NOAA Aircraft: Aging Fleet and Future Challenges Underscore the Need for a Capital Asset Plan
Published: 2014-07-09T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: NOAA's aircraft play a critical role in collecting scientific data to help NOAA advance understanding of changes in the environment and manage ocean and coastal resources. NOAA uses its aircraft for a wide range of scientific missions. In fiscal year 2013, NOAA's aircraft flew hundreds of flights and logged about 3,900 flight hours. NOAA officials predict that expanding mission needs will lead to increased demand for aircraft services. To address such challenges, NOAA has been working to improve its capital asset planning and management for aircraft.
A House committee report on the Consolidated and Further Continuing Appropriations Act, 2013, mandated GAO to examine various issues regarding NOAA's aircraft. This report examines (1) the status of NOAA's efforts to improve its aircraft planning and management and the extent to which these efforts reflect leading practices and (2) challenges NOAA faces in improving its aircraft asset planning and management. GAO analyzed aircraft cost and flight hour data from fiscal year 2004 through fiscal year 2013, reviewed agency planning and management documents, and interviewed agency officials. GAO reviewed capital asset planning guidance from OMB to identify leading practices.
section_title: What GAO Found
paragraphs: The National Oceanic and Atmospheric Administration (NOAA) within the Department of Commerce has 34 efforts aimed at improving its aircraft asset planning and management, some of which are ongoing, while others are under way or planned; however, because these efforts are not yet fully implemented, it is too early to determine whether they will reflect the leading practices in capital asset management that have been identified by the Office of Management and Budget (OMB). Among NOAA's initiatives are efforts to enhance its process for scheduling aircraft use among NOAA offices and to develop new aircraft performance metrics. NOAA's efforts also include the development of multiple long-term plans that together are intended to constitute a capital asset plan for aircraft. OMB leading practices encourage agencies to have capital asset plans—which help provide agencies with information and analysis to make long-term decisions about acquiring and managing capital assets—as a part of their strategic planning efforts, but NOAA currently does not have such a plan for its aircraft. NOAA expects to complete its various improvement efforts related to aircraft asset planning and management by fiscal year 2017.
NOAA faces challenges in improving its aircraft asset planning and management. NOAA's complex approach to creating a capital asset plan for aircraft may present challenges because it will comprise multiple stand-alone plans, and critical planning information and analysis on different types of assets will be spread across different documents. NOAA is in the early stages of some of these planning efforts and has not yet determined how, or whether, it will link and integrate the plans with one another to ensure that they will serve as a comprehensive plan. NOAA has faced challenges in finalizing a capital planning effort in the past. In 2009, NOAA leadership suspended a planning effort intended to address the agency's future aircraft needs in order to incorporate additional aircraft-related information, according to NOAA officials; the agency subsequently began its current planning effort 4 years later, in 2013. The importance of a capital asset plan is underscored by the significant decisions NOAA faces regarding its aircraft fleet, particularly its two operating P-3 Orion aircraft that are in high demand for hurricane work (see fig.). For example, given that the P-3 Orion aircraft are nearly 40 years old, NOAA faces decisions on whether to invest in additional costly service life extensions or replace the aircraft. Linking and integrating its multiple planning efforts could help NOAA demonstrate that it has a capital asset plan consistent with OMB guidance. Without a capital asset plan in place, NOAA risks making decisions that will not allow the agency to effectively address future challenges.
section_title: What GAO Recommends
paragraphs: GAO recommends that the NOAA Administrator ensure that the agency links and integrates its multiple planning efforts as it finalizes a comprehensive capital asset plan for aircraft. NOAA concurred with the recommendation.

section_title: Letter
paragraphs: For the National Oceanic and Atmospheric Administration (NOAA) within  the Department of Commerce, aircraft play a critical role in collecting  scientific data for advancing understanding of changes in the Earth’s  environment, collecting data necessary for weather and water forecasts,  and conserving and managing ocean and coastal resources. In fiscal year  2013, NOAA’s nine planes—which range in size from small twin-engine  aircraft to large four-engine P-3 Orion aircraft—flew hundreds of flights in  support of missions and logged about 3,900 flight hours. NOAA’s Office of  Marine and Aviation Operations (OMAO) provides aircraft services to  NOAA’s line offices through the management, maintenance, and  operation of these NOAA-owned aircraft. Scientists within NOAA’s line  offices rely on OMAO-operated aircraft to collect a wide range of data  such as hurricane wind speeds, marine mammal population counts, and  air pollution measurements. In addition, OMAO coordinates the chartering  of commercial aircraft for approximately half of NOAA’s line office mission  needs because NOAA-owned and operated aircraft are unable to meet all  of these needs, according to NOAA officials. NOAA predicts that  expansion of line office mission needs will lead to increased demand for  aircraft services in the future.
