TABLE OF CONTENTS

FOREWORD iii

MESSAGE FROM THE SECRETARY v

MESSAGE FROM THE CHIEF FINANCIAL OFFICER vii

THE DEPARTMENT OF TRANSPORTATION AT A GLANCE 1

History and Legislation 1

Mission 1

Operating Administrations 1

Departmental Organization Chart 2

Financial Resources 3

HIGHLIGHTS 4

Overview of Highlights 4

Presidential Management Agenda Highlights 4

President’s Management Agenda Scorecard 6

Federal Highway Administration 10

Federal Aviation Administration 10

Federal Transit Administration 10

United States Coast Guard 11

Transportation Security Administration 11

Federal Railroad Administration 11

National Highway Traffic Safety Administration 12

Federal Motor Carrier Safety Administration 12

Maritime Administration 13

Office of the Secretary 13

Research and Special Programs Administration 14

Office of the Inspector General 14

Bureau of Transportation Statistics 15

Surface Transportation Board 15

Saint Lawrence Seaway Development Corporation 15

MANAGEMENT DISCUSSION AND ANALYSIS 17

Introduction 17

How We Select Our Performance Goals and Measures 17

How DOT Works to Achieve Strategic and Organizational Goals 18

PERFORMANCE REPORT 19

Safety 21

Highway Safety 22

Aviation Safety 25

Maritime Safety 28

Rail Safety 29

Transit Safety 29

Pipeline Safety 30

Hazardous Materials Safety 31

Homeland and National Security 33

Aviation Security 34

Coastal and Seaport Security 36

Strategic Mobility 38

Drug and Migrant Interdiction 39

Mobility and Economic Growth 41

Highway Infrastructure Condition 43

Highway Congestion 44

Transit Ridership 45

Aviation Delay 46

Maritime Navigation 48

Transportation Accessibility 49

International Air Service 50

Human and Natural Environment 51

Fishery Protection 52

Wetland Protection and Recovery 52

DOT Facility Cleanup 52

Mobile Source Emissions 54

Oil and Pipeline Spills 54

Aircraft Noise Exposure 55

Organizational Excellence 56

Strategic Management of Human Capital 57

Competitive Sourcing 58

Financial and Procurement Performance 58

Citizen-Centered Government 62

Budget and Performance Integration 65

PERFORMANCE DATA COMPLETENESS AND RELIABILITY 66

DOT PROGRAM EVALUATIONS 68

MANAGEMENT CONTROLS 75

Federal Manager’s Financial Integrity Act 75

Federal Financial Management Improvement Act 76

Consolidated Financial Statements 77

Limitations of the Consolidated Financial Statements 77

FINANCIAL MANAGEMENT AND ANALYSIS 79

Analysis of Financial Statements 79

Total Consolidated Statements of Net Cost 79

Assets 79

Liabilities and Net Position 79

Program Costs 80

Loans 80

Intra-Departmental Eliminations 80

Transportation Equity Act for the 21^st Century 80

Stewardship 80

FUTURE STEPS 83

INSPECTOR GENERAL AUDIT REPORTS 85

INSPECTOR GENERAL TOP MANAGEMENT CHALLENGES 105

EXHIBIT 149

Performance Measure Completeness and Reliability (Detail) 149

ACRONYMS 151

ACKNOWLEDGEMENTS 154

PRINCIPAL FINANCIAL STATEMENTS 155

Overview of Highlights

FY 2002 was an important year in DOT’s transition to managing for results under the Government Performance and Results Act (GPRA) of 1993. DOT’s Operating Administrations (OAs) identified goals to reach planned results, resources needed to accomplish the goals, and measures to gauge progress towards achieving them.

DOT’s Performance and Accountability Report links programs to strategic performance areas, such that major program activities are traceable to a performance outcome and goal.

In addition to providing leadership to improve the Nation’s transportation system, a key focus of DOT’s time and resources in FY 2002 was the successful establishment of the Transportation Security Administration (TSA) following the events of September 11, 2001.

The DOT met all legislative requirements of the Aviation and Transportation Security Act (P.L. 107-71) including deploying Federal personnel by

November 19, 2002 and having all checked passenger bags screened by December 31, 2002. The U.S. Coast Guard provided security in the Nation’s ports and waterways. DOT continues to provide leadership to meet the criteria in the Presidential Management Agenda while helping to enhance safety and security for the Nation. The five highlighted areas in the Presidential Management Agenda are as follows.

Presidential Management Agenda Highlights

Strategic Management of Human Capital

DOT developed a Human Capital Plan that will strategically guide our human capital planning efforts through FY 2005.

The Department is implementing policies to recruit, develop, and retain the diverse talent needed now and in the future to perform our mission and achieve DOT’s strategic goals.

DOT worked on succession plans to maintain required levels of experience, competencies, and institutional knowledge in the Department’s civilian, military, and contract workforce to prepare for an impending wave of retirements.

Competitive Sourcing

DOT’s 2001 FAIR Act inventory identified over 12,000 FTE performing commercial activities available for competition. In 2002, DOT planned that 20 percent of all service contract dollars be performance-based.

Improved Financial Performance

For FY 2001 and FY 2002, DOT received an unqualified opinion on all of the financial statements required by OMB.

To streamline and modernize financial services, DOT is automating electronic transmission of data and information for internal processes (i.e., employee travel, internet payments, salary payments, procurement), and external processes (i.e., payments to grantees and vendors, etc.).

DOT is utilizing more web-enabled technology to improve the Department’s financial systems.

As a part of implementing its new financial management system, Delphi, DOT is adopting a document imaging system that integrates scanned images of financial documents with accounting records.

Expanded Electronic Government

The Docket Management System (DMS) is an example of DOT’s e-government initiative. The DMS is an electronic, image-based database designed to store and display, via the Internet, all DOT docketed information (a docket is an official public record) for easy research and retrieval. DMS also allows businesses and citizens to submit comments to DOT’s dockets electronically.

DOT provides on-line information about proposed and final regulations, information on adjudicatory actions, and public comments on proposed rules. The Dockets Office reviews all documents to make sure they meet filing requirements, registers the document into the DMS, scans and electronically saves hard copy documents received, and performs quality assurance. It saves the government over $1.3 million annually in space and personnel costs alone.

Another example of DOT’s e-government initiative is the “Do-It-Yourself” (DIY) website. It provides customers the option of doing business with DOT 24 hours a day through the Internet. Virtually every function requiring payment from the public will be available on the Internet, from paying fees to applying for registrations and licenses. In FY 2002, DIY processed 38,719 payment transactions, totaling $78.5 million. This was a significant increase from FY 2001, where 18,846 transactions that totaled $ 6.1 million were collected using DIY.

DOT’s Intranet Website is a third example of an e-government initiative. A Department-wide DOTnet website provides employees with the ability to post documents on the web, add latest information to bulletin boards, manage a central calendar for events, and provide frequently used links.

Integrating Performance and Budget

Managerial cost accounting provides opportunities for agencies to make business process improvements by linking agency outputs to strategic performance objectives. It helps integrate performance and budget, justify budget requests and have accountability in its financial management system. Managerial cost accounting can monitor an agency’s cost patterns, identify drivers of those costs, manage indirect costs, track labor, as well as forecast critical costs for the agency.

