Thusburg maryland book festival. Starting at 10 00 p. M. Eastern, not the cleaver family. At 10 35, Melvin Goodman author of whistleblower of the kraimt yts author Sharon Weinberger at 12 15 p. M. Discussion her book the imagine nears of war, the untold story of darpa, the Pentagon Agency that changed the world. At 1 0015 eastern, the decisive years, 1970 stoichl 1980. At 2 15 p. M. Sidney blumenthal, the political life of Abraham Lincoln 1849 to 1856. And at 3 15, a missing naval officer in the pacific and his familys quest to bring him home. Watch our live all day coverage of the book festival starting saturday at 10 00 a. M. Eastern on cspan 2s book tv. Next, the Inspector General for the Transportation Department gives an update on the federal aviation administrations nextgen projects to modernize and change to a satellitebased air Traffic Control system. Other topics include whether the air Traffic Control system should be partially private advertised. Congressman bill shuster chairs the committee. The committee will come to order. I now recognize mr. Lobe and doe for a motion. Pursuant to rule 1 a 1 of the rules committee on transportation infrastructure, i move that the chairman be authorized to declare recess during todays hearing. The questions on the motion all those in favor signify with saying aye. Aye. All those significant ny by nay neigh. The ayes have tantd motion it agreed to. I want to thank everybody for being here today. This is an important hearing were having here today and talking about somewhat i consider extremely important legislation and i believe everybody on the committee, both sides of the aisle believe that the reauthorization of the faa reforming it, making it a better system for all americans is extremely important to all of us. The way america travels, moves goods and conducts Business Today depends on an Efficient Transportation Network and in order to remain competitive, we need a 21st century with modern 21st Century Technology. This is especially true of our Aviation System. But the fact is, the faas infrastructures increasingly obsolete and its technology is still cemented in the last century. And to just quote my colleague, esteem colleague from oregon in a hearing we had he said that the faa is the only agency worse at procurement than the pentagon. Congress has tried to reform it, it didnt stick. We got to try Something Different to get it to be more agile to give us 21st century wooemtd equipment and software we need. Then theres the issue of the sort of shape of the faa bureau crosscracy. Congress gave the faa the license to reform personal practices to deal with some of the midlevel management bulging, streamline the agencies and Decision Making process but that didnt take either. And he goes on to propose a 21st century constitutional chart an organization and make it selffunding, selfsufficient, and not subject to appropriations or ship downs or anything else that a Congress Might imagine. Now, i think that we can see by that statement and i think in well as we talk here today we agree there is a problem. There is a solution at hand, its just the form that were going to debate vigorously on what we think is the best best outcome. But as a rut over these past 30 years, the shocking amount of taxpayer zlarz that weve wasted or the last 3. 5 decades, over 50 billion, thats why this is one of my highest priorities this year say comprehensive faa reform and reauthorization bill. So far this year weve had reauthorizations hearings looking at air tropz partation, manufacturing, airports and new entrance in innovations. Today well focus on the need for air Traffic Control reform divesting the hightech sker vis 24 7 Service Business from government and shifting it to an independent, notforprofit entity. Its appropriate were holding this hearing during infrastructure week. No other single infrastructure reform has as such potential to improve travel for the average american flyer or to ensure our hardearned leadership in aviation. Although our Aviation System is safe, the faa structure and how air traffic is managed have been broken for decades. The decision we make in the faa reauthorization bill will year will either move us toward a 21st century Aviation System american needs or doom us to repeating the failures of the post over and over again. Everyone should be remind of what happens if we choose the status quo. It means our system will be subject to more budget constraints, sequestration, and threats of Government Shutdowns. Sequestration isnt gone. In 2013, sequestration led to furloughs and reduced operations, controller highing and training sufrds and the faa bureaucrats tried to shut down contract towers. Fiscal constraints continue to be tight so in the federal budget and thats not going to change anytime soon and it may get worse. We continue to rely on the unstable, dysfunctional annual appropriation cycle. Weve had no standalone transportation appropriations bill since 2006 and over that time Period Congress has passed 42 continued resolutions to keep government doors open. The faa also relies on authorizing legislation and temperature took congress 23 shortterm extensions over five years before it passed previous longterm faa authorization bill. It has been trying to undertake a hightech modernization of air Traffic Control system for over three decades. Its not work and its never going to work. Sadly in todays digital age we still manage planes with paper strips which i have brought a few to remind people of that. And if anybody haz hasnt been in a control tower, they ought to go into a control tower and see it. Some argue that the late ef attempt to morn nize nextgen is showing some signs of progress. But its only incremental at best and only in locations where the faa partnered with the private sector. And lets remember the name nextgen was a rebranding ever the faas on going failed efforts to modernize the system. Nextgen is a marketing term not an Actual Technology or innovation but it sounds catchier so they will fund it year after year. But the bottom line is there should be far more progress than now. Congress has provided 7. 