Fiscal Year 2008 Costing Methodology Report 

Prepared by: 

Federal Aviation Administration 

Assistant Administrator for Financial Services 

January 2010 
ii 

TABLE OF CONTENTS

EXECUTIVE SUMMARY .............................................................................................................III

1 INTRODUCTION ..................................................................................................................... 5

1.1 CAS Design Objectives.......................................................................................................... 5

1.2 CAS Design............................................................................................................................. 6

1.3 Costing Terminology ............................................................................................................. 7

1.4 Methods for Assigning Costs................................................................................................. 8

2 AIR TRAFFIC ORGANIZATION ........................................................................................ 10

2.1 ATO Cost Targets/Services................................................................................................. 10

2.2 ATO Cost Model .................................................................................................................. 10

2.3 ATO Cost Assignments ....................................................................................................... 12

2.4 ATO Multiple Service Assignments ................................................................................... 25

3 AVIATION SAFETY .............................................................................................................. 27

3.1 AVS Cost Targets/Services.................................................................................................. 27

3.2 AVS Cost Model................................................................................................................... 27

3.3 AVS Cost Assignments ........................................................................................................ 28

4 AIRPORTS .............................................................................................................................. 33

4.1 ARP Cost Targets/Services ................................................................................................. 33

4.2 ARP Cost Model .................................................................................................................. 33

4.3 ARP Cost Assignments........................................................................................................ 34

5 FEDERAL AVIATION ADMINISTRATION CORPORATE OVERHEAD 

ASSIGNMENTS .............................................................................................................................. 37

5.1 FAA Headquarters Overhead............................................................................................. 37

5.2 FAA Regional Overhead ..................................................................................................... 38

APPENDIX ........................................................................................................................................ 1

A. ACRONYM LIST.................................................................................................................. 1

B. CAS REPORT TEMPLATES .............................................................................................. 1

B.1. ATO Cost of Service Report ............................................................................................. 1

B.2. AVS Service Summary Report ......................................................................................... 2

B.3. ARP Cost Type Report...................................................................................................... 2
iii 

Executive Summary

Purpose and Scope of Report 

This report is intended for internal managerial accounting personnel and external users for 

the purpose of understanding (1) how the Federal Aviation Administration’s (FAA) Cost 

Accounting System (CAS) captures costs, and (2) how costs were assigned to the services 

provided by the Air Traffic Organization (ATO), Aviation Safety (AVS), and Airports (ARP). 

This document describes the configuration for data processing for Fiscal Year 2008. 

CAS Methodology Used 

Before discussing the methodology used to identify the cost of projects and services, one 

must understand the role a cost accounting system plays in a large organization like the 

FAA. A managerial cost accounting system is especially important for assessing operating 

performance from a financial perspective. A managerial cost accounting system should 

help its users: 

• Determine the costs of specific services, projects, activities, etc. and the composition of, 

and changes in, those costs; 

• Determine the efforts and accomplishments associated with projects and delivery of 

services and their changes over time and in relation to costs; and 

• Measure the efficiency and effectiveness of the organization’s management of services, 

projects, assets, etc. 

Effective cost accounting and cost management is supported by underlying processes and 

systems that generate data and information used to assign costs to projects and services, 

thus achieving the objectives described above. FAA collected and assigned costs to 

services using the following guiding principles: 

• To the greatest extent possible, associate labor costs directly with specific services to 

reduce the amount of costs that need to be allocated among multiple services; 

• Base overhead and general and administrative allocations on a non-econometric, cost 

accounting approach using best available data; 

• Place costs into logical groupings that reflect distinct services provided to groups of 

users; 

• Comply with Federal Accounting Standards Advisory Board (FASAB) Standards, and 

with relevant elements of the Chief Financial Officers Act and Office of Management and 

Budget guidelines for cost accounting. 

There are essentially three main areas within which the above guidelines can be applied to 

the overall costing methodology used for the FAA’s CAS: 

1. Source Data – Identifying the source systems for the appropriate cost and statistical 

data to be incorporated into the CAS. 

2. Cost Targets – Identifying the cost objects or services to be costed. 

3. Cost Assignments – Determining how the costs, from the source systems, will be 

assigned to the identified services. 
iv 

 Source Data 

The costing methodology uses actual costs incurred, derived from several source systems 

to determine the total cost of each project and service. Labor and non-labor costs are 

provided by FAA’s financial system. Other data, including statistical information used to 

facilitate allocations, is provided by numerous other operational systems. 

 Cost Targets 

Each major FAA Line of Business (LOB) defined the products and services provided to its 

users. These services represent cost targets, used to measure costs for managerial cost 

accounting purposes. 

 Cost Assignments 

The cost assignments in this report are described based on how the costs are reported on 

the LOB’s managerial cost reports. 

Costs are assigned to projects, which is the mechanism used to capture cost objects (e.g., 

a service). Costs are attributed to projects, which are then attributed to services. This 

attribution of costs is done using several methods, all recognized by the Federal Accounting 

Standards Advisory Board (FASAB). 

In addition, adherence to the guidance previously described resulted in assignments based 

on rational application of business rules that allocate costs to all services that benefit 

without regard to its effect on users. 

The costing methodology used in this report is not expected to remain static. Rather, it 

continues to evolve as better operational and financial information becomes available and 

as FAA management gains more experience with the cost and performance information 

provided by the CAS. 
5 

1 Introduction

This report is intended for internal managerial accounting personnel and external users for 

the purpose of understanding (1) how the Federal Aviation Administration’s (FAA) Cost 

Accounting System (CAS) captures costs, and (2) how costs were assigned to the services 

provided by the Air Traffic Organization (ATO), Aviation Safety (AVS), and Airports (ARP). 

This document describes the configuration for data processing for Fiscal Year 2008. 

This section provides a basic overview of the design objectives of the cost accounting 

system and its components, and defines a common framework for discussing the costing 

methodology used by the Federal Aviation Administration (FAA). 

1.1 CAS Design Objectives 

The Federal Aviation Reauthorization Act of 1996, enacted in October 1996, directed the 

FAA to develop a cost accounting system. The Act also called for the FAA to adopt 

“overflight” fees for aircraft flights that fly in U.S.-controlled airspace, but neither take-off 

from, nor land in, the United Sates. 

To satisfy this statute, and to also develop a system capable of improving financial and 

operational performance, several general requirements were added, and collectively these 

remain as guiding principles for the cost accounting system design. They include: 

• Use best available data to provide a transparent, full cost of services provided to aviation 

users; 

• Measure and control the cost of resources consumed and output produced; 

• Support management decisions and plans based on reliable cost information; 

• Direct and control operations, processes, and projects; 

• Measure and benchmark the performance of organizations and management in financial 

terms; 

• To the greatest extent possible, associate labor costs directly with specific services to 

reduce the amount of costs that need to be allocated among multiple services; 

• Place costs into homogeneous pools reflecting distinct services provided to groups of 

users; and 

• Comply with Federal Accounting Standards Advisory Board (FASAB) Standards, and 

with relevant elements of the Chief Financial Officer’s Act and Office of Management and 

Budget guidelines for cost accounting. 

In addition, CAS receives its data from various information systems which affects the 

design of the cost accounting system. These systems include the following: 

• FAA Financial Systems Policies and Procedures - these sources included existing 

FAA systems and procedures that govern the collection, formatting, and processing of 

financial data that is interfaced into the CAS; and

• FAA Operational Systems - these sources included existing operational systems and 

procedures that determine the collection, formatting, and processing of operational 

(statistical) data that is interfaced into the CAS.

FAA considered these policies and procedures during the detailed design phase of the CAS 

implementation. Consideration of these policies ensures that the CAS design is sufficiently 
6 

flexible to meet the information capability and reporting requirements defined by internal 

users and external entities for financial and cost accounting systems. 

1.2 CAS Design 

The costing methodology uses actual costs incurred, derived from several source systems 

to determine the total cost of each project and service. Labor and non-labor costs are 

provided by FAA’s financial system. Other data, including statistical information used to 

facilitate allocations, is provided by numerous other operational systems. 

1.2.1 Financial Accounting System 

DELPHI is the core accounting and financial reporting system of the Department of 

Transportation and each of its constituent agencies, including FAA. DELPHI maintains 

general ledger balances, provides accounts payable and receivable, and other 

appropriation fund accounting capabilities. 

FASAB No. 4 discusses cost accounting as it relates to financial (proprietary) accounting 

and budgetary accounting. DELPHI performs financial and budgetary accounting while 

CAS performs cost accounting. While FASAB recognizes a relationship between cost 

accounting and budgetary accounting, they do not state a requirement to include budgetary 

transactions in the cost accounting system. Therefore, only those transactions from 

DELPHI relevant to cost accounting are included in the CAS (e.g., revenues, expenses, 

gains, and losses). 

1.2.2 Cost Accounting System (CAS) 

There are essentially three major components of the CAS. These components are 

described below and depicted in Figure 1-1. 

1. Current FAA Information Systems. These include the information systems that will 

provide financial and statistical data to the CAS. These systems contain different levels 

of detail that will be required to meet the reporting and internal control requirements of 

the CAS. 

2. Front End Control System. The Front End Control System (FECS) performs 

accounting maintenance and includes the procedures and software programs that 

control the loading of data from current FAA information systems into the CAS. 

3. PeopleSoft Projects Application. PeopleSoft Projects (public sector version) is a 

commercial, off-the-shelf software application. This software product maintains the 

financial, statistical, and control data residing in the database, performs cost 

assignments, provides reporting capabilities, and provides application security.
7 

Figure 1-1 

1.3 Costing Terminology 

There are several sources of guidance that provide common definitions of terms and 

concepts for use in determining the cost of government services as well as alternative 

acceptable methods for assigning costs within a cost management system like the CAS. 

