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The Conversion of Flight Service Stations From FAA to Contract Operations

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On October 10, 2007, the Inspector General testified on the conversion of flight service stations to contract operations before the House Committee on Transportation and Infrastructure, Subcommittee on Aviation. On February 1, 2005, FAA awarded a 5-year fixed-price, incentive-fee contract (with 5 additional option years) to Lockheed Martin to operate the Agency's flight service stations in the continental United States, Puerto Rico, and Hawaii. On October 4, 2005, Lockheed Martin took over operations at the 58 flight service stations, and, on that date, approximately 1,900 staff became employees of Lockheed Martin. The 2-year transition period ended last week. The Inspector General discussed three specific issues: (1) the management controls established by FAA over the initial transition; (2) problems that Lockheed Martin encountered during the consolidation phase of the transition, which ultimately led to service disruptions to users; and (3) key issues that Lockheed Martin and FAA need to address going forward.