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Pursuant to a congressional request, GAO reviewed the Federal Aviation Administration's (FAA): (1) progress in incorporating federal acquisition principles into its acquisition process; and (2) budgeting procedures for major acquisitions.

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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 ensure that FAA consistently applies its new acquisition policy and procedures to its major system acquisitions. FAA should continually reconfirm the mission of its projects to help eliminate any uncertainty associated with product development, and it should clearly indicate the progress of its acquisition projects through its acquisition and budget documents.
Closed - Implemented
In accordance with FAA Order 1810.1E, all programs now are reviewed for designation as major acquisitions. The Deputy Secretary, as the Department's Acquisition Officer, designates those FAA programs that will be identified as major programs and determines whether mission needs statements and acquisition plans will be required. FAA officials oversee the progress of these major programs.
Department of Transportation 2. The Secretary of Transportation should direct the Administrator, FAA, to work with the appropriate committees of Congress to develop and implement criteria for budgeting for major acquisition activities. Those criteria should segment funding for major acquisitions according to the phases and milestones set forth in federal acquisition principles.
Closed - Implemented
The House and Senate conferees on the transportation appropriations bill for FY 1992 agreed that a revised budget structure would be submitted as part of the FY 1993 President's budget and that this new structure would address concerns raised by GAO about the existing budget structure. The 1993 budget included the revised budget structure.

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