NEXT GENERATION AIR 

TRANSPORTATION 

SYSTEM

FAA Faces Implementation 

Challenges 

Statement of Gerald L. Dillingham, Ph.D.

Director, Physical Infrastructure Issues

Testimony 

Before the Subcommittee on Aviation, 

Committee on Transportation and 

Infrastructure, House of Representatives

For Release on Delivery 

Expected at 10:00 a.m. EDT

Wednesday, September 12, 2012

GAO-12-1011T

United States Government Accountability Office

GAO
United States Government Accountability Office

Highlights of GAO-12-1011T, a testimony to

the Subcommittee on Aviation, Committee on 

Transportation and Infrastructure, House of 

Representatives 

September 12, 2012 

NEXT GENERATION AIR TRANSPORTATION 

SYSTEM 

FAA Faces Implementation Challenges

Why GAO Did This Study

To prepare for forecasted air traffic 

growth, FAA is planning for and 

implementing NextGen in partnership 

with other federal agencies and the 

aviation industry. NextGen is a 

complex undertaking that requires 

acquiring new integrated air traffic 

control systems; developing new flight 

procedures, standards, and 

regulations; and creating and 

maintaining supporting infrastructure to 

create a more automated aircraftcentered, satellite-based air 

transportation system. GAO has made 

recommendations to address delays in 

NextGen’s acquisitions, improve FAA’s 

processes, and focus on accountability

and performance, which FAA is 

implementing.

This statement discusses five key 

challenges that GAO and others have 

previously identified that affect 

NextGen implementation, as well as 

steps FAA has taken to address these 

challenges. These challenges are 

(1) delivering and demonstrating 

NextGen’s near-term benefits; 

(2) developing a cost-effective 

mechanism to encourage operators to 

equip with NextGen technologies; 

(3) maintaining timely delivery of 

acquisitions; (4) clearly defining 

NextGen leadership roles and 

responsibilities; and (5) balancing the 

needs of the current radar-based 

systems and NextGen systems 

through the transition. This statement 

is based on GAO’s previous reports 

and testimonies, ongoing work for the 

committee, and updates on FAA’s 

responses to these challenges through 

a review of FAA documents and 

interviews with FAA officials.

What GAO Found

Delivering and demonstrating the Next Generation Air Transportation 

System’s (NextGen) benefits: The Federal Aviation Administration (FAA) must 

deliver capabilities that provide aircraft operators with a return on their 

investments in NextGen avionics to convince operators to continue making 

equipment investments. However, operators have expressed concerns that FAA 

has not produced the navigational procedures needed to achieve benefits from 

existing avionics, such as reduced fuel burn and flight time. To help produce 

more beneficial procedures, FAA is, among other things, involving air traffic 

controllers and other stakeholders in the design of new procedures. 

Encouraging acquisition of NextGen equipage: For some technologies,

realizing NextGen benefits requires a critical mass of properly equipped aircraft. 

Reaching that critical mass is a significant challenge because the first aircraft 

operators to purchase and install NextGen avionics will not obtain a return on 

their investment until many other operators are similarly equipped. FAA has 

begun to solicit industry input about how to design and implement a publicprivate financing program for equipment but has yet to make decisions about 

how to incentivize the airline operators’ transition to NextGen. 

Maintaining timely delivery of key systems: NextGen has significantly 

increased the number, cost, and complexity of FAA’s acquisition programs, which 

must remain on time and within budget, particularly given current budget 

constraints and the interdependencies of many NextGen-related acquisitions. 

While these acquisitions are generally proceeding on time and within budget, 

previous challenges with the En Route Automation Modernization (ERAM) 

program—a critical program for NextGen—illustrate how delays can increase the 

costs and schedules of other acquisitions as well as the maintenance costs of the 

system that is meant to be replaced. Overall, NextGen implementation will be 

affected by how well FAA manages program interdependencies.

Clearly defining NextGen leadership roles and responsibilities: Although 

FAA has made organizational changes to increase visibility and accountability for 

NextGen, it has not made management changes called for by the FAA 

Modernization and Reform Act of 2012. According to FAA, those changes will not 

occur until a permanent FAA Administrator is in place. Further, FAA has not 

clearly defined the relationships among the Deputy Administrator (responsible for 

NextGen implementation and also the current Acting Administrator); the new 

Chief NextGen Officer position; and the Director of the Joint Planning and 

Development Office (responsible for NextGen planning and coordination). 

Managing the transition to the NextGen system: Particularly in light of 

constrained budget resources, FAA will have to balance its priorities to help 

ensure that NextGen implementation stays on course while sustaining the current 

legacy infrastructure that will continue to be the core of the national airspace 

system for a number of years. For example, while FAA has an initial plan to 

consolidate facilities, the agency will need to keep long-term plans in mind so 

that it does not invest unnecessarily in facilities that may not be needed for 

NextGen. 

