FAA Outsources Service In Spite Of Union Objections

The FAA announced Tuesday it has selected a team headed by Lockheed Martin to provide services now offered by the agency's automated flight service stations. The total evaluated cost of the five-year contract, with five additional option years, is $1.9 billion and represents estimated savings of $2.2 billion over the next ten years.

The FAA selected Lockheed Martin, based in Bethesda, Maryland, for its demonstrated ability to deliver high-quality safety and services and technical excellence at a competitive cost while providing a seamless transition to new operations. Under continued FAA oversight, Lockheed Martin will operate flight service stations to the agency's strict safety and service requirements.

Approximately 2,500 FAA employees now provide services at 58 automated flight service stations in the contiguous 48 states, Hawaii and Puerto Rico. Flight service specialists provide a variety of services, including weather briefings, inflight radio communications, flight planning and search-and-rescue support, primarily to private and non-airline commercial pilots. These specialists do not separate or control aircraft.

Studies by the FAA and the Department of Transportation's Inspector General identified significant potential cost savings among automated flight service stations. FAA spending on flight service operations totaled about $500 million in fiscal year 2003. Of these total operating costs, only $60 million was offset by federal fuel taxes collected from general aviation. Additionally, many automated flight service stations contain outmoded equipment, are in need of upgraded technology and are housed in deteriorating buildings.

After completing a careful review, the FAA formally announced in December 2003 that its flight service stations met the criteria for competitive sourcing and that it would conduct a competition under the Office of Management and Budget's Circular A-76 guidelines for an improved way to provide flight service operations.

The FAA evaluated five competing service providers, including the incumbent government organization, on the best value to the government for the delivery of effective services to support safe and efficient flight. The FAA required each potential service provider to demonstrate savings of almost $1 billion over ten years.

Lockheed Martin will assume operations in October of this year. Incremental consolidation of the 58 current flight service stations will begin in April 2006 and is expected to result in 20 sites by the end of March 2007. More information on the results of the competition is at

FMI: www.faa.gov/aca