SAFER AIR TRAVEL UPDATE - 30 MAY 2006

Transportation Inspector General Launches Probe of Huge Contract

The U.S. Department of Transportation's (DOT) internal cop says it will start to probe the biggest non-defense contract the government has ever offered. In February 2005, the DOT's Federal Aviation Administration (FAA) gave the mega-corporation Lockheed Martin a 5-year contract, with 5 additional option years, to run its "58 flight service stations in the continental United States."

The Inspector General's office went on to say: "This represents one of the largest nondefense outsourcing efforts in the Federal government. The contractor plans to consolidate the 58 flight service stations into 20 consolidated facilities. FAA anticipates that by contracting out and consolidating flight service facilities, the Agency will save $1.7 billion over the 10 year life of the contract."

The Office of the Inspector General plans to conduct an audit on the controls implemented by FAA over its conversion of flight service stations to contract operations. The objectives of the audit are to assess whether FAA has 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.

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