FAA Responds That Approved Projects All Have Merit

The DOT Office Of Inspector General has issues a report which indicates the FAA has not followed all Federal guidelines when awarding ARRA stimulus grants to airports. Some of the projects that had received grants ranked lower on a priority list than others which had not been funded, the OIG charged, and it recommends that FAA stop awarding grants to lower-ranked projects until is can demonstrate their economic merit. The Inspector General went on to recommend that, for lower-ranked projects that had been approved but for which no money has been disbursed, FAA should consider withdrawing those grants until their merit can be proven. The IG's office also noted that some of the recipients have not demonstrated the ability to properly administer previous AIP grants, and those grantees should be closely monitored, and concluded that a full audit of FAA's ARRA grants is planned.

Specifically, the report cites FAA awards to Akiachak and Ouzinkie, Alaska, of $13.9 million and $14.7 million, respectively, to replace their airports. "Each project had an NPR (National Priority Rating) score of 40," the Inspector General's Office said in its report. "Akiachak, which has about 659 residents, has a seaplane base, an airfield with a gravel runway, and is within 7 miles of two other airfields. Akiachak is also 14 nautical miles from Bethel, which has the State’s fourth busiest airport. In summer, residents travel the river to Bethel by boat; in winter, the frozen river becomes a highway. Ouzinkie has about 167 residents. In addition to Ouzinkie’s gravel airstrip, the village has a float plane landing area at Ouzinkie Harbor. Barges provide cargo delivery from Kodiak, 10 miles away. Akiachak’s airport averages 57 flights a week; Ouzinkie’s averages 42 flights a month."

"The other four airports do not provide commercial passenger service, have limited flight operations, and received NPR scores ranging from 43 to 50. These projects include $4.8 million for a new taxiway at Findlay Airport, Ohio; $2.2 million for a runway extension at Wilbur Airport, Washington; $2 million for an apron at Warrensburg-Skyhaven Airport, Missouri; and $909,806 to design (not construct) a new runway at an airpark near Dover, Delaware. According to FAA, the Dover project was chosen because it was the State’s only project that was “ready to go.”

The FAA, for its part, responded that it carefully ensured that each grant issued using ARRA funding fully complied with applicable statutory requirements. The Recovery Act indicated that stimulus funds for airport purposes are to be administered under the requirements of the AIP discretionary priority projects for funding with ARRA funds.  About 80 percent of the projects selected by FAA not only met, but far exceeded the existing standards established for AIP grants.  The remaining 20 percent fulfilled other important aspects of the AIP program, and fully complied with applicable requirements.

Under the Recovery Act, FAA says it was able to fund projects critical to both the economy and to aviation safety throughout the country, including taxiways, airfield lighting, and high priority safety and security equipment.

"The OIG ARRA Advisory apparently questions the basis for all Recovery Act projects funded under the AIP based on just 6 of 263 projects representing approximately 2.3 percent of the total projects," The FAA said in its response. "While each of these projects qualified for funding under existing AIP criteria, the OIG Advisory utilizes factors outside existing requirements to suggest these projects are unworthy." Of the Alaskan projects in particular, FAA said "(T)he costs of these projects have been checked and justified based on the high costs of moving materials and equipment into the areas, as well as construction challenges associated with remote locations in Alaska. Further, it is an overstatement to suggest that funding safety compliant airstrips to ensure the Native Alaskan citizens of Alaska have access to services such as emergency medical assistance falls into the category of 'imprudent' projects discussed in the President's memorandum of March 20, 2009, such as casinos, zoos, or golf courses, which are clearly outside the scope and intent of the Recovery Act."

FMI: www.oig.dot.gov, www.faa.gov