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The core problem raised before the FAA from the use of out of date technology is that this technology could not correspond to the contemporary demands and during the modernization it prevents effective collaboration between the newest technological solutions. It goes without saying that is really significant problem for the FAA and to find an appropriate solution is not really an easy task.
It should be noted that the company relies upon the ancient hard and software as modernization first of all is really expensive. The institution could not let itself modernization at all the areas needed. Another significant issue dealing with modernization is educational process. People who worked with the definitely new systems got to learn how to operate with modern software and hardware tools and the company had to solve this problem too. And final argument for the fact they are actually using old fashioned hardware and software tools is that they are more reliable than the new ones. The scientific and technical progress in the modern world is among the most quickly developing and its impact on different industries is inevitable. But it would be obvious to note that quick development of the technical solutions often negatively impact the quality of the products. But it should be noted that the quality of the software and hardware solutions plays core importance for the FAA as the lives of millions of people using their service are depending on them. That is why they often prefer to use old fashioned, but reliable tools instead of the new ones that have not passed appropriate tests or even do not correspond to the standard demands.
The same time it should be noted that modernization of the FAA powers is usually taking several years: “In 1981, the FAA was given approval for a comprehensive new plan to upgrade the computer system. New Airports, such as Dallas – Fort Worth coupled with deregulation of the airline industry in 1978 led to huge increase in air traffic. The $12 billion plan called for replacement of 12 major systems during the course of 12 years. An additional 80 smaller projects were included in the plan” (FAA Case Study, p. 44). The huge expenses, combined with the necessity of partial replacement and educational programs for the staff are the core problems that make the modernization process last for several years. The technical problems are among the most significant as FAA should organize effective technical and collaborative performance between the new, modern tools and the ones, which are left old. It should be noted that this is not really an easy task.
The same time the fact that FAA is a governmental institution and the expenses are covered by the government there should be found the ways to minimize costs. Effective marketing solution such as partnership could become really helpful in decreasing costs for education and modernization. Developing certain loyalty system for the staff member of the company software and hardware supplier the FAA could establish well grounded partnership relations. This loyalty system could be used as a part of HR compensation and benefits program for the staff and let the two companies fund mutual benefits in such cooperation. Collaborative educational programs and loyalty system on the production, which is ordered by FAA could be noted among them. Effective solution could be found collaboratively with the partners, who supply the software and hardware tools and the most effective in this case would be development of programs that guarantee mutual loyalty for the both interested parties and would let them develop certain norms of agreement that let to fix a number of important questions and decrease expenses. Another interesting solution for this case is involvement of the modernization into the work performance process. It won’t be a secret that the innovational could require less staff members to serve than the older ones. This could also help to decrease the expenses dealing with the modernization.
According to the described situation and detailed examination of the issues the following plan is suggested as the one that could help to solve the core problems:
• Organization of the commission that evaluate potential supplier for the hardware and software tools
• Development of the partnership agreement, which would incorporate:
 Effective mutual loyalty programs
 Mutual educational programs
 Discount systems and benefits
• Discussion of the suggested partnership agreements on the governmental sessions and make all the necessary corrections:
 Ask for the government assistance in development special partnership agreement dealing with taxation decrease for the companies participating in the partnership programs with such governmental institutions as FFA is
 Suggestion of three side agreement development (future perspective)
• After resolution of the partnership agreement a certain tender between the suppliers should be organized as the participant should compete equally as the government and FAA provide really interesting projects, which would bring mutual benefits for the both participating sides.
Unfortunately the dependence of FAA from the government would require governmental approval for every partnership program and this significantly impact the quickness of strategy realization.

 
References
Federal Aviation Administration Case Study. pp. 43-54