At the Federal Aviation Administration (FAA), detailed cost accounting system (CAS) requirements were developed and implemented for the Air Traffic Services (ATS) line of business to assign the full cost of providing en route and oceanic services for FY 1998 and FY 1999. At the beginning of FY 2000, CAS was implemented for Flight Services, and enhancements to the capabilities provided for En Route and Oceanic Services were implemented. In 2001, FAA also enhanced the system to provide costing of Terminal Services.

US Department of Transportation
President’s Management Agenda Scorecard

KEY TO FY 2002 STATUS:

The “status” column measures where DOT is in satisfying the initiative. Agencies receive a green rating by reaching the required score. Agencies must maintain scores between evaluations to maintain a green.

l Indicates that the agency has met all of OMB’s core criteria for the initiative.

p Indicates achievement of some but not all of OMB’s core criteria for the initiative and that the agency has no “red” conditions.

ž Indicates that at least one of the conditions identified by OMB for that initiative is in need of correction.

The “progress” column measures the rate at which DOT are moving toward green. Agencies get a green rating when implementation is advancing according to plan.

INITIATIVE

FY 2002

STATUS

PROGRESS

HOW DOT IS MEETING PMA CHALLENGES

Human Capital: Develop a DOT-wide human capital workforce strategy to address future workforce gaps, eliminate skill gaps in critical occupations, develop performance-based incentives for the workforce, remove unneeded management layers, and develop the right mix of skills in the workforce that reflect the new emphasis on

E-Government and Competitive Sourcing.

Human Capital Plan: In FY 2002, DOT developed a Human Capital Plan that will strategically guide our human capital planning efforts through FY 2005. This Plan is fully aligned with the President’s Management Agenda and the Standards for Success developed by the Office of Management and Budget, Office of Personnel Management, and the General Accounting Office that are strategic alignment, workforce planning and deployment, leadership and knowledge management, performance culture, talent, and accountability. DOT’s Human Capital Plan includes specific HR initiatives that will help the Department recruit, develop, and retain the diverse talent needed now and in the future to perform our mission and achieve our strategic goals. It encompasses strategies from the Departmental Strategic Plan and the Human Resources Strategic Plan. During FY 2002, DOT continued implementing workforce planning throughout the operating administrations and will continue into FY 2003, as outlined in DOT’s Human Capital Plan. As the OAs work through the workforce planning process in FY 2003 for mission critical occupations, they will gear their efforts toward creating a citizen-centered organization, using e-government and competitive sourcing, as appropriate solutions to our human capital challenges.

INITIATIVE

FY 2002

STATUS

PROGRESS

HOW DOT IS MEETING PMA CHALLENGES

Competitive Sourcing: Each department must submit a Strategic Competition Plan and compete “commercial reimbursable support services” on a recurring basis.

Strategic Competition Plan:

Improved Financial Management: Develop financial management systems capable of producing more timely and accurate information, maintain a record of unqualified opinions on our financial statements, continue to improve accounting control over property, and develop full cost accounting capability.

Delphi: In June 2002, DOT converted FTA and NHTSA from our outdated legacy accounting system to Delphi, a new Web-enabled financial system based on Oracle Financials. Delphi uses the Standard General Ledger and has a consistent Accounting Classification Structure for all DOT Operating Administrations (OA), has extensive standard, custom-developed, and ad-hoc reporting capabilities, and is significantly improving the quality and timeliness of DOT’s financial statements and reports. DOT organizations are using Delphi, except for FHWA, FAA, MARAD, and FMCSA that will complete their conversions to Delphi in 2003.

Unqualified Audit Opinion: After extensive hard work, DOT has received an unqualified audit opinion from the Inspector General on our financial statements for FY 2002. DOT is continuing to work to improve financial management further to ensure that we maintain a clean opinion in the future.

Assets Accounting and Property Management System: As part of the overall plans to improve property management, DOT has launched a project to improve asset accounting practices. To accomplish this, TSA has been through an audit to work with the issues concerning property management. The Coast Guard successfully completed implementation of a commercial-off-the-shelf (COTS) asset accounting and property management system, Oracle Financials – Fixed Assets Module.

INITIATIVE

FY 2002

STATUS

PROGRESS

HOW DOT IS MEETING PMA CHALLENGES

E-Government: Better justify and track costs and performance of information technology projects, as well as participate in government-wide initiatives that automate how the public deals with the government, such as the FirstGov.gov initiative, electronic grants, standardization of data, and customer relationship management.

Electronic Grants: DOT has formalized its grants management policy, which provides guidance to grant program officials on implementing the various OMB grants management circulars and DOT-issued common rules for electronic grants.

Capital Planning: DOT implemented an IT Capital Planning policy and is now fully integrating this process with the budget cycle. DOT held its initial Departmental Investment Review Board, and identified areas to consolidate redundant IT projects. Additionally, DOT submitted over 80 business cases as compared to just over 20 for the FY2003 budget. DOT will continue process improvements through a year-long project manager and capital planning curriculum.

IT Security: DOT has decreased GISRA weaknesses by over 40 percent, and has a plan of action to continue this progress in FY 2003. DOT increased the number of systems certified/accredited, and implemented a program to conduct weekly vulnerability scanning of all public facing and eGovernment web servers. To date, DOT has increased over 100 percent of systems scanned, decreased vulnerabilities by over 90 percent, and over $1.2M by using an enterprise-wide software license. DOT has implemented a Department-wide 24X7 Transportation Cyber Incident Response Center, in conjunction with other Federal Agencies, to leverage the economies of scale.

Enterprise Architecture: DOT has completed the "As Is" architecture for crosscutting business processes and will define the "To Be" architecture for the DOT common IT infrastructure by the end of March. DOT Operating Administrations plan to complete EAs for their unique business areas by the end of FY2003.

Government-wide Initiatives: DOT is an active partner in many of the government wide initiatives, including e-payroll, e-travel, e-learning, and rulemaking. In addition to the government wide initiatives, we have implemented DOT initiatives to expand services and information available to the public through such initiatives and TranStats and the St. Lawrence Seaway binational website partnership with the Canadian government.

INITIATIVE

FY 2002

STATUS

PROGRESS

HOW DOT IS MEETING PMA CHALLENGES

Budget/Performance Integration: Better integrate budget and performance functions by integrating respective staff work; developing plans and budget with outcome goals, output targets and resources requested in the context of past results; charging full budgetary costs of programs; and documenting program effectiveness.

DOT Performance Plan and Reports. DOT’s Performance Plans and Reports have consistently garnered a high standing from George Mason University’s Mercatus Center, and the General Accounting Office. The DOT FY 2003 Performance Plan/FY 2001 Performance Report gained Mercatus’ top rating last year. DOT’s Strategic Plans likewise have consistently been rated as the best in government.

Cost Accounting System (CAS): In 2001, FAA enhanced the CAS to provide for costing of Terminal Services, thus completing the implementation of all four Air Traffic Services. The CAS has also been used to produce the agency’s Statement of Net Cost since 1998. In 2002, FAA added six organizations to CAS, now capturing 76 percent of agency costs by product or service. To improve the accuracy of labor costs in the CAS, a sub-set of agency employees began tracking their time by project and activity in the Labor and Distribution Reporting (LDR) system. This will be expanded in the coming year. Since 1999, FAA had used the CAS to produce their annual Statement of Net Cost. In 2003, all FAA line of business employees will begin tracking their annual Statement of Net Cost. In 2003, all FAA line of business employees will begin tracking their time in LDR and the existing CAS and LDR systems will be converted to be compliant with the new Delphi system. FAA will complete its CAS implementation in the remaining lines of business in FY 2004.

