In FY 2008, the FAA plans to spend $2 billion on info. technology (IT) investments -- many of which support FAA¿s air traffic control modernization. To more effectively manage such investments, in 2005 the Office of Mgmt. and Budget required agencies to use earned value mgmt. (EVM). EVM is a project mgmt. approach that provides objective reports of project status, produces early warning signs of impending schedule delays and cost overruns, and provides unbiased estimates of a program¿s total costs. This report: assesses FAA¿s policies for implementing EVM on its IT investments; evaluates whether the agency is adequately using these techniques to manage key IT acquisitions; and assesses the agency¿s efforts to oversee EVM compliance. Tables.