To address these needs, OMAO developed a strategic plan in 2012,  outlining a new approach for improving its capital asset planning for  aircraft and the efficiency and effectiveness of its aircraft asset  management. The importance of effective asset planning and  management has been highlighted in the Office of Management and  Budget’s (OMB) Circular A-11 and its supplemental Capital Programming  Guide, which has been emphasized in our prior work. For example, as  we previously found, the crux of the capital decision-making process is  capital asset planning. The ultimate product of capital asset planning is a  comprehensive capital asset plan. These plans can provide critical  information about evolving agency needs, analysis of performance gaps  between capacity and needs, and analysis of the cost-effectiveness and  performance implication of various alternative strategies for meeting  those needs. This information helps agencies determine the best strategy  for meeting their needs, for example by acquiring new aircraft, upgrading  existing aircraft, increasing their reliance on nonagency assets, or other  strategies. Our previous work has stressed the importance of developing  a capital asset plan to help ensure that assets are managed to achieve  performance goals and objectives with minimal risk, lowest life-cycle  costs, and the greatest benefits to the agency’s business. In addition,  OMB discusses the importance of effective asset management through  such leading practices as collecting information on asset utilization and  the extent to which assets contribute to strategic agency goals.
The House Appropriations Committee report for a Department of  Commerce fiscal year 2013 appropriations bill mandated us to examine  various issues associated with NOAA’s aircraft. This report examines  (1) the status of NOAA’s efforts to improve its aircraft planning and  management and the extent to which these efforts reflect leading  practices and (2) challenges NOAA faces in improving its aircraft asset  planning and management.
To examine the status of NOAA’s efforts to improve its aircraft asset  planning and management, we identified and reviewed agency project  and strategy documents stemming from OMAO’s 2012 strategic plan and  interviewed agency officials responsible for aircraft management,  operations, and maintenance. We focused on efforts specific to aircraft  assets and excluded efforts related to other aspects of NOAA’s  operations, such as those related to its ship fleet. To determine the extent  to which NOAA’s efforts reflect applicable guidance and leading practices,  we reviewed OMB guidance to identify leading practices that are  important for effective asset management. These leading practices are  primarily found in OMB’s Circular A-11 and the supplemental Capital  Programming Guide. In addition, we reviewed OMB’s Circular A-76,  which provides guidance to federal agencies regarding the use of  services provided by the private sector to meet agency needs, and  Circular A-126, which provides guidance on the management and use of  government aircraft. To obtain additional insight into leading practices,  we also reviewed our reports that discuss the application of these leading  practices by various agencies. To identify challenges NOAA faces in  improving its aircraft asset planning and management, we reviewed  agency documents and interviewed agency officials, including users of  aircraft as well as officials responsible for aircraft asset planning and  management. Appendix I provides additional information on our  objectives, scope, and methodology.
We conducted this performance audit from July 2013 to July 2014 in  accordance with generally accepted government auditing standards.  Those standards require that we plan and perform the audit to obtain  sufficient, appropriate evidence to provide a reasonable basis for our  findings and conclusions based on our audit objectives. We believe that  the evidence obtained provides a reasonable basis for our findings and  conclusions based on our audit objectives.
subsections: section_title: Background
paragraphs: Since NOAA was established in 1970, the agency has operated aircraft to  aid in the collection of earth observation data to understand and predict  changes in climate, weather, oceans, and coasts; collect data necessary  for weather and water forecasts; and help conserve and manage coastal  and marine ecosystems and resources. To help NOAA’s line offices  accomplish this mission, OMAO—an administrative office organized  under NOAA’s Deputy Undersecretary for Operations—is charged with  maintaining and operating NOAA’s aircraft as a service to the line offices.  The responsibilities of the line offices are widely varied, and their aircraft  needs are similarly varied. For example, the National Weather Service  relies on NOAA aircraft to determine the water content of snow and  collect data to support its forecast and warning responsibilities. In  contrast, the National Marine Fisheries Service uses NOAA aircraft to  count marine mammals and track the location of whale pods. Table 1  provides information on NOAA’s line offices and how each uses NOAA  aircraft to accomplish its work.
