Justia U.S. 6th Circuit Court of Appeals Opinion Summaries

In 1993, the FAA decided to privatize all Level I air traffic control towers. About 1500 controllers were forced to leave the field, be trained to operate higher level towers, or secure employment with the private contractors. Office of Management and Budget Circular A-76 prohibits the federal government from performing an activity that could be performed for less cost by the private sector. Before privatizing a function, an agency must determine whether that function is inherently governmental or commercial. A governmental function must be performed by government employees. The district court first dismissed, but, on remand, instructed the FAA to undergo Circular A-76 analysis. The FAA continued to privatize towers and controllers again brought suit. The district court again remanded to the FAA for analysis, but refused to terminate private contracts already in place. The court later granted the FAA partial summary judgment, based on a 2003 amendment to 49 U.S.C. 47124, indicating that work in Level I towers is not an inherently governmental function, then dismissed remaining claims for lack of standing. The Sixth Circuit affirmed. Every tower privatized in the 1993 program fit within the section 47124(b)(3) mandate.