 97 percent "on time and on budget" record appear to have been struck a death-blow. The Department of Transport's Inspector General Calvin Scovel gave a stark example of the misrepresentation to the Senate Appropriations sub-committee on Transportation on 10 May. A planned navigation system costed at $1bn in 1998 had currently blown out to more than $3bn. It was only considered "on budget" because it had been "re-baselined", the DoTIG pointed out to Chairwoman Patty Murray (D-Wash). The trick is in the requirement of the Office of Management and Budget "requiring" re-baselining (a re-estimation of cost, schedule and benefits) whenever projects look like running over budget or are failing expectations. The FAA has re-baselined a series of its ongoing projects, including efforts to create an automated weather information system, install new radar systems, and improve technology for preventing runway collisions. The FAA's spokesperson counter-claimed that re-baselining was sometimes a requirement of the Government Accountability Office or the DoTIG and that 30 of the agency's larger programs had not yet been re-baselined. FAA spokeswoman Laura Brown said: “Our programs continue to meet their targets.”