The Bureau of Transportation Statistics (BTS) developed a method to monitor activities by tracking non-labor spending to the project level using new accounting codes, a first step toward BTS’ cost accounting.

Tracking Operations and Labor Costs: The Volpe National Transportation Systems Center, part of RSPA, tracks key fiscal trends, such as obligations, labor, and acquisitions on a regular basis. Volpe prints a pocket size summary brochure that is used in management meetings to review the financial status of the agency. Volpe’s staff members are able to assess their operation costs, and compare their labor and overhead costs from the past to the current fiscal year.

Federal Highway Administration (FHWA)

FHWA provides grants to States to help plan, build, maintain, and manage the Nation’s highway system and bridges. It also performs research and development of highway and trucking related issues; manages the Intelligent Transportation System (ITS) program; and operates the direct Federal highway construction program for Federal lands.

Highway Trust Fund

A majority of FHWA programs and projects are authorized by the Transportation Equity Act for the 21st Century (TEA-21) and receive funds from the Highway Trust Fund (HTF).

FHWA programs are primarily “user funded” programs, supported by the Federal gasoline/diesel tax and taxes on other motor vehicle-related products (e.g., tires, trucks, trailers), and truck use taxes. The tax collections are deposited into the HTF and dedicated to financing Highway and Transit programs. About 14 percent of the HTF revenue was dedicated to Federal transit programs in FY 2001 and FY 2002. FHWA obligations for the HTF totaled $39.7 billion at the end of FY 2002. The cash balance in the HTF at the end of FY 2002 was about $22 billion.

Transportation Infrastructure Finance And Innovation Act

FHWA has innovative financing initiatives such as the Transportation Infrastructure Finance and Innovation Act (TIFIA) to support financial investments in transportation. Since the creation of TIFIA, DOT has selected 11 projects to benefit from TIFIA at a budgetary cost of $202 million to the Federal Government and provided $37 billion in credit assistance supporting transportation investments.

Federal Aid and State Grants

Federal-aid highway funding accounts for the majority of FHWA’s budget authority. It provides for construction and preservation of the approximately 46,700 mile Dwight D. Eisenhower National System of Interstate and Defense Highways, generally financed on a 90 percent Federal to 10 percent State basis. It also provides for improvements on approximately 900,000 miles of other Federal-aid arterial and collector routes, with financing generally on a 80 percent Federal to 20 percent State basis.

Federal Aviation Administration (FAA)

The FAA is charged with providing a safe, secure, and efficient aviation system that contributes to national security. FAA establishes and enforces regulations and conducts oversight inspections of the civil aviation industry. The Agency operates and maintains the complex air traffic control system and the facilities and equipment that support it. Air traffic controllers supervise more than half of the world’s air traffic each day – 5,000 aircraft at any given moment and close to 7 million commercial, military, and general aviation aircraft each year. The 51,000-person, $14 billion administration also conducts research to improve safety and efficiency, and assists in the development of a nationwide system of more than 5,000 public use airports in the United States. The FAA also regulates and licenses U.S. commercial space transportation activities.

Cost Accounting System (CAS)

FAA is continuing with the development and implementation of a cost accounting system, and is developing an Interim Fixed Asset System (IFAS). FAA's cost accounting system captures investments, operating and overhead costs, revenues, and other financial measurement and reporting aspects of operations. The CAS is also used to determine the cost of Air Traffic Services and supports the calculation of overflight user fees. IFAS will receive data electronically from various property systems, further enhancing the integration of DOT's financial systems. IFAS will compute the depreciation for FAA's owned assets that meet the Department's capitalization criteria. Finally, as the Operating Administrations of the Department continue to migrate to Delphi, they will have enhanced cost accounting capabilities based on the best practices of the private sector.

Federal Transit Administration (FTA)

Public transit provides access to school, work, and community services and activities for millions of Americans. Over 95 billion trips were taken on public transit in FY 2001. FTA provides financial assistance to develop new transit systems, and to improve, maintain, and operate existing systems. Funds are provided through legislative formulas or discretionary authority. In 2002, FTA provided funding to over 600 public transit operators in 417 urbanized areas, 1,300 transit systems serving rural areas, and 4,000 agencies that provide transit service to elderly and disabled individuals. These systems operate 154,244 total transit vehicles, 10,572 miles of rail track, 2,825 rail stations, and 1,269 maintenance facilities nationwide.

New Starts

TEA-21 authorized $6.1 billion n guaranteed funding for the New Starts program through FY 2003. An additional, $3.4 billion in "contingent" or "bridge" authority was authorized, increasing the total to $9.5 billion.

Projects eligible for FTA New Starts funding include an extension of an existing or new fixed guideway system which utilizes and occupies a separate right-of-way, or rail line, for the exclusive use of mass transportation and other high occupancy vehicles, or uses a fixed catenary system and a right of way usable by other forms of transportation. This includes, but is not limited to, rapid rail, light rail, commuter rail, automated guideway transit, people movers, and exclusive facilities for buses (such as bus rapid transit) and other high occupancy vehicles.

United States Coast Guard

(USCG)

The United States Coast Guard is a military, multi-missioned maritime service and one of the Nation’s five Armed Services. Its mission is to protect the public, the environment, and U.S. economic interests in the Nation’s ports and waterways, along the Nation’s coastline, on international waters, and in any maritime region as required to support national security. The Coast Guard established a new level of maritime security operations around our Nation and beyond its borders while enhancing DOT’s capabilities in maritime safety, mobility, and environmental protection.

Assets Accounting and Property Management System

The Coast Guard successfully completed implementation of a commercial off-the-shelf (COTS) asset accounting and property management system, Oracle Financials – Fixed Assets Module.

Property custodians now have more detailed information available on the location, value, status, and condition of the property under their control. Procedures have been established for performing ongoing physical inventories of capital assets for validation with system records.

By closely working with program managers and utilizing application extensions, the Coast Guard was able to implement its Oracle Fixed Assets Module in less than one year and replace several non-integrated asset systems with it.

Transportation Security Administration (TSA)

Created in FY 2002, TSA protects the Nation’s transportation systems to ensure freedom of movement for people and commerce. TSA provides aviation security and coordinates security policy for the Nation’s railway, highway, pipeline, and waterway systems. TSA is supported by a combination of general funds and user fees.

Financial Statements Module

As a part of implementing the Delphi system, TSA is adopting a document imaging system that integrates scanned images of financial documents with financial records in Delphi and makes the document images easily and quickly accessible over the Web. The TSA Financial Statements Module (FSM) automates the preparation of an Adjusted Trial Balance Report with an accompanying Audit Transaction Report. The FSM provides an efficient means of preparing financial statements that ensures the accuracy and integrity of data. The FSM currently consolidates data from Delphi, and prepares the Consolidated Financial Statements.

Federal Railroad Administration (FRA)

FRA was created in 1966, to promote and enforce safety throughout the U.S. railroad system, rehabilitate the Northeast Corridor rail passenger services, consolidate Federal support for rail transportation, and support research and development. FRA also educates the public on dangers associated with railroading and encourages cooperative efforts to advance safety throughout America’s rail system. A rail system that in FY 2002 included over 659 different railroads, ranging from major freight railroads and Amtrak’s Northeast Corridor to historic railroads of one mile to two miles in length.