The primary source is the Federal Accounting Standards Advisory Board (FASAB), which 

issues Statements of Federal Financial Accounting Standards (SFFAS) and concept 

statements. Each of these standards has varying relevance to the CAS. Most of these 

standards have a substantial impact on the accounting procedures and systems, which 

provide data to the CAS. SFFAS Number 4 (typically referred to as FASAB No. 4) and its 

related amendments set forth broad standards for managerial cost accounting, which need 

to be incorporated in the design of cost accounting systems. FAA considered these 

standards and used them as the basis for the design of the cost accounting system. 

The information contained in this report relies on consistent and uniform terminology for 

concepts, practices, and techniques. The following terms, some of which are defined by 

FASAB, provide a common framework to achieve this goal: 
8 

Term & Definition Example 

Direct Cost – The cost of resources that can be 

specifically identified with an output. (FASAB No. 

4) 

• Cost of an air traffic controller’s 

salary 

Indirect Cost – The cost of resources that are 

jointly or commonly used to produce two or more 

types of outputs but are not specifically identifiable 

with any of the outputs. (FASAB No. 4) 

• Cost of the FAA Administrator’s 

salary 

• Cost of a human resources 

specialist’s salary 

Project – For the purposes of the CAS, a project 

is a collective set of distinct activities that, when 

performed, represent a discrete product or 

service, an ongoing process step, or engineering 

project. Whatever the representation, projects 

serve as the primary “cost objects” in the CAS. 

Projects are used to capture the cost 

of: 

• Developing a new radar system 

• Maintaining a navigational device 

• Preparing the agency’s budget 

Cost Assignment – A process that identifies 

costs with activities, outputs, or other cost objects. 

In a broad sense, costs can be assigned to 

processes, activities, organizational divisions, 

products, and services. There are three methods 

of cost assignment: (a) directly tracing costs 

wherever economically feasible, (b) cause-andeffect, and (c) allocating costs on a reasonable 

and consistent basis. (FASAB No. 4) 

• Spreading the cost of the FAA 

Administrator’s Office to all FAA 

services provided to users 

• Spreading the cost of a line of 

business executive management 

team to the services that line of 

business provides to users 

• Associating an engineering project 

with a particular service 

Cost Pool – A collection of homogeneous costs 

that are to be assigned to cost objects. 

• All costs incurred by the FAA 

Administrator’s Office; includes the 

cost of salaries, supplies, or any 

other cost incurred by the 

Administrator. 

Basis – A measure that is used to distribute a 

pool of costs to pre-defined cost objects. This 

measure can be financial or statistical in nature. 

• The cost of flight inspection can be 

allocated to each facility based on 

the number of hours flown to 

inspect each facility. 

Cost Object – An activity output, or item whose 

cost is to be measured. In a broad sense, a cost 

object can be an organizational division, a 

function, task, product, service, or a customer.

(FASAB No. 4) 

• The engineering department’s 

overhead costs are assigned to 

engineering projects, which are the 

cost objects. 

Figure 1-2 

1.4 Methods for Assigning Costs 

As previously stated, FASAB provides guidance as to acceptable cost accounting practices, 

particularly cost assignments. FAA uses each of the three types of cost assignment 

methods described by FASAB. Each method is described below with examples of its 
9 

application. Please note, the examples provided are used to understand the different types 

of cost assignments and may not apply to FAA. 

• Direct Tracing. The assignment of costs to a chosen cost object. 

− Example 1: An employee completes a time sheet indicating the hours worked on a 

particular project (cost object). The payroll system uses this information to calculate 

the cost of that project based on that employee’s paid salary. This information is then 

provided as an input to the cost accounting system. 

− Example 2: An employee takes a business trip in support of a specific project. On 

the employee’s expense report he or she charges the cost of the trip to the specific 

project code assigned to the project. 

• Cause and Effect. A distribution of costs where the basis serves as an indicator as to 

changes in costs. 

− Example 1: Distributing building lease costs to operating organizations using square 

footage occupied as the basis. 

− Example 2: Distributing training costs to cost objects using attendance as the basis. 

• Allocation. The assignment of costs to multiple cost objects on a reasonable and 

consistent basis. 

− Example 1: Distributing the human resources department’s costs to the operating 

organizations using headcount as the basis. 

− Example 2: Distributing overhead costs to cost objects using labor cost as the basis. 

The method of cost assignment is chosen based on cost-benefit and data source 

availability. The FAA selected assignments by considering the cost to implement a specific 

method relative to the expected benefits of alternative assignment methods. 
10 

2 Air Traffic Organization

The Air Traffic Organization (ATO) is an FAA line of business whose primary responsibility 

is to move air traffic safely and efficiently. ATO consists of controllers, technicians, 

engineers, and support personnel whose daily efforts keep the commercial and private 

aviation and the military aircraft moving through the National Airspace System (NAS). 

There are two major functions within ATO that participate in the delivery of ATO services. 

These functions are described below: 

• Air Traffic Control (ATC) - This function involves managing the safe and efficient flow 

of air traffic through U.S. controlled airspace. This is accomplished by a workforce of air 

traffic controllers, flight service specialists, and managers and staff working at air traffic 

control facilities located throughout the United States. 

• Technical Operations (Tech Ops) – This function ensures the safe and efficient flow of 

air traffic through U.S. controlled airspace by installing, maintaining, and flight inspecting 

facilities. This is accomplished by a workforce of system specialists, flight inspection 

crews, engineering and project management personnel, managers and staff. 

2.1 ATO Cost Targets/Services 

To organize the source data and provide effective cost information based on that data, a 

cost accounting system must have activity outputs, or cost objects, to measure the costs. 

The Air Traffic Organization (ATO) line of business (LOB) defined four broad services, 

which represent cost objects for managerial cost accounting purposes. These services are 

defined as follows: 

• Enroute - Air traffic control services provided to aircraft operating primarily on instrument 

flight rules flight plans in controlled airspace between their departure and destination 

terminal areas. Enroute services are provided at service delivery points (SDPs), referred 

to as Air Route Traffic Control Centers (ARTCCs), and Combined Enroute Radar 

Approach Control (CERAP) facilities. 

• Oceanic - Air traffic control services provided to aircraft operating within international 

airspace where oceanic separation minima and procedures per International Civil 

Aviation Organization (ICAO) standards are applied. Oceanic services are provided at 

SDPs, referred to as ARTCCs and CERAP facilities. 

• Terminal - Air traffic control services provided to aircraft arriving and departing airport 

facilities under Instrument Flight Rules or Visual Flight Rules. Terminal services are 

provided at SDPs referred to as Terminal Radar Approach Control (TRACON), Radar 

Approach Control (RAPCON), Airport Traffic Control Tower (ATCT) or CERAP facilities. 

• Flight Services - Services provided to users of the National Airspace System (NAS), 

including pilot briefings, search and rescue coordination, aviation weather information, 

and other flight advisory services. Flight Services are provided at SDPs referred to as 

Automated Flight Service Stations (AFSS). 

2.2 ATO Cost Model 

The ATO cost model describes how costs are assigned at different levels of the Air Traffic 

Organization (ATO) using a hierarchical tree structure. The different levels in which costs 

are assigned are used as intermediate “roll-up” points that serve only to meet management 
11 

reporting needs. The levels in the hierarchical structure include Project, Category, 

Capability, and Service. Generally, as an activity occurs, the costs of that activity are 

assigned to a specific project, referred to as the Project level in the cost model. Each 

project rolls up to a broader level referred to as the Category level, which then rolls up to 

the Capability level. Finally, the Capability is rolled up to the final cost object, the Service. 

The following example shows how the cost model is used. The Tech Ops organization 

maintains a special type of long-range radar system, used to support only the Enroute 

service, with sites located around the country. The cost of maintenance technicians’ 

salaries who maintain those systems are collected in a project established in the CAS for 

only that type of long-range radar. This is the “Project” level. The cost of this project can 

then be aggregated to a level called “Category” which, in this case, is called the Long 

Range Radar category where the costs of other types of long range radar systems are 

added. These costs can then be aggregated again to another level called “Capability” 

which, in this case is the Surveillance capability, where the costs of other systems 

performing a surveillance function are added. Finally, the costs can be aggregated yet 

again to the ”Service” level where all costs incurred in support of a specific service, in this 

case the Enroute service, are combined to provide the total cost. Each level has unique 

elements within this shared hierarchy. Figure 2-1 depicts a conceptual view of the 

hierarchical structure just described. 

Projects (ATC)

Air Traffic 

Control

Traffic 

Management

Program 3 Program 3

Communication Surveillance ATC & Traffic 

Management

Nav/Landing Automation

ATO TREE CONCEPT

Services

Capability (Tech Ops) Capability (ATC)

Enroute Oceanic Terminal Flight Services

Infrastructure Weather

Mission Support

Category (Tech Ops)

Category 1 Category 2 Category 3

Projects (O&M) Projects (Engineering Services)

Management

Air Traffic 

Assistant

Program 1 Program 2 Program 1 Program 2

Support

Figure 2-1 
12 

Services provided to external users are delivered from a facility managing contact with the 

customer. This facility is called a Service Delivery Point (SDP) and is associated with the 

Service that is being delivered. Figure 2-2 depicts a conceptual view of the relationship 

between the service and the SDP. To the extent practical, all costs associated with the 

structure depicted in Figure 2-1 are also identified with the SDP where service is provided 

to the user. 

