(b) TITLE.—Title to any property or interest therein
acquired pursuant to this section shall be held by the Gov-
ernment of the United States.
SEC. 110. SELECT PANEL TO REVIEW INNOVATIVE FUNDING
MECHANISMS.
(a) ESTABLISHMENT.—The Administrator shall es-
tablish a select panel to review and report to Congress re-
garding a limited innovative program to fund specific fa-
cilities and equipment projects, and to provide limited ad-
ditional funding alternatives for airport capacity develop-
ment. The mechanisms to be reviewed shall include loan
guarantees, financial partnerships with for-profit private
sector entities, government sponsored enterprises, and re-
volving loan funds.
(b) APPOINTMENT OF MEMBERS.—The members of
any panel established under this section shall consist of
appropriate Federal Government officials and representa-
tives of the aviation industry, Administration employees,
the financial community, and State and local governments.
(c) TRAVEL AND PER DIEM.—Each member of the
panel established under this section shall be paid actual
travel expenses, and per diem in lieu of subsistence ex-
penses when away from his or her usual place of residence.
(d) REPORT.—Not later than 6 months after the date
of the appointment of the last member to the panel under
subsection (b), the panel shall submit to the Congress and
the Administration a report on the results of the review
conducted under this section.
(e) FEDERAL ADVISORY COMMITTEE ACT NOT TO
APPLY.—The Federal Advisory Committee Act (5 U.S.C.
App.) does not apply to the panel established under this
section.
(f) TERMINATION.—The panel established under this
section shall terminate on the date that is 30 days after
the date of submission of the report under subsection (d).
SEC. 111. TRANSFERS OF FUNDS FROM OTHER FEDERAL
AGENCIES.
The Administrator is authorized to accept transfers
of unobligated balances and unexpended balances of funds
appropriated to other Federal agencies to carry out func-
tions transferred by this Act to the Administrator or func-
tions pursuant to law to the Administrator on or after the
date of the enactment of this Act.
SEC. 112. MANAGEMENT ADVISORY COUNCIL.
(a) ESTABLISHMENT.—Within 3 months of the date
of enactment of this Act, the Administrator shall estab-
lished an advisory council which shall be known as the
Federal Aviation Management Advisory Council (in this
section referred to as the ‘‘Council’’). With respect to Fed-
eral Aviation Administration management, policy, spend-
ing, and regulatory matters affecting the aviation indus-
try, the Council may submit comments, recommended
modifications, and dissenting views to the Administrator.
The Administrator shall include in any submission to Con-
gress, the Secretary, or the general public, and in any sub-
mission for publication in the Federal Register, a descrip-
tion of the comments, recommended modifications, and
dissenting views received from the Council, together with
the reasons for any differences between the views of the
Council and the views or actions of the Administrator.
(b) MEMBERSHIP.—The Council shall consist of 15
members, who shall consist of—
(1) a designee of the Secretary of Transpor-
tation;
(2) a designee of the Secretary of Defense; and
(3) 13 members appointed by the Adminis-
trator.
(c) QUALIFICATIONS.—Members appointed to the
Council under this section shall be selected from among
individuals who are experts in disciplines relevant to the
aviation industry and who are able collectively to represent
a balanced view of the issues important to air carriers,
general aviation, business aviation, airports, commercial
space transportation, industry and Administration em-
ployees, aircraft manufacturers, and public users.
(d) FUNCTIONS.—
(1) IN
GENERAL.—The Council shall provide
advice and counsel to the Administrator on issues
which affect or are affected by the operations of the
Administrator. The Council shall function as an
oversight resource for management, policy, spending,
and regulatory matters under the jurisdiction of the
Administration.
(2) PANELS
AND
WORKING
GROUPS.—The
chairman of the Council shall establish a panel or
working group, from among the members of the
Council, on the development of fees for various Fed-
eral Aviation Administration services under section
303 and for air traffic control services under section
304, and may establish such additional panels and
working groups, consisting of members of the Coun-
cil, as may be necessary to carry out the functions
of the Council.
(3) MEETINGS.—The Council shall meet on a
regular and periodic basis or at the call of the chair-
man or of the Administrator.
(4) ACCESS TO DOCUMENTS AND STAFF.—The
Administration may give the Council appropriate ac-
cess to relevant documents and personnel of the Ad-
ministration.
(e) FEDERAL ADVISORY COMMITTEE ACT NOT TO
APPLY.—The Federal Advisory Committee Act (5 U.S.C.
App.) does not apply to the Council.
