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Category: <span>OIG</span>

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OIG: FAA Fulfilled AARA

ACTION: FAA Fulfilled Most ARRA Requirements in Awarding Airport Grants Federal Aviation Administration Report Number AV-2011-053
From: JeffreyB.Guzzetti Assistant Inspector General
for Aviation and Special Program Audits

February 17, 2011
JA-10
Memorandum
On February 17, 2009, the President signed into law the American Recovery and Reinvestment Act (ARRA),1 designating $1.1 billion for the Federal Aviation Administration (FAA) to invest in Airport Improvement Program (AIP) projects. These funds were intended for airport projects that could achieve several key goals, including investing in transportation infrastructure to provide long-term economic benefits, create jobs, and promote economic recovery. ARRA established tight timeframes for distributing and expending funds and emphasized preference for projects that could be completed in 2 years.

In August 2009, we issued an advisory to the Office of the Secretary outlining our concerns with FAA’s process for awarding ARRA grants.2 We questioned the economic merit of some lower scoring projects and highlighted several ARRA recipients with grant management problems identified in prior single audit reports.3 Based on these preliminary findings, we initiated this audit to determine the extent to which FAA’s process for awarding ARRA grants complied with ARRA requirements and other associated guidance.4 We conducted this audit from September 2009 through December 2010 in accordance with government

American Recovery and Reinvestment Act of 2009, Pub. L. No. 111–5 (2009). OIG Advisory Number AA-2009-003, “FAA’s Process for Awarding ARRA Airport Improvement Program Grants,” August 6, 2009. OIG reports are available on our website: www.oig.dot.gov. Single audit is a mechanism relied upon by Executive Branch agencies to oversee financial compliance and grant 4 assurances. For the purpose of this report, we define “requirements” as a collective term to refer to ARRA statutory requirements, Presidential direction, and Office of Management and Budget (OMB) and FAA guidance related to ARRA implementation.

Read the entire PDF here


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FAA Needs To Improve Risk Assessment Processes For Its Air Transportation Oversight System


Office of Inspector General Report

On December 16, 2010, we issued our report on the Federal Aviation Administration’s (FAA) Air Transportation Oversight System (ATOS). FAA uses ATOS to conduct surveillance of nearly 100 airlines that transport more than 90 percent of U.S. airline passenger and cargo traffic. While ATOS is conceptually sound, our prior reports have found that FAA needs to strengthen national oversight of the system. Following safety lapses at a major airline in 2008, the Senate Committee on Science, Commerce, and Transportation and the House Committee on Transportation and Infrastructure asked us to assess weaknesses systemwide. Accordingly, our audit objectives were to determine (1) whether FAA has completed timely ATOS inspections of air carriers’ policies and procedures for their most critical maintenance systems; (2) how effective ATOS performance inspections have been in testing and validating that these critical maintenance systems are working properly; and (3) how well FAA implemented ATOS for the remaining Part 121 air carriers and what, if any, oversight challenges FAA inspection offices face.

While FAA has worked to continuously improve ATOS, we found that FAA inspectors did not complete ATOS inspections of air carriers’ maintenance policies and procedures or systems performance on time. In addition, FAA transitioned all of its Part 121 inspection offices to ATOS at the end of 2007, but–due in part to training gaps–some inspectors for smaller air carriers had difficulty adapting ATOS to those carriers’ operations. We made seven recommendations to FAA to improve its data, training, and risk assessment processes for ATOS. FAA concurred with four of our seven recommendations and partially concurred with three.

Read the full .PDF report here


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Actions Needed To Meet FAA’s Long-Term Goals for NextGen

On February 16, 2011, the Inspector General of the U.S. Department of Transportation testified before the House Subcommittee on Space and Aeronautics regarding the Federal Aviation Administration’s (FAA) efforts to develop and transition to the Next Generation Air Transportation System (NextGen). The Inspector General noted significant challenges FAA faces in achieving its long-term goals for NextGen across two areas: (1) addressing schedule delays and cost overruns with the En Route Automation Modernization (ERAM) program–without ERAM, other programs intended to provide more efficient data sharing and airspace routes will not be possible–and (2) reaching consensus with partner agencies on key research and development efforts that will affect the cost, schedule, and capabilities of NextGen. The Inspector General also highlighted several management actions that FAA can take now to strengthen FAA’s management of long-term NextGen initiatives. These include clarifying responsibility within FAA for critical NextGen development areas, finalizing performance goals and metrics for NextGen, establishing an integrated budget document to align and track all partner agencies’ NextGen resources, and fully leveraging the technology portfolios of partner agencies to assist with NextGen development.