To meet the diverse needs of the line offices, OMAO procures, manages,  operates, and maintains a fleet of aircraft capable of functioning in  demanding environments such as over open ocean, mountains, coastal  wetlands, arctic pack ice, and in and around hurricanes and other severe  weather systems. NOAA-owned aircraft are unique in that they have been  altered to accommodate a wide range of specialized scientific data  collection instruments, some of which are specifically designed for use in  NOAA aircraft. For example, NOAA’s Gulfstream IV-SP and P-3 Orion  planes can carry a tail Doppler radar, which is used to gather information  about winds and precipitation within tropical storms and cyclones. These  planes are the only government-owned aircraft used for hurricane  research to improve the forecasting of a hurricane’s track and intensity.  NOAA’s P-3 Orion aircraft also facilitate testing of new scientific  instrumentation and data collection strategies. NOAA operates heavy  aircraft capable of flying in tropical cyclones; light aircraft that conduct  shoreline change assessments, oil spill investigations, snow surveys for  spring flood forecasts, and other missions; and unmanned aircraft  systems. For fiscal years 2009 to 2013, OMAO’s costs associated with  operating and maintaining heavy aircraft accounted for, on average, 85  percent of its total aircraft costs. Figure 1 shows NOAA’s aircraft fleet.
NOAA’s aircraft fly approximately 3,800 to 5,200 flight hours per year.  The majority of these hours are funded by OMAO’s budget. However, line  offices may also request flight time on NOAA-owned planes that is paid  for with line office funds. For example, the National Marine Fisheries  Service is funding 210 flight hours to conduct Steller sea lion and harbor  seal surveys for June to September 2014. NOAA’s planes conduct  missions for other agencies on a reimbursable basis, as well. Figure 2  shows NOAA’s aircraft flight hours and associated costs for fiscal years  2004 to 2013.
As noted, NOAA’s aircraft fleet capacity is limited, and line office needs  exceed capacity. When NOAA line office scientists are unable to obtain  time on NOAA-owned aircraft, they must wait until NOAA aircraft become  available, rely on chartered aircraft, contract for data, or forgo the use of  aircraft. NOAA’s ability to meet line office needs for aircraft is further  affected by the requirements placed on NOAA’s aircraft by the National  Hurricane Operations Plan, which details interdepartmental agreements  and responsibilities related to tropical cyclone forecasting. Although most  hurricane reconnaissance is conducted by Air Force aircraft, NOAA is  required to make its P-3 Orion aircraft available if the Air Force is unable  to meet the reconnaissance needs posed by severe weather events. One  of NOAA’s two operating P-3 Orion planes must be configured and  available to conduct reconnaissance each hurricane season from June 1  to November 30, and the other P-3 Orion must be available from July 15  to September 30. During these months, the P-3 Orion planes are  generally not available for other uses. NOAA officials also told us that  they expect the line offices’ missions will expand in the future, thereby  increasing their need for aircraft services. For example, one National  Weather Service official told us that agency has recently been tasked with  additional responsibilities related to measuring soil moisture for  agricultural purposes, which will require additional aircraft time to carry  out. The OMAO strategic plan likewise notes that the agency faces  challenges in providing services to meet a growing demand for scientific  data.
To help agencies address capacity limitations such as these, OMB  guidance suggests agencies should engage in effective capital asset  planning and management to ensure that their assets are acquired,  operated, and maintained at the right size, cost, and condition to support  agency missions and objectives. Regarding capital asset planning, both  OMB guidance and our past work stress the importance of linking capital  asset investments to an organization’s overall mission and long-term  strategic goals. The guidance also emphasizes evaluating a full range of  alternatives to bridge any identified performance gap, informed by agency  asset inventories that contain condition information. Further, the guidance  calls for a comprehensive decision-making framework to review, rank,  and select from among competing project proposals. The ultimate product  of the planning phase is a comprehensive capital asset plan, which  defines the long-term capital decisions that resulted from the agency’s  capital planning process. Both OMB guidance and our past work highlight  the importance of developing a capital asset plan. Appendix II provides  additional information on the key principles in capital asset planning.  Regarding capital asset management, OMB guidance encourages  agencies to adopt leading practices such as monitoring of asset  inventory, operations, and performance. Table 2 shows examples of OMB  leading practices in capital asset management.