View GAO-12-1011T. For more information, 

contact Gerald L. Dillingham at (202) 512-

2834 or dillinghamg@gao.gov. 
 

Page 1 GAO-12-1011T 

Chairman Petri, Ranking Member Costello, and Members of the 

Subcommittee:

I appreciate the opportunity to testify today on progress toward 

implementing the Next Generation Air Transportation System (NextGen). 

The Federal Aviation Administration (FAA) predicts that, by 2025, the 

annual number of airline passengers in the United States will increase 

from about 700 million to about 1 billion per year and that the daily 

number of flights will increase from about 80,000 to more than 95,000. If 

FAA’s predictions hold true, today’s air transportation system will be 

strained under such demands, especially on some routes to and from hub 

airports and major cities. Accordingly, FAA, other federal agencies, and 

aviation industry stakeholders have worked in partnership to develop a 

plan for NextGen.1 NextGen is an enormously complex undertaking that 

requires acquiring new integrated air traffic control systems; developing 

new flight procedures, standards, and regulations; and creating and 

maintaining supporting infrastructure to create a modern air transportation 

system that relies on satellite-based surveillance and navigation and 

network-centric operations.2

The initial planning for NextGen, starting with Vision 100

NextGen is intended to increase air 

transportation system efficiency and capacity while maintaining its safety.

3 in 2003, 

focused on having NextGen in place by 2025. The improvements required 

to realize the full benefits of NextGen are numerous and involve many 

offices within FAA. In many cases, these improvements also depend on 

substantial investment and buy-in from aircraft operators. Recently, FAA 

has emphasized improvements that can be implemented through 20184

 

1

NextGen was designed as an interagency effort to leverage various agencies’ expertise 

and funding to advance NextGen while avoiding duplication. In addition to FAA, federal 

partner agencies include the Departments of Commerce (particularly its National Oceanic 

and Atmospheric Administration), Defense, Homeland Security, and Transportation; the 

National Aeronautics and Space Administration; and the White House Office of Science 

and Technology Policy. 

2

Network-centric operations involve the instant sharing of information and data among 

users, systems, and networks. These operations use infrastructure and information 

services to provide the critical exchange of digital information for air-to-air and air-toground applications as well as applications involving satellite-based information sources. 

3

Vision 100—Century of Aviation Reauthorization Act, Pub. L. No. 108-176, §§ 709-710, 

117 Stat. 2490, 2582-2585 (2003).

4

According to FAA, midterm implementation for NextGen has shifted from 2018 to 2020.

 
 

Page 2 GAO-12-1011T 

as a means to respond to industry skepticism about FAA’s ability to 

implement NextGen, build support for long-term NextGen investments, 

and more immediately address inefficiencies and delays in the current air 

traffic control system.5

My statement highlights five key challenges that we and others have 

previously identified that affect NextGen’s implementation, as well as 

steps FAA has taken to address these challenges. These challenges are

In past reports, we have made a number of 

recommendations to FAA to address delays in NextGen’s development 

and acquisitions, improve FAA’s processes, and focus on accountability 

and performance. Over the last 2 years, FAA has taken several steps and 

instituted a number of changes to address these issues.

• delivering and demonstrating NextGen’s near-term benefits;

• developing a cost-effective mechanism to encourage operators to 

equip with NextGen technologies;

• maintaining timely delivery of acquisitions;

• clearly defining NextGen leadership roles and responsibilities; and

• balancing the needs of the current radar-based system as well as the 

NextGen system through the transition.

 

5

FAA requested that RTCA—a private, not-for-profit corporation that develops consensusbased recommendations on communications, navigation, surveillance, and air traffic 

management system issues—create a NextGen Midterm Implementation Task Force, 

composed of industry stakeholders, to reach consensus within the aviation community on

the operational improvements that can be implemented between now and 2018. The task 

force provided recommendations to FAA in September 2009.
 

Page 3 GAO-12-1011T 

This statement is based primarily on our previous reports and 

testimonies6 and on ongoing work for this subcommittee that includes 

challenges associated with near-term NextGen implementation and FAA’s 

efforts to transition from the current air traffic control system to the 

NextGen system. We updated information on FAA’s responses to the five 

challenges that we discuss through a review of FAA documents and 

interviews with FAA officials. The GAO reports cited in this statement 

contain more detailed explanations of the methods used to conduct our 

work. We conducted all of our work in accordance with generally 

accepted government auditing standards.

FAA must deliver systems, procedures, and capabilities that provide 

operators with a return on their investments in NextGen avionics in order 

to convince operators to continue making such equipment investments. 