Enroute Oceanic Terminal Flight Services

ARTCCs ARTCCs TRACONs AFSSs

CERAPs CERAPs RAPCONs

ATCTs

CERAPs

SDP CONCEPT

Services

SDPs SDPs SDPs SDPs

Figure 2-2 

Some project costs cannot be associated with an SDP and therefore, are assigned at the 

service level. The Direct User Access Terminal Service (DUATS) is an example of a cost 

that cannot be associated with an SDP. This contractual service provides direct access to 

weather briefing, flight planning, and flight plan filing information to allow pilots to obtain a 

self briefing and file a flight plan prior to flying. There are thousands of inquiries to the 

system at multiple SDPs each day and it is impractical to collect this much data for cost 

accounting purposes. 

When a particular cost element could not be associated with a project or SDP, it was 

assigned at the “service” level (or final cost object level) of the hierarchy. For each cost 

element discussed in this document, it is indicated whether it was assigned at the project, 

SDP, or service level. 

2.3 ATO Cost Assignments 

This section of the report discusses the methods of assigning ATO costs allowed by FASAB 

No. 4 and how the FAA employs those methods in the ATO cost model. Included is a 

detailed discussion of each major cost assignment performed in the model. The discussion 

covers the cost pool to be assigned, the method of assignment, the target of the 

assignment, and the basis used. 
13 

The discussion of the ATO assignments is organized based on how costs are reported on 

ATO’s Cost of Service report. See Appendix B for an example of this report. Costs are 

organized in the Cost of Service report according to the level in which the costs are 

controlled. Costs are controlled at the facility, service unit, ATO, or FAA level. See Figure 

2-3 for an organizational view of these different levels of control. 

ATO AVS ARP AST ASH ARC

Level 2 - 

Service Unit

Numerous 

Facilities Service Areas

Numerous 

Facilities Service Areas

Technical Operations

FAA

Terminal Service Unit

System Operations

ENR & OCN Service Unit

Flight Service

Service Areas

Operations Planning

Safety

ATCSCC

Numerous 

Facilities

Numerous 

Facilities

Level 1 - Facility

Levels of Assignments

Chief Operating Officer

Level 4 - 

FAA

Finance

Level 3 - ATO 

(Staff Office 

Service Units)

Acquisitions

Communication

Figure 2-3 

2.3.1 Level 1 – Facility Assignments 

The following assignments are for costs that are controlled by a field facility. Examples of 

these facilities include ARTCC, ATCT, AFSS, TRACON, etc. Each facility is assigned an 

SDP and the SDP is associated with the service that is being delivered. 
14 

2.3.1.1 Air Traffic Control Direct Labor 

Air Traffic Control direct labor costs include the compensation and benefits of personnel 

directly associated with providing ATC services. These services are typically provided by 

Air Traffic Controllers and first level supervisors. 

The cost of ATC direct labor is directly traced to projects, SDPs, and services using the 

actual labor hours recorded to direct ATC projects by the personnel at each facility. 

2.3.1.2 Air Traffic Control Indirect Labor 

Air Traffic Control indirect labor costs include the compensation and benefits of personnel 

that perform work common to many ATC activities (e.g., budgeting, human resources, 

leave, etc.). 

The cost of ATC indirect labor is directly traced to projects, SDPs, and services using the 

actual labor hours recorded to indirect ATC projects by the personnel at each facility. 

Normally indirect costs are allocated to direct cost. However, because these costs are 

charged to a unique organizational identifier (cost center) and, in the case of ATC cost 

centers, they are related to a single service and SDP, we are able to directly trace these 

indirect costs. 

2.3.1.3 Air Traffic Control Direct Non-Labor 

Non-labor includes costs such as supplies and travel expenses. The ATC direct non-labor 

costs are the types of costs that are directly associated with a specific ATC activity. 

The cost of ATC direct non-labor is directly traced to projects, SDPs, and services using the 

actual cost incurred by the personnel at each facility. 

2.3.1.4 Air Traffic Control Indirect Non-Labor 

Non-labor includes costs such as supplies and travel expenses. The ATC indirect nonlabor costs are the types of costs that are common to many ATC activities (e.g., office 

supplies). 

The cost of ATC indirect non-labor is directly traced to projects, SDPs, and services using 

the actual cost incurred by the personnel at each facility. Normally indirect costs are 

allocated to direct cost. However, because these costs are charged to a unique 

organizational identifier (cost center) and, in the case of ATC cost centers, they are related 

to a single service and SDP, we are able to directly trace these indirect costs. 

2.3.1.5 Air Traffic Control Academy Training 

The FAA Academy, located in Oklahoma City, is a large training facility that provides 

agency-wide resident training services. The cost of ATC training at the FAA Academy 

includes the costs for course development and delivery, and the associated ATC employee 

travel and per diem costs. 
15 

A fixed percentage allocation is performed in the CAS to assign these training costs 

attributable to the ATC organization to services. 

The fixed percentages used to assign the cost to each service were determined based on 

historic values from a system which provided detailed travel and course information. 

2.3.1.6 Air Traffic Control Contract Training 

In addition to training at the FAA Academy, on-site training is provided under contract at 

select locations because of the specialized needs of controllers. 

A pro rata allocation is performed in the CAS to assign these training costs attributable to 

the ATC organization to projects, SDPs, and services. 

The portion of the cost that is assigned to each project, SDP, and service is determined 

based on the actual amount of training hours invoiced by the training contractor at each 

facility. 

2.3.1.7 Tech Ops Direct Labor 

Tech Ops direct labor cost includes the compensation and benefits of personnel that are 

directly associated with providing operations and maintenance (O&M) of electronics and 

support equipment used in direct support of the NAS. 

The cost of Tech Ops direct labor is directly traced to SDPs and services using the actual 

labor hours recorded to direct Tech Ops projects by the personnel at each facility. 

2.3.1.8 Tech Ops Direct Non-Labor 

Tech Ops direct non-labor cost includes costs such as guard services, ground services, and 

transportation that are directly associated with the NAS facilities and equipment (F&E) used 

for ATC. 

The cost of Tech Ops direct non-labor is directly traced to SDPs and services using the 

actual cost incurred by the personnel at each facility. 

2.3.1.9 Tech Ops District Office Indirect 

Tech Ops District Offices (DO) are responsible for the operations and maintenance of 

facilities and equipment to support ATC services. The Tech Ops DO indirect cost includes 

both indirect labor and non-labor costs that are common to many Tech Ops DO activities. 

A pro rata allocation is performed in the CAS to assign the DO indirect costs to direct Tech 

Ops projects and SDPs. 

The portion of the cost that is assigned to each project and SDP is determined based on 

the percentage of total costs that are directly traced to each Tech Ops DO project and SDP. 
16 

2.3.1.10 Tech Ops Academy Training 

The FAA Academy, located in Oklahoma City, is a large training facility that provides 

agency-wide resident training services. The cost of Tech Ops training at the FAA Academy 

includes the costs for course development and delivery, and the associated Tech Ops 

employee travel and per diem costs. 

A fixed percentage allocation is performed in the CAS to assign the training costs 

attributable to the Tech Ops organization to services. 

The fixed percentages used to assign the cost to each service were determined based on 

historic values from a system which provided detailed travel and course information. 

2.3.1.11 Telecommunications 

Telecommunications cost is associated with telecommunications equipment and 

connectivity for NAS systems and equipment used to provide ATO services. It is important 

to point out that this assignment only addresses the cost of leased telecommunications 

lines. Owned lines are considered part of the real property assets to which they are 

attached and are capitalized and depreciated accordingly. 

A pro rata allocation is performed in the CAS to assign telecommunications costs to 

projects related to facilities and/or SDPs that are connected via leased lines. Each leased 

line is mapped to either one or two project and SDP combinations which represent the 

connection points. 

The portion of the costs that is assigned to each project and/or SDP is determined based 

on the cost of the leased lines per facility. An FAA system tracks and manages the cost of 

each leased line for the facilities it services and provides that information to the CAS. 

In addition to the telecommunications cost described above, the Oceanic service uses 

unique communications services provided by Aeronautical Radio, Inc. (ARINC). 

All ARINC telecommunications cost are assigned to the Oceanic service based on a fixed 

percentage. 

2.3.1.12 Telecommunications Support 

Telecommunications support cost is associated with telecommunications equipment and 

connectivity for NAS systems and equipment used to provide ATO services, but cannot be 

directly assigned to a service. The cost of telecommunications to provide administrative 

support is a typical example of this cost because it is common to multiple services. 

A pro rata allocation is performed in the CAS to assign telecommunications support costs to 

projects, SDPs, and services. 

The portion of the costs that is assigned to each project, SDP, and service is determined 

based on the cost of leased lines per facility. An FAA system tracks and manages the cost 

of each leased line for the facilities it services and provides that information to the CAS. 
17 

2.3.1.13 Flight Inspection Services 

Flight inspection cost includes both labor and non-labor costs to support the flight 

inspection function for NAS related equipment and procedures. This function inspects 

surveillance, navigational, landing, and automation equipment by flying within the range of 

the equipment to ensure that it is functioning properly. To perform this function, the FAA 

maintains a fleet of specialized aircraft as well as specially trained pilots and maintenance 

technicians. 

A pro rata allocation is performed in the CAS to assign flight inspection costs to projects, 

SDPs, and services. 

The portion of the cost that is assigned to each project, SDP, and service is determined 

based on the hours flown for inspection per facility. An FAA system tracks and manages 

flight inspection activity by facilities inspected and hours flown and provides that information 

to the CAS. 

