Major Management Challenges at the Department of Transportation

Overall, the Department of Transportation has made good progress in addressing the six key management challenges and program risks that GAO identified in 2003. Continued efforts by the department will be necessary to capitalize on this progress.

In the area of financial management , in 2004 the department's Inspector General issued an unqualified opinion on the department's financial statements for the fourth year in a row. While the Inspector General's report notes that progress has been made in correcting certain internal control deficiencies, it also identifies other serious internal control deficiencies that continue to require corrective action. On the other hand, GAO has found that the department's Federal Aviation Administration (FAA) has substantially improved its financial management systems and practices. This progress has been sufficient for GAO to remove FAA financial management from the high-risk designation. Progress made includes implementing a new general ledger system, including an integrated property accounting system. Also, FAA has made progress in developing a cost accounting system, and FAA management has demonstrated its commitment to the full implementation of this system. The cost accounting system will ultimately provide information to help improve operational efficiency and control costs. Additional information on FAA's financial management systems can be found in High-Risk Series: An Update ( GAO-05-207 ).

Regarding the department's top priority of improving transportation safety , the fatality and accident rates on the nation's roads, transit systems, railroads, and airspace have fallen somewhat in the 2 years since our 2003 report. Although causal relationships have not yet been established, the department believes that its recent efforts, such as encouraging safety belt use and discouraging drunk driving, have contributed to this decrease. However, even though the transportation accident and fatality rates have decreased, more than 44,000 people are killed every year in transportation accidents, overwhelmingly on our nation's highways. GAO has made a number of recommendations for improving the department's oversight and evaluation of its highway and aviation programs, including state highway safety efforts, large truck safety education, air cabin safety, and aviation safety enforcement and certification.

On the need for developing strategies to improve mobility on our nation's increasingly strained transportation infrastructure , reduce congestion, and foster economic growth , the department has increased its focus on improving the efficiency of existing infrastructure, particularly for freight, through information technology and intermodal connections. The department has also taken steps to enhance intercity passenger rail and to improve its guidance for a key transit investment program and for coordinating various transportation programs for disadvantaged populations, as GAO recommended, and has included initiatives for enhancing intermodal connections and freight transportation in its proposal for surface transportation reauthorization. However, both the safety and mobility challenges are complex national problems that often rely on the actions of state, local, and private stakeholders to actually implement them. Making further progress when freight and passenger traffic is expected to continue to increase will require the department to aggressively execute strategies that foster accountability, leverage the resources and talents of transportation stakeholders at all levels, and focus on achieving results.

Primary responsibility for transportation security has been transferred to the Department of Homeland Security, and as GAO recommended, the two departments recently entered into a memorandum of agreement to better coordinate efforts to ensure the security of the nation's transportation system and reduce its vulnerability to crime and terrorism. However, the specific details of this agreement (i.e., how individual components within the two departments will interact) have yet to be worked out.

The department has taken steps to ensure that its human capital strategies will help it strengthen its workforce and weather the coming wave of retirements. For example, the department has aligned its overall human capital strategies with its mission, goals, and organizational objectives and incorporated them in its strategic plan, performance plans, and budgets. In addition, each modal administration has developed detailed plans for succession, recruitment, and diversity. In reporting on aspects of FAA's workforce issues, GAO recommended that FAA develop a more strategic approach to its sweeping human capital reform initiatives in compensation and performance management, workforce management, and labor and employee relations reform, to better position itself to evaluate the effects of its reform initiatives. In addition, as GAO recommended, FAA recently developed a comprehensive workforce plan to address the impending retirement of thousands of air traffic controllers and numerous related hiring and training challenges. Although GAO assessed aspects of FAA's workforce issues, it has not conducted sufficient work since January 2003 to assess departmentwide progress in this area.

A lthough the department has made progress in improving FAA's multibillion-dollar air traffic control modernization program —which has been plagued by systemic management problems—and in addressing the more than 40 specific recommendations GAO has made to deal with causes of FAA's modernization challenges, more remains to be done to institutionalize improved processes for acquiring, developing, and managing software-intensive systems ; expand and enforce a clear and comprehensive modernization blueprint (called an enterprise architecture); and implement effective investment management processes. In the meantime, major projects continue to face challenges in meeting cost, schedule, and performance expectations, and GAO still considers FAA's modernization program to be at high risk . Additional information on FAA's air traffic control modernization program can be found in High-Risk Series: An Update ( GAO-05-207 ).

Related GAO Products

Financial Management

FAA Budget Policies and Practices .  GAO-04-841R .  Washington, D.C.: July 2, 2004.

Federal Aircraft: Inaccurate Cost Data and Weaknesses in Fleet Management Planning Hamper Cost Effective Operations .  GAO-04-645 .  Washington, D.C.: June 18, 2004.

FAA Purchase Cards: Weak Controls Resulted in Instances of Improper and Wasteful Purchases and Missing Assets .  GAO-03-405 .  Washington, D.C.: March 21, 2003.