4 billion for nextgen since 2004. Results are the problem the. I cord together calculations the 7. 4 billion invested has only been about 2 billion in benefits and weve still got a long way to go. According to dot Inspector General in 2014, the projected initial cost for nextgen was 40 billion, but theyve said it could double or triple and be did he laid another decade. Over the years the faa has described nextgen as transform mag of americas air transportation network. It also said it will forever redefine how he we manage the system. But in 2015 the National Research council confirmed what was already becoming painfully clear. According to nrc, the original version of nextgen is not what was being implemented. It is not broadly transformational and not fundamental change in the way faa handles air traffic. Only in the federal government with such a dismal record be considered a success while the faa continues ton fall behind the rest of the world is moving on with new technologies, without the United States involvement. Nothing less than americas leadership is at stake. In an industry that we pioneered and have led since kitty hawk. Some have reposed targeting reforms to fix the problems but thats an approach weve already tried many, many times. Starting in the 1980s. Since 1995 Congress Passed various reforms to allow the faa to run more like a business. Procurement reform in 1995 for the faa to develop a more flexible Acquisition Management system. Additional reforms in 1995 exempt the faa from most federal personal rules and allow the faa to implement more flexible rules for hiring, training, compensating and assigning personnel. Procurement reforms in 1996 developed a Cost Accounting system. Additional reforms in 96 allowed them to negotiate pay, organizal reforms in 2000 to establish a coo position, additional reforms to allow greater pay so the faa could recruit good candidates particularly for a coo position. Additional reform in 2000 by the executive order to create the air traffic organization. Organizational reforms in 2003 to establish the joint planning and Development Office to better coordinate nextgen. Reforms in 2012 to establish a chief nextgen officer. Property management reforms in 2012 to allow a Better Process for realignment and consol occasion facilities. All have failed to result in the faa being run more like a business. The faa always has always performed like a massive bureaucracy and will continue to. It is only dot agency that sevsz as both Transportation Service provider and safety regulator. Regulating itself is an inherent conflict of interest and separating the two functions is simplily good government. Its time for reform that is truly transformational. Rhee change can be difficult, weve learned that over the years. But the broader lesson over the last several decades is that had the true risk lies in doing nothing. Last years bill, that passed out of committee will serve as a framework for new legislation, but we are open to change. Wasnt to talk to people and get their ideas and thats what we hope to hear today. As we continue to move forward or our air Traffic Control reform proposal 8 be based n aught following principles. Create an independent not for Profit Corporation to provide air Traffic Service dollars. Fund the new Service Provider by fees assessed for air Traffic Service. Free the new Service Provider from governmental dysfunction, political interference, and the uncertainty the federal budget process. Create a governance structure that is right sized and balanced and a board with sole fiduciary responsibility fot organization, thats a legal term. If youre on the board of directors in the United States and you have a fiduciary duty, its not what appointsed you to the board, its to that is who youre responsible for and thats the law. Its not some pie in the sky. People kk removed and pros kutsed if theyre not doing their fiduciary responsibilities. Ensure connectivity, access to the airspace and continuity of air services for general aviationa, small and Rural Communities and airports to serve them. Let me for the record remind people im have a rural district, i have one very small airport. I doubt i have more than a handful of people that work for the airline industry, but i have several hundred ga pilots so if anybody thinks that i want to harm the ga or Rural Communities, they just dont know who i am and where im from because im committed to make sure what we do protects small and Rural Communities and protects the ga community. The ga community is over a billiondollar industry. Why in the world i would want to harm an industry that produces so