For example, a large percentage of the current fleet is equipped to fly 

more precise performance-based navigation (PBN) procedures, such as 

following precise routes that use the Global Positioning System or glide 

 

6

GAO, Next Generation Air Transportation System: FAA Has Made Some Progress in 

Implementation, but Delays Threaten to Impact Costs and Benefits, GAO-12-141T 

(Washington, D.C. Oct. 5, 2012); Air Traffic Control Modernization: Management 

Challenges Associated with Program Costs and Schedules Could Hinder Implementation, 

GAO-12-223 (Washington, D.C. Feb. 16, 2012); Aviation and the Environment: 

Systematically Addressing Environmental Impacts and Community Concerns Can Help 

Airports Reduce Project Delays, GAO-10-50 (Washington, D.C.: Sept. 13, 2010); NextGen 

Air Transportation System: FAA’s Metrics Can Be Used to Report on Status of Individual 

Programs, but Not of Overall NextGen Implementation or Outcomes, GAO-10-629, 

(Washington, D.C.: July 27, 2010); Next Generation Air Transportation System: 

Challenges with Partner Agency and FAA Coordination Continue, and Efforts to Integrate 

Near-, Mid-, and Long-term Activities are Ongoing, GAO-10-649T (Washington, D.C.: Apr. 

21, 2010); Next Generation Air Transportation System: FAA Faces Challenges in 

Responding to Task Force Recommendations, GAO-10-188T (Washington, D.C.: Oct. 28, 

2009); and Next Generation Air Transportation System: Issues Associated with Midterm 

Implementation of Capabilities and Full System Transformation, GAO-09-481T 

(Washington, D.C.: Mar. 25, 2009). 

FAA Is Taking Steps 

to Address Challenges 

in Delivering and 

Demonstrating 

NextGen’s Benefits

Delivering NextGen 

Benefits
 

Page 4 GAO-12-1011T 

descent paths, which can save the operators money through reduced fuel 

burn and flight time.7 However, aircraft operators have expressed 

concerns that FAA has not produced the most useful or beneficial PBN 

routes and procedures to date. As a means to leverage existing 

technology, provide immediate benefit to the industry, and in response to 

the RTCA Midterm Implementation Task Force’s (Task Force) 

recommendations, FAA began an initiative to better use PBN procedures 

to resolve airspace problems in and provide benefits to areas around 

busy airports, known as “metroplexes.” This initiative, the Optimization of 

Airspace and Procedures in the Metroplex (Metroplex), is under way in 

eight metropolitan areas across the country and planning is under way for 

other areas (see fig. 1).8

 

7

The term procedures refers to the routes flown by aircraft and the rules governing those 

routes, such as required speeds and altitudes.

8

The eight current Metroplex sites include: D.C.; North Texas; Charlotte, North Carolina; 

Northern California; Houston, Texas; Atlanta, Georgia; Southern California; and 

South/Central Florida. Five additional sites are planned to begin in 2012 or 2013: Phoenix, 

Arizona; Chicago, Illinois; Memphis, Tennessee; Detroit, Michigan; and Boston, 

Massachusetts. 
 

Page 5 GAO-12-1011T 

Figure 1: Metroplex Sites as of July 2012 

a

The Operational Evolution Partnership (OEP) airports are 35 of the busiest commercial U.S. airports. 

Identified in 2000 based on lists from FAA and Congress, as well as a study on the most congested 

U.S. airports, these airports serve major metropolitan areas and also serve as hubs for airline 

operations. 

FAA is working to design its Metroplex and other PBN initiatives to avoid 

some of the challenges that have limited the use and, in turn, potential 

benefits of existing PBN procedures. For example, FAA has found that 

some PBN procedures developed without air traffic controllers’ 

involvement have been used infrequently, if at all, because of problems 

with the procedure design or other challenges. In response, FAA has 

worked to include stakeholders, such as air traffic controllers and airlines, 

in the study and design of new PBN procedures. For example, FAA 
 

Page 6 GAO-12-1011T 

included airlines and local air traffic controllers in the design of PBN 

procedures under the Metroplex and Greener Skies over Seattle 

initiatives.9 This inclusion, according to stakeholders involved, should help 

to ensure that the new PBN procedures can be used by local controllers 

and produce quantifiable benefits to aircraft operators. Greener Skies 

also formally involved local airports in the PBN procedure development 

process to help avoid adverse environmental—largely noise-related—

community impacts. As we have previously reported, effective outreach to 

affected stakeholders can help anticipate and address potential 

community concerns—particularly with regard to noise.10 If not 

addressed, these concerns can delay efforts to use airspace more 

efficiently.11

Many of FAA’s near-term improvement efforts have focused on 

developing new PBN procedures rather than on other near-term 

improvements recommended by the Task Force, such as airborne or 

surface traffic-management improvements. Following up on the Task 

Force’s work, the NextGen Advisory Committee (NAC)12

 

9

Greener Skies is a collaborative effort involving FAA, Alaska Airlines, Boeing, and the 

Port of Seattle. The effort resulted in new PBN procedures that route flights over local 

waterways—rather than over residential areas—and optimized profile descents (OPDs). 

