Transportation: Key Issues and Management Challenges
Published: 2012-03-29T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: The challenges facing DOT and Congress regarding transportation priorities and funding cannot be addressed by simply spending more money. Despite large increases in expenditures for transportation in recent years, system performance has not commensurately improved. Congestion continues to grow, particularly in urban areas, and looming problems from the anticipated growth in travel are not being adequately addressed. As performance degrades and the system grows increasingly unreliable, the economic and environmental implications are significant, including wasted fuel and lost time, as cars idle in traffic, airline passengers confront delays, and businesses incur increased costs. As always, safety remains a primary concern, and improving information security is critical to DOTs mission.
Although our nations transportation system is owned and operated by multiple levels of government and the private sector, DOT is the principal federal agency responsible for implementing national transportation policy and administering most of the federal transportation programs. DOT has multiple missionsprimarily focusing on mobility and safetythat are carried out by its various operating administrations (such as aviation, highways, transit, railroads, and others). For fiscal year 2013, the Presidents budget has requested $74.5 billion to carry out its activities.
This statement today focuses on five key issues and management challenges that DOT and Congress face. These areas are
funding the nations transportation system,
refocusing and restructuring surface transportation policies and programs,
improving transportation safety,
implementing the Next Generation Air Transportation System (NextGen), and
improving information security.
This statement is based on a body of work that we have completed from March 2008 through March 2012, including recommendations we have made to both DOT and Congress.
section_title: What GAO Found
paragraphs: Funding the Nations Transportation System:
Funding Highways and Transit : The major source of federal surface transportation funding is the Highway Trust Fund, but the revenues that make up that fund are eroding. The federal motor fuel tax rate has not increased since 1993, meaning that the 18.4 cent per gallon tax on motor fuels enacted in 1993 is worth about 11.5 cents today. This trend will continue with the introduction of more fuel-efficient and alternative-fuel vehicles that have the potential through fuel savings to decrease motor fuel purchases and associated tax receipts. The Congressional Budget Office estimates, as of March 2012, that to maintain current spending levels plus inflation between 2013 and 2022, the Highway Trust Fund will require over $125 billion more than it is expected to take in over that period. For this and other reasons, funding surface transportation remains on GAOs High-Risk List. Long-term reauthorization of surface transportation provides an opportunity for Congress to fund the program on a sustainable basis.
The Presidents fiscal year 2013 budget proposes increasing surface transportation funding levels, including a 34 percent increase over the next 6 years for highways and bridgesfunded in part through general revenue transfers.
Congress and the administration are considering various proposals to expand federal financing tools to help leverage investment in transportation infrastructure:
Expanding the Transportation Infrastructure Financing Innovation Act (TIFIA) program.
Creating a National Infrastructure Bank.
Continuing and expanding federal bonding mechanisms.
Funding Aviation : The Federal Aviation Administrations (FAA) expenditures are budgeted to continue to exceed forecasted revenues from the Airport and Airway Trust Fund in future years. FAA operation expenditures not covered by trust-fund revenues are projected to be paid for by general revenues from the U.S. Treasury. According to the Presidents fiscal year 2013 budget, roughly 20 percent of FAAs total annual expenditures for about the next 10 years might have to be paid for by general revenues. As the federal budget continues to be constrained, Congress may face difficult choices regarding reducing FAAs appropriations, which could increase FAAs total costs and delay the benefits associated with investments such as NextGen.
Funding High-Speed Rail : The Presidents budget for fiscal year 2013 requests $2.5 billion for highspeed and intercity passenger railpart of a proposed $47 billion for passenger rail projects over the next 6 years. However, Congress has not provided funding for high-speed rail since appropriating over $10 billion through the American Recovery and Reinvestment Act (Recovery Act) of 2009 and the fiscal year 2010 DOT Appropriations Act. We recently reported that the Federal Railroad Administration (FRA) essentially followed good grant making practices as it awarded Recovery Act funds, but we have also identified several challenges facing these projects as they move forward. For example, project sponsors find it difficult to secure the up-front investment for construction costs and indicated that they have or will need some federal funding to develop their projects.
Refocusing and Restructuring Surface Transportation Policies and Programs: Long-term reauthorization provides an opportunity for Congress to fundamentally re-examine surface transportation programs as we have recommendedanother reason why funding surface transportation is on GAOs High-Risk Listand to expand on recent efforts to reform the highway program. From the standpoint of state and local governments,re-examining surface transportation programs could reduce fragmentation and the administrative expenses states face complying with myriad federal statutory and regulatory requirements. This re-examination could include the following:
Clearly define the federal role in relation to other levels of government and, thus, create a more targeted federal role focused around evident national interests.