2.3.1.14 Logistics 

The FAA Logistics Center is a large depot that is responsible for maintaining stocks and 

stores of spare parts for issuance to the field, performing facility refurbishment services, 

and providing on-site repair services. These costs incurred for the provision of ATC 

services are the majority of the logistics costs. In addition to the ATC related costs, the 

Logistics Center also supports the Regional Offices and other LOBs as a source of office 

supplies and other support equipment. 

A pro rata allocation is performed in the CAS to assign the portion of costs from the 

Logistics Center incurred in support of ATO. The ATO portion of the costs is identified by 

the payment ATO makes to the Logistics Center to fund their operations and comparing 

that to the Logistics Center’s total funding. The costs are assigned to projects, SDPs, and 

services. 

The portion of the cost that is assigned to each project, SDP, and service is determined 

based on the value of spare parts issued to each facility as reported by FAA. An FAA 

system tracks and manages the value of the equipment that the Logistics Center issues to 

each facility in the field and provides that information to the CAS. 

2.3.1.15 Utilities 

The FAA’s utility costs are significant due to its running of safety critical equipment 24 hours 

a day with full back-up power sources. Utility costs include electricity, gas, water, etc. 

Utility costs are directly traced to projects, SDPs, and services using the actual amount of 

utility cost incurred at each facility. 

2.3.2 Level 2 - Service Unit Assignments 

Management control for the following costs exists at the service unit level (e.g., Enroute & 

Oceanic, Terminal, Tech Ops, and System Operations). Therefore, these costs are 

grouped together for reporting purposes. 
18 

2.3.2.1 ATC and Tech Ops Workers’ Compensation 

Workers Compensation (WC) is managed and administered by the Department of Labor 

(DOL). FAA’s total WC liability is made up of actual benefits paid to employees (referred to 

as an accrued liability), as well as an actuarial estimate reflecting future liabilities. The 

actuarial WC Liability amount includes estimates for death, disability, medical, and 

miscellaneous costs for compensation cases. 

A pro rata allocation is performed in the CAS to assign WC costs attributable to the ATC 

organization to ATC projects, SDPs, and services. A pro rata allocation is also performed 

in the CAS to assign WC costs attributable to the Tech Ops organization to Tech Ops 

projects and their associated SDPs. 

The portion of WC cost that is assigned to each ATC project, SDP, and service is 

determined based on the total cost of personnel compensation and benefits directly 

assigned to ATC service units. Similarly, the portion of WC cost that is assigned to each 

Tech Ops project, SDP, and service is determined based on the total cost of personnel 

compensation and benefits directly assigned to the Tech Ops service unit. 

2.3.2.2 Direct Field Support 

Each ATO capability (e.g., communication, infrastructure, surveillance, etc.) provides 

support for the activities with which it is associated. Although the project that provides this 

support is directly associated with the activities in the capability, it cannot be traced to a 

specific SDP. Using the radar example, the surveillance capability provides support by 

fixing a problem with a particular type of radar. However, this type of radar equipment may 

be used at multiple SDPs, which means the support project cannot be traced to a single 

SDP. 

Therefore, a pro rata allocation is performed in the CAS to assign the direct field support 

costs to SDPs and services. 

For each capability, the portion of the cost that is assigned to each SDP and service is 

determined based on the total cost of projects for that capability that are already assigned 

to SDPs and services. 

2.3.2.3 Contract Weather 

In order to provide timely and accurate weather information to controllers and pilots, 

weather personnel are on-site at each ARTCC. These individuals, working under contract, 

interpret weather readings and forecasts. 

An allocation is performed in the CAS to assign these costs to projects, all Enroute ARTCC 

SDPs, and the Enroute service. 

The cost is assigned evenly to each SDP. 

2.3.2.4 Contract Weather Observations 

Certain ATCTs and TRACONs provide approach control services to smaller airports within 

their airspace. In order to accomplish this safely and to augment automated weather 
19 

observation systems, contract weather observers, who report weather observations to the 

ATCT or TRACON, are located at these remote airports. 

A pro rata allocation is performed in the CAS to assign these costs to projects, the SDPs 

that receive the contract weather observation services, and services. 

The portion of the cost that is assigned to each project, SDP, and service is determined 

based on the amount each SDP is invoiced. 

2.3.2.5 Contract Tower 

Among all the terminal facilities, contract controllers rather than FAA employees staff a 

number of the smaller towers. These are referred to as contract towers. The contract 

towers are treated the same as any other Terminal facility in that they are assigned to an 

SDP. 

A pro rata allocation is performed in the CAS to assign the contract tower costs to projects 

and SDPs providing Terminal services under contract. 

The portion of the cost that is assigned to each project, SDP, and service is determined 

based on the contract amount for each SDP. 

2.3.2.6 Contract Flight Service 

Contract flight service cost is the cost associated with air traffic control services provided 

under contract for flight service stations (AFSS) within the continental United States. 

All contract flight service costs are assigned to the Flight Services (FSS) service. The cost 

is assigned and remains at the service level because these costs are not tracked by SDP. 

2.3.2.7 Direct User Access Terminal Service 

Direct User Access Terminal Service (DUATS) is a contract service associated with 

providing direct access to weather briefing, flight planning, and flight plan filing information 

to allow pilots to obtain a self briefing and file a flight plan prior to flying. 

All DUATS costs are assigned to the Flight Services (FSS) service. The cost is assigned 

and remains at the service level because these costs are not tracked by SDP. 

2.3.2.8 Contract Maintenance 

FAA procures services from commercial vendors to maintain certain hardware and software 

items used in the NAS. These contracts are large-dollar, multi-year, national contracts that 

are assigned to the ATO services. 

A fixed percentage allocation is performed in the CAS to assign contract maintenance costs 

to projects, SDPs, and services. A fixed portion of the cost is also assigned to the National 

Network Control Center (NNCC). 

The fixed percentages used to assign the cost to the NNCC and each project, SDP, and 

service were determined based on an analysis of the maintenance contract’s purpose (what 

system(s) are being maintained) and the associated costs. 
20 

2.3.2.9 Acquisition & Implementation 

The FAA is continuously working to modernize the NAS which includes researching, 

designing, developing, and purchasing new equipment (Acquisition); and then installing, 

integrating, and verifying the new equipment (Implementation). Direct and indirect labor 

costs as well as non-labor costs (e.g., contractors) are incurred by both the Acquisition and 

Implementation organizations in order to provide these functions. 

Several cost assignments are used to assign Acquisition and Implementation costs. The 

cost assignments for both of these areas are the same; the only difference being the 

organization that incurs the cost. 

First, costs are directly traced to the project and service using project information found on 

the financial transaction. 

If costs cannot be directly traced to a service, then projects are grouped by Capability and a 

pro rata allocation is performed in the CAS to assign the costs to services. The portion of 

the cost that is assigned to each project and service is determined based on the percentage 

of that capability’s total cost that is directly traced to each service. 

Finally, certain costs cannot be directly traced nor associated with a capability. These costs 

include Leases, Technical Services Support Contracts (TSSC), NAS Infrastructure Support 

(Engineering Services) Contracts (NISC), and Other Miscellaneous Projects. In these 

cases, a fixed percentage allocation is performed in the CAS to assign the projects to the 

appropriate services. The fixed percentages used to assign the cost to each service were 

determined based on a year-end analysis of the actual costs traced to each service. 

2.3.2.10 Depreciation & Capital Leases 

Depreciation is defined as the proportionate amount of an asset’s acquisition cost expensed 

over its estimated useful life and assigned to the period during which it is in use. 

Depreciable assets include Personal Property (e.g., aircraft, equipment, furniture, etc.), 

Real Property (e.g., buildings, ATC towers, etc.), and Capital Leases. Capital leases are 

agreements for the rights to use property or equipment for a specified period of time and 

must meet specific criteria to be considered capitalized. The FAA Financial Manual 

describes the criteria and procedures related to capitalization and depreciation of assets. 

Depreciation costs, which include the cost of capital leases, are directly traced to projects, 

SDPs, and services using the asset identifier information on the accounting transaction. 

If depreciation costs cannot be directly traced to a project, SDP, and service, a pro rata 

allocation is performed in the CAS to assign the costs to projects, and services. 

The portion of the cost that is assigned to each project and service is determined based on 

depreciation costs that are directly traced to a project and service. 

2.3.3 Level 3 - ATO Assignments 

The following assignments are for costs that are controllable by the ATO line of business. 
21 

2.3.3.1 ATC System Command Center 

The Air Traffic Control System Command Center (ATCSCC) is part of a multipurpose 

facility that houses specialized systems that enable the FAA to better manage the flow of air 

traffic throughout the NAS. It provides traffic management and advisory services to air 

traffic control facilities. It has a dedicated controller workforce along with a full complement 

of operational, administrative, technical support and management personnel. 

A pro rata allocation is performed in the CAS to assign the ATCSCC costs to projects, 

SDPs, and services. 

The portion of the cost that is assigned to each project, SDP, and service is determined 

based on the number of traffic management coordinators (TMCs) residing at each SDP. 

2.3.3.2 Operations Control Centers (Atlantic, Mid-States, Pacific) 

The National Operations Control Center (NOCC) is part of a multipurpose facility that 

houses specialized systems that enable FAA to better manage NAS services. Specifically, 

the NOCC provides centralized reporting of facility outage information for the entire NAS. It 

has a dedicated maintenance technician staff along with a full complement of operational, 

administrative, and management personnel. In addition, the NOCC has three “satellite” 

control centers: the Atlantic Operational Control Center (AOCC), the Mid-States Operation 

Control Center (MOCC), and the Pacific Operations Control Center (POCC). 