OPD procedures use PBN capabilities to enable aircraft to descend from cruise altitude to 

final approach using a more efficient, idle glide, thereby eliminating what is referred to as 

the “level offs” or “step downs” of a traditional descent, resulting in fuel savings. These 

PBN procedures are expected to be implemented in 2013. Alaska Airlines estimates the 

Greener Skies procedures will cut fuel consumption by 2.1 million gallons annually, reduce 

carbon emissions by 22,000 metric tons, and reduce overflight noise exposure for an 

estimated 750,000 people. The effort was begun by Alaska Airlines, Boeing, and the Port 

of Seattle in 2008, and FAA assumed leadership of it in 2010.

made 

recommendations in May 2012 to help FAA identify and prioritize 

improvements—including and in addition to PBN procedures—that could 

provide near-term benefits. FAA is assessing the extent to which it can 

make these other improvements in later rounds of the Metroplex initiative. 

10GAO-10-50. 

11GAO-09-481T. 

12The NAC is comprised of aviation stakeholders from the government and industry. The 

committee works to develop a common understanding of priorities in the context of overall 

NextGen capabilities and implementation constraints, with an emphasis on improvements 

through 2018. The committee primarily focuses on implementation issues, including 

prioritization criteria at a national level, joint investment priorities, and location and timing 

of capability implementation.
 

Page 7 GAO-12-1011T 

In the meantime, the agency has turned its attention to expanding or 

developing some of these improvements—including the air-trafficmanagement tools that allow for the sequencing of planes—at some of 

the facilities that are the focus of ongoing Metroplex efforts. Generally, 

these efforts are still in the planning phase. Figure 2 shows the 

complexity of merging or sequencing traffic that is approaching an airport 

using PBN procedures, such as precision Required Navigation 

Performance (RNP) turns and optimized profile descents (OPD).13 This 

complexity can be mitigated with the use of new airborne traffic 

management tools. Given the integrated nature of near-term NextGen 

improvements, it will be important for FAA to determine how its Metroplex 

initiative and airborne and surface traffic management improvements—as 

well as other improvements prioritized by the NAC—will be implemented 

and will work together so that the full benefits of these improvements can 

be realized.

 

13PBN includes Area Navigation (RNAV) and RNP. RNAV provides greater flexibility by 

reducing the limitations imposed by ground-based navigation systems. RNP is a form of 

RNAV that adds monitoring and altering capabilities to guide aircraft more precisely to and 

from airports. 
 

Page 8 GAO-12-1011T 

Figure 2: Examples of Integrated Near-Term NextGen Operational Improvements

In addition, although FAA has made progress in developing new PBN 

procedures with its Metroplex and other PBN initiatives, much work 

remains to be done to improve the overall process for amending and 

implementing PBN procedures. According to FAA, the current process for 

implementing or amending flight procedures consists of a bundle of 

interconnected, overlapping, and sometimes competing processes, 

which, on occasion, results in the implementation of low or no-benefit 

flight procedures that have to be reworked or amended. Likewise, RTCA 

has recommended that FAA address problems with what it has termed 

FAA’s inefficient processes for validating and certifying new technologies, 

which are critical steps in the process for allowing the use of new 

procedures. We have also expressed concerns about the time and 

human resources required for the validation and certification processes 

and have identified these processes as a significant risk to the timely and 

cost-effective implementation of NextGen. To address these challenges, 

FAA has undertaken a Navigation Lean (NAV Lean) project to streamline 

the implementation process for flight procedures. The agency anticipates 
 

Page 9 GAO-12-1011T 

this project will be mostly in place by the end of 2015.14 We have ongoing 

work for this committee that further explores issues and challenges 

associated with near-term NextGen implementation.

As we have previously reported, FAA should regularly provide 

stakeholders, interested parties, Congress, and the American people with 

a clear picture of where NextGen’s implementation stands, and whether 

the capabilities being implemented are resulting in positive outcomes and 

improved performance for operators and passengers.15 We have 

recommended that FAA develop a timeline and action plan to work with 

industry and federal partner agencies to develop an agreed-upon list of 

outcome-based performance metrics, as well as goals for NextGen 

broadly and specific NextGen improvement areas. In addition, the FAA 

Modernization and Reform Act of 2012 requires FAA to report on 

measures of the agency’s progress in implementing NextGen capabilities 

and operational results.16 In 2011, the NAC recommended that FAA adopt 

a set of performance metrics to address operational changes affecting 

capacity, efficiency, predictability, and access. In addition, the NAC has 

continued to work on outcome-based metrics to inform the public about 

the overall status of NextGen implementation and the program’s 

contribution to national aviation policy goals.17

 

14FAA’s NAV Lean project is an effort to streamline all policies and processes used to 

implemented instrument flight procedures, which includes PBN procedures. There are 21 

recommendations in the final NAV Lean report, and the last of these will be implemented 

in 2017. See FAA, Navigation (NAV) Procedures Project Final Report (Washington, D.C.: 

September 2010).