Railroad Rehabilitation and Improvement Financing (RRIF)

RRIF loans help maintain and improve railroads. FRA provides direct loans or loan guarantees for the acquisition, development, improvement or rehabilitation of existing or new intermodal or rail equipment facilities. Eligible borrowers include railroads, State and local governments and government sponsored authorities. A $2.07 million 25-year direct loan was awarded to the Mount Hood Railroad, a short line railroad based in northwest Oregon. Mount Hood Railroad operates a 22-mile line extending from the City of Hood River on the Columbia River to Parkdale, Oregon. The Mount Hood Railroad provides both freight and scenic passenger services. The Oregon Department of Transportation supported Mt. Hood’s RRIF application by paying the credit rule premium. As a result of the loan, a greater partnership now exists between DOT, the FRA, and the Oregon Department of Transportation that benefits the State’s short line industry and the rail customers.

National Highway Traffic Safety Administration (NHTSA)

NHTSA traffic safety programs encompass a range of strategies to reduce the number of crashes and their consequences. These programs include highway safety research, demonstrations of new technologies and techniques, and outreach efforts, particularly focusing on multi-cultural education programs and high-risk groups.

Incentive Grants Against Drunk Driving

At the National Highway Transportation Safety Administration (NHTSA), program cost effectiveness is a foremost consideration in all of the activities. NHTSA’s programs are designed specifically to intensify efforts in behavioral and vehicular safety initiatives.

The Transportation Equity Act for the 21st Century (TEA-21) authorized $500 million, over a six-year period, for incentive grants to encourage States to increase safety belt use rates. In 2001, safety belt use saved over 12,000 lives. However, about 25 percent of Americans still do not use safety belts when driving or riding in motor vehicles. For each percentage point increase in safety belt use, 2.8 million more people buckle up, saving approximately 265 additional lives and preventing over 6,400 additional injuries each year. Eighteen states, the District of Columbia, and Puerto Rico now have primary safety belt laws. In June 2002, the average safety belt use rate in States with primary enforcement laws was 11 percentage points higher than in States without primary enforcement laws. (Safety belt use was 80 percent in primary law States versus 69 percent in States without primary enforcement.)

TEA-21 also authorized $219.5 million, over a six-year period for NHTSA, to continue the Section 410 alcohol-impaired driving countermeasures incentive grant program. To qualify for this grant, States must either demonstrate that they have in place certain laws or programs, such as administrative license revocation laws and graduated licensing programs, or meet certain performance criteria based on their alcohol-related fatality rates. States use Section 410 grant funds to implement and enforce alcohol-impaired driving countermeasures.

Federal Motor Carrier Safety Administration (FMCSA)

The Federal Motor Carrier Safety Administration’s (FMCSA) primary mission is to prevent commercial motor vehicle-related fatalities and injuries. FMCSA activities contribute to ensuring safety in motor carrier operations through strong enforcement of safety regulations, targeting high-risk carriers and commercial motor vehicle drivers; improving safety information systems and commercial motor vehicle technologies; strengthening commercial motor vehicle equipment and operating standards; and increasing safety awareness.

FMCSA and State authorities completed 10,271 compliance reviews in 2002. In addition, 30,893 motor carriers were reached through security sensitivity visits. FMCSA initiated 3,791 enforcement actions in 2002 for claims totaling more than $21 million (an average of $5,554 per claim), issued 182 out-of-service orders, and 677 orders to cease operations.

Border Program Funds

FMCSA obligated $62.5 million in grant and operations funding to ensure safety and security activities in conjunction with opening the U.S.-Mexico border to Mexican commercial vehicles. This included deploying additional inspectors along the U.S.-Mexico border and additional safety investigators to evaluate Mexican carriers’ safety.

HAZMAT Funds

In response to the events of 9/11, FMCSA obligated $19.5 million to complete over 30,890 security sensitivity visits aimed at educating carriers on appropriate HAZMAT security processes and procedures.

Commercial Drivers License Funds

In FY 2002, FMCSA obligated $8 million for research, training, and implementation of commercial drivers license (CDL) fraud detection and prevention techniques.

MARAD is the Federal Government’s link to the U.S. and international maritime industry. MARAD provides education and training of merchant mariner officers at the U.S. Merchant Marine Academy and six State Maritime Schools; manages the Ready Reserve Force within the national Defense Reserve Fleet (NDRF); supports the shipbuilding and repair industry; disposes of obsolete vessels In the NDRF; undertakes emergency planning and coordination; promotes port and intermodal development; and administers maritime war risk insurance.

Implementation of Port Security Electronic Grants System

In February 2002, MARAD, in partnership with TSA and USCG, implemented the first all electronic grants system to award competitive Port Security Grants (P.L. 107-117) with $92.3 million in emergency funding. A total of 850 project applications for Port Security Grants were submitted on-line in response to the announcement, resulting in a total award of 78 Port Security Grants in a record time of 4 months. Electronic grant administration is ongoing.

Fair and Reasonable Guideline Rates

A total of 239 fair and reasonable guideline rate determinations were made during the fiscal year, covering 3.2 million metric tons of food aid cargoes.

Office of the Secretary

(OST)

The Office of the Secretary (OST) provides policy development and central supervisory and coordinated functions necessary for overall planning and direction of the Department. OST’s budget supports salaries and expenses, planning, research and development, and supports the Office of Civil Rights and the Minority Business Resource Center.

Electronic Grants

DOT has formalized the grants management policy, which provides guidance to grant program officials on implementing the various OMB grants management circulars and DOT-issued common rules. Program-specific regulations, guidance, and award conditions make reference to the various departmental grant-related rules. Most grant programs require the standard OMB grant application and reporting form, or have requirements that are substantially reduced from the standards.

The Department continues to play a major role in the development of government-wide standards and requirements. Departmental staff members were instrumental in establishing the Inter-Agency Electronic Grants Committee (IAEGC), leading the Government-wide Grants Network, and providing key leadership positions in the Federal Grants Streamlining Program that implements Public Law 106-107, the Federal Financial Assistance Management Improvement Act of 1999. The Department was a major participant in the development of grant financial system standards by the Joint Financial Management Improvement Program (JFMIP).

DOT Building Security

Immediately following the events of September 11, 2001, OST organized to provide priority services and around-the-clock duty personnel in support of exceptional departmental requirements, particularly in support of the Office of the Secretary, the FAA, and later the Transportation Security Administration. This effort included the installation of additional emergency telecom and local area network capacity for more than 1,000 users at the GSA and Nassif Buildings. A state-of-the-art Voice Over Internet Protocol network was also established to serve more than 1,000 users in five different building locations.

Research and Special Programs Administration (RSPA)

RSPA programs make America’s transportation systems more integrated, effective, and secure by conducting and fostering crosscutting research and special programs to enhance the quality of life, safety, the environment, and the well-being of all Americans. RSPA’s mission can be broken down into three major programs: the pipeline and HAZMAT transportation safety, research and technology, and emergency preparedness.

Tracking Operations and Labor Costs

The Volpe National Transportation Systems Center, part of RSPA, is an innovative, fee-for-service organization for transportation and logistics expertise, providing customers with policy support and strategic planning and analysis. Volpe tracks key fiscal trends, such as obligations, labor, and acquisitions on a regular basis. Volpe prints a pocket size summary brochure that is used in management meetings to review the financial status of the agency. Volpe’s staff members are able to assess their operation costs, and compare their labor and overhead costs from the past to the current fiscal year. Volpe is also able to track their labor and operations costs by the various OAs, and other Departments (e.g., DOD, DOE, EPA) to whom they provide services.