A pro rata allocation is performed in the CAS to assign the NOCC costs to its satellite 

organizations: the AOCC, MOCC, and POCC. 

The portion of the cost that is assigned to each satellite OCC is determined based on the 

total personnel compensation and benefits cost for each organization. 

After the NOCC costs are allocated to the satellite OCCs, a pro rata allocation is performed 

in the CAS for each OCC to assign the “loaded” costs of the OCC to projects, SDPs within 

the service areas that the OCC supports, and services. 

The portion of the OCCs cost that is assigned to each project, SDP, and service is 

determined based on the number of equipment sites assigned to each SDP. 

NOCC

AOCC MOCC POCC

SDPs and 

Services within 

the Eastern 

Service Area

SDPs and 

Services within 

the Central 

Service Area

SDPs and 

Services within 

the Western 

Service Area

Operations Control Centers Assignments

Figure 2-4 
22 

2.3.3.3 National Network Control Center 

The National Network Control Center (NNCC) is a major data network management system 

that enables the sharing of flight and other data between the ATC facilities. There are two 

NNCC “hubs,” one in Atlanta and the other in Salt Lake City. Limited NNCC-related 

equipment can also be found at other ATC facilities. The NNCC cost includes labor and 

non-labor costs of personnel operating the NNCC facilities as well as telecommunications 

costs for NAS systems in support of the NNCC facilities. 

A pro rata allocation is performed in the CAS to assign the NNCC costs to the NNCC 

project, selected SDPs with Traffic Management Unit (TMU) presence, and services. An 

SDP with TMU presence is one that has personnel on-site dedicated to providing traffic 

management. 

The portion of the cost that is assigned to each SDP and service is determined based on 

the number of handles per SDP. A handle is defined as a single aircraft departing, arriving, 

or transiting an ATC facility’s airspace. 

2.3.3.4 Charting 

The Tech Ops organization is responsible for developing, producing, and distributing 

aeronautical charts and maps, and approach procedures. Since the public consumes these 

maps and charts, this organization is reimbursed for much of its costs. Charting costs only 

include the costs of these products that are for the FAA’s direct benefit. 

A pro rata allocation is performed in the CAS to assign the charting costs to a project, 

SDPs, and the Enroute and Terminal services. 

The portion of the cost that is assigned to each SDP and service is determined based on 

the percentage of ATC personnel compensation and benefits. 

2.3.3.5 Service Area Indirect 

ATO is made up of different types of Service Units – Staff Office Service Units and 

ATC/Tech Ops related Service Units. Each of the ATC/Tech Ops related Service Units has 

a regional component referred to as a Service Area. Each Service Area provides oversight 

and support for the services provided by the three regions within the respective Service 

Area. The cost to provide support to the regions is considered overhead, or indirect, 

because it benefits multiple SDPs and services. 

A pro rata allocation is performed in the CAS to assign each Service Area’s indirect costs to 

the direct projects, SDPs, and services that they support. 

The portion of the cost that is assigned to each project, SDP, and service is determined 

based on the percentage of total direct cost that is assigned to each project, SDP, and 

service for that Service Area. 

2.3.3.6 Service Unit Indirect 

As described above, ATO is made up of different types of Service Units – Staff Office 

Service Units and ATC/Tech Ops related Service Units. The Service Unit indirect cost 
23 

includes only the indirect costs associated with ATO’s ATC/Tech Ops related Service Units. 

The ATC related Service Units provide a specific service (e.g., Enroute & Oceanic, 

Terminal, System Operations, and Technical Operations) directly to the users. Each of 

ATO’s ATC/Tech Ops related Service Units contains a Headquarters component. The 

majority of the Service Unit’s Headquarters cost is considered overhead, or an indirect cost, 

because it is incurred to support the Service Unit. 

A pro rata allocation is performed in the CAS to assign each Service Unit’s Headquarters’ 

indirect costs to the direct projects, SDPs, and services that they support. 

The portion of the cost that is assigned to each project, SDP, and service is determined 

based on the percentage of total direct cost that is assigned to each project, SDP, and 

service for that Service Unit. 

2.3.3.7 ATO Indirect 

As described above, ATO is made up of different types of Service Units. The ATO indirect 

cost includes only the indirect costs associated with ATO’s Staff Office Service Units. The 

Staff Office Service Units perform overhead related activities that provide support for ATO’s 

ATC/Tech Ops related Service Units. These ATO Staff Office Service Units include the 

Chief Operating Officer, acquisitions, communications, finance, operation planning, and 

safety. The activities provided by ATO’s Staff Office Service Units are considered indirect 

cost because they are common to the ATC related Service Units. 

A pro rata allocation is performed in the CAS to assign each Service Unit’s indirect costs to 

the projects, SDPs, and services that they support.

The portion of the cost that is assigned to each project, SDP, and service is determined 

based on the percentage of total direct cost that is assigned to each project, SDP, and 

service for that Service Unit. 

2.3.4 Level 4 - FAA Assignments 

The following sections refer to ATO’s portion of cost that are controlled outside of ATO 

including corporate FAA overhead and organizational costs from other LOBs that benefit 

ATO. 

2.3.4.1 FAA Indirect 

FAA Indirect costs include FAA headquarters and regional overhead. A portion of these 

costs are assigned to the direct projects and services within each LOB, including ATO. The 

FAA overhead assignments are described below in section 5 - Federal Aviation 

Administration Corporate Overhead Assignments. 

2.3.4.2 Medical 

Air traffic controllers receive regular medical exams as well as drug and alcohol tests. An 

organization within the FAA’s Office of Aviation Medicine (AAM), which resides within the 
24 

Aviation Safety (AVS) line of business, funds, conducts, and manages these exams and 

tests. 

A pro rata allocation is performed in the CAS to assign the medical cost to projects, SDPs, 

and ATO services. 

The portion of the cost that is assigned to each project, SDP, and ATO service is 

determined based on the percentage of personnel compensation and benefits attributed to 

each SDP. 

2.3.4.3 Gain/Loss 

FAA enters various transactions in order to recognize financial gains and/or losses. These 

entries were made in order to recognize financial gains or losses on inventory and assets, 

reclassification of certain labor costs from a current year expense to a capitalized cost, and 

other miscellaneous gains and losses. 

A fixed percentage allocation is performed in the CAS to assign gains and losses to ATO 

services. 

The fixed percentages used to assign the cost to each ATO service were determined based 

on a year-end analysis of the actual costs traced to each service. 

2.3.4.4 Accrued Liabilities 

FAA enters various transactions in order to recognize the appropriate level of unfunded 

liabilities for the following types of cost: post retirement benefits, ATC sick leave, 

environmental remediation, Federal Employees Compensation Act (FECA), and legal 

claims. 

2.3.4.4.1 Unfunded Liabilities for Leave & Retirement 

Unfunded liabilities for leave and post retirement benefits are accrued to recognize the 

appropriate level of unfunded liabilities for pension, health and life insurance, and ATC 

sick leave. 

A pro rata allocation is performed in the CAS to assign ATO’s portion of sick leave and 

retirement liabilities to projects, SDPs, and services. 

The portion of cost for ATC sick leave that is assigned to each project, SDP, and 

service is determined based on the percentage of ATC service units’ personnel 

compensation and benefits costs attributable to each service. The portion of cost for 

retirement liabilities that is assigned to each project, SDP, and service is determined 

based on ATO personnel compensation and benefits costs attributable to each service. 

2.3.4.4.2 Unfunded Liability for Environmental Remediation 

FAA accrues a liability for the environmental remediation of known contaminated sites 

and the estimated environmental cost to decommission assets presently in service. 
25 

A fixed percentage allocation is performed in the CAS to assign the environmental 

remediation projects to services. 

The fixed percentages used to assign the cost to each service were determined based 

on a year-end analysis of the actual costs traced to each service. 

2.3.4.4.3 Actuarial Liability for Federal Employees Compensation Act (FECA) 

The Federal Employees Compensation Act is administered by the Department of Labor 

(DOL) Office of Workers’ Compensation Programs and provides monetary 

compensation for Federal employees who are injured in the performance of duty. FAA 

accrues a liability for FECA compensation payments.

A pro rata allocation is performed in the CAS to assign the FECA Liability to projects, 

SDPs, and services. 

The portion of cost for FECA that is assigned to each project, SDP, and service is 

determined based on the percentage of ATO’s WC costs attributable to each service. 

2.3.4.4.4 Unfunded Liability for Legal Claims 

The FAA accrues a liability for asserted and pending legal claims reasonably possible 

of loss. 

A fixed percentage allocation is performed in the CAS to assign the legal claims liability 

cost to each service. 

The fixed percentages used to assign the cost to each service were determined based 

on a year-end analysis of the actual costs traced to each service. 

2.4 ATO Multiple Service Assignments 

Most costs are assigned to an SDP, which is the facility managing contact with the 

customer and is associated with the service being provided. However, some SDPs provide 

multiple services. As a result, special assignments are necessary to appropriately assign 

the cost of these particular SDPs to each of the services it provides. 

The following Enroute facilities also provide oceanic service: New York, Oakland, Houston, 

Anchorage, and San Juan. Personnel and equipment are shared at these specific SDPs to 

provide both Enroute and Oceanic services. 

A fixed percentage allocation is performed in the CAS to assign a portion of the ATC and 

Tech Ops costs at each of the shared facilities to the Oceanic service. 

The portion of Tech Ops cost that is assigned to the Oceanic service for each shared facility 

is determined based on the ratio of Oceanic “sectors” to total “sectors” at each of the 

shared ARTCCs. A sector is a region of airspace assigned to a single controller. The San 

Juan SDP is unique in that all of its shared costs are allocated using this basis (i.e., not only 

the Tech Ops costs). 

