The purpose of the project, known as the FAA Telecommunications Infrastructure (FTI) program, is to replace seven telecommunications networks owned and leased by the FAA for use by air traffic controllers to communicate with pilots. The networks would be replaced with a single network operated by Melbourne, Fla.-based Harris Corp. that would cost less to operate, wrote Theodore Alves, principal assistant inspector general for auditing and evaluation, in the report released last week.

The FAA awarded the five-year, US$1.7 billion project to Harris in July 2002. The contract was revised in December 2004 to $2.4 billion through 2017. The new system is expected to go live in December 2007, according to the report (PDF is available at http://www.oig.dot.gov/StreamFile?file=/data/pdfdocs/av2006047.pdf).

The agency estimated that the FTI project would save it $820 million in reduced operations costs by 2017.

"However, expected benefits from reducing operating costs are eroding because of schedule problems," Alves said in the report.

In response, the FAA has recognized the problems and is committed to taking steps to get the FTI back on track, according to a statement in the the report.