Department of Transportation

Privatization of Stewart International Airport: Monitoring of Capital Construction Projects (Follow-Up Report)

Stewart International Airport, which is located near Newburgh, was acquired by the Department of Transportation in 1982 and was operated by the Department with the assistance of contractors until April 1, 2000. At that time, as part of an airport privatization program sponsored by the Federal Aviation Administration, the Department leased the airport to a private corporation for a period of 99 years. According to the lease, the Department was to complete nine capital-related projects that were ongoing at the time of the lease. The Department was also responsible for overseeing the construction of a new access road for the airport, a project that had been delayed by litigation initiated by civic and environmental groups opposed to the project.

In audit report 2003-S-38, we examined the status of the construction projects and found that three of the nine ongoing projects had been delayed and were not yet completed. We further determined that the viability of the access road project needed to be reassessed by the Department. We followed up on the actions taken by Department officials in implementing our audit recommendations and found that progress had been made, but additional actions were still needed.

For a complete copy of Report 2005-F-30 click here.
For a copy of the 90-day response click here.