The portion of ATC cost that is assigned to the Oceanic service for each shared facility 

(except for San Juan) is determined based on historical Oceanic on-position time as a 

percentage of the total on-position time for all facilities. These percentages were 
26 

determined using a statistically valid analysis on a sample of sign-in, sign-out time records 

logged by controllers in the normal course of performing their duties at each of the shared 

facilities. 
27 

3 Aviation Safety 

Aviation Safety (AVS) is an FAA line of business responsible for the certification, production 

approval, and continued airworthiness of aircraft as well as the certification of pilots, 

mechanics, and others in safety-related positions. In addition, Aviation Safety develops 

regulations and certificates all U.S. civil aviation operational and maintenance enterprises. 

3.1 AVS Cost Targets/Services 

To organize the source data and provide effective cost information based on that data, a 

cost accounting system must have activity outputs, or cost objects, to measure the costs. 

The Aviation Safety Organization (AVS) line of business (LOB) defined eight broad 

services, which represent cost objects for managerial cost accounting purposes. These 

services are defined as follows: 

• Aerospace Medicine – Medical programs and services provided to the aviation 

community including aerospace medical research, occupational health, and medical 

support services. 

• Airworthiness Certification - Certification that the design, production quality, and 

airworthiness of aeronautical products, parts and appliances are deemed to meet 

established aviation safety standards. 

• Designee – AVS services provided by a designee. A Designee is a representative of 

the FAA Administrator authorized by law to examine, test, and/or make inspections 

necessary to issue airman or aircraft certificates. However, a designee is not considered 

an employee of the U.S. Government, and is not federally protected for the work 

performed or the decisions made as a designee. 

• Registration – Development, maintenance, and operation of national programs for the 

registration of United States civil aircraft and certification of airmen. 

• Surveillance – Inspection of the physical, chemical, visual, functional attributes or 

characteristics of a product, person, facility, or operation to determine that a person, an 

item or a certain segment of an operation meets standards that are required for 

certification or approval by the FAA. 

• Standards - Creation and amendment, as necessary, of the rules and regulations that 

provide the safety standards for people, organizations, and equipment operating in the 

U.S. civil aviation system through policy development, analysis, and rulemaking. 

• Air Operator/Agency Certification – Certification of air operators and/or air agencies 

that is deemed to meet established aviation safety standards. 

• Other Services – Other services provided by AVS including aviation research, and 

oversight of the unmanned aerial system, and unapproved parts. 

Each of these broad services is made up of a series of projects representing additional 

levels of detail used to enhance AVS’ cost management capability. These projects are 

organized into a hierarchy (tree) that allows for intermediate reporting points. 

3.2 AVS Cost Model 

The cost model describes how costs are assigned for the Aviation Safety line of business. 

The levels in the structure include Project and Service. Generally, as an activity occurs, the 

costs of that activity are assigned to a specific project, referred to as the Project level in the 
28 

cost model. Each project is associated with one of the broad services that AVS provides. 

The Service is the final cost object. 

For example, consider the following activities: developing and issuing airworthiness 

directives, developing and issuing Federal Aviation Regulations, and training the workforce 

who develop and issue standards. The cost of each of these activities is assigned to a 

specific project. All of the projects in this example fall under the Standards service. 

Aerospace 

Medicine

Airworthiness 

Certification Designees Registration Surveillance Standards

Air Operator/ 

Agency 

Certification

Other 

Services

Projects Projects Projects Projects Projects Projects Projects Projects

Project 1 Project 1 Project 1 Project 1 Project 1 Project 1 Project 1 Project 1

Project 2 Project 2 Project 2 Project 2 Project 2 Project 2 Project 2 Project 2 

Project 3 Project 3 Project 3 Project 3 Project 3 Project 3 Project 3 Project 3

AVS Sevices

AVS Cost Model

Figure 3-1 

3.3 AVS Cost Assignments 

This section of the report discusses the methods of assigning costs allowed by FASAB No. 

4 and how the FAA employs those methods in the cost model. Included is a detailed 

discussion of each major cost assignment performed in the model. The discussion covers 

the cost pool to be assigned, the method of assignment, the target of the assignment, and 

the basis used. 

The discussion of the AVS assignments is organized based on how costs are reported on 

the AVS Service Summary report. See Appendix B for an example of this report. 

3.3.1 AVS Direct Labor 

AVS direct labor costs include the compensation and benefits of personnel directly 

associated with providing AVS services. 

The cost of AVS direct labor is directly traced to projects using the actual labor hours 

recorded to direct AVS projects by AVS personnel. 

3.3.2 AVS Direct Non-Labor 

Non-labor includes costs such as supplies and travel expenses. The AVS direct non-labor 

costs are the types of costs that are directly associated with a specific AVS activity. 
29 

The cost of AVS direct non-labor is directly traced to projects using the actual cost incurred 

by AVS personnel. 

3.3.3 AVS Allocations 

Certain costs cannot be directly traced to a service. Allocation steps were designed to 

assign these types of costs to the services they support in order to capture the full cost of 

each AVS service. The sections below describe AVS’ allocated costs. 

3.3.3.1 FAA Corporate Overhead 

FAA corporate overhead costs include FAA headquarters and regional overhead. A portion 

of these costs are assigned to the direct projects and services within each LOB, including 

AVS. The FAA overhead assignments are described below in section 5 - Federal Aviation 

Administration Corporate Overhead Assignments. 

3.3.3.2 AVS Headquarters Overhead 

AVS headquarters consists of offices that provide supporting activities that are common to 

the services provided by AVS. Typical examples of these indirect costs include general and 

administrative costs, budgeting, human resources, etc. This cost pool also includes AVS’ 

imputed costs for post retirement benefits, whereas this cost is reported separately by some 

LOBs. 

A pro rata allocation is performed in the CAS to assign overhead cost associated with 

headquarters to direct projects. 

The portion of the cost that is assigned to each project is determined based on the total 

cost that is directly assigned to each project. 

3.3.3.3 AVS Regional Overhead 

AVS is organized into geographical regions and each region has several field offices. The 

regional overhead consists of indirect costs that are incurred as the result of providing 

supporting activities that are common to the field offices in that region. Typical examples of 

these indirect costs include general and administrative costs. 

A pro rata allocation is performed in the CAS for each region to assign overhead cost 

associated with that regional office to direct projects. 

The portion of the cost that is assigned to each project is determined based on the total 

cost that is directly assigned to each project within that particular region. 

3.3.3.4 AVS Field Overhead 

Field facilities are generally the offices in which direct services are provided. However, 

these offices still may incur indirect costs which are not directly related to the service being 
30 

provided. Typical examples of these indirect costs include general and administrative 

costs, office space, supplies, etc. 

A pro rata allocation is performed in the CAS for each field office described above to assign 

overhead cost associated with that field office to direct projects. 

The portion of the cost that is assigned to each project is determined based on the total 

cost that is directly assigned to each project within that particular field office. 

AVS field overhead allocations were created for the following AVS field offices: Flight 

Standards District Offices (FSDO), International Field Offices (IFO), Aircraft Evaluation 

Groups (AEG), and Certificate Management Offices (CMO). The indirect costs associated 

with other AVS field offices such as Medical Field Offices (MFO), Manufacturing Inspection 

District Offices (MIDO), Aircraft Certification Offices (ACO), etc. are not allocated at this 

level of detail; rather, the indirect costs are included in the regional overhead allocations for 

their respective region. 

3.3.3.5 AVS Workers’ Compensation 

Workers Compensation (WC) is managed and administered by the Department of Labor 

(DOL). FAA’s total WC liability is made up of actual benefits paid to employees (referred to 

as an accrued liability), as well as an actuarial estimate reflecting future liabilities. The 

actuarial WC Liability amount includes estimates for death, disability, medical, and 

miscellaneous costs for compensation cases. 

A pro rata allocation is performed in the CAS to assign WC costs associated with the AVS 

organization to direct projects. 

The portion of the cost that is assigned to each project is determined based on the total 

cost of personnel compensation and benefits that is directly assigned to each project. 

3.3.3.6 AVS Leave 

Employees who are absent from work record their time to a leave project in lieu of a 

standard labor project. At FAA, leave is costed when it is taken rather than when it is 

earned. Therefore, leave cost cannot be associated with direct projects. 

A pro rata allocation is performed in the CAS to assign the cost of leave to direct projects. 

The portion of the cost that is assigned to each project is determined based on the total 

cost of personnel compensation and benefits that is directly assigned to each project. 

3.3.3.7 AVS Academy Training 

The FAA Academy, located in Oklahoma City, is a large training facility that provides 

agency-wide resident training services. The cost of training at the FAA Academy includes 

the costs for course development and delivery, and the associated AVS employees’ travel 

and per diem costs. 

A pro rata allocation is performed in the CAS to assign the training costs attributable to AVS 

to direct projects within AVS. 
31 

The portion of the Academy training cost that is assigned to each project is based on the 

total direct cost of training activities incurred by the organization. Organizations within AVS 

also develop and provide localized training for employees due to the specialized nature of 

their work. The cost of the localized training is directly assigned to projects in that 

organization and therefore used as the basis to assign the Academy training cost. 

3.3.3.8 AVS Technical Training 

In addition to the Academy training, organizations within AVS also develop and provide 

localized training for employees due to the specialized nature of their work. In most cases, 

specialized training is provided to train employees who work on a specific project and 

therefore, the training cost is directly assigned to that project. However, in some instances, 

technical training is common to multiple projects, making it an indirect cost. 