Office Of Inspector General

(OIG)

The Inspector General Act of 1978, as amended (Inspector General Act, P.L. 95-452), established the OIG as an independent and objective organization within DOT with responsibility for (1) conducting and supervising objective audits and investigations of DOT’s programs and operations, (2) promoting economy, effectiveness, and efficiency within DOT, and (3) preventing and detecting, fraud, waste, and abuse in the Department’s programs. The OIG is charged with keeping the Secretary of Transportation and the Congress fully informed about problems in departmental programs and operations and making recommendations for improvements. OIG also has significant responsibilities under the Chief Financial Officers Act, the Government Management Reform Act, and the Government Information Security Reform Act (GISRA), as well as the Government Performance and Results Act (GPRA). OIG will fulfill these responsibilities by overseeing required audits of DOT’s financial statements, assessing the adequacy of internal control systems, and identifying opportunities to achieve financial benefits and improve program performance.

OIG Audits

The Department of Transportation is required to prepare audited financial statements. In FY 2001 and FY 2002, DOT received an unqualified opinion on its financial statements, indicating that DOT’s resources are properly accounted for, its financial condition fairly reported, and that steps have been taken to ensure that DOT can sustain those results in the future.

The DOT OIG also conducts performance audits of DOT programs. These performance audits examine performance and management of DOT programs with the intent to improve program operations, decision-making, and public accountability.

The OIG plan for selecting grantees for quality control reviews assures each grantee for which DOT has audit cognizance will receive at least one quality control review within a 5-year period. Other grantees selected for review were determined based on both risk and the dollar value of transportation expenditures and major program dollars.

Bureau of Transportation Statistics (BTS)

BTS’ mission is to lead in developing transportation data and information of high quality, and to advance their effective use in both public and private transportation decision making.

Government Transportation Financial Statistics Report

BTS updated and provided quality control to numerous DOT publications, particularly to data and information in the Government Transportation Financial Statistics Report.

Cost Accounting

BTS developed a method to monitor activities by tracking non-labor spending to the project level using new accounting codes, one of the initial steps toward cost accounting in this Operating Administration. In September 2002, BTS also implemented a Labor Distribution Reporting (LDR) system. BTS formed a working group within DOT to guide the project and is planning to collaborate with the Federal Aviation Administration and their LDR system.

Surface Transportation Board

(STB)

The STB was established on January 1, 1996, by the Interstate Commerce Commission Termination Act of 1995 (ICCTA). The ICCTA eliminated the Interstate Commerce Commission (ICC) and transferred certain functions formerly performed by the ICC to the STB. The STB is a three-member, bipartisan body with jurisdiction over certain regulatory matters. The mission of the STB is to promote substantive and procedural regulatory reform in the economic regulation of surface transportation, and to provide a forum for dispute resolution and facilitation of appropriate business transactions.

The STB’s funding included an appropriation of $18.448 million, of which $0.95 million was provided from the collection of user fees that are credited to the appropriation as offsetting collections on a dollar-for-dollar basis. The STB annually updates and revises its user fee schedule of 114 different fee-related activities.

Saint Lawrence Seaway Development Corporation (SLSDC)

The U.S. Saint Lawrence Seaway Development Corporation (SLSDC), a wholly owned government corporation and an operating administration of the U.S. Department of Transportation (DOT), is responsible for the operations and maintenance of the U.S. portion of the St. Lawrence Seaway between Montreal and Lake Erie. This responsibility includes maintaining and operating the two U.S. Seaway locks located in Massena, N.Y., and vessel traffic control in areas of the St. Lawrence River and Lake Ontario. In addition, the SLSDC performs trade development functions designed to enhance Great Lakes St. Lawrence Seaway System utilization. Maritime commerce on the Great Lakes Seaway System annually generates more than 150,000 U.S. jobs, $4.3 billion in personal income, $3.4 billion in transportation-related business revenue, and $1.3 billion in Federal, State, and local taxes. The SLSDC coordinates its activities with its Canadian counterpart, The St. Lawrence Seaway Management Corporation (SLSMC), particularly with respect to environmental programs, operating dates, and trade development programs. The unique binational nature of the Seaway System requires 24-hour, year-round coordination between the two Seaway entities.

The SLSDC has joined with its Canadian counterpart, the St. Lawrence Seaway Management Corporation, as well as the U.S. and Canadian Coast Guards, to institute a joint boarding program for the foreign vessels that use the Seaway. In FY 2002, the SLSDC continued this program by inspecting 100 percent of all ocean vessels in Montreal. This improved inspection regime has saved vessels, on average, four hours per transit and ensured that any safety or environmental issues are addressed prior to entering U.S. waters. As a result, delays were reduced and ocean carriers using the Seaway saved more than $500,000 in operating costs during FY 2002.

Our 2002 Results: A Reader’s Guide

For each strategic and organizational goal, we present performance goals and measures in the FY 2002 Performance and Accountability Report, along with our performance against them. For each performance goal we provide:

▪ a description of the challenge we face – the reason for action;

▪ the measure or measures we are using to judge success, and the FY 1999-2002 targets for each;

▪ a discussion of other agencies who share in our efforts, or whose outcome goals we contribute to;

▪ the external factors that may present special challenges in achieving our goal;

▪ special management challenges (when related to the goal); and

▪ a performance forecast for FY 2003.

To present information meaningfully, we have relied on these general rules about data and data interpretation in preparing this report:

The Relationship between DOT’s Activities and Observed Results: The relationship between resources and results can be complex, and a mix of current and prior-year resources and activity almost always influences any performance result. For example, direct service program results, such as Coast Guard drug and migrant interdiction, are influenced both by external forces and prior-year acquisition activities. Other results, such as highway congestion or transit ridership, are predominately influenced by prior-year funding.

Fiscal Year versus Calendar Year: Most DOT results are reported on a fiscal year basis, but some are reported on a calendar year basis. We have been careful to note the calendar or fiscal year basis of result and trend measurement. Either is a satisfactory basis for measuring DOT’s annual performance.

Summary Performance Report: To help interpret single year results and historical trends, we have provided a tabular summary of long-term performance at the beginning of each strategic goal section. We also have provided a table to report final FY 2001 performance information for performance measures that had projected or preliminary performance data in last year’s report.

Data Completeness

An exhaustive assessment of the completeness and reliability of our performance data and detailed information on the source, scope and limitations for the performance data in this report are provided at http://www.dot.gov. In that website, we also provide information to resolve the inadequacies that exist in our performance data.

Preliminary vs. Final Results: Reporting FY 2002 results by February 2003 has been challenging where we rely on third party reporting. Often we have only preliminary or estimated results based on partial-year data and must wait for final data to properly verify and validate our results. In some cases where data is provided solely as an annual value and is not available in time for this report, we rely on historical trend information and program expertise to generate a projected result. We have been careful to point out where we have assessed our performance on a preliminary or projected basis. Preliminary estimates or projected results will be adjusted after final compilation or verification and validation. In all cases where results have changed from last year’s report, we indicate that by placing an “(r)” with the number, indicating a revision.

