FAA Postpones Satellite System

<H1>FAA Postpones Satellite System</H1><H3>by Barbara Cook</H3>As part of the Federal Aviation Administration's new acquisition reforms, the agency canceled a $475 million contract to build part of a planned satellite navigation system, saying it was headed for $100 million in cost overruns and months of delay. On April 1, the FAA instituted reforms designed to scrap the labyrinth of procedures needed to be followed before air traffic control equipment may be purchased or personnel hired (<I>BTN</I>, April 22).

The project at issue is known as the Wide Area Augmentation System, which consists of a network of ground stations that will improve the accuracy of satellite navigation signals. The first test signals are scheduled to be transmitted in 1998.

FAA administrator David Hinson vowed to have a replacement contractor on board in time to keep the system on schedule. "We will use our new acquisition system to get our new contract in place as soon as possible," Hinson said.

GSA Calls For Air Bids

The General Services Administration, which handles much of the federal government's travel management program, has called for airlines to bid by May 14 on discount fare contracts for government travelers. Included in this bid solicitation are 5,300 domestic and international city-pair markets; the total value of the contracts is expected to reach $1 billion.

The contracts will take effect Oct. 1, which marks the beginning of the government's next fiscal year.