A pro rata allocation is performed in the CAS to assign the indirect technical training costs 

to direct projects. 

The portion of the indirect technical training cost that is assigned to each project is based 

on the total direct cost of training activities incurred by the organization. 

3.3.3.9 AVS Special Projects 

In addition to the allocations described above, AVS also defined a few special cost 

assignments. These allocations are designed to assign the cost of specific projects to the 

direct projects that benefit from the cost. 

3.3.3.9.1 Special Projects to Aerospace Medicine 

AVS identified specific Research, Engineering, & Development (RE&D) indirect 

projects that support the Aerospace Medicine service. 

A pro rata allocation is performed in the CAS to assign the cost described above to 

direct projects within the Aerospace Medicine service. Otherwise, the cost would be 

pooled as overhead and spread across all of AVS’ services. 

The portion of this cost that is assigned to each project is based on the total direct 

costs charged to projects in the Aerospace Medicine service. 

3.3.3.9.2 Special Projects to Designees 

The hierarchy of projects that make up the Designee service is organized based on the 

AVS organization associated with the project. In addition, the Designee service 

includes a special oversight project that supports the designee projects associated with 

Flight Standards (AFS). 

A pro rata allocation is performed in the CAS to assign the cost of the special oversight 

project to the direct projects owned by AFS, within the Designee service. 
32 

The portion of this cost that is assigned to each project is based on the total direct 

costs charged to those projects owned by AFS, within the Designee service. 

This special allocation is performed so that the full costs of the designee projects 

associated with AFS can be captured. 

3.3.3.9.3 Special Projects to Flight Standards 

The FLSASAM project is a direct project, within the Other Services service, that is used 

to provide support for the automated staffing allocation model. AVS identified that this 

project specifically benefits Flight Standards (AFS). 

A pro rata allocation is performed in the CAS to assign the cost of the project described 

above to the direct projects attributable to AFS. 

The portion of this cost that is assigned to each project is based on the total direct 

costs charged to those projects by AFS. 

This special allocation is performed so that the cost of the FLSASAM project is 

assigned to the organization and its projects that benefit. 
33 

4 Airports

The Airports (ARP) organization is an FAA line of business which provides leadership in 

planning and developing a safe and efficient national airport system, taking into account 

economics, environmental compatibility, local proprietary rights, and safeguarding the 

public investment. 

4.1 ARP Cost Targets/Services 

To organize the source data and provide effective cost information based on that data, a 

cost accounting system must have activity outputs, or cost objects, to measure the costs. 

ARP defined several services, which represent cost objects for managerial cost accounting 

purposes. These services are defined as follows: 

• Airspace Determination – Conducting aeronautical studies associated with the 

construction or alteration of airports and the evaluation of obstructions near airports. 

• Airport Safety Certification – Certifying that airports meet established operational and 

safety standards. Two services were defined in order to differentiate between the Part 

139 and Non-Part 139 certifications. 

• Compliance – Assisting airport owners to meet their contractual obligations assumed 

when they accepted Federal grant funds or the transfer of Federal property for airport 

purposes. This also includes monitoring and investigating airports for compliance with 

these obligations as well as other applicable Federal laws. 

• Development Planning – Providing guidance on airport planning issues and developing 

techniques, methods, and procedures for use in airport planning. 

• Environmental – Evaluating environmental impacts of Airport Improvement Program 

(AIP) projects and determining reasonable alternatives to comply with the National 

Environmental Policy Act of 1969 (NEPA). 

• Passenger Facility Charge (PFC) Implementation – Providing oversight and guidance 

for the collection and use of the Passenger Facility Charge (PFC), a fee collected for 

every enplaned passenger at commercial airports controlled by public agencies. 

• Airport Improvement Program (AIP) Implementation – Providing oversight and 

guidance for grants for the planning and development of public-use airports that are 

included in the National Plan of Integrated Airport Systems (NPIAS). Two services were 

defined in order to differentiate between primary and non-primary airports. 

• Standards Development – Developing and issuing standards for airport design, 

construction, maintenance, operations, safety, and grant compliance. 

• Airport Noise – Evaluating and measuring noise at airports and surrounding areas and 

determining exposure of individuals to noise that result from the operations of an airport. 

4.2 ARP Cost Model 

The cost model describes how costs are assigned for the Airports line of business. The 

levels in the structure include Project and Service. Generally, as an activity occurs, the 

costs of that activity are assigned to a specific project, referred to as the Project level in the 

cost model. Each project is associated with one of the services that ARP provides. For 

ARP, the model is relatively simple because there is generally a one to one relationship 

between project and service - the project represents the service being provided. The 

Service is the final cost object. 
34 

4.3 ARP Cost Assignments 

This section of the report discusses the methods of assigning ARP costs. Included is a 

detailed discussion of the cost assignment, including the cost pool to be assigned, the 

method of assignment, the target of the assignment, and the basis used. 

The discussion of the ARP assignments is organized based on how costs are reported on 

ARP’s Cost Type report. See Appendix B for an example of this report. 

4.3.1 ARP Direct Labor 

ARP direct labor costs include the compensation and benefits of personnel directly 

associated with providing ARP services. 

The cost of ARP direct labor is directly traced to projects using the actual labor hours 

recorded to direct ARP projects by ARP personnel. 

4.3.2 ARP Direct Non-Labor 

Non-labor includes costs such as supplies and travel expenses. The ARP direct non-labor 

costs are the types of costs that are directly associated with a specific ARP activity. 

The cost of ARP direct non-labor is directly traced to projects using the actual cost incurred 

by ARP personnel. 

4.3.3 ARP Allocations 

Certain costs cannot be directly traced to a service. Allocation steps were designed to 

assign these types of costs to the services they support in order to capture the full cost of 

each ARP service. The sections below describe ARP’s allocated costs. 

4.3.3.1 ARP Leave 

Employees whom are absent from work record their time to a leave project in lieu of a 

standard labor project. At FAA, leave is costed when it is taken rather than when it is 

earned. Therefore, leave cost cannot be associated with direct projects. 

A pro rata allocation is performed in the CAS to assign the cost of leave to direct projects. 

The portion of the cost that is assigned to each project is determined based on the total 

cost of personnel compensation and benefits that is directly assigned to each project. 

4.3.3.2 ARP Academy Training 

The FAA Academy, located in Oklahoma City, is a large training facility that provides 

agency-wide resident training services. The cost of training at the FAA Academy includes 
35 

the costs for course development and delivery, and the associated ARP employees’ travel 

and per diem costs. 

A pro rata allocation is performed in the CAS to assign the training costs attributable to ARP 

to direct projects within ARP. 

The portion of the Academy training cost that is assigned to each project is based on the 

total cost of training activities incurred by the organization. Organizations within ARP also 

develop and provide localized training for employees due to the specialized nature of their 

work. The cost of the localized training is directly assigned to projects in that organization 

and therefore used to assign the Academy training cost. 

4.3.3.3 ARP Headquarters Overhead 

ARP headquarters consists of offices that provide supporting activities that are common to 

the services provided by ARP. Typical examples of these indirect costs include general 

and administrative costs, budgeting, human resources, etc. This cost pool also includes 

ARP’s imputed costs for post retirement benefits, whereas this cost is reported separately 

by some LOBs. 

A pro rata allocation is performed in the CAS to assign overhead cost associated with 

headquarters offices to direct projects. 

The portion of the cost that is assigned to each project is determined based on the total 

cost that is directly assigned to each project. 

4.3.3.4 ARP Regional Overhead 

ARP is organized into geographical regions and most of these regions have field offices. 

The regional overhead consists of indirect costs that are incurred as the result of providing 

supporting activities that are common to the offices in that region. Typical examples of 

these indirect costs include general and administrative costs. 

A pro rata allocation is performed in the CAS for each region to assign overhead cost 

associated with that regional office to direct projects. 

The portion of the cost that is assigned to each project is determined based on the total 

cost that is directly assigned to each project within that particular region. 

4.3.3.5 ARP Field Overhead 

The ARP field offices consist of Airport District Offices (ADO). The overhead cost at these 

field facilities consist of indirect cost incurred which are not directly related to the service 

being provided. Typical examples of these indirect costs include general and administrative 

costs, miscellaneous supplies, etc. 

A pro rata allocation is performed in the CAS for each field office to assign overhead cost 

associated with that field office to direct projects. 

The portion of the cost that is assigned to each project is determined based on the total 

cost that is directly assigned to each project within that particular field office. 
36 

4.3.3.6 FAA Corporate Overhead 

FAA corporate overhead costs include FAA headquarters and regional overhead. A portion 

of these costs are assigned to the direct projects and services within each LOB, including 

ARP. The FAA overhead assignments are described below in section 5 - Federal Aviation 

Administration Corporate Overhead Assignments. 
37 

5 Federal Aviation Administration Corporate Overhead Assignments

This section of the report discusses the methods of assigning FAA corporate overhead 

costs. Included is a detailed discussion of the cost assignment, including the cost pool to 

be assigned, the method of assignment, the target of the assignment, and the basis used. 

5.1 FAA Headquarters Overhead 

The FAA is organized such that a majority of its general and administrative (G&A) services 

are provided by centralized organizations, referred to as FAA staff offices. These 

organizations provide accounting and budget services; human resources management; 

government, public and industry affairs; legal and policy services; as well as executive 

leadership. FAA headquarters overhead costs represent the indirect cost of FAA general 

and administrative services provided to the lines of business by personnel residing at FAA 

headquarters and the Aeronautical Center (AMC). 

