Controls Over the Federal Aviation Administration's Conversion of Flight Service Stations to Contract Operations

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Controls Over the Federal Aviation Administration's Conversion of Flight Service Stations to Contract Operations

D. A. Dobbs

This report presents the interim results of our audit of the controls implemented by the Federal Aviation Administration (FAA) over its conversion of flight service stations to contract operations. The objectives of our audit were to assess whether FAA had implemented effective plans and controls to (1) transition flight service stations to contract operations, (2) achieve anticipated savings, and (3) ensure that the operational needs of users continue to be met. Flight service stations provide general aviation pilots with aeronautical information such as pre- and in-flight weather briefings, flight planning assistance, and aeronautical notices. In addition, while employees at flight service stations do not control air traffic, they can provide in-flight support to pilots who are lost or in need of assistance. Flight services are provided at no charge to users and are intended to help promote safe flight operations. However, most of the services provided are optional for pilots use. On February 1, 2005, FAA awarded a 5-year, fixed-price incentive contract (with 5 additional option years) to Lockheed Martin to operate the Agencys 58 flight service stations in the continental United States, Puerto Rico, and Hawaii. The contract, worth about $1.8 billion, represents one of the largest non-defense outsourcing of services in the Federal Government. FAA anticipates that by contracting out flight service facilities, it will save $2.2 billion over the 10-year life of the agreement. On October 4, 2005, Lockheed Martin took over operations at the 58 flight service stations.