October 19, 2010 - U.S. Department of Transportation Office of Inspector General reports the FAA is making progress in implementing ADS-B at limited locations and working with airspace users to refine the use of the new technology. However, the FAA’s plans to deploy ADS-B throughout the National Airspace System (NAS) and realize expected benefits face significant risks and challenges. 

The greatest risks to successfully implementing ADS-B are airspace users’ reluctance to purchase and install new avionics for their aircraft and the FAA’s ability to define requirements for the more advanced capabilities.

Users have raised justifiable concerns about evolving requirements and uncertain equipage costs and benefits. For example, based on the FAA’s analysis, the costs for users to equip with ADS-B avionics could range from $2.5 billion to $6.2 billion.

Yet, FAA has not updated its cost and benefit analysis to support the service-based approach. The FAA will also pay the contractor over $1 billion for broadcast services—before airspace users are required to equip in 2020 and congested airports see significant delay reductions. The contractor will be paid regardless of whether important efforts, such as modifying controller displays, remain on track. Moreover, there are unresolved questions with the contract that could increase the cost of the ADS-B ground system.  

For example, the contract does not have specific estimates for providing ADS-B In services to aircraft that will rely on different broadcast frequencies. Unless FAA addresses these concerns, the larger risk of minimal return on Federal investment and indefinite delays in achieving NextGen goals remains. We are making recommendations to help the FAA reduce risk with ADS-B implementation and enhance contract oversight. 

However requirements and costs for ADS-B In may not be mature for at least 2 years. The FAA also has yet to fully define requirements for modifying its existing automation systems that will display ADS-B information to controllers. Problems with integrating ADS-B on displays at the initial operating sites indicate this will be a significant challenge to nationwide deployment. Until the FAA effectively addresses these uncertainties associated with equipage and requirements for ADS-B’s advanced capabilities, progress with ADS-B will be limited, and the potential for cost increases, delays, and performance shortfalls will continue. 

In addition to implementation issues that may delay deployment, risks within the FAA’s acquisition and contract approach for ADS-B could also increase the overall program cost. Specifically, while the FAA’s contract includes controls and analytical tools to measure progress with cost and schedule baselines, the FAA did not conduct a comprehensive financial analysis before deciding that a service-based contract would save the Government more money than the traditional method of owning and operating the system.  

According to FAA, ADS-B will supplement and ultimately replace ground-based radar because an ADS-B-equipped aircraft can provide controllers and pilots in other aircraft with faster updates of important flight information (e.g., aircraft identification, position, altitude, direction, and speed).