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By Bill Goldston |
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October 4,
2010 -
The Department of
Transportation Office of Inspector General recently issued their report
on the Federal Aviation Administration's (FAA) Air Traffic Controller
Optimum Training Solution Program (ATCOTS). The ATCOTS program is a
critical component of the FAA's plans to hire and train 15,000 new
controllers by 2018.
The Federal
Aviation Administration (FAA) plans to hire and train nearly 15,000 new
air traffic controllers through fiscal year (FY) 2018 to replace the
large pool of air traffic controllers who were hired after the 1981
strike and are now retiring.
In February 2008,
the FAA began soliciting offers for the ATCOTS contract to replace two
separate contracts supporting the controller training program. On
September 9, 2008, the FAA awarded the contract to Raytheon.
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The performance based contract consists of a 5-year base period, worth $437 million, and two option periods (a 3-year period and a 2-year period), worth $422 million. The contract includes an award fee for Raytheon meeting acceptable levels of performance related to training outcomes and quality metrics and an incentive fee related to the cost of the services provided.
The ATCOTS
contract also allows Raytheon to suggest improvements to modernize the
controller training program in areas such as hardware and software
modifications, curriculum development and delivery, web-based training,
and technology enhancements.
In addition, the
contract includes an option to institute a pilot program that allows
these proposed changes to be tested and validated before being
implemented on a larger scale. While Raytheon is involved with nearly
every aspect of controller training, the FAA retains control for the
overall training program as well as for recruiting and hiring controller
candidates, conducting performance verification at the |
Accordingly, OIG
audit objectives were to determine whether effective management and
contract controls are in place to ensure program goals are achieved, and
if the program has improved training methods currently provided to the
controller workforce.
In designing and
executing the ATCOTS program, the FAA did not fully (1) mitigate
staffing and cost issues identified during acquisition planning, (2)
adequately define how many controllers would need training, or (3)
initially implement adequate controls to oversee contractor services or
ensure that fees paid for performance were justified.
As a result, the
FAA now faces significant challenges in achieving the program?s goals.
To date, the ATCOTS contract costs and fees have far exceeded baseline
estimates. Moreover, those funds have only been sufficient to support
existing training methods and procedures; innovations to reduce training
time and cost have not been implemented.
OIG has come up
with nine recommendations to improve oversight of the ATCOTS contract.
FAA fully concurred with eight and proposed acceptable alternative
actions for the remaining recommendation. FAA has also begun actions to
address many of the issues identified during our audit.
1) Determine (a) if the existing contract mechanism can be effectively modified to achieve ATCOTS program goals within the current estimate of $859 million or (b) update cost estimates and requirements for its training needs and develop criteria for determining whether the Agency should exercise options in the contract.
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