Appendix C to Part 187 - Fees for Production Certification-Related Services Performed Outside the United States
14:3.0.1.5.35.0.3.10.80 : Appendix C
Appendix C to Part 187 - Fees for Production Certification-Related
Services Performed Outside the United States
(a) Purpose. This appendix describes the methodology for
the calculation of fees for production certification-related
services outside the United States that are performed by the
FAA.
(b) Applicability. This appendix applies to production
approval holders who elect to use manufacturing facilities or
supplier facilities located outside the United States to
manufacture or assemble aeronautical products after September 30,
1997.
(c) Definitions. For the purpose of this appendix, the
following definitions apply:
Manufacturing facility means a place where production of
a complete aircraft, aircraft engine, propeller, part, component,
or appliance is performed.
Production certification-related service means a service
associated with initial production approval holder qualification;
ongoing production approval holder and supplier surveillance;
designee management; initial production approval holder
qualification and ongoing surveillance for production certificate
extensions outside the United States; conformity inspections; and
witnessing of tests.
Supplier facility means a place where production of a
part, component, or subassembly is performed for a production
approval holder.
Production approval holder means a person who holds an
FAA approval for production under type certificate only, an FAA
approval for production under an approved production inspection
system, a production certificate, a technical standard order
authorization, or a parts manufacturer approval.
(d) Procedural requirements. (1) Applicants may apply for
FAA production certification-related services provided outside the
United States by a letter of application to the FAA detailing when
and where the particular services are required.
(2) The FAA will notify the applicant in writing of the
estimated cost and schedule to provide the services.
(3) The applicant will review the estimated costs and schedule
of services. If the applicant agrees with the estimated costs and
schedule of services, the applicant will propose to the FAA that
the services be provided. If the FAA agrees and can provide the
services requested, a written agreement will be executed between
the applicant and the FAA.
(4) The applicant must provide advance payment for each 12-month
period of agreed FAA service unless a shorter period is agreed to
between the Production Approval Holder and FAA.
(e) Fee determination. (1) Fees for FAA production
certification-related services will consist of: personnel
compensation and benefit (PC&B) for each participating FAA
employee, actual travel and transportation expenses incurred in
providing the service, other agency costs and an overhead
percentage.
(2) Fees will be determined on a case-by-case basis according to
the following general formula:
W1H1 + W2H2 etc., + T + O Where: W1H1 = hourly PC&B rate for
employee 1, times estimated hours W2H2 = hourly PC&B rate for
employee 2, etc., times estimated hours T = estimated travel and
transportation expenses O = other agency costs related to each
activity including overhead.
(3) In no event will the applicant be charged more than the
actual FAA costs of providing production certification-related
services.
(4) If the actual FAA costs vary from the estimated fees by more
than 10 percent, written notice by the FAA will be given to the
applicant as soon as possible.
(5) If FAA costs exceed the estimated fees, the applicant will
be required to pay the difference prior to receiving further
services. If the estimated fees exceed the FAA costs, the applicant
may elect to apply the balance to future agreements or to receive a
refund.
(f) Fees will be reviewed by the FAA periodically and adjusted
either upward or downward in order to reflect the current costs of
performing production certification-related services outside the
United States.
(1) Notice of any change to the elements of the fee formula in
this Appendix will be published in the Federal Register.
(2) Notice of any change to the methodology in this Appendix and
other changes for the fees will be published in the Federal
Register.
[Doc. No. 28967, 62 FR 55703, Oct. 27, 1997]