Pursuit's Take
In 2007, the Federal Aviation Administration (FAA) awarded a more than $1.8 billion contract to develop and implement the Automatic Dependent Surveillance-Broadcast (ADS-B) system. ADS-B is a foundational component of FAA’s Next Generation Air Transportation System, and FAA envisions ADS-B eventually becoming its principal means of aircraft surveillance.
OIG found that while the ADS-B contract provides FAA the ability to monitor whether the contractor is providing required ADS-B products and services, FAA has made only limited use of these provisions. For example, while the contract identifies seven specific measures for evaluating ADS-B performance, and specifies that the contractor should validate that all seven requirements are being met, FAA required reports from the contractor on only three of the seven measures. We also found that while the ADS-B contract contains provisions that can help FAA ensure that payments are reasonable, FAA did not effectively use these contractual tools.
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