Single Year Results vs. Historical Trends: Federal and State programs rarely aim to influence simple things. We tackle complex national problems such as safety, pollution, and congestion. Sometimes we see progress overwhelmed by external factors, such as economic growth (or recession), market shifts, or extreme weather, and sometimes we get a “helping hand” from those same factors. Always there is natural fluctuation year to year.

DOT sets annual performance targets for the outcomes it aims to influence. Targets set a mark so we can judge our progress. They also force us to think hard about what we can – and can’t – do to get results. In this report, we focus on single-year results for FY 2002. There is no simple formula that ties the results in one year to the success or failure of programs. DOT’s FY 2002 Performance and Accountability Report invites the reader to “look over our shoulder” as we improve transportation and make Americans’ quality of life better.

Integrating FY 2002 Resource Expenditure Accounting With Achievement of Our Goals

A fundamental strength of DOT programs is that our activities affect multiple goal areas. By design, a dollar spent on transportation infrastructure can not only advance mobility, but safety, homeland and national security, economic growth, and the mitigation of harmful environmental impacts. We strive for clearer linkages between expenditures and performance.

DOT Contributions to Common Governmental Outcomes

DOT’s performance is aligned with its legislative mandates, but in some cases there are no “bright lines” separating DOT from other agencies. For instance, in DOT’s National Security Strategic goal, we make very important contributions in accordance with our mandates and appropriations, but we do so alongside the Departments as Defense, State, Justice, Commerce, and Energy. Similarly, other agencies make significant contributions to the Nation’s transportation system.

Management Challenges

The DOT Inspector General and the General Accounting Office publish reports describing a number of problems and challenges facing the Department. We take these issues seriously, and have folded our approach to meeting these challenges into our general efforts to achieve good performance outcomes. Where there is a DOT performance goal associated with a management challenge, we discuss the challenge as a part of our performance against that goal, and made it stand out visually by use of a text box. We also indicate where a Management Challenge relates to more than one performance goal.

SAFETY

STRATEGIC OBJECTIVE: Promote the public health and safety by working toward the elimination of transportation-related deaths and injuries.

Strategic Outcomes:

▪ Reduce the number of transportation-related deaths.

▪ Reduce transportation-related injuries.

Safety is our most important strategic objective. We strive to improve the benefits of transportation while constantly reducing the risk to their health and well being. In FY 2002, DOT safety programs continued to reduce transportation-related fatalities and injuries.

Performance Summary:

	1996	1997	1998	1999	2000	2001	2002	2002 Target	Met	Not Met
Highway fatalities/100 million vehicle-miles traveled (VMT)	1.69	1.64	1.58	1.55	1.53	1.51	1.50*	1.4		ü

Fatalities involving large trucks	5,142	5,398	5,395	5,380	5,282(r)	5,082(r)	4,984*	4,710		ü

Fatalities involving large trucks per 100 million commercial VMT	2.8	2.8	2.7	2.7	2.6(r)	2.45	2.4*	2.2		ü

U.S. commercial fatal aviation accidents/100,000 departures (Last 3 years’ average)	0.051	0.057(r)	0.046	0.051	0.037	0.037	0.026*	0.038	ü

Fatal general aviation accidents	382	378	396	364	341	359(r)	346*	379	ü

Percent of all mariners in imminent danger rescued	84	84	84	87.5	82.7	84.2	84.4	85		ü

Train-accidents/million train-miles	3.64	3.54	3.77	3.89	4.13	4.22(r)	3.56	4.00	ü

Grade crossing accidents divided by the product of million train-miles and trillion VMT	2.57	2.27	1.98	1.83	1.76(r)	1.64(r)	1.54	1.39		ü

Transit fatalities/100 million passenger-miles traveled	0.520	0.545	0.564	0.530	0.499(r)	0.480(r)	0.487*	0.492	ü

Number of excavation damages to natural gas and hazardous liquid pipelines.	122	99	129	100	119	121	75*	111	ü

Serious hazardous materials incidents in transportation	466	486	456	540(r)	565(r)	515(r)	189*	523	ü

FY 2001 Final DOT Performance Report

	1995	1996	1997	1998	1999	2000	2001	2001 Target	Met	Not Met
Highway injured persons/100 million VMT	143	140	131	121	120	116	109(r)	113	ü
Injured persons involving large trucks (in thousands)	117	129	131	127	142	140	131(r)	122		ü
Percent highway fatalities alcohol-related	41	41	39	39	38	40	41	34		ü
Operational errors/100,000 activities	0.52	0.51	0.49	0.56	0.57	0.68	0.73	0.5		ü
Runway incursions	227	268	301	311	330	405	407	243		ü
Recreational boating fatalities	888	770	857	864	778	742	722(r)	749	ü
Rail-related fatalities/million train-miles	1.71	1.55	1.57	1.48	1.31	1.30	1.36	1.23		ü
Natural gas transmission pipeline failures	4,767	4,964	4,871	4,160	4,467	2,750	2,831(r)	4,375	ü

* Preliminary estimate

Highway Safety: Highway crashes cause 95 percent of all transportation-related fatalities and 99 percent of transportation injuries, and are the leading cause of death for people ages 4 through 33. About 70 million people (25 percent) still do not use safety belts when driving or riding in motor vehicles. Alcohol is the single biggest contributing factor to fatal crashes – over 17,000 annually. About 12 percent of all people killed in motor vehicle incidents are involved in a crash with a large truck, yet trucks represent only 4 percent of registered vehicles and about 7 percent of the vehicle-miles of travel. Highway crashes place a considerable burden on our health care system – reaching $230.6 billion a year, or an average of $820 for every person living in the United States.

Performance measures:

Fatalities per 100 million vehicle-miles of travel (VMT).

1999 2000 2001 2002

Target: 1.6 1.5 1.5 1.4

Actual: 1.6 1.5 1.5 1.5#

Number and rate (per 100 million commercial VMT) of fatalities in crashes involving large trucks.

1999 2000 2001 2002

Target:

Number: N/A 4,934 4,830 4,710

Rate: N/A N/A N/A 2.2

Actual:

Number: 5,380 5,282(r) 5,082(r) 4,984#

Rate: 2.7 2.6(r) 2.45 2.4#

(r) Revised; # Preliminary estimate.

Note on data: Traffic fatalities are based on States’ monthly fatality counts for the first half of FY 2002 and are then annualized through an estimating process. Performance targets and results for 1999 through 2001 are on a calendar year basis, which are not materially different from FY 2002 targets and estimated results.

2002 Results: DOT did not meet the highway fatality rate target, and did not meet the truck-related fatality and fatality rate targets. Traffic fatalities totaled an estimated 42,605 in 2002, up from 42,116 in 2001. However, DOT has made substantial progress in reducing the traffic fatality rate per 100 million vehicle miles from 3.3 in 1980 to 1.5 in 2002.

NHTSA: Passenger vehicle occupant fatality rates are declining for all types of vehicles, despite a significantly rising number of vehicles being driven more miles. Fatalities among children ages 0-4 and 5-15 are decreasing. Although non-occupant injuries have been declining, non-occupant fatalities have been increasing lately, for the first time since 1995. In addition, alcohol-related fatalities and motorcycle fatalities increased.

Safety belts - The safety belt use rate is one of DOT’s highest priority safety programs. Belt use in 2002 reached 75 percent, which is the highest rate yet observed and continues a relatively steady pattern of increase since use was first measured by a comprehensive national survey at 58 percent in 1994. States that allow more stringent enforcement of their belt use laws (“primary” States) reached a milestone of 80 percent belt use in 2002, and substantial gains were also seen in the Northeast and in vans and sport utility vehicles.

