[JYO] FAA Selects Lockheed Martin to Operate Automated Flight Service Stations

FOR IMMEDIATE RELEASE


APA 05-05
February 1,  2005
Contact: Greg Martin
Phone: 202-267-3883

FAA Selects Lockheed  Martin to Operate Automated Flight Service Stations

Washington, DC  â The U. S. Department 
of Transportationâs  Federal Aviation 
Administration (FAA) announced today 
it has selected a  team headed by 
Lockheed Martin to provide services 
now offered by the  agencyâs automated 
flight service stations.  The total 
evaluated  cost of the five-year 
contract, with five additional option 
years, is  $1.9 billion and represents 
estimated savings of $2.2 billion over 
the  next ten years.  




The FAA selected Lockheed Martin,  
based in Bethesda, Maryland, for its 
demonstrated ability to deliver  high-
quality safety and services and 
technical excellence at a  competitive 
cost while providing a seamless 
transition to new  operations.  Under 
continued FAA oversight, Lockheed 
Martin will  operate flight service 
stations to the agencyâs strict safety 
and  service requirements.




Approximately 2,500 FAA employees now  
provide services at 58 automated 
flight service stations in the  
contiguous 48 states, Hawaii and 
Puerto Rico.  Flight service  
specialists provide a variety of 
services, including weather briefings,  
inflight radio communications, flight 
planning and search-and-rescue  
support, primarily to private and non-
airline commercial pilots.   These 
specialists do not separate or control 
aircraft.   




Studies by the FAA and the Department 
of  Transportationâs Inspector General 
identified significant potential cost  
savings among automated flight service 
stations.  FAA spending on  flight 
service operations totaled about $500 
million in fiscal year  2003.  Of these 
total operating costs, only $60 
million was offset  by federal fuel 
taxes collected from general 
aviation.   Additionally, many 
automated flight service stations 
contain outmoded  equipment, are in 
need of upgraded technology and are 
housed in  deteriorating buildings.




After completing a careful review,  the 
FAA formally announced in December 
2003 that its flight service  stations 
met the criteria for competitive 
sourcing and that it would  conduct a 
competition under the Office of 
Management and Budgetâs  Circular A-76 
guidelines for an improved way to 
provide flight service  operations.   




The FAA evaluated five competing  
service providers, including the 
incumbent government organization, on  
the best value to the government for 
the delivery of effective services  to 
support safe and efficient flight.  
The FAA required each  potential 
service provider to demonstrate 
savings of almost $1 billion  over ten 
years.  




Lockheed Martin will assume  operations 
in October of this year.  Incremental 
consolidation of  the 58 current flight 
service stations will begin in April 
2006 and is  expected to result in 20 
sites by the end of March 2007.  More  
information on the results of the 
competition is at  www.faa.gov/aca.











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