(f) ADMINISTRATIVE MATTERS.—
(1) TERMS OF MEMBERS.—
(A) 3-YEAR TERMS.—Except as provided
in subparagraph (B), members of the Council
appointed by the Administrator under sub-
section (b)(3) shall be appointed for a term of
3 years.
(B) INITIAL APPOINTEES.—Of the mem-
bers first appointed by the Administrator—
(i) 4 shall be appointed for terms of
1 year;
(ii) 5 shall be appointed for terms of
2 years; and
(iii) 4 shall be appointed for terms of
3 years.
(C) FILLING UNEXPIRED TERM.—An indi-
vidual chosen to fill a vacancy shall be ap-
pointed for the unexpired term of the member
replaced.
(D) EXPIRATION OF TERMS.—A member
whose term expires shall continue to serve until
the date on which the member’s successor takes
office.
(2) CHAIRMAN; VICE CHAIRMAN.—The Council
shall elect a chair and a vice chair from among its
members, each of whom shall serve for a term of 1
year. The vice chair shall perform the duties of the
chairman in the absence of the chairman.
(3) TRAVEL AND PER DIEM.—Each member of
the Council shall be paid actual travel expenses, and
per diem in lieu of subsistence expenses when away
from his or her usual place of residence, in accord-
ance with section 5703 of title 5, United States
Code.
(4) DETAIL OF PERSONNEL FROM THE ADMIN-
ISTRATION.—The Administrator shall make available
to the Council such staff, information, and adminis-
trative services and assistance as may reasonably be
required to enable the Council to carry out its re-
sponsibilities under this section.
SEC. 113. AIRCRAFT ENGINE STANDARDS.
Subsection (a)(1) of section 44715 of title 49, United
States Code, is amended to read as follows:
‘‘(a) STANDARDS AND REGULATIONS.—(1) To relieve
and protect the public health and welfare from aircraft
noise, sonic boom, and aircraft engine emissions, the Ad-
ministrator of the Federal Aviation Administration, as he
deems necessary, shall prescribe—
‘‘(A) standards to measure aircraft noise and
sonic boom;
‘‘(B) regulations to control and abate aircraft
noise and sonic boom; and
‘‘(C) emission standards applicable to the emis-
sion of any air pollutant from any class or classes
of aircraft engines which, in the judgment of the Ad-
ministrator, causes, or contributes to, air pollution
which may reasonably be anticipated to endanger
public health or welfare.’’.
TITLE II—FEDERAL AVIATION ADMINIS-
TRATION STREAMLINING PROGRAMS
SEC. 201. INNOVATIVE PROGRAM FOR AIR TRAFFIC CON-
TROL MODERNIZATION.
(a) INNOVATIVE PROGRAM.—The Administrator shall
develop and implement an innovative program under
which an acquisition management system is used to pro-
cure goods and services by the Administration.
(b) EXEMPTION FROM PROCUREMENT LAWS.—
(1) IN GENERAL.—Subject to paragraph (2), in
carrying out the acquisition management system
used under the innovative program, the Adminis-
trator may waive all or any part of—
(A) title III of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C.
5, and 251 through 266);
(B) the Office of Federal Procurement
Policy Act (41 U.S.C. 401 et seq.);
(C) sections 8, 9, and 15 of the Small
Business Act (15 U.S.C. 637, 638, and 644),
but the Administrator shall provide resources
for the development and implementation of a
program that presents the maximum opportuni-
ties, to the extent possible, for small business
concerns and small business concerns owned
and controlled by socially and economically dis-
advantaged individuals to participate in the per-
formance of contracts awarded by the Federal
Aviation Administration; and
(D) any provision of law that, pursuant to
section 34 of the Office of Federal Procurement
Policy Act (41 U.S.C. 430), is listed in the Fed-
eral Acquisition Regulation as being inapplica-
ble—
(i) to contracts for the procurement of
commercial items; or
(ii) in the case of a subcontract under
the innovative program, to subcontracts for
the procurement of commercial items;
(E) the Federal Acquisition Streamlining
Act of 1994 (Public Law 103–355);
(F) the Service Contract Act;
(G) subchapter V of chapter 35 of title 31,
United States Code, relating to the procure-
ment protest system;
(H) the Brooks Automatic Data Process-
ing Act (section 111 of the Federal Property
and Administrative Services Act of 1949; 40
U.S.C. 759);
(I) the Brooks Architect-Engineer Act (40
U.S.C. 541–544); and
(J) the Federal Acquisition Regulation and
any law that is not listed in subparagraphs (A)
through (I) providing authority to promulgate
regulations in the Federal Acquisition Regula-
tion.
