Mar 31, 2003

The Honorable Frank P. Lautenberg
United States Senate
Washington, DC 20510

Dear Senator Lautenberg:

President Bush asked me to reply to your February 25 letter, cosigned by your congressional colleagues, about the Federal Aviation Administration's (FAA) intention to declare air traffic control services as a commercial activity. I assure you this is not a step toward privatizing the air traffic control system. Privatization is changing a public entity to private control or ownership.

Under the Federal Activities Inventory Reform (FAIR) Act of 1998. every agency must develop an annual inventory of its commercial, activities. Commercial activities are products or services that could be obtained from a private source. Starting in 2001, the Office  of Management and Budget also required the inventory to include inherently governmental activities. These activities are so intimately related to the public interest to mandate performance by Federal employees. They involve a sovereign act for the Government or bind the Government to a particular course of action. To meet this
definition, activities must include the exercise of substantial official discretion in applying Government authority and in deciding for the Government.

For the 2002 inventory, the Department of Transportation considers FAA activities to separate and control air traffic at en route and larger terminal facilities to be Commercial Reason Code A. Under Reason Code A, we have determined air traffic control is a core capability: FAA needs to carry out its mission to ensure the safety and security of the national airspace. Based on this, air traffic control at en route and larger terminal facilities is not subject to competition and FAA will not contract it out.

This classification recognizes that FAA has a Contract Tower Program that currently oversees 219 contract towers. These towers provide much needed air traffic services in smaller communities. They provide a more limited set of air traffic services, without compromising safety, that involve less complex operations. A Department of Transportation Office of inspector General report issued in 2000 estimated the Contract Tower Program saved FAA $250,000 at each tower each year.

On a related matter, we are conducting a competitive sourcing study of our Flight Service Station function. The employees at these stations do not do the same work as those who separate and control air traffic. Rather they provide pilot weather briefings, flight planning, en route communication, search and rescue, and other aviation services.

I hope this responds fully to your concerns.

If you want more information or help, please feel free to give me or David Balloff, Assistant Administrator for Government and Industry Affairs, a call at (202) 267-3277.

Identical letters have been sent to the cosigners of your letter.

Sincerely,
 

    /s/

Marion C. Blakey
Administrator