**GAO-03-343**                      Published: Jan 31, 2003. Publicly Released: Feb 04, 2003.                  

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## Highlights

To enhance the capacity and safety of the national airspace system, the Federal Aviation Administration (FAA), within the Department of Transportation, is acquiring 74 Standard Terminal Automation Replacement Systems (STARS). STARS will replace some outdated air traffic control equipment. Since 1996, when FAA initiated this major computer hardware and software acquisition, the scope and estimated costs of STARS have changed many times. FAA now estimates that STARS's remaining costs will total about $2.54 billion. GAO was asked to assess the reliability of FAA's life-cycle cost estimate for STARS, determine the impact of STARS's estimated costs on future FAA budgets, and identify any alternatives to STARS that FAA is considering. GAO based its analysis on published FAA cost data and the guidance FAA uses for managing major acquisitions.

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## Topics

Government Operations

Computer hardwareCost analysisFuture budget projectionsLife cycle costsProgram evaluationStrategic planningCost estimatesCost and schedule performanceNational airspace systemCapital investment