Performance And Accountability Report - Fiscal Year 2013 - Federal Aviation Administration - U.s. Department Of Transportation Page 140
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150 ADMINISTRATIVE SERVICES FRANCHISE FUND
BACKGROUND
Public Law 104-205, “Department of Transportation and Related Agencies Appropriation Act, 1997,” authorized the FAA to establish
an Administrative Services Franchise Fund (Franchise Fund). The Franchise Fund is designed to create competition within the public
sector in the performance of a wide variety of support services. It allows for the establishment of an environment to maximize the use
of internal resources through the consolidation and joint-use of like functions and the recognition of economies of scale and efficiencies
associated with the competitive offering of services to other government agencies.
The FAA’s Franchise Fund is composed of several programs, within which it offers a wide variety of services. These services include
accounting, travel, duplicating, multi-media, information technology, logistics and material management, aircraft maintenance,
international training and management training. The Franchise Fund’s major customers are the FAA lines of business programs. Other
customers include Department of Transportation (DOT) entities, non-DOT government agencies, and international government entities.
DESCRIPTION OF PROGRAMS AND SERVICES
Several programs within the Franchise Fund are organized around an
Enterprise Services Center
(ESC) concept, designed to integrate
the key components necessary to be a full service financial management provider. The efficiencies and economies of scale created by
this integration offer the opportunity to compete for customers seeking a provider of financial management services. As new customers
come on board, this further reduces the cost of providing the services by spreading the fixed cost of operations over a larger customer
base. There are three components of the ESC, all falling within the single Franchise Fund:
Enterprise System-configuration and support of application software and databases
¢
Financial Operations-transaction processing, financial reporting, and analysis services
¢
Information Technology-hosting, telecommunications, information system security, and end user support services
¢
During FY 2005, the OMB selected ESC as a Financial Management Center of Excellence (COE). As a COE, the ESC has the ability to
compete to provide financial management services for other government agencies. The ESC currently provides financial management
services to all the DOT agencies, and a number of other non-DOT Executive Branch agencies, including the Securities Exchange
Commission, the National Endowment for the Arts, the Commodity Futures Trading Commission, the Institute of Museum and Library
Services, and the United States Government Accountability Office (Legislative Branch). The ESC continues to forward proposals to other
agencies.
In addition to being selected as a COE, the ESC was chosen by the FAA Administrator to serve as the consolidated provider of all
financial management services for all the FAA organizations. The ESC committed to providing an improved level of service, meeting all
Joint Financial Management Improvement Program (JFMIP) requirements.
The Franchise Fund also includes the following program areas:
FAA Logistics Center
The
is located at the Mike Monroney Aeronautical Center (Aeronautical Center) in Oklahoma City, Oklahoma,
and provides comprehensive logistics support and a highly sophisticated level of maintenance and repair services to ensure the safety
of the flying public and to satisfy the critical needs of the national airspace system and related requirements. Services include materiel
management (e.g., provisioning, cataloging, acquisition, inventory management, inventory supply), reliable and cost-effective depot-
level repair of line replaceable units, life cycle and performance cost analysis, logistics automation, distribution services, disposal of
items no longer required, and technical support in the repair and maintenance of national airspace and related equipment. The Logistics
Center also maintains the Department of Homeland Security’s Customs and Border Patrol border surveillance systems, including more
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Federal Aviation Administration
Fiscal Year 2013
Performance and Accountability Report
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