To date, FAA has 

established metrics for five of its key performance areas—capacity, 

efficiency, predictability, environment, and safety—but metrics for the 

three other key performance areas—access, equity, and flexibility—are 

still preliminary. FAA has also set performance goals for NextGen through 

2018, including goals to improve the throughput of air traffic at key 

airports by 12 percent over 2009 levels in order to reduce delays by 27 

15GAO-10-629. 

16Pub. L. No. 112–95, § 214, 126 Stat. 11, 50-51 (2012).

17In May 2012, the NAC forwarded preliminary recommendations for high-level 

performance metrics to FAA. The NAC will formally address the recommendations in 

October 2012. 

Demonstrating NextGen 

Benefits
 

Page 10 GAO-12-1011T 

percent from 2009 levels, and achieve a 5 percent reduction in average 

taxi-time at key airports.18

Developing metrics and NextGen performance goals are positive steps, 

but much work remains, including finalizing agency targets for specific 

improvement areas and making a link between NextGen performance 

goals and metrics and NextGen improvements. For example, public 

information about FAA’s near-term plans for implementing additional 

capabilities lacks specifics about the timing and locations of 

implementation. According to RTCA, a lack of published information with 

specific implementation dates and locations for NextGen capabilities is an 

obstacle to incentivizing airlines to equip their aircraft with additional 

NextGen avionics. Without a clearer picture of the return on investment—

and the progress being made—aircraft operators may be hesitant to 

make business and operational decisions necessary to fully realize 

NextGen benefits. Measuring performance of near-term NextGen 

improvements will be critical for FAA management and stakeholders to 

assess various impacts, make investment decisions, and monitor 

NextGen progress. We will report on this issue in more detail as part of 

our ongoing near-term NextGen implementation work for this committee.

While some operational improvements can be made with existing aircraft 

equipment, realizing more significant NextGen benefits requires a critical 

mass of properly equipped aircraft. Reaching that critical mass is a 

significant challenge because the first aircraft operators to purchase and 

install NextGen-capable technologies will not obtain a return on the

investment until many other operators are similarly equipped. FAA 

estimates that NextGen avionics needed on aircraft to realize significant 

midterm NextGen capabilities will cost private operators about $5 billion 

to $7 billion through 2020. For example, according to the RTCA, it would 

cost from $150,000 to $650,000 to equip a regional jet with an RNP 

package, which is one of the technologies that allows for precision 

approaches.19

 

18The goals include improvements from the implementation of NextGen technologies, as 

well as other infrastructure improvements, such as new or improved runways. 

19See RTCA, NextGen Equipage: User Business Case Gaps, A Report of the NextGen 

Advisory Committee in Response to Tasking from the FAA, September 2011. 

FAA Is Working to 

Identify and Develop 

a Cost-effective 

Mechanism to 

Encourage Operators 

to Equip with 

NextGen 

Technologies
 

Page 11 GAO-12-1011T 

The FAA Modernization and Reform Act authorized the creation of a 

program to facilitate public-private financing, such as loan guarantees and 

other credit assistance tools, for equipping general aviation and 

commercial aircraft with NextGen technologies.20 According to FAA, the 

goal for an equipage program would be to encourage deployment of 

NextGen-capable aircraft sooner than would have occurred without such 

funding assistance in place. FAA is soliciting industry input about how to 

design and implement such a program but has yet to decide on how to 

incentivize this transition. Although authorized, no funding has been 

appropriated to establish a public-private financing program. According to 

FAA, it is working to understand what options exist for establishing a 

program even if it receives no appropriations toward the program.

NextGen has significantly increased the number, cost, and complexity of 

FAA’s acquisition programs, and it is imperative that these programs 

remain on time and within budget, particularly given current budget 

constraints and the interdependencies of many NextGen-acquisitions. In 

February 2012, we reported that most of the key NextGen-related 

acquisition programs were generally proceeding on time and on budget.21

• unanticipated risks associated with operational complexities at the 

selected sites,

See appendix I for the current cost and schedule performance of select 

baselined NextGen and related acquisition programs. However, delays 

with the En Route Automation Modernization (ERAM) program—a critical 

program for NextGen—illustrate how delays can affect overall acquisition 

and maintenance costs as well as time frames for other programs. As we 

previously reported, ERAM’s schedule delays and cost increase of $330 

million over 4 years were associated with

 

20 Pub. L. No. 112–95, § 221, 126 Stat., 54. This act also requires FAA to identify options 

to encourage the equipage of aircraft with NextGen technologies, including a policy that 

gives priority to aircraft equipped with Automatic Dependent Surveillance-Broadcast (ADSB) technology and the costs and benefits of each option. Id., § 222, 126 Stat., 54-55. The 

NAC has identified the specific avionics required to achieve NextGen midterm capability 

goals, as well as the types of operational benefits that would be necessary to incentivize 

particular parts of the fleet to further equip their aircraft with such avionics. In response, 

FAA has developed a set of potential solutions to ensure that early adopters reap early 

operational benefits—such as decreased flight times and fuel burn.