(2) The Department of Defense shall have the
same exemptions from acquisition laws as are waived
by the Administrator under paragraph (1) when en-
gaged in joint actions to improve or replenish the
national air traffic control system. The Administra-
tion may acquire real property, goods, and services
through the Department of Defense, or other appro-
priate agencies, but is bound by the acquisition laws
and regulations governing those cases.
(3) EFFECTIVE DATE.—The Administrator may
not waive the laws referred to in paragraph (1) until
the expiration of the 30-day period referred to in
subsection (d)(2).
(c) DEVELOPMENT OF ACQUISITION MANAGEMENT
SYSTEM.—
(1) IN
GENERAL.—Not later than 180 days
after the effective date of this Act, the Adminis-
trator, in consultation with such governmental and
nongovernmental experts in acquisition management
systems as the Administration may employ, shall de-
velop an acquisition management system for the Ad-
ministration. Notwithstanding any other provision of
law to the contrary, the Administrator may, for pur-
poses of this section, retain such experts under a
contract awarded on a basis other than a competi-
tive basis and without regard to any such provisions
requiring competitive bidding or precluding sole
source contract authority. In developing the system,
the Administrator may utilize the services of experts
and consultants under section 3109 of title 5,
United States Code, without regard to the limitation
imposed by the last sentence of section 3109(b) of
such title, and may contract on a sole source basis,
notwithstanding any other provision of law to the
contrary.
(2) REQUIREMENTS.—The acquisition manage-
ment system to be developed by the Administrator
under paragraph (1) shall be—
(A) designed to ensure that new equipment
is installed and certified as quickly as possible
without sacrificing safety, principles of fairness,
and protection against waste, fraud, and abuse;
and
(B) designed to ensure the best practicable
acquisitions in terms of best value.
(d) NOTICE TO CONGRESS.—
(1) IN GENERAL.—Upon completion of the de-
velopment of the acquisition management system,
the Administrator shall submit a comprehensive plan
describing the acquisition management system to the
Congress. The Administrator shall also transmit
with the plan a copy of all suggestions and com-
ments provided to the Administration by the Depart-
ment of Transportation, and by outside experts (if
any), on the acquisition management system.
(2) DATE OF IMPLEMENTATION.—The Admin-
istrator may begin to implement the acquisition
management system only after the expiration of the
30-day period that begins on the date on which the
plan is submitted to the Congress under paragraph
(1).
(e) EXPERT EVALUATION.—Three years after the ac-
quisition management system is implemented, the Admin-
istration shall employ outside experts to provide an inde-
pendent evaluation of the effectiveness of the system with-
in 3 months. The Administrator shall transmit a copy of
the evaluation to the Committee on Commerce, Science,
and Transportation of the Senate, and the Committee on
Transportation and Infrastructure of the House of Rep-
resentatives.
(f) MODIFICATIONS TO SYSTEM.—The Administrator
may periodically make modifications to the acquisition
management system. Any such modifications shall be sub-
mitted to the Congress under subsection (d) in the same
manner as the acquisition management system plan and
may not be implemented until after the expiration of the
30-day period beginning on the date of submission.
SEC. 202. AIR TRAFFIC CONTROL MODERNIZATION RE-
VIEWS.
(a) REQUIRED TERMINATIONS OF ACQUISITIONS.—
The Administrator shall terminate any program initiated
after the date of enactment of this Act and funded under
the Facilities and Equipment account that—
(1) is more than 50 percent over the cost goal
established for the program;
(2) fails to achieve at least 50 percent of the
performance goals established for the program; or
(3) is more than 50 percent behind schedule as
determined in accordance with the schedule goal es-
tablished for the program.
(b) AUTHORIZED
TERMINATIONS
OF
ACQUISI-
TIONS.—The Administrator shall consider terminating,
under the authority of subsection (a), any substantial ac-
quisition that—
(1) is more than 10 percent over the cost goal
established for the program;
(2) fails to achieve at least 90 percent of the
performance goals established for the program; or
(3) is more than 10 percent behind schedule as
determined in accordance with the schedule goal es-
tablished for the program.
(c) EXCEPTION AND REPORT.—
(1) CONTINUANCE
OF
PROGRAM, ETC.—Not-
withstanding subsection (a), the Administrator may
continue an acquisitions program required to be ter-
minated under subsection (a) if the Administrator
determines that termination would be inconsistent
with the development or operation of the national air
transportation system in a safe and efficient man-
ner.
