[Federal Register Volume 66, Number 142 (Tuesday, July 24, 2001)]
[Proposed Rules]
[Pages 38387-38390]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-18310]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 183

[Docket No. FAA-2001-10177; Notice No. 01-09]


Resource Utilization Measure

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of public meeting and request for comments.

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SUMMARY: This document announces a public meeting to comment on 
proposed measures to use Aircraft Certification Service (the Service) 
resources more efficiently. Due to increasing public and industry 
demands, the Service foresees a shortage in available resources. 
Therefore, the Service is considering how to modify its workload. The 
Service has examined how to reduce the current workload through 
streamlining efforts and shift limited resources to more safety-
critical activities. The proposals represent remedial measures we are 
considering.

DATES: The public meeting will be held on August 28 and 29, 2001, at 
9:00 a.m., in Arlington, Virginia. Registration will begin at 8:30 a.m. 
on each day. Comments must be received on or before October 22, 2001.

ADDRESSES: The public meeting will be held at the Crystal Gateway 
Marriott, 1700 Jefferson Davis Highway, Arlington, Virginia 22202; 
telephone (703) 920-3230, facsimile (703) 271-5212.
    Persons who are unable to attend the meeting and wish to submit 
written comments may mail their comments (clearly marked with the 
docket number) in triplicate to: Federal Aviation Administration, 
Office of the Chief Counsel, Attn.: Rules Docket (AGC-200), Docket No. 
FAA-2001-10177, Room 915G, 800 Independence Avenue, SW., Washington, DC 
20591, or deliver in person to Room 915G at the same address. Comments 
submitted must be marked: ``Docket No. FAA-2001-10177.'' Comments may 
be examined in Room 915G on weekdays, except Federal holidays, between 
8:30 a.m. and 5:00 p.m. Comments may also be sent electronically to the 
following Department of Transportation Docket Management System 
Internet address: http://dms.dot.gov. If you wish us to acknowledge 
receipt of your comments, include a pre-addressed, stamped postcard on 
which the following statement is made: ``Comments to Docket No. FAA-
2001-10177.'' The postcard will be date stamped and mailed to you. All 
comments received will be filed in the docket. The docket is available 
for public inspection before and after the comment closing date. The 
Administrator, in determining whether to go forward with a proposed 
rulemaking, will consider all comments received on or before the 
closing date. Late-filed comments will be considered to the extent 
practicable.

FOR FURTHER INFORMATION CONTACT: Requests to present a statement at the 
public meeting and questions regarding the logistics of the meeting 
should be directed to Mr. Walter Dillon, International Airworthiness 
Programs Staff, AIR-4, Federal Aviation Administration, 800 
Independence Avenue, SW., Washington, DC 20591, telephone (202) 267-
8027, facsimile (202) 267-5364. Technical questions should be directed 
to Mr. Victor Powell, Aircraft Engineering Division, AIR-100, Federal 
Aviation Administration, 800 Independence Avenue SW., Washington, DC 
20591; telephone (202) 267-9564, facsimile (202) 267-5340; and Mr. 
Randall J. Carter, Production and Airworthiness Certification Division, 
AIR-200, Federal Aviation Administration, 800 Independence Avenue SW., 
Washington, DC 20591; telephone (202) 267-8923, facsimile (202) 267-
5580.

SUPPLEMENTARY INFORMATION: The public meeting will be held at the 
Crystal Gateway Marriott, 1700 Jefferson Davis Highway, Arlington, 
Virginia 22202; telephone (703) 920-3230, facsimile (703) 271-5212. 
Hotel reservations should be made in advance. A block of rooms has been 
reserved at the hotel at the Government per diem rate of $119.00 per 
night. Persons wishing to attend the public meeting are encouraged to 
make reservations at the Crystal Gateway Marriott by August 10, 2001, 
to take advantage of the special room rates. When making reservations, 
persons should contact the hotel directly using the telephone or 
facsimile numbers listed above and should indicate that they will be 
attending the Federal Aviation Administration public meeting.
    The purpose of the meeting is for the FAA to (1) discuss with the 
public the proposed requirement that organizations that employ two or 
more Designated Manufacturing Inspection Representatives (DMIRs) to 
establish an Organizational Designated Airworthiness Representative 
(ODAR), (2) discuss with the public prioritizing all incoming type 
certification projects based on the completeness of the applicant's up-
front planning, (3) discuss with the public the proposed elimination of 
certain one only Supplemental Type Certificates (STC) for foreign 
registered aircraft, (4) discuss with the public the impact of 
prohibiting U.S. manufacturers from using suppliers from non-bilateral 
agreement countries, and (5) hear comments from the public on these 
issues.
    The agenda for the meeting will include:
    Day One:
     Discuss proposal of elimination of certain one only 
Supplemental Type Certificates (STC) for foreign registered aircraft.
     Discuss proposal to prioritize all incoming type 
certification projects based on the completeness of the applicant's up-
front planning.
     Public presentations.
    Day Two:
     Discuss the impact of prohibiting U.S. manufacturers from 
using suppliers from non-bilateral agreement countries.
     Discuss the impact requiring organizations that employ two 
or more Designated Manufacturing Inspection Representatives (DMIRs) to 
establish an Organizational Designated Airworthiness Representative 
(ODAR).
     Public presentations.
     Responses to questions and open discussion of identified 
issues.

