GAO: Major Cost, Schedule Gaps in ATC Overhaul

Watchdog says accelerated modernization effort lacks a complete lifecycle cost estimate and integrated schedule.

GAO Flags Major Cost, Schedule Gaps in ATC Overhaul
Transportation Secretary Sean Duffy speaking at the Modern Skies Summit in April, where DOT showcased ongoing ATC modernization work. [Credit: DOT]
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Key Takeaways:

  • The FAA's Brand New Air Traffic Control System (BNATCS) modernization program lacks a reliable lifecycle cost estimate and an integrated master schedule, according to a GAO report.
  • Cost estimates for Phase 1, which is funded with $12.5 billion, are incomplete, excluding significant government and operating expenses as well as all future Phase 2 costs.
  • Instead of a single integrated plan, the FAA is managing over 11,000 individual project schedules for Phase 1, increasing the likelihood of cost overruns, delays, and coordination issues.
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The FAA has not developed a reliable lifecycle cost estimate or an integrated master schedule for its Brand New Air Traffic Control System (BNATCS), according to a GAO report released Monday.

The first phase is scheduled for completion by December 2028 and covers upgrades to communications, surveillance, weather, training and other systems.

Cost Estimates Incomplete

Congress appropriated $12.5 billion for the modernization effort in July 2025, and the FAA plans to use most of that funding for Phase 1. GAO said the agency provided high-level Phase 1 cost estimates in June but could not provide supporting analysis. Those estimates exclude government costs, most Phase 1 operating costs and all Phase 2 costs. FAA has estimated Phase 2 will require about $10.2 billion, excluding facilities, but has not established a start or completion date.

“While accelerating this modernization is critical, FAA’s lack of a reliable lifecycle cost estimate and an integrated master schedule introduce heightened risk to BNATCS,” GAO said.

The watchdog said those shortcomings increase the likelihood of cost overruns, delays and missed performance targets.

Thousands of Separate Schedules

GAO also found that the FAA is managing 11,389 individual Phase 1 project schedules instead of a single integrated schedule. The report said that approach can result in several projects being planned at the same facility without coordinating installation work to reduce effects on air traffic operations. FAA officials told GAO they intend to address the issue but had not established a timeline.

The agency has made progress on several Phase 1 projects. As of May, FAA reported replacing 2,560 of 5,170 aging copper connections with high-speed fiber-optic cables and plans to complete voice-radio modernization nine years earlier than previously scheduled. GAO recommended that the FAA prioritize development of a reliable lifecycle cost estimate and integrated Phase 1 schedule. The Transportation Department partially agreed with both recommendations.

Matt Ryan

Matt is AVweb's lead editor. His eyes have been turned to the sky for as long as he can remember. Now a fixed-wing pilot, instructor and aviation writer, Matt also leads and teaches a high school aviation program in the Dallas area. Beyond his lifelong obsession with aviation, Matt loves to travel and has lived in Greece, Czechia and Germany for studies and for work.
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