much good for this country . We want 10 to sure full access to airspace and air services to support our armed services. And their National Security mission. Free the air Traffic Control business from the faas brew crat tick process and the psych. And the decade long pattern of costly delayed failed management of morn zation. Give the new Service Provider the ability to leverage prooifd private funding for multiyear Capital Projects needed to morn nooiz the system. Allow them to focus on the Safety Mission and certification mission. Ensured continue oversights the air Traffic Service bitz faa, dot, and congress. And people are out there saying thats not what were going to do. The faand at department of transportation and congress will still maintain vigorous oversight to the airspace of this country. And ultimately allow all user of the system, including Airline Passengers and the general public to realize the significant benefits of morn air Traffic Control system, including decreases in delays, flight times and congestions. Previous efforts to reform the faa westbound modernize the system tooemz teaches that the only way to realize these ben fits fits is to get the government out of the way. Government not the solution to the problem, government is the problem. And we see all over the world people turning to the private sector whether its europe, asia, australia, new zealand, canada, look around the world. Countries, governments are looking to partner with the private sector because they see they do it better. Since the introduction of the air act over a year ago, this has been an ongoing process of education and discussion. Weve held over 130 meet wgsz stakeholders including both supporters and opponents of the air act. Weve had numerous meetings with members of the house, the senate, white house, other committees. These meetings have been extremely productive and give us new ideas to improve the legislation. As i said, i want to hear the same thing from todays witnesses, what are your ideas that we can build upon on the principles that ive outlined. Weve also gone to canada to see their system firsthand and we will go again with more members and i would encourage any member that wishes to go on may 25th, thursday, in the after the noon well be heading up to canada and coming back on may 26th to, again, go up there not so we can imitate their system, but to learn from the lessons of their system, to learn to help fix our own broken structure. Over 60 countries have followed this kind of reform and its worked in each case. Opponents of reform either ignore the evidence or must believe we are less capable than the other 60 countries. And for me, thats a bit outrageous. Were the United States of america. We can do this and do it better than anybody else, so its time for us to take a look and to move forward. Air Traffic Control is not inherently governmental function, its a 24 7 technology service. Purchase foes who worry that the system is too complex, i would say this. The most complex thing in the airspace is not the air Traffic Control system, its the airplane. Its the people at boeing and air bus and says that and the people that build these aircraft, thats the most. Com complicated thing in the system. And the faa already oversees those highly sophisticated aircraft manufacturing and Flight Operations at arms length. We dont build airplanes today, the government does and thats the most complex things in the system. Overseeing air Traffic Control is not going to be more complicated than anything else the faa already did z. This transfor medication reform will fim our air Traffic Control structure, move beyond the wasteful inefficient status quo and benefit all the users of the system. Ultimately, reform will give the american flyer a safe, efficient Aviation System using 21st Century Technology to ensure more ontime departures, more direct routes using less fuel which will be better for the environment, and less wasted time on the tarmac. Ladies and gentlemen, again, i thank the witnesses for being here and been that i will yield to the Ranking Member for an Opening Statement. Thank you, mr. Chairman. Jim would have been proud, thats the longest Opening Statement since former chairman jim and longest term critic of the faa as preterm process and Movement Toward 21st century system. Im not aware that any other member of the committee has spent that time with him and hes not been invited to testify. He has a different story to tell today. He thinks it will be mistake and im paraphrasing. But we are now on the cusp of a 21st century system that will be the envy of the world. And he and other corporations say a massive change now, we aclooef ta acleve into parts subject to appropriations, sequestrations and shutdowns. You leave the most vital thing that is important to the american public, which is safety and oversight of safety, subject to sequestration, shutdowns and political meddling. The only thing that gets moved is the ato and the ato would be moved and, essentially, effectively controlled by the airlines. I know the airlines arent here today, perhaps, because they havent looked so great recently in public. And i would also note, that the airlines, themselves, have had outages 36 times, major outages, 36 times since 2015. Im not aware that the air Traffic Control system has had a major disruption with the exception of deliberate sabota