Participation at the Public Meeting

    Requests from persons who wish to present oral statements at the 
public meetings should be received by the FAA no later than August 24, 
2001. Such

[[Page 38388]]

requests should be submitted to Mr. Walter Dillon, International 
Airworthiness Programs Staff, AIR-4, as listed in the section above 
titled FOR FURTHER INFORMATION CONTACT and should include a written 
summary of oral remarks to be presented and an estimate of time needed 
for the presentation. Requests received after the date specified above 
will be scheduled if there is time available during the meeting; 
however, the names of those individuals may not appear on the written 
agenda. The FAA will prepare an agenda of speakers and presenters and 
make the agenda available at the meeting. To accommodate as many 
speakers as possible, the amount of time allocated to each speaker may 
be less than the amount of time requested. Persons requiring 
audiovisual equipment should notify the FAA when requesting to be 
placed on the agenda.

Availability of Notice

    Internet users may reach the FAA's Web page at http://www.faa.gov, 
the Federal Register Web page at http://www.access.gpo.gov/su docs, or 
the Department of Transportation Docket Management System Web page at 
http://dms.dot.gov for access to recently published rulemaking 
documents. Anyone can obtain a paper copy of this document by sending a 
request to the Federal Aviation Administration, Office of Rulemaking, 
ARM-1, 800 Independence Avenue, SW., Washington, DC 20591, or by 
calling (202) 267-9680. Communications must identify the notice number 
or docket number of this document. Persons interested in being placed 
on the mailing list for future Advance Notice of Proposed Rulemaking 
(ANPRM's) and Notices of Proposed Rulemaking (NPRM's) should request 
from the above office a copy of Advisory Circular No. 11-2A, Notice of 
Proposed Rulemaking Distribution System, that describes the application 
procedure.
    Proposal 1. Require organizations that employ two or more 
Designated Manufacturing Inspection Representatives (DMIRs), to 
establish an Organizational Designated Airworthiness Representative 
(ODAR). This proposal can be implemented using existing procedures in 
FAA Order 8100.8, Designee Management Handbook.
    Title 14 of the Code of Federal Regulations (CFR), part 183, 
Representatives of the Administrator, allows the designation of private 
persons to act as a representative of the Administrator in examining, 
inspecting, and testing persons and aircraft for the purpose of issuing 
airman and aircraft certifications.
    A DMIR is an individual appointed in accordance with Sec. 183.31 
who is employed by a Production Approval Holder (PAH), or a PAH's 
approved supplier, to act as a representative of the Administrator. The 
DMIR is responsible for performing authorized functions concerning 
products and parts that are produced and controlled by their employer's 
production approval in accordance with applicable requirements. The FAA 
managing office is responsible for training, counseling, supervising, 
monitoring, tracking, and maintaining records for each DMIR to confirm 
the representative is performing the assigned functions in accordance 
with the appropriate regulations, policies, and procedures.
    An ODAR is an organization appointed in accordance with Sec. 183.33 
to act as a representative of the Administrator. The Service can 
appoint an ODAR at PAH facilities, including PAH approved supplier 
facilities. Each ODAR includes an authorized management focal point 
that is responsible for day-to-day management and oversight of the 
ODAR. The ODAR is responsible for performing all authorized functions 
concerning products and parts that are produced and controlled under 
its organizational designation in accordance with applicable 
requirements. Unlike an individual DMIR, the ODAR as a whole must meet 
all qualifications for the authorized functions identified in its 
approved procedure manual. The ODAR is responsible for assuring that 
the individual authorized representatives identified in the ODAR 
procedures manual continue to meet the FAA qualifications criteria 
specific to the actual function they perform.
    The FAA managing office is responsible to confirm that the ODAR is 
performing its authorized functions in accordance with the appropriate 
regulations, policies, and procedures. This effort is accomplished 
through the training, counseling, supervising, monitoring, tracking, 
and maintenance of records for the ODAR as a whole, rather than for 
each person performing an authorized function within the ODAR. The 
PAH's authorized management focal point performs these administrative 
activities, greatly reducing the FAA managing office workload.
    This proposal requires an organization that employees two or more 
DMIRs to establish an ODAR. Implementation of this proposal will result 
in the FAA supervising only the organization rather than each 
individual DMIR. This will reduce FAA designee supervision time, and 
will reduce the time individual designees interface with the FAA. 
Currently, the FAA spends approximately 12 hours per year to supervise 
a DMIR, and approximately 18 hours per year to supervise an ODAR. For 
example, an organization with 10 DMIRs would require approximately 120 
hours of FAA supervision annually. Supervision of the same organization 
having an ODAR would require approximately 18 hours annually.
    Proposal 2. Prioritize all incoming type certification projects 
based on the completeness of the applicant's up-front planning.
    The purpose of this proposal is to implement a process that 
responds to applicants' requests for certification services in priority 
order based on the use of Certification Process Improvement (CPI) 
principles. The FAA and Industry Guide to Product Certification, dated 
January 25, 1999, is the current guidance that will assist applicants 
in meeting the intent of this proposal. The CPI process recognizes 
applicants who employ and use technical specialists in all relevant 
disciplines, who maximize the use of designees, and who provide timely 
and complete data packages leading to certification. The process 
applies to type certification projects leading to a Type Certificate 
(TC), Supplemental Type Certificate (STC), amendment to either a TC or 
STC, and type design change. Aircraft Certification Offices (ACO) will 
prioritize certification projects using the following criteria:
    Priority One. Projects from applicants with a formal CPI program 
already in place, including a Partnership for Safety Plan (PSP) and 
Project Specific Certification Plans (PSCP), based on the guidelines 
established in the FAA and Industry Guide to Product Certification.
    Priority Two. Projects from applicants without a formal CPI program 
but those who incorporate CPI principles as they develop their 
certification program plans. This includes significant up-front 
planning with the FAA, employing technical specialists in all relevant 
disciplines, maximizing the use of designees, and providing timely and 
complete data leading to certification.
    Priority Three. Projects from applicants that do not fall into 
either of the previous two categories.
    Applicants that do not have a formal CPI program in place and want 
to qualify as a second priority would be expected to accomplish the 
following:
    1. Develop a complete certification plan as described in Advisory 
Circular 21-40, Application Guide for obtaining

