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Audit Initiated on FAA’s Oversight of ADS-B Contract

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Required by the FAA Modernization and Reform Act of 2012
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Automatic Dependent Surveillance-Broadcast (ADS-B) is a new satellite-based air traffic surveillance system and a key component of the Federal Aviation Administration’s (FAA) plans to transition to the Next Generation Air Transportation System (NextGen). In 2007, FAA awarded a contract to ITT Corporation for $1.8 billion through 2025 to develop and deploy the ADS-B ground infrastructure and start broadcasting services. As directed by the FAA Modernization and Reform Act of 2012 (Public Law 112-95), we are initiating this audit to (1) determine whether the ADS-B contract provides FAA the ability to monitor whether the contractor is providing required ADS-B products and services and (2) evaluate FAA’s procedures for determining payments to the contractor.