Ensure accountability for entities receiving federal funds, for example, by moving to a performance-based program.
Employ the best approaches and analysis to direct federal funds to infrastructure with clear national interests.
Improving Transportation Safety : Another continuing challenge facing DOT pertains to improving transportation safety. In recent years, we have seen a remarkable decline in transportation-related fatalities and injuries, the vast majority of which occur on our nations roads. Traffic fatalities decreased more than 20 percent over the last decade, from nearly 42,000 in 2000 to less than 33,000 in 2010, the lowest level since 1949. Traffic injuries decreased approximately 30 percent, from about 3.2 million in 2000 to about 2.2 million in 2010. These encouraging trends are likely due in part to federal and state DOT efforts. However, even these reduced numbers of fatalities and injuries are still too many.
An additional challenge this testimony addresses pertains to the implementation of the Next Generation Air Transportation System (NextGen)a complex multiagency undertaking intended to transform the current radar-based system into an aircraft-centered, satellite-based system by 2025. FAA has taken some steps to improve NextGen implementation and is continuing to address critical issues that we, stakeholders, and others have identified over the years. For example, FAA has made progress in streamlining its processes and improving itscapacity to develop new flight procedures that have led to measurable benefits, such as fuel savings. FAA has also set NextGen performance goals through 2018. However, as our recent and ongoing work has shown, FAA faces several challenges in keeping key NextGen acquisitions within cost estimates and on schedule, delivering NextGen benefits, and addressing changes in management and governance, including vacancies in key leadership positions.
Improving Information Security : DOT relies on more than 400 computerized information systems to carry out its financial and mission-related operations. Effective information security controls are required to ensure that financial and sensitive information is adequately protected from inadvertent or deliberate misuse; fraudulent use; and improper disclosure, modification, or destruction.Ineffective controls can also impair the accuracy, completeness, and timeliness of information used by management. The need for effective information security is further underscored by the evolving and growing cyber threats to federal systems and the dramatic increase in the number of security incidents reported by federal agencies, including DOT. From fiscal years 2007 to 2011, the number of incidents reported to the United States Computer Emergency Readiness Team (US-CERT) by DOTincreased by more than 140 percent.

section_title: Letter
paragraphs: I appreciate the opportunity to participate in this hearing to discuss key  issues and management challenges facing our nation’s transportation  system, as well as the Department of Transportation (DOT), as Congress  deliberates transportation policy and funding issues. A safe and efficient  transportation system is critical to our economy and affects the daily life of  most Americans. Our nation has built vast systems of roadways, airways,  railways, transit systems, pipelines, and waterways that help move people  and goods. However, these systems are under growing strain, and the  cost to repair and upgrade them to meet current and future demands is  estimated in the hundreds of billions of dollars. Yet, calls for increased  investments in the systems come at a time when traditional funding  sources are eroding. Funding is further complicated by the federal  government’s financial condition and fiscal outlook. GAO’s long-term  simulations show that, absent policy changes, the federal government  faces unsustainable growth in deficits and debt.
The challenges facing DOT and Congress regarding transportation  priorities and funding cannot be addressed by simply spending more  money. Despite large increases in expenditures for transportation in  recent years, system performance has not commensurately improved.  Congestion continues to grow, particularly in urban areas, and looming  problems from the anticipated growth in travel are not being adequately  addressed. As performance degrades and the system grows increasingly  unreliable, the economic and environmental implications are significant,  including wasted fuel and lost time, as cars idle in traffic, airline  passengers confront delays, and businesses incur increased costs. As  always, safety remains a primary concern, and improving information  security is critical to DOT’s mission.
Although our nation’s transportation system is owned and operated by  multiple levels of government and the private sector, DOT is the principal  federal agency responsible for implementing national transportation policy  and administering most of the federal transportation programs. DOT has  multiple missions—primarily focusing on mobility and safety—that are  carried out by its various operating administrations (such as aviation,  highways, transit, railroads, and others). For fiscal year 2013, the  President’s budget has requested $74.5 billion to carry out its activities.
My statement today focuses on five key issues and management  challenges that DOT and Congress face. These areas are  funding the nation’s transportation system,  refocusing and restructuring surface transportation policies and  programs,  improving transportation safety,  implementing the Next Generation Air Transportation System  (NextGen), and  improving information security.
