Summary: The Advanced Automation System, the largest project in the Federal Aviation Administration's (FAA) $33 billion effort to modernize the nation's air traffic control system, has been plagued by worsening schedule delays and cost growth over the past year. FAA and IBM, the main contractor, agreed to a plan that was too ambitious, significantly underestimating the technical challenges involved. In addition, FAA oversight of IBM has been weak. Although GAO testified that recent management initiatives to overcome some of these problems appeared reasonable, it will take time for these changes to work. Moreover, GAO remains concerned about the last three segments of the Advanced Automation System. Less consolidation, a desire to implement advanced software earlier, and less tower modernization will affect project costs and schedules, user benefits, equipment location, and FAA's contract with IBM. GAO believes that continued support should depend on (1) FAA's successfully overcoming the system's technical challenges and (2) the quality of the agency's justification for restructuring and proceeding with the system.
