Story ID: 
DOT IG Finds FAA Oversight Lacking
By: Kerry Lynch
Caption: FAA is moving toward a risk-based oversight approach for its ODA program in face of criticism for lacking effective staffing, risk-based models.
Word Count: 658
The FAA, under criticism from a government watchdog for its staffing and approach to monitoring the Organization Delegation Authorization (ODA) program, has been developing a new risk-based oversight process that it hopes to put in place in upcoming months. The Department of Transportation Inspector General (IG) released a report this week finding the FAA’s staffing and approach to ODA oversight lacking. The IG conducted the investigation at the behest of Rep. Peter DeFazio (D-Ore.), the ranking Democrat on the House Transportation and Infrastructure Committee. The report also comes as a joint government/industry advisory group is recommending that the agency expand the ODA program to make its certification efforts more efficient.

Under the ODA program, the FAA delegates to authorized individuals certain functions, such as approving new designs and other certifications. The IG noted that one manufacturer with ODA recognition “approved about 90 percent of the design decisions for all of its own aircraft.” The IG estimates that 80 organizations are authorized under the ODA program to approve work for the FAA at airlines, manufacturers and repair stations.

The program has continued to evolve, the IG said. But as it has grown, the agency has not established a comprehensive process for determining the resources it needs to provide ODA oversight. The agency’s oversight staffing model does not take into account factors such as a company’s size and location, type of work performed, past performance, and project complexity and volume, the IG said. “Without a comprehensive, data-driven approach, the FAA cannot be assured that it has the right number of people in the right places to oversee the ODA program 

The IG also faulted the FAA’s “program controls” for ODA, saying the agency does not use a risk-based approach. Instead, it employs “minimum requirements in program guidance,” that primarily involve a checklist completed annually along with a biennial audit. The guidance provides little direction on how to accomplish the checklist. In addition, the FAA’s teams have not been given tools or guidance on data to identify high-risk areas.  “As a result, the FAA’s oversight is not data-driven and fully targeted toward the areas of highest risk.”

In response, the FAA told the IG it is “committed to continuously enhancing its oversight of the program” and is currently putting in place policy and training improvements to enhance oversight. “These changes include a greater emphasis upon risk-based approaches to the surveillance of ODA holders, which will result in better use of FAA inspector resources and more effective oversight,” the agency said.

“Since the ODA program was first introduced…it has continued to evolve, and without it U.S. aircraft production and repair activities would be unacceptably delayed,” the agency said, adding “The ever expanding magnitude of the U.S. aerospace industry requires that the agency delegate an increasing number of oversight functions through the ODA program.”

The IG in its report acknowledged the FAA’s response, saying the new oversight process “will represent a significant change in its approach.” The FAA is prototyping the new process in one oversight office, but the IG added, “it will not be implemented until next year at the earliest.”

The IG also expressed concerns about potential problems the FAA may face in implementing such a system, noting that the agency is still finding “barriers” in training and policy adoption and that "transitioning to a risk-based oversight process presents cultural challenges and paradigm shifts.”

The IG recognized the importance of an efficient certification process and acknowledged that delegation is an essential part of meeting the agency’s certification goals. “However, robust FAA oversight that is systems-based and targeted to high-risk areas is necessary to ensure that ODA companies maintain high standards and comply with FAA safety regulations,” the IG said. In all, the watchdog made nine recommendations seeking for strengthened staffing and oversight models.