(Washington, D.C.) – Citizens Against Government Waste (CAGW) applauded the decision today by the U.S. Department of Transportation’s (DOT) Office of the Inspector General (IG) to conduct an audit of the Federal Aviation Administration’s (FAA) terminal automation modernization program, focusing on the Standard Terminal Automation Replacement System (STARS).  CAGW has been criticizing the STARS program for the past several months due to its numerous delays, cost overruns, and potentially dangerous safety flaws.

“The IG’s audit is a step in the right direction,” CAGW President Tom Schatz said.  “More oversight of this program has been needed for quite some time, from both Congress and the FAA.  We commend the IG for examining the cost-effectiveness of the program, past and future cost projections, scheduling, and possible alternatives.”

The initial goal of STARS was to modernize the air traffic control systems in 172 FAA terminal facilities.  The project involved installing new hardware and software at these sites to better monitor nearby aircraft.  It was originally scheduled to commence in 1998 at a final cost of $940.2 million.

After falling four years behind schedule and with projected costs rising to $1.7 billion, the FAA cut the number of airports where STARS was to be installed to 74.  Those facilities are now supposed to be online with STARS by 2005 at a cost of $1.33 billion.  This change resulted in a 41 percent increase in costs, despite installations taking place in 57 percent fewer airports, increasing the average cost per facility from $4.8 million to $17.5 million.  The remaining airports will use Common ARTS, a system that the FAA installed at a cost of $90.5 million while waiting for the completion of STARS.  The first major installation of STARS began in Philadelphia last month, and was immediately plagued with problems.

The IG’s audit is expected to begin in two weeks.  In October, the General Accounting Office released a report on STARS that confirmed many of CAGW’s concerns.

“STARS has become a major boondoggle,” concluded Schatz.  “The American people deserve the safest possible air transportation.  FAA Administrator Marion Blakey should take the IG’s audit as a sign that she needs to take a closer look at this program.”

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.