As systems move toward complex, distributed architectures that are mission critical, there is an increasing demand for tools for that lower the cost of V&V and certification. Broad application of technology is forecasted with relevance to commercial markets for ecommerce, automotive, industrial, and medical, and distributed system/testbed/simulation applications. It has recognized applications in all manner of distributed information processing systems that are the basis for the information age. The model-based engineering technology is well established but has not yet matured to the point where it offers an appropriate framework for more automated V&V strategies. WWTG's strategy for entering this market is based on using its extensive experience and strong background in system monitoring and successful fault tolerant/diagnostic systems developments focused on facilitating commercialization. WWTG is a subcontractor on the L3/Titan and the NASA IV&V Center which is responsible for IV&V of software architectures for a number of critical NASA programs. This offers an avenue for transition to high profile NASA programs with an excellent opportunity to use the results of this project. We are also working with NASA/LaRC on opportunities for advancing the integration and use of formal methods and proven fault tolerance algorithms. WWTG's on-line diagnosis algorithms were used use in LaRC's research and successfully proven using formal methods. IVHM technologies have the potential to substantially improve aviation safety, hence supporting the safe implementation of the Next Generation Air Transportation System (NGATS). Data from the FAA and NTSB points out that subsystem and component failures and hazards together contribute 24% to on-board fatalities, and are under lying factors in many of the 26% of the accidents caused by loss-of-control in-flight. We expect results of this research will help accelerate the introduction of health management technologies into commercial aircraft, while also providing benefit to the military and NASA's Space Exploration program. This project directly addresses the goal to improve the safety of both the near-future and next-generation air transportation systems.