section_title: NOAA Has Numerous Efforts to Improve Aircraft Asset Planning and Management, but It Is Too Early to Determine Whether They Reflect Leading Practices
paragraphs: NOAA has 34 efforts aimed at improving its aircraft asset planning and  management, according to agency officials, some of which are ongoing  while others are under way or planned; however, because most of these  efforts are not yet fully implemented, it is too early to determine whether  they will reflect OMB leading practices in capital asset programming.  Many of the efforts are designed to obtain additional or enhanced  information about the use or condition of NOAA’s aircraft assets,  according to agency officials. For example, NOAA has completed an  effort to automate and integrate its various software applications for  tracking aircraft use, maintenance, and repair. In addition, according to  agency officials, many of NOAA’s efforts are intended to contribute to the  development of a capital asset plan for its aircraft—a plan that NOAA  does not currently have.
Generally, NOAA’s efforts fall into the following categories:
Assets: NOAA has eight efforts related to upgrading, using, or  disposing of certain aircraft assets. For example, in 2013, NOAA  completed an extensive multi-year process to identify and validate  NOAA line offices’ information needs. NOAA also updated its annual  process for scheduling and allocating aircraft flight hours to better  prioritize aircraft use in meeting these needs. NOAA is in the process  of disposing of a non-operational P-3 Orion aircraft. Other efforts  include a project to replace the wings of its two remaining operational  P-3 Orion aircraft and upgrade the camera systems on its PUMA  unmanned aircraft system.
Collaboration: NOAA has five efforts related to improving collaboration  with other federal agencies. For example, NOAA has an effort to  improve collaboration regarding the use of unmanned aerial systems  and an effort to evaluate opportunities for placing NOAA personnel  with other federal agencies, such as the National Science Foundation  and the Office of Naval Research, to learn about their operations and  gain expertise that could be transferred to NOAA.
Measures: NOAA has three efforts that are intended to improve the  quantity or accuracy of performance measures regarding aircraft. For  example, NOAA has an effort under way to improve the accuracy and  comprehensiveness of the information it gathers and analyzes to  measure aircraft performance. Currently, NOAA uses the number of  hours flown by its aircraft on missions as its aircraft performance  measure, but the agency is working to potentially expand its  measures to include the information on the amount and quality of  scientific data collected during those hours.
Plans: NOAA has eight efforts involving the creation of long-term  plans that together are intended to serve as a comprehensive capital  asset plan. For example, NOAA is developing a broad “airborne  composition plan” that is being designed to analyze information on  future aircraft needs and guide the future composition of NOAA’s fleet.  According to NOAA officials, this plan will rely on the recently  completed effort that identified the information needs of NOAA’s line  offices. The plan is also expected to assess whether these needs can  be met with existing assets or whether other options should be  considered, such as acquiring additional aircraft or other assets,  relying on aircraft operated by other federal agencies, chartering  commercial aircraft, or other options. In a related effort, NOAA is also  working to develop an analysis of options for repairing or replacing its  heavy aircraft in the future. NOAA also intends to develop a plan  related to unmanned aircraft systems, as well as workforce plans that  will cover aircraft administration, management, and operations  personnel.
Policies and data: NOAA has 10 efforts related to updating existing  policies and conducting data analysis. For example, NOAA has an  effort to revise its safety management policies and is working to  analyze the organizational structure of OMAO to identify opportunities  for improving its ability to deliver aircraft services.
Regarding the status of these 34 NOAA efforts aimed at improving aircraft  asset planning and management, 5 efforts have been completed, 23  efforts are ongoing, and 6 efforts are scheduled to begin within the next 3  years. NOAA expects to complete all 34 efforts by fiscal year 2017.  Figure 3 shows the status of NOAA’s 34 efforts aimed at improving  aircraft capital asset planning and management.