21GAO-12-223. 

FAA Faces Challenges 

in Maintaining Timely 

Delivery of Key 

Acquisitions
 

Page 12 GAO-12-1011T 

• insufficient testing to identify software issues before deployment at 

key sites,

• insufficient communication between the program office and field sites, 

and

• insufficient stakeholder involvement during system development and 

deployment.22

The delays with ERAM added an estimated $18 million per year to the 

costs of maintaining the system that ERAM was meant to replace. 

Additionally, ERAM is important to the on-time implementation of two 

other key NextGen acquisitions—Data Communications (Data Comm) 

and System Wide Information Management (SWIM).23 In part because of 

ERAM’s delay, FAA pushed the Data Comm program’s start date from 

September 2011 to May 2012,24 revised the original plan for the first 

segment of SWIM to mitigate the impact of ERAM delays on the SWIM 

program, and delayed the start date for segment 2A of SWIM from 2010 

to July 2012.25

 

22These factors are consistent with the factors that we reported in 

Looking more broadly, the implementation of NextGen—

GAO-12-223 as part of 

our overall assessment of FAA’s major air traffic control acquisition programs—many of 

which have been long-standing challenges for FAA. These challenges, if they persist, will 

impede the implementation of NextGen, especially given interdependencies among many 

acquisition programs in which cost increases or delays in one program can affect the 

costs and schedules of others. We recommended that FAA further incorporate best 

practices into its acquisition processes by requiring cost and schedule risk analysis, 

independent cost estimates, and integrated master schedules that take into account 

acquisition time frames for entire programs and not just individual segments. FAA 

generally concurred with our recommendation and is working to further incorporate best 

practices into its acquisition process.

23Data Comm is intended to provide capabilities for pilots and controllers to transmit digital 

messages, eventually replacing the current analog voice communication system. SWIM 

will provide an information technology infrastructure that will enable information sharing 

among the multiple systems that make up the NAS.

24According to FAA, the DataComm start date was also influenced by changes to the 

fiscal year 2011 budget environment.

25As noted in appendix I, SWIM Segments 1 and 2A are currently on schedule.
 

Page 13 GAO-12-1011T 

both in the midterm (through 2020) and in the long term (beyond 2020)—

will be affected by how well FAA manages program interdependencies.26

As we have previously reported, industry stakeholders have expressed 

concerns about the fragmentation of authority and lack of accountability 

for NextGen, two factors that could delay its implementation.27 We have 

also found that programs can be implemented most efficiently when 

managers are empowered to make critical decisions and are held 

accountable for results.28 To ensure accountability for NextGen results, 

several stakeholders have suggested that an office is needed that would 

report directly to the FAA Administrator or the Secretary of 

Transportation. Stakeholders have also cited challenges with coordinating 

implementation of NextGen capabilities across FAA lines of business. 

With multiple FAA lines of business responsible for various NextGen 

activities, including offices within FAA’s Air Traffic Organization (ATO)29

and outside ATO, coordination and integration is vital since delays in 

actions required from several offices could prevent or delay NextGen 

benefits. FAA has made organizational changes in the past in an effort to 

address these concerns.30

 

26According to FAA progress reports, since the ERAM program was rebaselined in June 

2011, the program has made progress toward its target of declaring operational readiness 

date (ORD) of ERAM by 2014, including five en route centers with continuous use of 

ERAM and an additional four en route centers having passed initial operating tests using 

ERAM for at least part of the day. However, ERAM capabilities have yet to be installed 

and tested in the remaining 11 centers, which include New York, Washington, and Florida. 

27GAO-09-481T. 

28See GAO, Best Practices: Better Support of Weapon System Program Managers 

Needed to Improve Outcomes, GAO-06-110 (Washington, D.C.: Nov. 30, 2005). In this 

study of private sector best practices that could be applied to federal programs, we found 

that program managers at highly successful companies were empowered to decide 

whether programs were ready to move forward and to resolve problems and implement 

solutions. In addition, program managers were held accountable for their choices. 

29The ATO is responsible for operating, maintaining, and modernizing the nation’s air 

traffic control system.

30For example, in May 2008, FAA announced a reorganization of its NextGen 

management structure and created a new Senior Vice President for NextGen and 

Operations Planning who reported to ATO’s Chief Operating Officer (COO). It also made 

the JPDO director report directly to this newly created position. Prior to this change, the 

JPDO director reported directly to both the COO and the FAA Administrator.

NextGen 

Organizational 

Structure Has 

Undergone Changes, 

but Leadership Roles 

and Responsibilities 

Remain Unclear
 

Page 14 GAO-12-1011T 

Beginning in 2011, FAA made additional changes to its NextGen 

organizational structure to address these long-standing issues.