(2) REPORT.—If the Administrator makes a de-
termination under paragraph (1), the Administrator
shall transmit a copy of the determination, together
with a statement of the basis for the determination,
to the Committees on Appropriations of the Senate
and the House of Representatives, the Committee on
Commerce, Science, and Transportation of the Sen-
ate, and the Committee on Transportation and In-
frastructure of the House of Representatives.
SEC. 203. INNOVATIVE PROGRAM FOR FEDERAL AVIATION
ADMINISTRATION SERVICES.
(a) INNOVATIVE PROGRAM.—The Administrator shall
develop and implement an innovative program under
which a personnel management system is used for the
management, compensation, and advancement of Adminis-
tration employees.
(b) EXEMPTION FROM CERTAIN PROVISIONS
OF
TITLE 5, UNITED STATES CODE.—
(1) IN
GENERAL.—Except as otherwise pro-
vided in this section, under the innovative program,
the Administration shall be exempt from parts II
and III of title 5, United States Code.
(2) EFFECTIVE
DATE.—The exemption pro-
vided by paragraph (1) shall not take effect until the
expiration of the 30-day period specified in sub-
section (d)(2).
(c) DEVELOPMENT OF PERSONNEL MANAGEMENT
SYSTEM.—
(1) IN
GENERAL.—Not later than 180 days
after the date of enactment of this Act, the Adminis-
trator, in consultation with Administration employ-
ees, including designated bargaining representatives,
and such governmental and nongovernmental experts
in personnel management systems as the Adminis-
trator may employ, shall develop a personnel man-
agement system for the Administration. Notwith-
standing any other provision of law to the contrary,
the Administrator may, for purposes of this section,
retain such experts under a contract awarded on a
basis other than a competitive basis and without re-
gard to any such provisions requiring competitive
bidding or precluding sole source contract authority.
In developing the system, the Administrator may
utilize the services of experts and consultants under
section 3109 of title 5, United States Code, without
regard to the limitation imposed by the last sentence
of section 3109(b) of such title.
(2) GOAL.—The goal of the personnel manage-
ment system to be developed by the Administrator
under paragraph (1) is to provide, consistent with
the requirements of this section, the Administration
with the ability—
(A) to hire, promote, and fire employees as
in the private sector;
(B) to establish a pay structure as needed
to conduct the business of the Administration
in an efficient and effective manner within
available resources;
(C) to provide salaries designed to attract
the best qualified employees within available re-
sources;
(D) to staff facilities that are difficult to
staff;
(E) to move personnel to those facilities
where they are most needed; and
(F) to continue to provide an appropriate
framework for labor-management relations con-
cerning terms and conditions of employment.
(d) NOTICE TO CONGRESS.—
(1) IN
GENERAL.—Upon development of the
personnel management system under this section,
the Administrator shall submit a comprehensive plan
describing the personnel management system to the
Congress. The Administrator shall also transmit
with the plan a copy of all suggestions and com-
ments provided to the Administration by the Depart-
ment of Transportation, and by outside experts (if
any), on the personnel management system.
(2) 
IMPLEMENTATION.—The 
Administration
may begin to implement the personnel management
system only after the expiration of the 30-day period
that begins on the date the plan is submitted to the
Congress.
(e) EXPERT EVALUATION.—Three years after the
personnel management system is implemented, the Admin-
istration shall employ outside experts to provide an inde-
pendent evaluation of the effectiveness of the system with-
in 3 months. For this purpose, the Administrator may uti-
lize the services of experts and consultants under section
3109 of title 5, United States Code, without regard to the
limitation imposed by the last sentence of section 3109(b)
of such title, and may contract on a sole source basis, not-
withstanding any other provision of law to the contrary.
(f) EMPLOYEE RIGHTS AND BENEFITS.—The enact-
ment of this section shall not result in the exemption of
employees of the Administration from any of the following
provisions of title 5, United States Code:
(1) Section 2302(b) (relating to whistleblower
protection).
(2) Sections 3308–3320 (relating to veterans’
preference)
(3) Section 7116(b)(7) (relating to prohibition
of the right to strike).
(4) Section 7204 (relating to antidiscrimina-
tion).
(5) Chapter 63 (relating to leave).
(6) Chapter 71 (relating to labor-management
relations).
(7) Chapter 73 (relating to suitability, security,
and conduct).
(8) Chapter 81 (relating to compensation for
work injuries).
(9) Chapter 83 (relating to retirement).
(10) Chapter 84 (relating to the Federal Em-
ployees’ Retirement System).