According to a May 8, 2006 Memorandum, the Department of Transportation Inspector General will audit the FAA’s conversion of flight service stations to contract operations beginning this month. The IG will be assessing “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.” Since the the contract is one of the largest non-defense outsourcing efforts, it is probably a good thing that the IG will be auditing the FAA’s progress early on. The FAA is predicting that it will save $1.7 billion over the 10 year term of the contract. It will be interesting to see whether the FAA’s objectives can be met by consolidating 58 flight service stations into 20 remaining facilities.
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Greg Reigel
Greg has more than two decades of experience working with airlines, charter companies, fixed base operators, airports, repair stations, pilots, mechanics, and other aviation businesses in aircraft purchase and sale transactions, regulatory compliance including hazmat and drug and alcohol testing, contract negotiation, airport grant assurances, airport leasing, aircraft related agreements, wet leasing, dry leasing, FAA certificate and civil penalty actions and general aviation and business law matters.
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