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Highlights

Pursuant to a congressional request, GAO reviewed the Federal Aviation Administration's (FAA) process for selecting locations for its three terminal area projects, focusing on how FAA: (1) prioritizes locations; (2) analyzes the costs and benefits of its decisions; (3) documents its location decisions; and (4) could improve its decisionmaking process.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Transportation 1. The Secretary of Transportation should direct the Administrator, FAA, to revise current guidance--the Call for Estimates, and the agency's acquisition policy--as necessary to ensure that program sponsors use consistent approaches.
Closed - Implemented
In response to GAO's recommendation, FAA revised its guidance for the FY 1998 Call for Budget Estimates. FAA's revised guidance is included in FAA Order 2500.55B, dated January 24, 1996.
Department of Transportation 2. The Secretary of Transportation should direct the Administrator, FAA, to revise current guidance--the Call for Estimates, and the agency's acquisition policy--as necessary to ensure that program sponsors document what factors they used in location-selection decisions, including benefit-cost analyses when warranted by the project's cost. This would allow FAA to rank eligible locations from a national perspective and help ensure that scarce facilities and equipment resources are targeted to the highest-priority needs.
Closed - Implemented
The agency concurred with the recommendation. Amended guidance was issued by FAA's Budget Office in May 1995.

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