The 7 Steps to Managing an FAA Audit - Knowing What to Say and Do Can Save you Time, Money and Aggravation

Holding any sort of FAA certification means you are under FAA surveillance. The FAA provides oversight for certificated individuals as well as companies to determine if the Federal Aviation Regulations, (CFR14) Code of Federal Regulations are followed properly. If it suspect any violations, the FAA will use its “Enforcement Program” (see FAA Order 2150.3B) as a strict guide to investigate the company or individual suspected. It’s wise for you to know how this program works so you can be better prepared for an FAA audit or ramp check and know exactly how to respond in an investigative situation.

Let me start by saying that the core objective of the FAA and its procedures are obviously well intended. As an industry, we must accept the fact that we are in a business that is subject to very specific regulations established to maintain the highest level of safety. However, knowing the enforcement program and how to handle FAA audits or ramp checks can sometimes mean the difference between a long, costly, drawn-out investigative process versus a simple response or avoiding an issue all together.

Guidelines for an FAA Visit

Let’s start by exploring how companies and individuals end up being the subject of an FAA Enforcement Program in the first place. The process often starts when a certificate holder is paid a friendly visit by the assigned safety inspector. During the visit, the safety inspector sees or hears something that causes him or her concern.  If you work at a repair station or an air carrier, these visits occur on a more regular basis of once or more per year. Unfortunately, many certificate holders take these visits all too lightly and do not fully understand how they should be handled or the importance of their outcome. As a result, some have found themselves in a time-consuming and costly investigation that could have been avoided altogether. Preparation and knowledge is key to avoiding an investigation or violation. Simply being in compliance with the regulations is not enough. You must know how to handle an FAA visit if you want to minimize or avoid unnecessary confusion with them — and that starts by knowing the FAA’s process.

The FAA’s job is to uphold the rules and regulations expressly defined in the FARs. As nice as some of these inspectors are, we need to understand their job is to discover violations of the code and take appropriate enforcement action against every violation. Not all inspectors take enforcement action when they find or suspect a violation (thankfully). However, it’s important to know that they are obliged to do so when they find something.  Each of them has taken such an oath. So, how should you prepare for and handle a visit from your assigned FAA safety inspector?

Avoid Being a Subordinate

The relationship you have with your FAA inspector is critical. It’s important to remain cordial with this person, as you would in any business relationship. However, it’s more important that you NOT put yourself in a subordinate position with your inspector. A common pitfall of many certificate holders occurs when they depend upon their FAA inspector for guidance and answers to regulatory questions. One of the first rules in compliance management is to know and understand the regulations and how you are in compliance.

Follow these seven steps to managing an FAA audit:

1) Assign someone within your organization to be with the FAA at all times. This person should have quick access to and know where to find information the FAA will want to see.

2) Refrain from entering into conversation about any specific events that have taken place. The FAA should use your documentation to find answers they need.

3) Let the FAA know you will handle the task of making copies of any documentation they need. Do not give them access to your copy machine. Make two copies of everything (one for the FAA and one for yourself) so you know exactly what they have.

4) Provide only the information that is requested. For example, if the FAA asks to look at the “work orders,” ask them to be more specific. Ask, “What type of work order would you like to see?” Provide one work order at a time, putting them away as they are finished and staying organized.

5) Remember to keep only two years’ worth of maintenance records (as a repair station). That’s all the regulations require and all you should have available.

6) Don’t get into any arguments with your FAA inspector. Let them do their job. Remember, you already hold a certificate.

7) Don’t agree to make any major changes in your procedures on the spot. Major changes to procedures can cost your company lots of money in retraining and unnecessary inefficiencies. Wait to see if the inspector includes his or her opinion in the letter at the end of the inspection, and then address it properly.

Following an FAA surveillance inspection, you should expect a letter outlining their findings.  This letter will include a request for response from you or your organization, indicating the corrective action you have taken.  Keep copies of all correspondence you have with the FAA.

If you receive a Letter of Investigation (LOI), this is an indication that your inspector has opened an Enforcement Investigation Report (EIR) which is the first step in the FAA Enforcement Program described below. Contact a regulations expert or an aviation attorney BEFORE you respond, as they understand the FAA Enforcement Program completely and can help you respond appropriately.

FAA Enforcement Program

Now let’s take a look at the process the FAA follows when taking enforcement action against a certificate holder. The investigative process, referred to as the FAA Enforcement Program, is detailed in FAA Order 2150.3B – FAA Compliance and Enforcement Program.

When an FAA inspector performs surveillance on his or her assigned certificate holders (air carries, repair stations, pilots, mechanics, etc.), as previously stated, part of their job is to identify regulatory violations and take enforcement action against those who are found to be in violation. Once the FAA safety inspector believes a violation has occurred, the process goes something like this:

• An EIR file is opened and a unique number will be assigned to identify the package/violation throughout the process.

• An LOI is written and sent via certified mail to the certificate holder to make him or her aware that the FAA believes a violation has occurred. The letter is a prewritten “canned” letter that must contain certain elements. One of the elements is a request for the certificate holder to respond to the allegations.

Note: Any response you make becomes a permanent part of the investigation package and can be used against you.

• The investigation is conducted and the evidence compiled.

• The investigating inspector makes a determination as to what enforcement action should be taken based upon the findings of the investigation, your response and the guidelines of Order 2150.3B.

• The inspector will then submit the package to FAA regional council (an FAA attorney) with a recommendation for action to be taken.

• Enforcement action is taken against the certificate holder. The regional council sends the certificate holder what is called “Notice of Proposed Civil Penalty” or “Notice of Proposed Certificate Action.”

• The certificate holder must then choose from several options for how they would like to respond.

For more detailed information on enforcement actions, refer to FAA Order 2150.3B: http://rgl.faa.gov/Regulatory_and_Guidance_Library/rgOrders.nsf/0/823058641623af66862573670046623c/$FILE/2150.3B.pdf.

If you have taken a more relaxed approach to FAA surveillance inspections in the past, I hope this information has shed new light and understanding on the importance of these “friendly” visits and how quickly they can impact your business if they aren’t handled effectively. By knowing the FAA’s motives and the process it follows, you will be better equipped to handle any inspection with more efficiency and much less risk. Above all else, know exactly how you are in compliance with the regulations. Such preparation is the smartest approach to take with all FAA interactions and will also have a positive impact on the efficiency of your business. 

Joe Hertzler is CEO and co-founder of Avtrak. He has more than 25 years of experience in the industry and is well known for his in-depth understanding of maintenance regulations and how they affect aircraft compliance. He often speaks on the topic of maintenance compliance at industry events, such as the NBAA Maintenance Managers Conference, PAMA meetings and IA renewal seminars. He also serves on the National Air Transportation Association’s (NATA) Maintenance and Systems Technology committee. For more information, visit www.avtrak.com.