[[Page 38389]]

a Supplemental Type Certificate, or PSCP as shown in The FAA and 
Industry Guide to Product Certification.
    2. Commit to early notification and planning with the FAA.
    3. Demonstrate a high quality of compliance documentation.
    4. Provide adequate staffing, including the use of appropriate 
designees.
    5. Have a conformity management process similar to that described 
in FAA Notice 8110.76, Designated Engineering Representative to 
Designated Manufacturing Inspection Representative.
    6. Demonstrate the capability to produce the product, i.e., have 
established a system, which ensures that only products and parts 
conforming to the FAA approved design are produced and released to 
service.
    Proposal 3. Eliminate certain one-only supplemental type 
certificates (STC) for foreign registered aircraft.
    The Service is continually being requested to approve the 
modification of aircraft operating under the civil registration of 
another country. Such activity must follow the Standards of the 
Convention on International Civil Aviation as administered by the 
International Civil Aviation Organization (ICAO). Annex 6 to the 
Convention of International Civil Aviation requires that all 
modifications and repairs meet airworthiness requirements acceptable to 
the State of Registry. Therefore, irrespective of the State of Design 
of the aircraft, approval of its modification is the responsibility of 
the State of Registry.
    The FAA does not have sufficient resources to serve as the approval 
authority for the global fleet and to accept workload that is not 
within its mandate. In a 1999 survey, FAA found that 31 percent of the 
STCs involving foreign registered test articles were one only 
approvals.
    During the approval of one only STCs, FAA ACOs are finding 
compliance to FAA requirements and those additional requirements 
imposed by the State of Registry of each individual aircraft such as 
Joint Airworthiness Authorities, Joint Aviation Requirements. This 
creates additional approval workload for the FAA on products where the 
FAA has no direct safety role.
    The FAA continues to accept U.S. STC applications for multiple 
STCs, using a foreign-registered prototype test article, recognizing 
that the STC may later be installed on a U.S. registered aircraft and 
that parts manufacturing oversight is the FAA's responsibility. These 
STC actions are considered to be in the U.S. public interest because 
they may be duplicated and installed on a U.S. registered aircraft.
    The FAA wishes to shift full responsibility for unique modification 
activity back to the States of Registry, per ICAO provisions. Three 
exceptions to this policy are envisioned: (1) Mandated safety 
enhancements such as Traffic Collision Avoidance Systems (TCAS) 
installations; (2) diplomatic aircraft; and (3) Heads of State 
aircraft. In these cases the foreign State of Registry would request 
FAA's assistance and an appropriate process would be established 
whereby the Service supports the State of Registry for the proposed 
design change.
    Proposal 4. Explore the impact of restricting U.S. manufacturers 
from using suppliers located in non-bilateral countries (where there is 
no Bilateral Airworthiness Agreement or Implementation Procedures for 
Airworthiness under a Bilateral Aviation Safety Agreement).
    Bilateral agreements facilitate the reciprocal airworthiness 
certification of civil aeronautical products imported/exported between 
two signatory countries. A Bilateral Airworthiness Agreement (BAA) or 
Bilateral Aviation Safety Agreement (BASA) with Implementation 
Procedures for Airworthiness (IPA) provides for airworthiness technical 
cooperation between the FAA and its counterpart civil aviation 
authority. Bilateral agreements provide an alternative means for the 