My statement is based on a body of work that we have completed from  March 2008 through March 2012, including recommendations we have  made to both DOT and Congress. This body of work was conducted in  accordance with generally accepted government auditing standards. A list  of related GAO products is included with this statement, along with  references to these products throughout the statement.
subsections: section_title: Funding the Nation’s Transportation System
subsections: section_title: Funding Highways and Transit
paragraphs: The major source of federal surface transportation funding is the Highway  Trust Fund, but the revenues that make up that fund are eroding. The  federal motor fuel tax rate has not increased since 1993, meaning that the  18.4 cent per gallon tax on motor fuels enacted in 1993 is worth about  11.5 cents today. This trend will continue with the introduction of more  fuel-efficient and alternative-fuel vehicles that have the potential through  fuel savings to decrease motor fuel purchases and associated tax  receipts. The Congressional Budget Office estimates, as of March 2012,  that to maintain current spending levels plus inflation between 2013 and  2022, the Highway Trust Fund will require over $125 billion more than it is  expected to take in over that period. (See fig. 1.) For this and other  reasons, funding surface transportation remains on GAO’s High-Risk  List. Long-term reauthorization of surface transportation provides an  opportunity for Congress to fund the program on a sustainable basis.
The President’s fiscal year 2013 budget proposes increasing surface  transportation funding levels, including a 34 percent increase over the  next 6 years for highways and bridges—funded in part through general  revenue transfers. These transfers would be in addition to the more than  $30 billion Congress transferred from general revenues to the Highway  Trust Fund since 2008. Augmenting transportation funding through  general revenues would move away from the “user pays” principle and  might not be sustainable in the long term given the federal government’s  growing fiscal challenge.
Congress and the administration are considering various proposals to  expand federal financing tools to help leverage investment in  transportation infrastructure:
Expanding the Transportation Infrastructure Financing Innovation Act  (TIFIA) program. The TIFIA program provides federal credit  assistance in the form of direct loans, loan guarantees, and lines of  credit to finance surface transportation projects, including highway,  transit, rail, and intermodal projects. In recent years, TIFIA has been  in high demand in part because of the tightening of commercial credit  markets and low federal treasury rates. Reauthorization proposals  contain various changes to TIFIA, including a significant expansion of  the program, increasing the eligible federal share of the program, and   DOT will face  modifying the federal nonsubordination clause.challenges in balancing a broader portfolio, with the increased  exposure and risk to the federal government that these changes might  produce. Additionally, although such changes might help augment  funding, DOT will face challenges in ensuring that adequate staff and  expertise exist to efficiently manage an expanded program.
Creating a National Infrastructure Bank. As envisioned in legislative  and administration proposals, a National Infrastructure Bank would  make direct loans, loan guarantees, and offer credit enhancements to  eligible applicants for transportation and other projects (including  those in the water and energy sectors) in an attempt to stretch limited  federal funds. The creation of such an entity would create numerous  challenges inherent in the start-up of any new program or government  entity. One such challenge would be ensuring that any new program  or entity does not duplicate or overlap any existing financing programs  and tools, such as TIFIA, state infrastructure banks, and others.  Another challenge would stem from seeking a balance between  financing projects that yield the highest public benefit—but that  potentially concentrate funds in one region—with a desire for an  equitable distribution of federal investment in infrastructure across the  country.
Continuing and expanding federal bonding mechanisms. These  mechanisms include Grant Anticipation Revenue Vehicles, which  allow states to issue bonds backed by expected future federal-aid  highway formula grants, and Private Activity Bonds, which are debt  instruments issued by state or local governments whose proceeds are  used to construct projects with significant private involvement. Several  bills have been introduced in Congress that would increase  investment in the nation’s infrastructure through bonding. Although  bonds can provide up-front capital for infrastructure projects,  accelerate construction, and potentially reduce construction costs,  they can be more expensive for the federal government than  traditional grants. The higher expense would result, in part, because  the government would have to compensate the investors for the risks  they assume.
