Regulations and Government
DOT top cop blasts FAA business practices
Reporting to Congress on the state of the FAA, DOT inspector general Kenneth Mead–the department’s program and fiscal watchdog– didn’t mince words in his a

Reporting to Congress on the state of the FAA, DOT inspector general Kenneth Mead–the department’s program and fiscal watchdog– didn’t mince words in his assessment of the FAA’s equipment procurement and cost-accounting practices. The agency must, he stated flatly, “reexamine how it does business.”

In 1996 the FAA was allowed to drop standard government procurement processes to become a performance-based organization similar to those in private industry. It was also directed to establish a cost-accounting system so that it would know “where it was spending money and for what.” Mead testified that the FAA thus far has been unsuccessful on both counts.