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In response to a congressional request, GAO reviewed the Federal Aviation Administration's (FAA) selection process for leased automated flight service stations (AFSS's).

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Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Transportation 1. The Secretary of Transportation should direct the Administrator, FAA, to develop and issue to its regions standardized and consistent guidance for evaluating all cost elements in community proposals.
Closed - Implemented
The agency has developed and promulgated uniform guidelines for evaluating communications costs and personnel relocation costs. However, FAA considers its existing guidance to it regions to be adequate for evaluating maintenance costs, utilities and janitorial costs, and the use of discount and deflation factors to be adequate. FAA plans no further action.
Department of Transportation 2. The Secretary of Transportation should direct the Administrator, FAA, to encourage additional competition by removing restrictions that require AFSS's to be located on airports and limit the lease terms to 1-year periods.
Closed - Not Implemented
FAA believes that locations on airports fosters face-to-face briefings and developes familiarization which improves cooperation, safety and understanding. FAA believes that adequate competition now exists, but concedes that longer leases might lead to additional competition but not necessarily to more favorable leases, based on $1-a-year rents in 18 out of 37 awards.

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