Given the preliminary or planned status of many of NOAA’s efforts, we  cannot determine the extent to which these efforts, once completed, will  reflect leading practices. For example, NOAA’s effort to create a capital  asset plan through the development of several separate planning efforts  may give the agency the information and analysis it needs to identify  potential gaps between capacity and needs and evaluate the cost- effectiveness and performance implications of various alternative  strategies, two areas discussed in OMB guidance. However, until all of  the component plans have been completed, NOAA’s plans cannot be  evaluated against OMB leading practices. Similarly, OMB leading  practices in capital asset management discuss the importance of  continuous monitoring of agency operations and assets to ensure that  assets are used efficiently and effectively in support of its mission.  NOAA’s efforts to improve its aircraft performance measures may provide  the agency with additional information with which to monitor its assets,  but these efforts have not been fully implemented—and thus cannot be  evaluated against leading practices as of the time of this report.
section_title: NOAA Faces Challenges in Improving Its Aircraft Asset Planning and Modernizing Its Fleet
paragraphs: In its efforts to improve aircraft asset planning and management, NOAA  faces challenges related to the development of a comprehensive and  integrated capital asset plan, and decisions regarding the modernization  of its fleet. Without a comprehensive and integrated capital asset plan,  NOAA risks not having sufficient analysis or justification to make sound  critical decisions.
NOAA’s approach to capital asset planning presents challenges. As  noted, NOAA does not currently have a capital asset plan for aircraft  even though leading practices OMB has identified encourage  agencies to have capital asset plans as a part of their strategic  planning efforts. Leading practices for capital decision making note  the importance of a long-term capital plan as the central document an  agency uses for its capital decision making; as such, it should be  comprehensive in nature and include information on all planned  assets. As noted, NOAA is working to develop a capital asset plan  through an approach under which it is creating multiple stand-alone  plans that together are intended to serve as the agency’s capital asset  plan for aircraft. Under this approach, each individual planning effort  has a different schedule and scope of assets. For example, NOAA is  separately working to develop (1) an airborne composition plan that  covers its entire fleet, which it expects to complete in 2014; (2) an  analysis of alternatives for its heavy aircraft, expected by 2016; and  (3) a plan to guide the use of unmanned aircraft systems, expected by  fiscal year 2017. In addition, some of these planning efforts are being  led by OMAO, while others (such as the unmanned aircraft systems  plan) are agency-wide efforts, according to NOAA officials. These  differences in schedule, scope, and responsibilities add to the overall  complexity of NOAA’s approach to capital asset planning for aircraft.  In addition, critical planning information and analysis on different types  of assets will be spread across different documents, which may add to  NOAA’s challenge of ensuring that information is sufficiently linked  and integrated to serve as a single comprehensive plan. NOAA is in  the early stages of some of these planning efforts and has not yet  determined how, or whether, it will link and integrate the plans with  one another. Without such integration, it will be difficult for NOAA to  use these plans for defining long-term decisions about assets  because important information will be located within different plans  and plans may contain varying levels of detail. NOAA faced  challenges in finalizing a planning effort in the past; in 2009, OMAO  developed a draft “aircraft recapitalization plan” intended to address  the agency’s future aircraft needs. However, NOAA leadership did not  approve the recapitalization plan and suspended this planning effort in  order to incorporate additional information NOAA had received,  according to NOAA officials. The agency began its current planning  effort 4 years later, in 2013.
