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GAO reviewed the Federal Aviation Administration's (FAA) Advanced Automation System (AAS), designed to modernize the nation's air traffic control system. GAO noted that: (1) schedule and cost problems have worsened over the past year including a total 3-year delay and $235-million cost increase; (2) AAS delays have forced FAA to initiate several costly interim projects to sustain the current air traffic control system; (3) major factors contributing to the current schedule and cost problems include significant FAA and the major contractor underestimations of the effort required to develop AAS, FAA failure to provide needed oversight of the contractor's performance, and FAA indecisiveness in resolving some basic requirements issues; and (4) FAA needs to address immediate schedule and technical problems and determine whether the plan for each segment of ASS is the most appropriate way to meet the needs of the air traffic control system.

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