NHTSA focused on at-risk populations whose safety belt use rates were below the national level and conducted two “Click-It or Ticket” Campaigns emphasizing aggressive enforcement. NHTSA worked with partners and stakeholders to encourage additional States to enact primary belt laws, the strategy that has proven to most dramatically raise safety belt use and save lives.

$15 million was enacted in 2002 for Occupant Protection Incentive Grants, and grants were awarded to 29 States, the District of Columbia, Puerto Rico, and 2 Territories. For a State to be awarded such a grant they had to demonstrate their implementation of specific occupant protection laws and programs such as a safety belt law providing for primary enforcement or a law requiring use by individuals in all seating positions within the vehicle.

Impaired drivers - In combating this important traffic safety issue, NHTSA focuses on high risk drinking drivers. Its five-State alcohol demonstration program (begun in FY 1999) was expanded to include Indiana and Michigan, with their high alcohol-related fatalities. The on-going national public education campaign “You Drink and Drive. You Lose.” in conjunction with highly publicized July and December enforcement mobilizations, communicated hard-hitting prevention messages to the public. NHTSA also focused on repeat and high blood-alcohol content offenders.

TREAD - NHTSA revised child safety seat and tire standards, and published new requirements for a child safety seat ease-of-use rating system, tire labeling, and tire pressure monitoring systems in light vehicles. NHTSA also published regulatory notices for roof crush protection, school bus safety, occupant protection in interior impact and with advanced air bags, heavy truck braking and rear impact guards, electric vehicle crash safety, bus emergency exits and windows, and accelerator controls. NHTSA published a request for comments on a vehicle safety rulemaking priorities plan.

Grants - $38 million was available for Alcohol-Impaired Driving Countermeasures Incentive Grants, and 34 States received these grants to implement and enforce alcohol-impaired driving countermeasures. To qualify for this grant, States had to either demonstrate that they had in place certain laws or programs, such as administrative license revocation laws and graduated licensing programs, or had to meet certain performance criteria based on their alcohol-related fatality rates. State highway safety program formula grants totaling $160 million was also provided using a performance-based management process. States used this and their own funds to:

▪ reduce speed-related fatalities;

▪ encourage proper use of occupant protection devices;

▪ reduce alcohol and drug impaired driving;

▪ reduce crashes between motorcycles and other vehicles;

▪ reduce school bus crashes;

▪ improve police traffic services;

▪ improve emergency medical services and trauma care systems;

▪ increase pedestrian and bicyclist safety;

▪ improve general roadway safety; and

▪ improve State traffic record systems and highway fatality and injury data collection and reporting.

FMCSA and its State partners have reduced fatalities in crashes involving large trucks four consecutive years, from 5,395 in 1998 to an estimated 4,984 in 2002, a 7.6 percent reduction over the four-year period. The fatality rate for crashes involving large trucks, which takes into account increased risk exposure, has been reduced by 11 percent over the same time period. The large truck-related injury trend similarly has been encouraging, being reduced from 142,000 in 1999 to 131,000 in 2002.

Grants - In 2002, $160 million in safety grants to States supported motor carrier compliance and enforcement activities, including traffic enforcement and over 2.7 million commercial motor vehicle roadside inspections.

Licensing - To improve the commercial driver’s license (CDL) program, FMCSA published a rule regarding driver disqualification and license requirements and penalties as required by the Motor Carrier Safety Improvement Act of 1999, completed 17 compliance reviews of State CDL programs, and distributed over $33 million in grants to States for CDL improvements.

Enforcement and Compliance - FMCSA conducted 7,492 compliance reviews of motor carriers in FY 2002, and State authorities conducted an additional 2,756. FMCSA also issued an interim final rule for the New Entrant Safety Assurance Program, to become effective in January 2003. This rulemaking requires all new entrants to pass an FMCSA safety audit within the first 18 months of operation in order to receive permanent DOT registration.

Border Safety Enforcement - FMCSA completed all requirements contained within Section 350 of the FY 2002 DOT Appropriations Act to open the U.S. - Mexico border to Mexican commercial vehicles, and issued rules governing safety monitoring, application for operating authority, and enforcement actions. FMCSA also provided policy guidance for enforcement at the border; developed centralized data systems; enhanced border inspection facilities; and hired, trained, and equipped an additional 214 border enforcement inspectors.

FHWA’s approach to minimizing crash-related fatalities and injuries is to reduce the occurrence of the most frequent types of fatal crashes. In FY 2002, an estimated 38 percent of all fatalities occurred in roadway departures, 20 percent occurred at or near intersections, and about 11 percent involved pedestrians.

To address roadway departure crashes, FHWA issued a Technical Advisory containing improved information on shoulder “rumble strip” design and installation for rural National Highway System segments. Mississippi installed and tested different rumble strip designs combined with pavement marking overlays on rural roads. Initial evaluations from this test indicated improved safety results on rainy nights from the more-visible markings and audible rumble strip warnings.

To promote pedestrian and bicyclist safety, FHWA developed an Internet-based Bicycle Safety Education Resource Center to provide safety education information for bicyclists, motorists, and those who teach children to ride. The website contains a database of training materials, a guide to help interested parties identify the training needs of their audience, and guidance to assist with the development of new safety programs.

NHTSA and FMCSA supplementary performance measures:

Injured persons per 100 million vehicle-miles of travel.

1999 2000 2001 2002

Target: 127 116 113 111

Actual: 120 116 109(r) N/A

Number (000s) and rate (per 100 million commercial VMT) of injured persons in crashes involving large trucks.

1999 2000 2001 2002

Target:

Number: N/A 125 122 121

Rate: N/A N/A N/A 56

Actual:

Number: 142 140 131 N/A

Rate: 70 68 63 N/A

Alcohol-related fatalities per 100 million VMT

1999 2000 2001 2002

Target: N/A N/A N/A 0.55

Actual: 0.59 0.63(r) 0.63(r) N/A

Percentage of front occupants using safety belts.

1999 2000 2001 2002

Target: 80 85 86 75

Actual: 67 71 73 75

(r) Revised; N/A Not available.

FY 2003 Performance Plan Evaluation: DOT will be challenged to meet the highway fatality rate target in 2003. NHTSA will encourage additional States to enact primary safety belt laws and enforce them, and will continue efforts to reduce impaired driving. FMCSA also will be challenged in achieving the 2003 fatality rate target. FMCSA will focus on enforcement and compliance activities, and extend its compliance and enforcement program to include safety audits of new motor carrier operations (New Entrants) and at the southern border.

Management Challenge – Motor Vehicle Safety (IG)

In its 2002 update on DOT’s management challenges, the IG made three findings related to motor vehicle safety: (1) Despite the combined efforts of Federal, State, and local governments, safety belt use rates have remained relatively constant, ranging from 66 to 70 percent since 1993. 2002 safety belt use rates are at 75 percent nationwide, below the rate needed to attain 78 percent use by 2003; (2) Early identification of defects by NHTSA’s Office of Defects Investigation (ODI) can be improved. Congress questioned the preparedness of ODI to handle information that may contain early warning signs of product defects; and (3) the TREAD Act requires NHTSA to conduct 10 rulemakings in the areas of defects, tires, rollover tests, and child restraints. Six of the 10 rulemakings must be completed in 2001 or 2002. Since the IG found that it takes DOT an average of 3.8 years to complete a rule, significant management effort will be required to issue these rules in the time frame required by the Act. These issues are continued in the IG’s 2003 management challenges report.

