Technical Policy Committee

Outline AIR Organization FAA Modernization and Reform Act Global Manufacturing May 1, 2014 TPC Meeting

Aircraft Certification Service Small Airplane Directorate Engine and Propeller Directorate Transport Airplane Directorate Rotorcraft Directorate Planning and Program Management Division Acting Design, Manufacturing and Airworthiness Division International Office Chris Carter Aviation Fuels Office Peter White Dorenda Baker Director Frank Paskiewicz Deputy Director Brussels, Belgium Shanghai, China Personnel Changes: AIR has also seen some key personnel changes: I am excited to announce that we have established the AIR Fuels Program Office and named Peter White as the new Manager. We are also excited to welcome Jeff Duven to his new position as the Manager of the Transport Airplane Directorate. Last month, Kim Smith, our current Manager of the Rotorcraft Directorate, was assigned the Manager of the Engine and Propeller Directorate. Although she now wears both hats, she will remain domiciled in the Rotorcraft Directorate, Ft. Worth, Texas. Last but not least, we continue to work on streamlining our organization in order to more effectively –and efficiently—address the needs of our stakeholders and bilateral partners within the international community. As part of this long-term effort, we’ve recently merged the Aircraft Engineering Division with the Production and Airworthiness Division into one new entity: the Design, Manufacturing and Airworthiness Division. James (JD) Seipel will be the acting manager. Earl Lawrence Jeff Duven Jennifer Arquilla Kim Smith Kim Smith James Seipel May 1, 2014 TPC Meeting

AIR Organization May 1, 2014 TPC Meeting

AIRCRAFT ENGINEERING DIVISION PRODUCTION & AIRWORTHINESS DIVISION AIR-100 & 200 Similarities AIR-100 AIRCRAFT ENGINEERING DIVISION AIR-200 PRODUCTION & AIRWORTHINESS DIVISION Certificate Issuance Policy (Part 21) - Design Approval Delegation Procedures - Engineering Designees Certificate Management Policies and Procedures - COS Oversight, AD’s Administrative Support - Budgeting, Planning, Hiring, Training SMS Policy & Implementation TSO Standards Technical Policy Certificate Issuance Policy (Part 21) - Production Approval - Airworthiness Approval Delegation Procedures - Airworthiness Designees Certificate Management Policies and Procedures - QSA Audits, Global Mfg. Administrative Support - Budgeting, Planning, Hiring, Training QMS Policy & Implementation May 1, 2014 TPC Meeting

New AIR-100 Organization May 1, 2014 TPC Meeting AIR-110: Certification Procedures Branch AIR-130: Systems & Equipment Standards Branch AIR-140: Operational Oversight Policy Branch AIR-150: System Performance & Development Branch AIR-120: Tech & Admin Support Staff May 1, 2014 TPC Meeting

FAA Modernization and Reform Act Section 312 Section 312 Implementation Plan Current status of initiatives tracked on the Process Improvement Effectiveness (PIE) internal website http://webapps.anm.faa.gov/anminfo/pie/InitList.asp?opt=report Semi-annual updates posted on FAA public website (Jan/July) http://www.faa.gov/regulations_policies/rulemaking/committees/documents/index.cfm/document/information/documentID/1602 To what extent has the FAA made progress in improving its certification process in accordance with the 2012 FAA reauthorization? Aircraft Certification Process Review and Reform - Section 312 May 1, 2014 TPC Meeting

Aviation Rulemaking Committee Recommendation to Section 312 of the FAA Modernization and Reform Act The Aircraft Certification Process Review and Reform Aviation Rulemaking Committee submitted the following recommendations: Develop a Comprehensive Means to Implement and Measure the Effectiveness of Implementation and Benefits of Certification Process Improvements Enhanced use of Delegation Integrated Roadmap and Vision for Certification Process Reforms Update Part 21 to Reflect a Systems Approach for Safety Culture and Change Management Process Reforms and Efficiencies Needed for Other Aircraft Certification Service (AIR) Functions May 1, 2014 TPC Meeting

May 1, 2014 TPC Meeting

Global Manufacturing More overseas suppliers for our Production Certificates (PCs)– Requiring supplier oversight Evolving business models – Revenue Sharing (Risk Sharing) Major integrators Super suppliers May 1, 2014 TPC Meeting

Global Manufacturing PC Extensions overseas/Other production approvals moving to US – Requiring Certificate Management (CM) Split Type Certificates (TCs)/PCs US State of Design (SoD)/Non-US State of Manufacture (SoM) Non-US SoD-US SoM May 1, 2014 TPC Meeting

Global Manufacturing Challenges Multi-tier supply chains with technology spread over multiple States Need to perform oversight at site of manufacture Resource demand for extensive supplier oversight models State of Design Responsibilities Split TC/PC – FAA still responsible for Mandatory Continued Airworthiness Information (MCAI) FAA seal of approval on TCs Import/Export Split TC/PC not covered on IPAs Multi-State business models not enabled by IPA May 1, 2014 TPC Meeting

FAA International Strategy Development Desired Result: The FAA is recognized and respected as the global leader in aviation. Guiding Principles: In conducting international activities, the FAA will: Exercise leadership , Utilize a risk-based strategy and Support U.S. interests. ZSU Facilitation

AIR 2018: Globalization What we are doing? Revising language in our bilateral agreements to address SoD and SoM Adding structure to our Special Arrangement/Management Plan process Strengthening our Bilateral Relationship Management (BRM) process Risk based evaluation of our bilateral partners Technical assistance May 1, 2014 TPC Meeting

Bilateral Agreements Special Arrangement to: Perform supplier surveillance on behalf of FAA or FAA perform supplier surveillance on behalf of CAA FAA PC extension with CAA overseeing CM on our behalf State of Design / State of Manufacturer Split (TC/PC) Special Projects Engineering compliance or test witnessing, etc. As discussed previously, AIR is facing unprecedented interest in untraditional relationship models. The interest is exceeding our system’s structure to accommodate these requests. And the volume of requests and our acquiescence to such requests is posing a new risk. An example of this is our intended special arrangement with Mexico to perform supplier surveillance on our behalf. Since initiating this endeavor more interest to broaden their scope of activity has come forward. And interest to extend the same arrangement to other CAAs has come forward. It is imperative we find a system solution to determining eligibility and competence in exercising these types of agreements. The demand for special arrangements and management plans is exceeding our current systems ability to maintain configuration control of these agreements and how they are managed. this precedence setting activity to become formalized. May 1, 2014 TPC Meeting