Transportation Safety

Highway Safety: Improved Monitoring and Oversight of Traffic Safety Data Program Are Needed . GAO-05-24 . Washington, D.C.: November 4, 2004.

Aviation Safety: FAA Needs to Strengthen the Management of Its Designee Programs . GAO-05-40 . Washington, D.C.: October 8, 2004.

Pipeline Safety: Management of the Office of Pipeline Safety's Enforcement Program Needs Further Strengthening .  GAO-04-801 . Washington, D.C.: July 23, 2004 .

Aviation Safety: Better Management Controls are Needed to Improve FAA's Safety Enforcement and Compliance Efforts.   GAO-04-646 .  Washington, D.C.: July 6, 2004.

Highway Safety: Federal and State Efforts to Address Rural Road Safety Challenges .  GAO-04-663 .  Washington, D.C.: May 28, 2004.

Aviation Safety: More Research Needed on the Effects of Air Quality on Airliner Cabin Occupants .  GAO-04-54 .  Washington, D.C.: January 16, 2004.

Aviation Safety: Advancements Being Pursued to Improve Airliner Cabin Occupant Safety and Health .  GAO-04-33 .  Washington, D.C.: October 3, 2003.

Aviation Safety: Information on FAA's Data on Operational Errors At Air Traffic Control Towers .  GAO-03-1175R .  Washington, D.C.: September 23, 2003.

Truck Safety: Share the Road Safely Program Needs Better Evaluation of Its Initiatives .  GAO-03-680 .  Washington, D.C.: May 30, 2003.

Highway Safety: Better Guidance Could Improve Oversight of State Highway Safety Programs .  GAO-03-474 .  Washington, D.C.: April 21, 2003.

Highway Safety: Research Continues on a Variety of Factors That Contribute to Motor Vehicle Crashes .  GAO-03-436 .  Washington, D.C.: March 31, 2003.

Aviation Safety: FAA Needs to Update Curriculum and Certification Requirements for Aviation Mechanics .  GAO-03-317 .  Washington, D.C.: March 6, 2003.

Mobility and Economic Growth

Highway and Transit Investments: Options for Improving Information on Projects' Benefits and Costs and Increasing Accountability for Results . GAO-05-172 . Washington, D.C.: January 24, 2005.

Federal-Aid Highways: Trends, Effect on State Spending, and Options for Future Program Design . GAO-04-802 . Washington, D.C.: August 31, 2004.

Transportation-Disadvantaged Seniors: Efforts to Enhance Senior Mobility Could Benefit from Additional Guidance and Information. GAO-04-971 . Washington, D.C.: August 30, 2004.

Surface Transportation: Many Factors Affect Investment Decisions .  GAO-04-744 .  Washington, D.C.: June 30, 2004.

Mass Transit: FTA Needs to Better Define and Assess Impact of Certain Policies on New Starts Program .  GAO-04-748 .  Washington, D.C.: June 25, 2004.

Commercial Aviation: Despite Industry Turmoil, Low-Cost Airlines Are Growing and Profitable .  GAO-04-837T .  Washington, D.C.: June 3, 2004.

Federal Aviation Administration: Challenges for Transforming Into a High-Performing Organization .  GAO-04-770T .  Washington, D.C.: May 18, 2004.

Transportation Planning: State and Metropolitan Planning Agencies Report Using Varied Methods to Consider Ecosystem Conservation .  GAO-04-536 .  Washington, D.C.: May 17, 2004.

Highways and Transit: Private Sector Sponsorship of and Investment in Major Projects Has Been Limited .  GAO-04-419 .  Washington, D.C.: March 25, 2004.

Intercity Passenger Rail: Amtrak's Management of Northeast Corridor Improvements Demonstrates Need for Applying Best Practices .  GAO-04-94 .  Washington, D.C.: February 27, 2004.

Transportation-Disadvantaged Populations: Federal Agencies Are Taking Steps to Assist States and Local Agencies in Coordinating Transportation Services .  GAO-04-420R .  Washington, D.C.: February 24, 2004.

Commuter Rail: Information and Guidance Could Help Facilitate Commuter and Freight Rail Access Negotiations .  GAO-04-240 .  Washington, D.C.: January 9, 2004.

Freight Transportation: Strategies Needed to Address Planning and Financing Limitations .  GAO-04-165 .  Washington, D.C.: December 19, 2003.

Transportation Programs: Opportunities for Oversight and Improved Use of Taxpayer Funds .  GAO-03-1040T .  Washington, D.C.: July 22, 2003.

Transportation-Disadvantaged Populations: Some Coordination Efforts Among Programs Providing Transportation Services, but Obstacles Persist .  GAO-03-697 .  Washington, D.C.: June 30, 2003.

Federal Transit Administration: Bus Rapid Transit Offers Communities a Flexible Mass Transit Option .  GAO-03-729T .  Washington, D.C.: June 24, 2003.