Specifically, FAA reorganized the structure of the office responsible for 

carrying out NextGen implementation, moving the office from within the 

ATO to under FAA’s Deputy Administrator (who is currently serving as the 

Acting Administrator). According to FAA, this change increased 

NextGen’s visibility within and outside the agency and created a direct 

line of authority and responsibility for NextGen. However, in February 

2012, the FAA Modernization and Reform Act designated that the 

Director of the Joint Planning and Development Office (JPDO)—who is 

responsible for NextGen planning and coordination—report directly to the 

FAA Administrator31 and created a new leadership position—the Chief 

NextGen Officer32

FAA also reorganized its NextGen efforts around its “Ideas to In-Service 

Management” (I2I) process. According to FAA, the I2I will support 

enterprise-level, cross-program management in bringing capabilities into 

the national airspace system and will formalize collaboration among 

NextGen program offices, ATO, and other relevant FAA organizations 

such as Aviation Safety. Within ATO, a new Program Management Office 

has been established to improve oversight of ATO’s NextGen 

implementation efforts. According to FAA, by combining acquisition 

program managers into one organization, ATO will ensure more 

coordinated program management throughout the full life cycle of 

NextGen acquisitions. While an increased focus on accountability for 

NextGen implementation is a positive step, it remains to be seen whether 

this latest reorganization will produce the desired results without a 

clarification of NextGen leadership roles and the fulfillment of all the 

necessary leadership positions. As we have previously reported, 

leadership is a critical element of success for large-scale systems 

integration efforts like NextGen.

—who will also report directly to the Administrator. The 

Chief NextGen Officer position has not yet been filled. FAA has not yet 

made the organizational changes called for by the act or clearly defined 

the relationships among the Deputy Administrator, Chief NextGen Officer, 

and JPDO director. According to FAA, no organizational changes will be 

made until the agency has a permanent FAA Administrator in place.

 

31Pub. L. No. 112–95, § 204, 126 Stat., 37.

32Pub. L. No. 112–95, § 208(a), 126 Stat., 40.
 

Page 15 GAO-12-1011T 

Particularly in light of constrained budget resources, FAA will have to 

balance its priorities to help ensure that NextGen implementation stays on 

course. Sustaining the current legacy infrastructure remains critical, as it 

will continue to be the core of the national airspace system for a number 

of years, and some of its components will be part of NextGen. For 

example, while FAA transitions to satellite-based surveillance through the 

deployment of Automatic Dependent Surveillance-Broadcast (ADS-B) 

technology, the agency expects to continue to operate and maintain 

current radar technology through at least 2020. At that time, FAA is 

scheduled to make decisions about which radars the agency will 

decommission and which will be maintained as the back-up system for 

ADS-B. If either ADS-B’s deployment or airlines’ efforts to equip with this 

technology should slip, then FAA may have to maintain and operate some 

of its radars longer than expected. We have ongoing work for this 

committee that is further exploring how FAA is preparing for the transition 

to NextGen and balancing the demands of the legacy and NextGen 

systems, including potential implications for the legacy systems and FAA 

budgets if NextGen implementation is delayed.

In addition, to fully realize NextGen’s capabilities, reconfiguring facilities 

that handle air traffic control will be required. FAA recently approved an 

initial plan to consolidate en route centers and terminal radar approachcontrol facilities (TRACONs) into large, integrated facilities over the next 

two decades. However, FAA has yet to make key decisions, such as 

where to build the first integrated facility. These decisions could affect 

future consolidation plans. While FAA develops its facilities plan, it faces 

the immediate task of maintaining and repairing existing facilities so that 

the current air-traffic control system continues to operate safely and 

reliably during the expected 20-year transition. According to FAA, in 2011, 

65 percent of its terminal facilities and 74 percent of its en route facilities 

were in either poor or fair condition with a total deferred maintenance 

backlog of $310 million for these facilities. Once FAA develops and 

implements a facility consolidation plan, it can identify which legacy 

facilities to continue to repair and maintain and, in doing so, potentially 

reduce overall facility repair and maintenance costs.33

 

33As required by the FAA Modernization and Reform Act, we are reviewing FAA facility 

conditions, including identifying any conditions that could interfere with employees’ ability 

to effectively and safely perform their duties. Pub. L. No. 112–95, § 610(a)(3), (c), 126 

Stat., 117.

FAA has 

FAA Faces Challenges 

in Balancing the 

Needs of the Current 

and NextGen Systems 

and Addressing 

Infrastructure and 

Operational Issues 

That Transcend 

NextGen
 

Page 16 GAO-12-1011T 

acknowledged the need to keep long-term plans in mind so that it does 

not invest unnecessarily in facilities that will not be used for NextGen.

Moreover, although NextGen is projected to keep delays at many airports 

from getting worse than would be expected without these improvements, 

NextGen alone is not likely to sufficiently expand the capacity of the 

national airspace system. For example, FAA’s NextGen modeling 

indicates that even if all ongoing and planned NextGen technologies are 

implemented, 14 airports—including some of the 35 busiest—may not be 

able to meet the projected increases in demand (fig. 3).34

 

34FAA is in the process of updating this analysis and anticipates completing its report in 

June 2013.