A series of pro rata allocations is performed in the CAS to assign the FAA headquarters 

indirect costs to projects, service delivery points (SDPs), and services within each LOB and 

selected organizations within AMC. Then, a series of pro rata allocations is performed to 

assign the AMC indirect costs to projects, SDPs, and services within each LOB, residing in 

the Aeronautical Center. Note that not all LOBs track costs at a service and/or SDP level1

. 

In this case, costs are assigned at the project level. 

The portion of the cost of the Administrator’s Office (AOA) and other Assistant 

Administrator’s Offices assigned to projects, SDPs, and services within each LOB is 

determined based on the percentage of total cost while the portion of the cost of human 

resources services assigned to projects, SDPs, and services within each LOB is 

determined based on the percentage of labor cost. The portion of the AMC cost assigned 

to each LOB is based on the percentage of total cost assigned to each LOB. Figure 5-1, 

below, illustrates this allocation in more detail. 

 

1

 The Service Delivery Point concept is specific to the Air Traffic Organization and 

described in detail in section 2.2 – ATO Cost Model. 
38 

ARP ASH AST ATO AVS AMC

ARP ASH AST ATO AVS AMC

FAA Headquarter G&A Expense Assignment

AMC

AMC and LOB Tenant 

Organizations at AMC

AHR AOA / Other Staff Offices

LOB and Selected 

Elements of AMC

Pool includes 

Human 

Resources 

Organization.

Basis = Labor 

Cost

Pool includes 

FAA 

Administrator's 

Office and all 

other Assistant 

Administrative 

Offices.

Basis = Total 

Cost

Pool includes 

Aeronautical 

Center 

Accounting and 

Budget 

Organization.

Basis = Total 

Cost

Figure 5-1 

5.2 FAA Regional Overhead 

As mentioned above, the FAA is organized such that a majority of its general and 

administrative (G&A) services are provided by centralized organizations. FAA regional 

overhead costs represent the indirect cost of FAA general and administrative services 

provided to the lines of business by personnel residing at FAA regional headquarters 

offices. 

A series of pro rata allocations is performed in the CAS to assign the FAA regional 

overhead costs in each region to projects, SDPs, and services in the respective region, 
39 

within each LOB with a regional component. Note that AST and AMC do not receive an 

allocation because these organizations do not have a regional component. Also, note that 

not all LOBs track costs at a service and/or SDP level1. In this case, costs are assigned at 

the project level. 

The portion of the cost of financial management related services assigned to projects, 

SDPs, and services is determined based on the percentage of total cost while the portion of 

the cost of human resources services and other staff offices assigned to projects, SDPs, 

and services is determined based on the percentage of labor cost. Figure 5-2, below, 

illustrates this allocation in more detail. 

ARP ASH AVS ATO AST AMC

FAA Regional G&A Expense Assignment

Regional Budget/Finance Regional Non-Financial

LOB and Selected 

Elements of AMC

Pool includes 

all financial 

management 

regional office 

organizations.

Basis = Total 

Cost

Pool includes 

all nonfinancial 

regional office 

organizations.

Basis = Labor 

Cost

Figure 5-2 
A-1 

Appendix

A. Acronym List

Below is a list of acronyms used throughout this document. 

AAM Office of Aviation Medicine 

ACO Aircraft Certification Office 

ADO Airports District Office 

AEG Aircraft Evaluation Groups 

AFS Flight Standards Service 

AFSS Automated Flight Service Station 

AIP Airport Improvement Program 

AMC Mike Monroney Aeronautical Center 

AOA Office of the Administrator 

AOCC Atlantic Operations Control Center 

ARC Assistant Administrator for Regions and Center Operations 

ARINC Aeronautical Radio, Inc. 

ARP Associate Administrator for Airports 

ARTCC Air Route Traffic Control Center 

ASH Assistant Administrator for Security and Hazmat

AST Associate Administrator for Commercial Space Transportation 

ATC Air Traffic Control 

ATCSCC Air Traffic Control System Command Center 

ATCT Airport Traffic Control Tower 

ATO Air Traffic Organization 

AVS Associate Administrator for Aviation Safety 

CAS Cost Accounting System 

CERAP Combined Enroute Radar Approach Control 

CMO Certificate Management Office 

DOL Department of Labor 

DUATS Direct User Access Terminal Service 

ENR Enroute Service 

F&E Facilities and Equipment 
A-2 

FAA Federal Aviation Administration 

FASAB Federal Accounting Standards Advisory Board 

FECA Federal Employees Compensation Act 

FECS Front-End Control System 

FSDO Flight Standards District Office 

FSS Flight Services Service 

G&A General & Administrative Expense 

ICAO International Civil Aviation Organization 

IFO International Field Office 

LDR Labor Distribution Reporting 

LOB Line of Business 

MFO Medical Field Office 

MIDO Manufacturing Inspection District Office 

MOCC Mid-States Operations Control Center 

NAS National Airspace System 

NISC NAS Infrastructure Support Contract (Engineering Services Contract) 

NNCC National Network Control Center 

NOCC National Operational Control Center 

NPIAS National Plan of Integrated Airport Systems 

O&M Operations & Maintenance 

OCC Operational Control Center 

OCN Oceanic Service 

PFC Passenger Facility Charge 

POCC Pacific Operations Control Center 

RAPCON Radar Approach Control 

RE&D Research, Engineering, & Development 

SDP Service Delivery Point 

SFFAS Statement of Federal Financial Accounting Standards 

Tech Ops Technical Operations 

TMC Traffic Management Coordinator 

TMU Traffic Management Unit 

TRACON Terminal Radar Approach Control 

TSSC Technical Services Support Contract 

WC Workers Compensation 
B-1 

B. CAS Report Templates

B.1. ATO Cost of Service Report 

ENROUTE OCEANIC FLIGHT 

SERVICE TERMINAL TOTAL FYTD TOTAL

Level 1 - Facility ATC Direct Labor $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

ATC Indirect Labor $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

ATC Direct Non-Labor $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

ATC Indirect Non-Labor $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

ATC Contract Training $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

ATC Academy Training $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Tech Ops Direct Labor $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Tech Ops Direct Non-Labor $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Tech Ops DO Indirect $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Tech Ops Academy Training $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Telecommunications $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Telecommunications Support $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Flight Inspection Services $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Logistics $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Utilities $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

subtotal: $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Level 2 - Service Unit ATC Workers' Compensation $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Tech Ops Workers' Compensation $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Direct Field Support $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Contract Weather $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Contract Weather Observations $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Contract Tower $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Contract Flight Service $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

DUATS $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Contract Maintenance $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Implementation $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Acquisition (non ATO) $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Acquisition (ATO) $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Depreciation & Capital Leases $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

subtotal: $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Level 3 - ATO ATC System Command Center $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Atlantic Operations Control Center $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Mid-States Operations Control Center $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Pacific Operations Control Center $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

National Network Control Center $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Charting $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Service Area Indirect $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Service Unit Indirect $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

ATO Indirect $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

subtotal: $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Level 4 - FAA FAA Regional Indirect $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

FAA Headquarters Indirect $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Medical $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Gain/(Loss) $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Accrued Liabilities $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

subtotal: $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Grand Total: $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

FAA COST ACCOUNTING SYSTEM

ATOC005 - COST OF SERVICE REPORT

FOR THE YEAR ENDING SEPTEMBER 30, 2008
B-2 

B.2. AVS Service Summary Report 

CURRENT FYTD

LABOR NON-LABOR ALLOCATED TOTAL LABOR NON-LABOR ALLOCATED TOTAL

AERSPCMED AERSPCMED $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

AIRWORCRT AIRWORCRT $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

DESIGNEES DESIGNEES $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

OPRAGCYCRT OPRAGCYCRT $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

OTHERSERV OTHERSERV $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

REGISTRTN REGISTRTN $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

STANDARDS STANDARDS $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

SURVELNCE SURVELNCE $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

TOTAL $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Grouping: AVS

Organization: AVS

FAA Cost Accounting System

 Project Summary Report 

FY2008, END-OF-YEAR RUN

B.3. ARP Cost Type Report 

Organization: ARP

ARPHQTRS ARPREG TOTAL

Labor Labor $ XXX,XXX $ XXX,XXX $ XXX,XXX

Sub-total $ XXX,XXX $ XXX,XXX $ XXX,XXX

Non-Labor Travel $ XXX,XXX $ XXX,XXX $ XXX,XXX

Rent, Leases and Utilities $ XXX,XXX $ XXX,XXX $ XXX,XXX

Other Services $ XXX,XXX $ XXX,XXX $ XXX,XXX

Equipment $ XXX,XXX $ XXX,XXX $ XXX,XXX

All Other $ XXX,XXX $ XXX,XXX $ XXX,XXX

Sub-total $ XXX,XXX $ XXX,XXX $ XXX,XXX

Allocations Leave $ XXX,XXX $ XXX,XXX $ XXX,XXX

AMA Training for ARP $ XXX,XXX $ XXX,XXX $ XXX,XXX

ARP Headquarters $ XXX,XXX $ XXX,XXX $ XXX,XXX

ARP Regional $ XXX,XXX $ XXX,XXX $ XXX,XXX

ADO Indirect $ XXX,XXX $ XXX,XXX $ XXX,XXX

FAA Headquarters $ XXX,XXX $ XXX,XXX $ XXX,XXX

FAA Regional $ XXX,XXX $ XXX,XXX $ XXX,XXX

Sub-total $ XXX,XXX $ XXX,XXX $ XXX,XXX

TOTAL $ XXX,XXX $ XXX,XXX $ XXX,XXX

FAA Cost Accounting System

Cost Type Report

FY2008, END-OF-YEAR