While these tools have promise to help meet increasing transportation  demands, they are forms of debt that must be repaid, not new revenues.  New revenues for transportation infrastructure investments can come only  from two sources: new taxes or new fees. Ultimately, raising new  revenues or reducing transportation spending or both will be needed.
section_title: Funding Aviation
paragraphs: The Federal Aviation Administration’s (FAA) expenditures are budgeted  to continue to exceed forecasted revenues from the Airport and Airway  Trust Fund in future years. FAA operation expenditures not covered by  trust-fund revenues are projected to be paid for by general revenues from  the U.S. Treasury.roughly 20 percent of FAA’s total annual expenditures for about the next  10 years might have to be paid for by general revenues. As the federal  budget continues to be constrained, Congress may face difficult choices  regarding reducing FAA’s appropriations, which could increase FAA’s   According to the President’s fiscal year 2013 budget,  total costs and delay the benefits associated with investments such as  NextGen.
section_title: Funding High-Speed Rail
paragraphs: The President’s budget for fiscal year 2013 requests $2.5 billion for high- speed and intercity passenger rail—part of a proposed $47 billion for  passenger rail projects over the next 6 years. However, Congress has not  provided funding for high-speed rail since appropriating over $10 billion  through the American Recovery and Reinvestment Act (Recovery Act) of  2009 and the fiscal year 2010 DOT Appropriations Act. We recently  reported that the Federal Railroad Administration (FRA) essentially  followed good grant making practices as it awarded Recovery Act funds,  but we have also identified several challenges facing these projects as  they move forward. For example, project sponsors find it difficult to  secure the up-front investment for construction costs and indicated that  they have or will need some federal funding to develop their projects.
section_title: Refocusing and Restructuring Surface Transportation Policies and Programs
paragraphs: Long-term reauthorization provides an opportunity for Congress to  fundamentally re-examine surface transportation programs as we have  recommended—another reason why funding surface transportation is on  GAO’s High-Risk List—and to expand on recent efforts to reform the  highway program. From the standpoint of state and local governments,  re-examining surface transportation programs could reduce fragmentation  and the administrative expenses states face complying with myriad  federal statutory and regulatory requirements. This re-examination could  include the following:
Clearly define the federal role in relation to other levels of government  and, thus, create a more targeted federal role focused around evident  national interests. For issues in which there is a strong national  interest, ongoing federal financial support and direct involvement  could help meet federal goals. Where national interests are less  evident, other stakeholders could assume more responsibility, and  some programs and activities may better be devolved to the states or  other levels of government.
Ensure accountability for entities receiving federal funds, for example,  by moving to a performance-based program. Current programs lack  links to transportation system performance or of grantees receiving  federal funds. Most highway, transit, and safety grant funds are  distributed through formulas that have only an indirect relationship to  needs, and many have no relationship to performance or outcomes.  Funds for highways, in particular, are distributed to return revenues to  their state of origin and states have considerable flexibility to  reallocate them among highway and transit programs. Legislation  passed by the Senate—Moving Ahead for Progress in the 21st  Century (MAP-21)—would direct DOT to develop performance targets  for pavement on the Interstate Highway System and many of the  nation’s bridges. If a state were not to meet the minimum condition  levels for two consecutive reporting periods, it would be required to  commit a specific percentage of its highway funding to the deficient  area. For other areas, MAP-21 directs states to develop  performance targets related to national priorities, as well as link  investment priorities to these targets.
Employ the best approaches and analysis to direct federal funds to  infrastructure with clear national interests. There is a natural tension  between providing funding based on merit and performance and  providing funds on a formula basis to achieve equity among states.  Consequently, meritorious projects of national or regional significance,  in particular those connecting multiple transportation modes or those  that cross geographic boundaries, may not compete well at the state  level for formula funds. We have recommended to Congress that a  criteria-based selection approach be used to direct a portion of federal  funds in programs designed to select transportation projects with  national and regional significance.
GAO-08-400 and GAO-11-234.
Congress developed a merit-based approach in the Transportation  Investment Generating Economic Recovery (TIGER) grant program, now  in its fourth round of competitively awarding grants, based on criteria such  as the potential for a project to improve the state of repair of critical  infrastructure and reduce fatalities and injuries. The first round of the  TIGER grants under the Recovery Act gave preference to projects that  could be completed within about 2 years of the award announcement;  that had substantial co-investments from other funding partners and  where TIGER funds would complete that package of funding; and that  would fund an operable project when completed. This approach has the  potential to ensure that federal funds produce useful and functional  projects in a timely fashion. Going forward, evaluating whether completed  TIGER projects have met these goals will be important to assessing this  program’s potential for investing federal funds in projects of regional and  national significance.