See the Statement of the Honorable Calvin L. Scovel III Inspector General U.S. Department of Transportation


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Audit Initiated of FAA’s Air Traffic Facility Realignment

The Office of Inspector General plans to review the Federal Aviation Administration’s (FAA) plans for consolidating the Nation’s air traffic facilities, many of which are approaching the end of their useful lives. We are conducting this review at the request of the former Ranking Members of the House Transportation and Infrastructure Committee and House Subcommittee on Aviation, who stated that the current budgetary environment and FAA’s efforts to develop the Next Generation Air Transportation System present the Agency with an opportunity to realign its network of facilities. They asked that, along with FAA’s plans, the OIG specifically examine the cost drivers and technical challenges related to this effort. Accordingly, our audit objectives are to assess: (1) FAA’s current plans for realigning and consolidating its air traffic facilities; (2) FAA’s process for evaluating the feasibility and cost effectiveness of these plans; and (3) the major cost, technical, and workforce challenges involved with realigning and consolidating air traffic facilities.

Click to view the full FAA Facility Consolidation Audit Announcement .pdf


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Massachusetts Man Indicted for Illegally Transporting Ammunition Primers on Passenger Aircraft

On January 20, 2011, Orville A. Braham, was indicted in U.S. District Court, Miami, Florida, with four counts of illegally transporting ammunition primers in his luggage on a passenger aircraft.

In December 2010, Mr. Braham boarded an American Airlines with two pieces of luggage that contained hundreds of concealed .45 caliber ammunition. One of the pieces of luggage exploded and injured a baggage handler who was unloading the luggage at Miami International Airport. Further examination of Mr. Braham’s suitcases revealed that the suitcases contained hundreds of .45 caliber ammunition primers, an explosive and a hazardous material, which detonated upon impact and triggered the explosion. Mr. Braham’s also concealed components of a disassembled ammunition reloading press, used to assemble component parts, including ammunition primers, and to create ammunition.

The investigation is being conducted jointly with the Federal Bureau of Investigation and Alcohol Tobacco and Firearm, with assistance provided by the Federal Aviation Administration.

Note: Indictments, informations, and criminal complaints are only accusations by the government, all defendants are presumed innocent unless and until proven guilty.


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Philadelphia Flight Instructor Charged with False Statements

On January 7, 2010, Joseph Konrad, an FAA certified commercial pilot and flight instructor, was charged by Information in U.S. District Court, Philadelphia, Pennsylvania, with false statements related to his application for an Airman Medical Certificate.

The investigation revealed that in 2007, 2008, and 2009, Mr. Konrad intentionally failed to disclose his opioid abuse and bipolar disorder diagnosis on FAA applications to become a commercial pilot and flight instructor. Mr. Konrad began working as a flight instructor for FAA approved flight schools in Philadelphia and Southern New Jersey. He admitted that he did not disclose his medical diagnosis to the FAA for fear the FAA would revoke his commercial pilot and flight instructor licenses.

This investigation was conducted jointly with DHS/ICE and the FBI.

Note: Indictments, informations, and criminal complaints are only accusations by the government, all defendants are presumed innocent unless and until proven guilty.


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Letter to Chairmen Oberstar and Costello and Ranking Members Mica and Petri Regarding FAA’s Efforts to Implement RTCA Task Force Recommendations for NextGen

Summary

On December 21, we (DOT OIG) issued a letter to the Chairmen and Ranking Members of the House Transportation and Infrastructure Committee and Aviation Subcommittee regarding FAA’s efforts to implement the Next Generation Air Transportation System (NextGen). Last September, a RTCA task force recommended mid-term actions for advancing NextGen. The task force findings and recommendations are consistent with our work, covering areas such as maximizing the use of equipment already on aircraft and new procedures, enhancing information sharing among FAA and airspace users, and reducing delays. We are reporting our results thus far with respect to (1) FAA’s progress in responding to the task force report, (2) potential barriers to implementing the task force recommendations and realizing benefits, and (3) ongoing problems with a key modernization effort that could materially affect the pace of NextGen. In summary, FAA is incorporating RTCA’s recommendations in its NextGen plans but has not specified how it will execute key initiatives for addressing delays in major metropolitan areas. For example, FAA is still working to establish definitive milestones to integrate new airspace designs and procedures at metroplex locations. FAA also has yet to establish a mechanism for integrating metroplex initiatives with programs to better manage airport surface operations. At the same time, FAA faces several organizational, policy, logistical, and training challenges that could impede NextGen implementation in the midterm; these include working across diverse agency lines of business and establishing policies on data sharing. FAA must also resolve implementation problems with critical modernization projects, such as En Route Automation Modernization (ERAM)–a $2.1 billion NextGen tool for processing flight data–which has experienced software problems and delays at key sites.

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