FAA to make its determinations of compliance to U.S. airworthiness 
standards by making maximum practicable use of the certification system 
of another aviation authority.
    Through bilateral agreements, the FAA recognizes the competency of 
the exporting authority to conduct airworthiness certification 
functions in a manner compatible to the FAA's. Upon request and after 
mutual acceptance, the FAA and the civil aviation authority may provide 
technical assistance to each other when significant activities are 
conducted in either country. These activities help avoid any undue 
burden imposed on either authority. Types of assistance may include, 
but are not limited to, determination of compliance, surveillance, and 
oversight.
    Globalization of the aircraft manufacturing industry has created 
challenges for the FAA in carrying out its statutory mandate to confirm 
that safety and airworthiness standards for civil aircraft are being 
met during manufacture. Date obtained from the U.S. Department of 
Commerce report for fiscal year 2000 titled U.S. Imports of Civil 
Aerospace Products indicates that there are currently 103 countries 
from which the United States imports aeronautical parts. To date, the 
United States has 25 BAAs with only 5 BASAs with IPAs in effect.
    Any FAA PAH may propose to use suppliers and manufacture parts in 
any country without benefit of bilateral agreements. FAA data indicates 
that the use of suppliers in non-bilateral countries continues to 
increase. In this case, the FAA cannot rely on the other country's 
airworthiness authority to assist the FAA and must perform supplier 
surveillance and designee supervision itself. One consideration for 
approval is that the airworthiness authority of that country may not 
inhibit in any manner FAA supplier surveillance or supervision in their 
country. However, limited FAA resources make it difficult for the FAA 
to perform surveillance and supervision in these countries.
    In accordance with current regulations, performance of the 
surveillance or supervision activities must not create an undue burden 
for the FAA. Therefore, the FAA must make an undue burden determination 
before any resources can be allocated to the activity. Although the 
Service discourages use of suppliers in non-bilateral countries, it has 
provided limited support, on a case-by case basis, in the past. The FAA 
has reached the point where it can no longer support the use of 
suppliers in non-bilateral countries.
    This proposal is intended to obtain feedback from U.S. 
manufacturers concerning the impact of restricting the use of suppliers 
located in non-bilateral countries.
    It also encourages U.S. manufacturers to provide suggestions on 
alternate methods for the FAA to perform surveillance at suppliers 
located in non-bilateral countries.

Economic Impact

    The Regulatory Flexibility Act of 1980 requires Federal agencies to 
consider the extent that proposed rules may have a significant economic 
impact on a substantial number of small entities. We are unable, at 
this time, to determine the cost impact of requiring DMIRs to become 
ODARs. Nor can we compute the loss of revenue caused by eliminating 
certain supplemental type certificates associated with foreign 
registered aircraft modifications or prohibiting suppliers in non-
bilateral countries. Following a review of the comments submitted to 
this Notice, the Service will determine the potential costs and 
benefits of the options.

[[Page 38390]]

    Likewise, at this preliminary stage, we cannot yet determine if 
there will be a significant economic impact to a substantial number of 
small entities, or what the paperwork burden might be.

    Issued in Washington, DC, on July 18, 2001.
Ronald T. Wojnar,
Deputy Director, Aircraft Certification Service.
[FR Doc. 01-18310 Filed 7-23-01; 8:45 am]
BILLING CODE 4910-13-M