Should Congress move toward a more performance-based system for  highways, DOT’s Federal Highway Administration (FHWA) would need to  work with the states to develop performance goals, measure states’  progress, and take corrective action should states not meet performance  targets. We have reported weaknesses in FHWA’s oversight of statewide  and metropolitan area planning processes that prevents FHWA from  effectively measuring and tracking performance outcomes. FHWA’s  oversight focuses on process, rather than outcomes, and, as such,  FHWA cannot assess whether states’ investment decisions are improving  the nation’s transportation system’s condition and performance. We  recommended that FHWA more closely review states’ transportation  improvement programs to assess whether states’ investments are  achieving intended outcomes. In addition, FHWA would need to improve  its ability to collect national level data on highway performance across  many of the programs it oversees. We have made numerous  recommendations to DOT related to the need for accurate and reliable  national-level data.
section_title: Improving Transportation Safety
paragraphs: Another continuing challenge facing DOT pertains to improving  transportation safety. In recent years, we have seen a remarkable decline  in transportation-related fatalities and injuries, the vast majority of which  occur on our nation’s roads. Traffic fatalities decreased more than 20  percent over the last decade, from nearly 42,000 in 2000 to less than  33,000 in 2010, the lowest level since 1949. (See fig. 2.) Traffic injuries  decreased approximately 30 percent, from about 3.2 million in 2000 to  about 2.2 million in 2010. These encouraging trends are likely due in part  to federal and state DOT efforts. However, even these reduced numbers  of fatalities and injuries are still too many.
Other modes of surface transportation are relatively safe. Still, high-profile  accidents have raised concerns, such as the collision of two trains in  Washington, D.C., in 2009 that resulted in 9 fatalities and 52 injuries. A  less visible—but important—mode of freight transportation is the nation’s  more than 2.5 million mile natural gas and hazardous liquid pipeline  network. From 2004 to 2010, an average of about 16 fatalities per year for  all pipeline incidents was reported to DOT. While pipelines are relatively  safe, incidents can have dire consequences. For example, a natural gas  pipeline explosion in San Bruno, California, in September 2010 killed 8  people and damaged or destroyed over 100 homes.
Turning to aviation, the U.S. system is one of the most efficient and safest  in the world. However, from 1999 to 2010, over 450 aviation-related  fatalities occurred annually. The vast majority of these fatalities were in  the general aviation sector, which includes all forms of aviation except  commercial and military operations. Specifically, this sector consists of  over 220,000 aircraft—including airplanes, helicopters, and balloons— and composes over 90 percent of the U.S. civilian aircraft fleet engaged.  Over the same time period, approximately 70 percent of fatal general  aviation accidents occurred in the personal flying segment. In addition, a  growing proportion of amateur-built aircraft are involved in accidents.
GAO-11-199. cooperation with the states, and FTA has requested funds to set up  such a new rail transit safety oversight program. In 2009, we raised  some issues for Congress to consider in deciding whether or how to  act on DOT’s proposal, including determining what level of  government has the best capacity to oversee transit safety, ensuring  that FTA and state oversight agencies would have adequate and  qualified staff to carry out the envisioned program, and understanding  the potential budgetary implications of the program.
Regarding pipeline safety, part of the nation’s pipeline network  consists of more than 200,000 miles (estimated) of onshore  “gathering” pipelines, many of which are not federally regulated  because they have generally been located away from populated areas  and operate at relatively low pressures. We recently recommended  that the Pipeline and Hazardous Materials Safety Administration  (PHMSA) collect data on these pipelines to assess safety risks  because urban development is encroaching on existing pipelines and  the increased extraction of oil and natural gas from shale deposits is  resulting in new gathering pipelines that can be larger in diameter and  operate at higher pressures.
With regard to aviation, FAA lacks data to accurately assess the  safety performance of certain industry sectors, such as general  aviation, and to more fully assess the trends in certain types of  events, such as for runway excursions and ramp accidents. FAA has  concurred with, but has not yet implemented, several of our  recommendations aimed at improving its capability to use data for  aviation safety oversight. FAA completed the required inspections for pilot examiners or the  reasons that the discretionary inspections of flight instructors were  conducted. We recently recommended that FAA develop a  comprehensive system to measure performance for meeting annual  inspection requirements for pilot schools and better understand the  nature and scope of discretionary inspections for flight instructors.