NHTSA Actions:

Strategies to increase safety belt use and reduce alcohol-related fatalities are discussed above. To improve defects investigation, NHTSA published the TREAD §3(b) Early Warning final rule. NHTSA is improving recall initiation criteria. TREAD actions included:

▪ a final rule on Standards Enforcement, Defect Investigation and Noncompliance Reports Records Retention on July 10, 2002;

▪ work on final rules to improve tire labeling and to revise and update tire safety standards; and

▪ work on a rulemaking for improved child restraint safety, and creating a child restraint safety ratings program.

Management Challenge - Large Truck Safety (IG/GAO)

The IG identified major challenges in motor carrier safety at the U.S.-Mexico border, improving oversight of the commercial driver license (CDL) program, managing the security implications of open borders; strengthening oversight and reducing fraud in the CDL program; and improving U.S. motor carrier safety enforcement. As traffic materializes, FMCSA will need to assess the adequacy of its inspection resources, including those beyond the Border States. These issues continue the IG’s 2003 report. GAO’s concerns extend to staffing in FMCSA, truck safety data quality and causal analysis, adequacy of FMCSA’s resources, and safety rulemaking.

FMCSA 2002 activities and initiatives included:

▪ compliance reviews for high-risk carriers;

▪ security sensitivity visits, hazmat compliance reviews, and hazmat package and vehicle inspections;

▪ the interim final rule for New Entrant Safety, requiring new entrants safety audits in the first 18 months of their operation;

▪ in August 2002, FMCSA issued a new rule that requires all states to place Mexican commercial vehicles out of service if they do not have U.S. operating authority;

▪ completing all requirements of the FY 2002 DOT Appropriations Act, §350 to open the southern border to Mexican commercial vehicles;

▪ policy guidance for border safety enforcement, and four rules governing safety monitoring and motor carrier operating authority;

▪ centralized data systems, inspection facilities, and hiring, training, and equipping 214 more border enforcement personnel;

▪ work on rulemakings for drivers’ hours-of-service and CDL improvements;

▪ review of 17 State CDL programs and significant improvement of their operation;

▪ advanced safety technology development, and deployment;

▪ PRISM and CVISN deployment to more States;

▪ operational tests of advanced commercial vehicle safety and security technology;

▪ with NHTSA, investigation of almost 500 large truck crashes in the Large Truck Crash Causation Study; and

▪ with NHTSA and the States, a commercial motor vehicle crash data collection system (CVARS) pilot test.

Aviation Safety: Commercial aviation is one of the safest forms of transportation. While rare, aviation accidents can have catastrophic consequences, with large loss of life. The public demands a high standard of safety and expects continued improvement. General Aviation (GA) is also an important element of the U.S. transportation system and the U.S. economy. However, the majority of aviation fatalities have occurred in this segment of aviation. Since 1988, there has been a gradual trend downward in the number of general aviation accidents, but progress has not been steady.

Performance measures:

Fatal aviation accidents (U.S. commercial air carriers) per 100,000 departures (reported by 3-year average).

1999 2000 2001 2002

Target: .048 .045 .043 .038

Actual: .051 .037 .037 .026#

Number of fatal general aviation accidents.

1999 2000 2001 2002

Target: N/A 379 379 379

Actual: 364 341 359(r) 346#

(r) Revised. # Preliminary estimate

2002 Results: DOT met the general aviation fatal accident and the commercial aviation fatal accident rate targets.

Commercial Air Carrier Safety

FAA worked with the aviation community and other governmental agencies to identify causal factors of accidents and prevent strategies in three areas – aircraft technology, pilot safety, and maintenance and fleet management practices which prevent small safety problems from growing into large ones. In 2002, FAA, in concert with the aviation industry continued to:

▪ implement ‘Safer Skies’ interventions, and monitor the progress of strategies to prevent uncontained engine failure, controlled flight into terrain, approach and landing accidents, and loss of control;

▪ develop and implement the Air Transportation Oversight System (ATOS), the Safety Performance Analysis System (SPAS), Flight Operations Quality Assurance (FOQA), and the Aviation Safety Action Program (ASAP) – all of which are designed to catch safety problems and keep them from becoming causes of aircraft crashes; and

▪ work on aging aircraft systems and fuel tank safety, including fuel tank inerting;

FAA's regulation and certification program established aviation safety standards, monitored safety performance, conducted aviation safety education and research, issued and maintained aviation certificates and licenses, and managed rulemaking.

FAA continued to implement an integrated research plan with NASA to effectively leverage combined safety research and development resources to reduce the aviation fatal accident rate.

General Aviation Safety

Improving GA safety is a joint effort with the GA community to identify problems and implement solutions. GA safety in 2002 included:

▪ publishing a new Advisory Circular, Controlled Flight into Terrain (CFIT) Awareness;

▪ issuing the Aeronautical Information Manual (AIM) and guidance for pilots on the use of advanced weather products;

▪ developing a personal minimums checklist involving weather scenarios and operations; and

▪ upgrading safety equipment such as the flight service station automation system, automated weather observation systems, and communications systems that provide weather and altimeter settings.

Together with the GA industry, FAA initiated a new program, System Safety Approach for General Aviation, to foster aviation safety and awareness. This joint effort will encourage use of new technology and will provide training and education to enhance safety.

Runway Safety

A runway incursion is any occurrence at an airport involving an aircraft, vehicle, person, or object on the ground that creates a collision hazard or results in a loss of separation with an aircraft taking off, intending to take off, landing, or intending to land. Reducing runway incursions lessens the probability of accidents that potentially involve fatalities, injuries, and significant property damage.

To help further reduce the number and rate of runway incursions, FAA:

▪ conducted education, training and awareness for pilots, and controllers/vehicle operators and distributed more than 250,000 program materials (brochures, videotapes, CDs and other visual aids);

▪ analyzed runway incursion risks by examining incursions from 1997 through 2001 and assigning those incursions to a severity category;

F O R E W O R D

MESSAGE FROM THE SECRETARY

MESSAGE FROM THE CHIEF FINANCIAL OFFICER

DOT’s Budget and Financial Management

Overview of Highlights

Integrating Performance and Budget

US Department of Transportation
President’s Management Agenda Scorecard

INITIATIVE

FY 2002

STATUS

PROGRESS

HOW DOT IS MEETING PMA CHALLENGES

INITIATIVE

FY 2002

STATUS

PROGRESS

HOW DOT IS MEETING PMA CHALLENGES

INITIATIVE

FY 2002

STATUS

PROGRESS

HOW DOT IS MEETING PMA CHALLENGES

INITIATIVE

FY 2002

STATUS

PROGRESS

HOW DOT IS MEETING PMA CHALLENGES

Federal Aviation Administration (FAA)

United States Coast Guard

(USCG)

Assets Accounting and Property Management System

Office Of Inspector General

(OIG)

How We Select Our Performance Goals and Measures

How DOT Works to Achieve Strategic and Organizational Goals

STRATEGIC OBJECTIVE: Promote the public health and safety by working toward the elimination of transportation-related deaths and injuries.

Performance Summary:

FY 2001 Final DOT Performance Report

Commercial Air Carrier Safety