McCaskill Demands Answers From FAA on Contract Overruns and Mismanagement

Soaring costs, huge overruns, and poor performance on an $860 million government contract intended to help train new and current air traffic controllers at issue
June 26, 2012
3 min read

The office of Sen. Claire McCaskill, D-Mo., has issued the following news release:

U.S. Senator Claire McCaskill today demanded answers from the Federal Aviation Administration (FAA) about soaring costs, huge overruns, and poor performance on an $860 million government contract intended to help train new and current air traffic controllers.

In a letter to Acting Administrator of the FAA Michael Huerta, McCaskill-Chairman of the Senate Subcommittee on Contracting Oversight-requested information about the contract, which will run out of money by August 2012, more than one year before the contract is due to end. McCaskill also questioned the FAA's plans to extend the contract by three years without addressing the problems that led to the cost overruns and performance shortfalls.

"Call me old-fashioned, but a company that overcharges and underperforms is a company that deserves a pink slip and not a contract extension and more taxpayer dollars," said McCaskill, who has been the Senate's leading advocate for preventing contracting waste and abuse. "Accountability in government and safeguarding taxpayer money is something Missourians rightly expect, and it's something I'll continue to fight for ."

In 2008, the FAA awarded the Air Traffic Controller Optimum Training Solution (ATCOTS) contract to the defense contractor Raytheon, in order to train air traffic controllers and to develop new and more efficient training methods. The contract has a base period of five years and was originally valued at $437 million. In 2010, the Office of Inspector General found serious cost overruns, poor procurement practices, and a lack of oversight of the contract.

McCaskill's letter is in response to new information provided by the Inspector General during the Inspector General's ongoing review of the contract, which was requested by McCaskill in 2011. The Inspector General has found that the contract has failed to achieve its original goals, including reducing costs, reducing training time, or developing new and innovative training.

"I question whether these decisions are in the best interest of the taxpayer," McCaskill's letter reads.

The letter calls for the FAA to provide information regarding their decision-making process as well as documents regarding the award of incentive fees and bonuses to Raytheon during the life of the contract.

McCaskill has made stewardship of taxpayer money a priority in the Senate-having recently introduced the Comprehensive Contingency Contacting Reform Act-the most significant reform of wartime contracting standards in 60 years. McCaskill introduced the legislation with Senator Jim Webb (Va.) in response to an estimated $60 billion in waste and fraud by contractors working for the U.S. government in Iraq and Afghanistan.

McCaskill's letter is available on her website HERE.http://www.hsgac.senate.gov/subcommittees/contracting-oversight/majority-media/chairman-mccaskill-raises-concerns-about-faas-contract-to-train-air-traffic-controllers

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