Mass Transit: FTA Needs to Provide Clear Information and Additional Guidance on the New Starts Ratings Process .  GAO-03-701 .  Washington, D.C.: June 23, 2003.

Highway Infrastructure: Stakeholders' Views on Time to Conduct Environmental Reviews of Highway Projects .  GAO-03-534 .  Washington, D.C.: May 23, 2003.

Federal-Aid Highways: Cost and Oversight of Major Highway and Bridge Projects—Issues and Options .  GAO-03-764T .  Washington, D.C.: May 8, 2003.

Reducing Congestion: Congestion Pricing Has Promise for Improving Use of Transportation Infrastructure .  GAO-03-735T .  Washington, D.C.: May 6, 2003.

Intercity Passenger Rail: Issues for Consideration in Developing an Intercity Passenger Rail Policy .  GAO-03-712T .  Washington, D.C.: April 30, 2003.

Highway Infrastructure: Perceptions of Stakeholders on Approaches to Reduce Highway Project Completion Time .  GAO-03-398 .  Washington, D.C.: April 9, 2003.

Commercial Aviation: Issues Regarding Federal Assistance for Enhancing Air Service to Small Communities .  GAO-03-540T .  Washington, D.C.: March 11, 2003.

Airport Finance: Past Funding Levels May Not Be Sufficient to Cover Airports' Planned Capital Development .  GAO-03-497T .  Washington, D.C.: February 25, 2003.

Aviation Finance: Implementation of General Aviation Entitlement Grants .  GAO-03-347 .  Washington, D.C.: February 11, 2003.

Aviation Infrastructure: Challenges Related to Building Runways and Actions to Address Them .  GAO-03-164 .  Washington, D.C.: January 30, 2003.

Transportation Security

General Aviation Security: Increased Federal Oversight Is Needed, but Continued Partnership with the Private Sector Is Critical to Long-Term Success . GAO-05-144 . Washington, D.C.: November 10, 2004.

Transportation Security R&D: TSA and DHS Are Researching and Developing Technologies, but Need to Improve R&D Management . GAO-04-890 . Washington, D.C.: September 30, 2004.

Transportation Security: Federal Action Needed to Help Address Security Challenges .  GAO-03-843 .  Washington, D.C.: June 30, 2003.

Transportation Security Research: Coordination Needed in Selecting and Implementing Infrastructure Vulnerability Assessments .  GAO-03-502 .  Washington, D.C.: May 1, 2003.

Rail Safety and Security: Some Actions Already Taken to Enhance Rail Security, but Risk-based Plan Needed .  GAO-03-435 .  Washington, D.C.: April 30, 2003.

Transportation Security: Post-September 11th Initiatives and Long-Term Challenges .  GAO-03-616T .  Washington, D.C.: April 1, 2003.

Human Capital

Federal Aviation Administration: Plan Still Needed to Meet Challenges to Effectively Managing Air Traffic Controller Workforce .  GAO-04-887T .   Washington, D.C.: June 15, 2004.

Federal Aviation Administration: Challenges for Transforming Into a High-Performing Organization .  GAO-04-770T .   Washington, D.C.: May 18, 2004.

Air Traffic Control: FAA's Modernization Efforts--Past, Present, and Future .  GAO-04-227T .   Washington, D.C.: October 30, 2003.

National Airspace System: Current Efforts and Proposed Changes to Improve Performance of FAA's Air Traffic Control System .  GAO-03-542 .   Washington, D.C.: May 30, 2003.

Acquisition Management

Air Traffic Control: FAA Needs to Ensure Better Coordination When Approving Air Traffic Control Systems. GAO-05-11 . Washington, D.C.: November 17, 2004.

Air Traffic Control: FAA's Acquisition Management Has Improved, but Policies and Oversight Need Strengthening to Help Ensure Results . GAO-05-23 . Washington, D.C.: November 12, 2004.

Air Traffic Control: System Management Capabilities Improved, but More Can Be Done to Institutionalize Improvements .  GAO-04-901 . Washington, D.C.: August 20, 2004.

Information Technology: FAA Has Many Investment Management Capabilities in Place, but More Oversight of Operational Systems Is Needed .  GAO-04-822 . Washington, D.C.: August 20, 2004.

Federal Aviation Administration: Challenges for Transforming Into a High-Performing Organization .  GAO-04-770T .  Washington, D.C.: May 18, 2004.

Air Traffic Control: FAA's Modernization Efforts—Past, Present, and Future .  GAO-04-227T . Washington, D.C.: October 30, 2003.

National Airspace System: Current Efforts and Proposed Changes to Improve Performance of FAA's Air Traffic Control System .  GAO-03-542 .  Washington, D.C.: May 30, 2003.

National Airspace System: Better Cost Data Could Improve FAA's Management of the Standard Terminal Automation Replacement System .  GAO-03-343 .  Washington, D.C.: January 31, 2003.