GAO-10-314T. The Senate has adopted legislation that would expand FTA’s role in  GAO-10-414 and GAO-12-24.
section_title: Implementing the Next Generation Air Transportation System
paragraphs: An additional challenge that I would like to address pertains to the  implementation of the Next Generation Air Transportation System  (NextGen)—a complex multiagency undertaking intended to transform the  current radar-based system into an aircraft-centered, satellite-based  system by 2025. FAA has taken some steps to improve NextGen  implementation and is continuing to address critical issues that we,  stakeholders, and others have identified over the years. For example,  FAA has made progress in streamlining its processes and improving its  capacity to develop new flight procedures that have led to measurable  benefits, such as fuel savings. FAA has also set NextGen performance  goals through 2018. However, as our recent and ongoing work has  shown, FAA faces several challenges in keeping key NextGen  acquisitions within cost estimates and on schedule, delivering NextGen  benefits, and addressing changes in management and governance,  including vacancies in key leadership positions.
Timely delivery of key acquisitions. As we recently reported, FAA  continues to face challenges in assuring that acquisitions are within  cost and on schedule. In our review of 30 major air traffic control  acquisition programs, including those critical to the NextGen  implementation, we found that costs for 11 of the 30 programs have  increased from initial estimates and that 15 programs experienced  delays.
Cost increases and schedule delays occurred due to (1) additional or  unanticipated system requirements; (2) insufficient stakeholder  involvement (such as air traffic controllers’ input) throughout system  development; (3) underestimating the complexity of software  development; and (4) unanticipated events, including funding  shortfalls or work stoppages. These challenges, if they persist, will  impede the implementation of NextGen, especially given  interdependencies among many acquisition programs in which cost  increases or delays in one program can affect the costs and  schedules of others. We recommended that FAA further incorporate  best practices into its acquisition processes by requiring cost and  schedule risk analysis, independent cost estimates, and integrated  master schedules.
Delivery of NextGen benefits: To maintain credibility with aircraft  operators, FAA must deliver systems, procedures, and capabilities on  time, so that operators can realize benefits from investments they  have already made in avionic equipment and have incentives to  continue to invest in the equipment necessary for NextGen to operate  as planned. For example, a large percentage of the current fleet is  equipped to fly more precise performance-based navigation  procedures. Although FAA has begun implementing new flight  procedures to allow for more precise navigation under NextGen,  aircraft operators have raised concerns that, to date, FAA has not  produced procedures that are most effective in delivering such  benefits as reduced flight time, congestion, and fuel consumption. The  NextGen Advisory Committee has made recommendations to help  FAA identify and prioritize improvements that could provide more  immediate benefits, including recommending that FAA focus NextGen  capabilities at metroplexes that have the greatest impact on aviation  system performance. To help address industry concerns, FAA has  initiatives under way or planned in 21 metropolitan areas across the  country, including completing initial work to identify improvements in 7  metroplexes, including Washington, D.C.; Charlotte, North Carolina;  and Atlanta, Georgia—focusing on routes and procedures that will  produce benefits for operators.
While some operational improvements can be made with existing  aircraft equipment, realizing more significant NextGen benefits  requires a critical mass of properly equipped aircraft. Reaching that  critical mass is a significant challenge because the first aircraft  operators to purchase and install NextGen-capable technologies will  not obtain a return on their investment until many other operators do.  FAA estimates that the avionics needed on aircraft to realize  significant NextGen capabilities will cost private operators about $5  billion to $7 billion through 2018. The recently passed FAA  Modernization and Reform Act of 2012 created a program to facilitate  public-private financing, such as loan guarantees and other credit  assistance tools, for equipping general aviation and commercial  aircraft with NextGen technologies. been made on how to incentivize this transition.
Pub. L. No. 112–95 § 221, 126 Stat. 11, 54. programs to ensure improved oversight of NextGen implementation.  Additionally, the recently passed FAA authorization act redesignated  the Director of the Joint Planning and Development Office to directly  report to the FAA Administrator and created a new leadership  position—the Chief NextGen Officer—that will also report to the  administrator but has not yet been filled. While elimination of  duplicative committees and a focus on accountability for NextGen  implementation are positive steps, it remains to be seen whether this  latest reorganization will produce the desired results without the  necessary leadership positions filled. As we have previously reported,  leadership is a critical element of success for large-scale systems  integration efforts like NextGen.
section_title: Improving Information Security
paragraphs: DOT relies on more than 400 computerized information systems to carry  out its financial and mission-related operations. Effective information  security controls are required to ensure that financial and sensitive  information is adequately protected from inadvertent or deliberate misuse;  fraudulent use; and improper disclosure, modification, or destruction.  Ineffective controls can also impair the accuracy, completeness, and  timeliness of information used by management. The need for effective  information security is further underscored by the evolving and growing  cyber threats to federal systems and the dramatic increase in the number  of security incidents reported by federal agencies, including DOT. From  fiscal years 2007 to 2011, the number of incidents reported to the United  States Computer Emergency Readiness Team (US-CERT)increased by more than 140 percent.