NOAA faces critical decisions regarding the composition of its aircraft  fleet. NOAA faces challenges in determining how to optimize the  composition of its fleet to obtain the right mix of heavy, light, and  unmanned aircraft systems for meeting mission needs. For example,  NOAA’s two operational P-3 Orion planes are in high demand for  hurricane work. At nearly 40 years of age, these aircraft are also the  oldest planes in the fleet. According to NOAA officials, the useful life  expectancy for the P-3 Orion aircraft will be another 15 years once re- winging is completed in fiscal year 2017 as planned. However, even  with the re-winging, NOAA officials noted that the ongoing operation  and maintenance costs of these aircraft may increase. The  manufacturer will not be constructing new P-3 aircraft in the future.  Because large capital assets such as aircraft may take many years to  acquire, NOAA faces decisions about whether to invest in additional  costly service life extensions or replace the two operational P-3  Orions and another aging plane in its fleet, one of its de Havilland  Twin Otter aircraft. NOAA also faces decisions about the use of  unmanned aircraft systems. Demand for these systems is expected to  increase for use in scientific research. According to NOAA officials,  unmanned aircraft systems may be an alternative to existing aircraft in  some situations, but their cost-effectiveness is not yet proven, and  there are uncertainties regarding the situations in which they may be  used. NOAA has faced similar decision points in the past without the  benefit of a capital asset plan to aid decision making. For example,  NOAA purchased a third P-3 Orion aircraft for approximately $9  million to meet additional agency needs that NOAA officials said could  not be met with its two existing P-3 Orion planes. Subsequently,  NOAA learned that both of its existing P-3 Orion planes needed new  wings sooner than previously expected, and that the newly purchased  plane could not become operational without new wings. However,  NOAA had not anticipated or planned for these additional expenses  and determined that the investment in re-winging the newly acquired  P-3 Orion plane was not feasible, according to NOAA officials; as a  result, the plane was never put to use and NOAA is currently  attempting to dispose of it.
Collectively, the expected increase in NOAA line offices’ needs for  aircraft, the aging of NOAA’s aircraft fleet, and the need to address  coming changes in technology underscore the importance of NOAA  completing a comprehensive, integrated capital asset plan that reflects  leading practices. Linking and integrating its multiple planning efforts  could help NOAA demonstrate that it has a capital asset plan consistent  with these leading practices. Without such a plan, NOAA risks making  decisions that will make it difficult for the agency to effectively address  future challenges.
section_title: Conclusions
paragraphs: Recognizing the critical importance of aircraft to help accomplish its  mission, NOAA has developed an ambitious approach to improving the  efficiency and effectiveness of its aircraft management through 34  improvement efforts that it expects to complete by fiscal year 2017. A key  component of these efforts is the development of several separate long- term plans that together are intended to represent NOAA’s aircraft capital  asset plan—a critical tool for equipping agencies with information and  analysis to make long-term decisions. Developing a comprehensive plan  is especially important in light of the decisions NOAA will face in the  future regarding the composition of its aircraft fleet and how best to  incorporate new technologies. The potential usefulness of such a plan  can be seen in NOAA’s decision—made without a capital asset plan—to  purchase a third P-3 for $9 million. That plane was never put into  operation and is currently being disposed of. NOAA’s complex approach  to developing a capital asset plan presents challenges. Each plan  requires the approval of NOAA leadership, which was difficult to obtain as  part of a prior planning effort. Further, it is important that the individual  plans collectively reflect OMB leading practices to be most useful to the  agency, and that the plans each contain sufficient clarity and detail, as  well as being linked and integrated with one another. Without taking these  steps, NOAA may find itself with a capital asset plan of limited  comprehensiveness and usefulness, and may consequently struggle to  address its future needs.
section_title: Recommendation for Executive Action
paragraphs: To ensure that NOAA has sufficient information and analysis to guide  long-term decisions regarding its aircraft, we recommend that the  Secretary of Commerce direct the NOAA Administrator to ensure that the  agency links and integrates its multiple planning efforts as it finalizes a  capital asset plan for aircraft.
section_title: Agency Comments and Our Evaluation
paragraphs: We provided the Department of Commerce with a draft of this report for  its review and comment. In its written comments, reprinted in appendix III,  NOAA, responding on behalf of the Department of Commerce, concurred  with our recommendation and provided a technical comment that we  incorporated.
We are sending copies of this report to the Secretary of Commerce, the  NOAA Administrator, the appropriate congressional committees, and  other interested parties. In addition, the report is available at no charge on  the GAO website at http://www.gao.gov.
If you or your staff members have any questions about this report, please  contact me at (202) 512-3841 or fennella@gao.gov. Contact points for  our Offices of Congressional Relations and Public Affairs may be found  on the last page of this report. Key contributors to this report are listed in  appendix IV.
section_title: Appendix I: Objectives, Scope, and Methodology
paragraphs: This report examines (1) the status of the National Oceanic and  Atmospheric Administration’s (NOAA) efforts to improve its aircraft asset  planning and management and the extent to which these efforts reflect  leading practices and (2) the challenges NOAA faces in improving its  aircraft asset planning and management.