The 

transformation to NextGen will also depend on the ability of airports to 

handle greater capacity. For example, decisions regarding using existing 

capacity more efficiently include certifying and approving standards for 

using closely spaced parallel runways. At some airports, policies may 

need to be developed to address situations where demand exceeds 

capacity (e.g., pricing, administrative rules, service priorities, and so 

forth). Planning infrastructure projects to increase capacity, such as 

building additional runways, can be a lengthy process and will require 

substantial advance planning and safety and cost analyses. Also, the

improved efficiency in runway and airspace use that should result from 

some NextGen technologies may exacerbate capacity constraints in other 

areas, such as taxiways, terminal gates, or parking areas. Finally, 

increasing capacity must be handled within the context of limiting 

increases in emissions and noise that can affect the communities around 

airports.
 

Page 17 GAO-12-1011T 

Figure 3: Airports Projected to Need Additional Capacity in 2015 and 2025, Even If Planned Improvements Occur

Chairman Petri, Ranking Member Costello, and Members of the 

Subcommittee, this concludes my prepared statement. I would be 

pleased to answer any questions that you may have at this time.

For further information on this testimony, please contact Gerald L. 

Dillingham, Ph.D. at (202) 512-2834 or dillinghamg@gao.gov. In addition, 

contact points for our Offices of Congressional Relations and Public 

Affairs may be found on the last page of this statement. Individuals 

making key contributions to this testimony include Heather Krause and Ed 

Laughlin (Assistant Directors), Jessica Bryant-Bertail, Bert Japikse, 

Delwen Jones, Molly Laster, Dominic Nadarski, and Melissa Swearingen.

GAO Contact and 

Staff 

Acknowledgments
Appendix I: Selected Baselined NextGen and 

Related Programs Cost and Schedule 

Performance as of July 2012

Page 18 GAO-12-1011T 

Dollars in millions

Program Description

Start 

date

Original 

completion 

date

Projected 

completion 

date

Difference 

between 

original and 

projected 

completion 

dates (in 

months)

Original 

cost

Projected 

cost as of 

July 2012

Difference 

between 

original and 

projected 

cost 

Automatic 

Dependent 

Surveillance 

Broadcast (ADSB) 

A satellite-based 

information 

broadcasting 

system to enable 

more precise 

control of aircraft

Aug. 

2007

Sept. 2014 Sept. 2014 0 $1,682 $1,726 $45

Collaborative Air 

Traffic 

Management 

(CATM)- includes 

work packages 1-3 

a

Encompasses the 

development of 

systems to 

manage airspace 

and flight 

information

Aug. 

2005

Dec. 2015 Dec. 2015 0 561 561 0 

Data 

Communicationsincludes segment 

1 phase 1

Provides data 

transmissions 

directly to pilots 

and their flight 

management 

systems 

May 

2012

Fiscal year 

2019

Fiscal year 

2019

0 1,519 1,519 0 

System Wide 

Information 

Management 

(SWIM)-includes 

segment 1

The information 

management 

architecture for 

the national 

airspace system

July 

2009

Sept. 2015 Sept. 2015 0 310 310 0 

System Wide 

Information 

Management 

(SWIM)-includes 

segment 2A

The information 

management 

architecture for 

the national 

airspace system

July 

2012

Dec. 2017 Dec. 2017 0 120 120 0 

Time-Based Flow 

Management 

(TBFM) 

Modernizes the 

Traffic 

Management 

Advisor (TMA) 

system aimed at 

integration of

airport and air 

traffic control 

information

April 

2010

Nov. 2014 Nov. 2014 0 115 115 0 

Appendix I: Selected Baselined NextGen and 

Related Programs Cost and Schedule 

Performance as of July 2012
Appendix I: Selected Baselined NextGen and 

Related Programs Cost and Schedule 

Performance as of July 2012

Page 19 GAO-12-1011T 

Dollars in millions

Program Description

Start 

date

Original 

completion 

date

Projected 

completion 

date

Difference 

between 

original and 

projected 

completion 

dates (in 

months)

Original 

cost

Projected 

cost as of 

July 2012

Difference 

between 

original and 

projected 

cost 

En Route 

Automation 

Modernization 

(ERAM) 

A new enroute air 

traffic control 

system for high 

altitude traffic

June 

2003

Dec. 2010 Aug. 2014 44 2,155 2,485 330

Source: GAO analysis of FAA data.

a

(540252)

According to FAA, this difference is the result of additional work added to the ADS-B program 

baseline in March 2011 and includes congressional earmarks of $9.3 million in fiscal 2008 and $6.8 

million in fiscal year 2009 as well as an additional $15 million held in reserve to mitigate potential 

automation risks. In addition, the Colorado Wide Area Multilateration Phase II was added to the 

program ($13.6 million). 
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