DOT has been challenged to effectively protect its computer systems and  networks. Our analysis of agency and OIG reports shows that the  department has not consistently implemented effective controls, such as  those intended to prevent, limit, and detect unauthorized access to its  systems or manage the configuration of devices to prevent unauthorized  access and ensure system integrity. We have reported on the need for  federal agencies, including DOT, to improve implementation of  information security controls, such as those for configuring desktop  computers and wireless communication devices. For example, we  recommended that DOT complete deployment of a National Institute of  Standards and Technology (NIST)-validated security tool to monitor  compliance with the U.S. Government Configuration Baseline (USGCB)  and ensure that language is included in contracts to ensure new  acquisitions include USGCB settings and products of information  technology providers operate effectively using them. DOT agreed with our  recommendations. Until DOT strengthens information security controls, it  has limited assurance that financial and sensitive information is  adequately protected from inadvertent or deliberate misuse, fraudulent  use, and improper disclosure, modification, or destruction.
In conclusion, we have ongoing work examining many of the topics  discussed in this statement. For example, we are conducting work for this  subcommittee on the viability of supplanting or replacing fuel taxes with a  system of charging vehicle owners a user fee based on vehicle miles  traveled. We also have ongoing work examining California’s high-speed  rail program, participation in the TIFIA program, and implementation of  the Next Generation Air Transportation System.
We look forward to supporting this committee’s oversight activities on  these and many other issues. Chairman Latham, Ranking Member Olver,  and Members of the Subcommittee, this concludes my prepared  statement. I would be pleased to answer any questions you have at this  time.
section_title: GAO Contact and Staff Acknowledgments
paragraphs: For further information on the statement, please contact Phillip R. Herr at  (202) 512-2834 or herrp@gao.gov. Contact points for our Congressional  Relations and Public Affairs offices may be found on the last page of this  statement. Individuals making key contributions to this statement were  Paul Aussendorf, Matt Cail, Steve Cohen, Matt Cook, Kathryn Crosby,  Lynn Filla-Clark, Holly Dye, Colin Fallon, Susan Fleming, Judy Guilliams- Tapia, Brandon Haller, Robert Heilman, David Hooper, Joah Iannotta,  Bert Japikse, Heather Krause, Joanie Lofgren, Ed Laughlin, Heather  MacLeod, Sara Vermillion, Pamela Vines, Andrew Von Ah, and Susan  Zimmerman.
section_title: Related GAO Products
paragraphs: Pipeline Safety: Collecting Data and Sharing Information on Federally  Unregulated Gathering Pipelines Could Help Enhance Safety. GAO-12- 388. Washington, D.C.: March 22, 2012.
Motor Carrier Safety: New Applicant Reviews Should Expand to Identify  Freight Carriers Evading Detection. GAO-12-364. Washington, D.C.:  March 21, 2012.
Air Traffic Control Modernization: Management Challenges Associated  with Program Costs and Schedules Could Hinder NextGen  Implementation. GAO-12-223. Washington, D.C.: February 16, 2012.
Airport and Airway Trust Fund: Factors Affecting Revenue Forecast  Accuracy and Realizing Future FAA Expenditures. GAO-12-222.  Washington, D.C.: January 23, 2012.
Highway Emergency Relief Strengthened Oversight of Eligibility  Decisions Needed. GAO-12-45. Washington, D.C.: November 8, 2011.
Initial Pilot Training: Better Management Controls Are Needed to Improve  FAA Oversight. GAO-12-117. Washington, D.C.: November 4, 2011.
Disadvantaged Business Enterprise Program: Assessing Use of Proxy  Data Would Enhance Ability to Know if States Are Meeting Their Goals.  GAO-12-78. Washington, D.C.: October 13, 2011.
Next Generation Air Transportation System: FAA Has Made Some  Progress in Implementation, but Delays Threaten to Impact Costs and  Benefits. GAO-12-141T. Washington, D.C.: October 5, 2011.
