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RCED-96-27R 1 (1995-10-27)

handle is hein.gao/gaobackzc0001 and id is 1 raw text is: (3 United States GAO() General Accounting Office Washington, D.C. 20548 Resources, Community, and Economic Development Division B-270178 October 27, 1995 The Honorable William V. Roth, Jr. United States Senate Dear Senator Roth: Major projects to modernize the Federal Aviation Administration's (FAA) air traffic control (ATC) system have experienced significant cost and schedule problems. FAA maintains that exemption from federal procurement laws and regulations would allow the agency to acquire and install equipment more quickly. Furthermore, FAA claims that exemption from federal personnel regulations would provide it with the flexibility to hire, reward, and relocate employees to better manage the ATC system. In response to these assertions, several congressional committees, the administration, and various segments of the aviation industry have proposed reforms for FAA that, to varying degrees, would exempt the agency from federal procurement and personnel laws and regulations. Such exemptions would allow FAA to establish its own procurement and personnel systems. This letter responds to your August 1995 request, as former Chairman of the Senate Committee on Governmental Affairs, that we provide you with information about previous work we have done that can help the Congress decide about the need for procurement and personnel reforms at FAA. In summary, our work over the past decade does not support the conclusion that the cost and schedule problems encountered by FAA were caused primarily by federal procurement regulations. Rather, we found that these problems were caused primarily by technical and managerial factors, such as underestimating the complexity of developing systems and inadequate oversight by management. Another factor has been the lack of continuity in top management. Between 1982 and the appointment of the present Administrator, the Administrators' average tenure was less than 2 years. FAA has taken a number of steps to improve its GAO/RCED-96-27R, Exempting FAA From Procurement and Personnel Rules /¢5

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