To examine the status of NOAA’s efforts to improve its aircraft asset  planning and management, we identified and reviewed relevant agency  project and strategy documents detailing their improvement efforts,  encompassing all projects and activities undertaken in support of the  agency’s strategic planning objectives laid out in the Office of Marine and  Aviation Operations (OMAO) 2012 strategic plan. We reviewed these  documents to identify efforts specific to aircraft asset management and  excluded efforts related to other aspects of NOAA’s operations, such as  efforts related to its ship fleet. We identified efforts that were completed,  ongoing, or planned as of fiscal year 2013, when we initiated our work.  Altogether, we identified 34 efforts related to aircraft asset planning  management. For each improvement effort, we reviewed associated  goals, methods, estimated schedules, and progress made to date. Based  on the descriptions of the efforts found in NOAA documents we reviewed,  and in consultation with NOAA officials, we grouped these into one of five  categories related to: (1) assets—upgrading, using, or disposing of  certain aircraft assets; (2) collaboration—improving collaboration with  other federal agencies; (3) measures—improving the quantity or accuracy  of performance measures; (4) plans—creating long-term plans; or (5)  policies and data—updating existing policies and conducting data  analysis. To determine the extent to which NOAA’s efforts reflect  applicable guidance and leading practices, we reviewed Office of  Management and Budget (OMB) guidance to identify leading practices  that are important for effective asset planning and management. These  leading practices are primarily found in OMB’s Circular A-11 and the  supplemental Capital Programming Guide. In addition, we reviewed  OMB’s Circular A-76, which provides guidance to federal agencies  regarding the use of services provided by the private sector to meet  agency needs, and Circular A-126, regarding the use of government  aircraft. To obtain additional insight into leading practices, we also  reviewed previous GAO reports that discuss the application of these  leading practices by various agencies. We then analyzed NOAA’s  improvement efforts and compared them to leading practices.
To identify the challenges NOAA faces in improving its aircraft asset  planning and management, we reviewed relevant agency documents,  including the NOAA strategic plan, the OMAO strategic plan, and  documents related to NOAA’s improvement efforts, and we interviewed  NOAA and OMAO officials responsible for implementing these efforts. We  also interviewed officials in NOAA’s six line offices: the National  Environmental Satellite, Data, and Information Service; the National  Marine Fisheries Service; the National Ocean Service; the National  Weather Service; the Office of Oceanic and Atmospheric Research; and  Program Planning and Integration. In these interviews, we discussed  NOAA’s long-term strategic planning and management for aircraft,  NOAA’s previous efforts to issue an aircraft capital asset plan, and  NOAA’s work to complete and implement the 34 aircraft planning and  management efforts, among other things. From these discussions, we  identified two key challenges related to NOAA’s approach to capital asset  planning and the critical decisions NOAA faces regarding the composition  of its aircraft fleet.
We conducted this performance audit from July 2013 to July 2014 in  accordance with generally accepted government auditing standards.  Those standards require that we plan and perform the audit to obtain  sufficient, appropriate evidence to provide a reasonable basis for our  findings and conclusions based on our audit objectives. We believe that  the evidence obtained provides a reasonable basis for our findings and  conclusions based on our audit objectives.
section_title: Appendix II: Key Principles in Capital Asset Planning
paragraphs: While there are four phases in capital programming—planning, budgeting,  acquiring, and managing—we previously noted that planning is the most  important phase in the capital decision-making process. Because the  results of the planning phase are used throughout the remaining phases,  not following key principles during this phase may have repercussions on  agency operations if poor capital investment decisions are made. Table 3  further elaborates on the five key capital asset planning principles  highlighted in Office of Management and Budget guidance and our  previous work.
section_title: Appendix III: Comments from the Department of Commerce
section_title: Appendix IV: GAO Contact and Staff Acknowledgments
subsections: section_title: GAO Contact
section_title: Staff Acknowledgments
paragraphs: In addition to the individual named above, Steve Gaty (Assistant  Director), Cheryl Arvidson, Casey L. Brown, Antoinette Capaccio, Nicole  Dery, and Richard P. Johnson made key contributions to this report.  Important contributions were also made by Mark Braza, Carol Henn,  Armetha Liles, Melissa Swearingen, and Kiki Theodoropoulos.