Enhanced Oversight and Improved Availability of Risk-Based Data Could  Further Improve Safety. GAO-12-24. Washington, D.C.: October 5, 2011.
Information Security: Weaknesses Continue Amid New Federal Efforts to  Implement Requirements. GAO-12-137. Washington, D.C.: October 3,  2011.
NextGen Air Transportation System: Mechanisms for Collaboration and  Technology Transfer Could be Enhanced to More Fully Leverage Partner  Agency and Industry Resources. GAO-11-604. Washington, D.C.: June  30, 2011.
Surface Transportation: Competitive Grant Programs Could Benefit from  Increased Performance Focus and Better Documentation of Key  Decisions. GAO-11-234. Washington, D.C.: March 30, 2011.
Intercity Passenger Rail: Recording Clearer Reasons for Awards  Decisions Would Improve Otherwise Good Grantmaking Practices. GAO- 11-283. March 10, 2011.
High-Risk Series: An Update. GAO-11-278. Washington, D.C.: February  2011.
Rail Transit: FTA Programs Are Helping Address Transit Agencies’ Safety  Challenges, but Improved Performance Goals and Measures Could  Better Focus Efforts. GAO-11-199. Washington, D.C.: January 31, 2011.
Statewide Transportation Planning: Opportunities Exist to Transition to  Performance-Based Planning and Federal Oversight. GAO-11-77.  Washington, D.C.: December 15, 2010.
Transportation: Integration of Current Implementation Efforts with Long- term Planning for the Next Generation Air Transportation System. GAO- 11-132R. Washington, D.C.: November 22, 2010.
Recovery Act: Opportunities to Improve Management and Strengthen  Accountability over States’ and Localities’ Uses of Funds. GAO-10-999.  Washington, D.C.: September 20, 2010.
Next Generation Air Transportation System: FAA and NASA Have  Improved Human Factors Research Coordination, but Stronger  Leadership Needed. GAO-10-824. Washington, D.C.: August 6, 2010.
NextGen Air Transportation System: FAA’s Metrics Can Be Used to  Report on Status of Individual Programs, but Not of Overall NextGen  Implementation or Outcomes. GAO-10-629. Washington, D.C.: July 27,  2010.
Recovery Act: States’ and Localities’ Uses of Funds and Actions Needed  to Address Implementation Challenges and Bolster Accountability. GAO- 10-604. Washington, D.C.: May 26, 2010.
Aviation Safety: Improved Data Quality and Analysis Capabilities Are  Needed as FAA Plans a Risk-Based Approach to Safety Oversight. GAO- 10-414. Washington, D.C.: May 6, 2010.
Next Generation Air Transportation System: Challenges with Partner  Agency and FAA Coordination Continue, and Efforts to Integrate Near-,  Mid-, and Long-term Activities Are Ongoing. GAO-10-649T. Washington,  D.C.: April 21, 2010.
Traffic Safety Data: State Data System Quality Varies and Limited  Resources and Coordination Can Inhibit Further Progress. GAO-10-454.  Washington, D.C.: April 15, 2010.
Information Security: Agencies Need to Implement Federal Desktop Core  Configuration Requirements. GAO-10-202. Washington, D.C.: March 12,  2010.
Rail Transit: Observations on FTA’s State Safety Oversight Program and  Potential Change in Its Oversight Role. GAO-10-314T. Washington, D.C.:  December 10, 2009.
Transportation Worker Identification Credential: Progress Made in  Enrolling Workers and Activating Credentials but Evaluation Plan Needed  to Help Inform the Implementation of Card Readers. GAO-10-43.  Washington, D.C.: November 18, 2009.
Next Generation Air Transportation System: FAA Faces Challenges in  Responding to Task Force Recommendations. GAO-10-188T.  Washington, D.C.: October 28, 2009.
Metropolitan Planning Organizations: Options Exist to Enhance  Transportation Planning Capacity and Federal Oversight. GAO-09-868.  Washington, D.C.: September 9, 2009.
High Speed Passenger Rail: Future Development Will Depend on  Addressing Financial and Other Challenges and Establishing a Clear  Federal Role. GAO-09-317. March 19, 2009.
Surface Transportation: Principles Can Guide Efforts to Restructure and  Fund Federal Programs. GAO-08-744T. Washington, D.C.: July 10, 2008.
Surface Transportation: Restructured Federal Approach Needed for More  Focused, Performance-Based, and Sustainable Programs. GAO-08-400.  Washington, D.C.: March 6, 2008.
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