Lowfare Service Effects: Harrisburg to Orlando

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BAGGAGE SCREENING INVESTMENT STUDY
Presented to the Aviation Security Advisory
Committee (ASAC) Washington, DC
January 11, 2006
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Objective

• The primary objective of the Baggage Screening
  Investment Study is to establish, in consultation
  with industry partners, a strategy for
  facilitating the installation of cost-effective
  checked baggage screening systems, consistent
  with Congressional mandates, including the
  identification of
• Cost-saving approaches,
• Needed funding levels,
• Alternative funding sources,
• Innovative funding and financing approaches,
• Recommended enabling legislation, and
• Mechanisms for ongoing effective collaboration
  throughout planning, design, construction, and
  operation

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Intelligence Reform and Terrorism Prevention Act
of 2004
A Baggage Screening Investment Study is required
(d) COST-SHARING STUDY.The Secretary of
Homeland Security, in consultation with
representatives of air carriers, airport
operators, and other interested parties, shall
submit to the appropriate congressional
committees, in conjunction with the submission of
the budget for fiscal year 2006 to Congress under
section 1105(a) of title 31, United States
Code (1) a proposed formula for cost-sharing
among the Federal Government, State and local
governments, and the private sector for projects
to install in-line baggage screening equipment
that reflects the benefits that each of such
entities derive from such projects, including
national security benefits and labor and other
cost savings (2) recommendations, including
recommended legislation, for an equitable,
feasible, and expeditious system for defraying
the costs of the in-line baggage screening
equipment authorized by this title and (3) the
results of a review of innovative financing
approaches and possible cost savings associated
with the installation of in-line baggage
screening equipment at airports
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Existing Challenges

• Many current screening implementations are
  suboptimal
• Unnecessarily high operating costs
• High worker injury rates
• Costly airport/airline operational impacts
• Unacceptable passenger service
• Not scalable to match projected traffic growth
• Growing uncertainty about funding sources has
  slowed capital investments in baggage screening
  systems
• Emerging screening technologies are promising,
  but capital investment still required
• With current investment levels and design
  approaches, another 20 years required to fully
  deploy optimal systems

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Baggage Screening Investment Study Context
Strategic Plan Framework
Baggage Screening Investment Study
Industry Steering Committee as a Working Group of
ASAC
Refined Strategic Plan
Airport-Specific Concept Plans
Refined Design Guidelines
Funding Levels, Funding/Financing Strategies,
Legislation
Airport-specific Working Groups
Coordinated Plans, Designs, and Funding
Approach for each Airport
ASAC - Aviation Security Advisory Committee
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Approach

• Leigh Fisher Associates and McBee Strategic
  Consulting are assisting TSA with the study
• Engage the aviation industry through a
  stakeholder working group under ASAC
• The working group will be divided into technical
  and and financial specialty teams, which will
  report in to a steering group.
• Duration 3-month study January through March
  06
• TSA recognizes that the stated timeframe may not
  be sufficient and, if necessary, will request a
  schedule extension to ensure desired outcomes are
  achievable

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Desired Outcome and Results

• Establish a national EDS deployment strategy
  which
• Minimizes total life cycle costs
• Expedites deployment of optimal screening systems
  nationwide
• Identify total capital funding needed and a
  feasible funding approach based on costs and
  benefits to all parties
• Publish refined design guidelines for baggage
  screening systems incorporating
• Major design lessons learned
• Latest information on emerging technologies
• Specific guidance on determining the most
  cost-effective screening approach
• Establish a methodology for ongoing collaboration
  between TSA and industry on planning and
  implementation of checked baggage screening
  systems