	Background

FAA’s Aircraft Certification Service (Aircraft Certification) and Flight  Standards Service (Flight Standards) issue certificates and approvals for  the operators and aviation products used in the national airspace system  based on standards set forth in federal aviation regulations. FAA’s Certification and Approval Processes

In 2010, we reported that many of FAA’s certification and approval  processes contribute positively to the safety of the NAS, according to  industry stakeholders and experts.and approval processes work well most of the time because of FAA’s  long-standing collaboration with industry, flexibility within the processes,  and committed, competent FAA staff. Industry stakeholders and experts  noted that negative certification and approval experiences, such as  duplication of approvals, although infrequent, can result in costly delays  for them, which can disproportionately affect smaller operators. We made  two recommendations to improve the efficiency of the certification and  approval processes. FAA addressed one recommendation and partially  addressed the other. We found that while FAA had taken actions to  improve the efficiency of its certification and approval processes, it lacked  outcome-based performance measures and a continuous evaluative  process to determine if these actions were having the intended effects. It  developed six recommendations, which called for FAA to develop comprehensive implementation plans for certification process  improvement initiatives, including measuring the effectiveness of the  implementation and benefits of improvements as well as developing a  means to track and monitor initiatives and programs; continue to improve the effectiveness of delegation programs; develop an integrated, overarching vision of the future state for  certification procedures; update Part 21 certification procedures to reflect a systems approach develop and implement a comprehensive change management plan  to prepare the workforce for its new responsibilities in a systems  safety approach to certification and oversight; and   review continued operational safety and rulemaking processes and  implement reforms to improve efficiency. We found these recommendations to be relevant, clear, and actionable. In response to the committee’s recommendations, FAA developed a plan  that includes 14 initiatives to implement the committee’s  recommendations and publicly reported the plan in July 2013. However, FAA’s initiatives  and programs to implement the recommendations do not contain some of  the elements essential to a performance measurement process. Without early performance measures, FAA will  not be able to gather the appropriate data to evaluate the success of  current and future initiatives and programs. Consistency of Regulatory Interpretation

In 2010, we reported that variation in FAA’s interpretation of standards for  certification and approval decisions is a long-standing issue that can  result in delays and higher costs for industry. A second FAA-industry committee—the Consistency of Regulatory  Interpretation Aviation Rulemaking Committee (regulatory consistency  committee)—established to respond to Section 313 of the Act, identified  three root causes of inconsistent interpretation of regulations—(1) unclear  regulatory requirements; (2) inadequate and nonstandard FAA and  industry training in developing regulations, applying standards, and  resolving disputes; and (3) a culture that includes a general reluctance by  both industry and FAA to work issues of inconsistent regulatory  application through to a final resolution and a “fear of retribution.” The root  causes are consistent with issues raised in our 2010 review and those  raised by industry during that review. FAA reported on July 19, 2013, that it is determining the feasibility of  implementing these recommendations. The agency told us that it  expected to develop an action plan to address the recommendations and  metrics to measure implementation by December 2013. Measuring outcomes can help in  understanding if an action is having the intended effect. FAA faces challenges in  implementing the committees’ recommendations and further improving its  certification and approval processes. FAA’s certification and approval  workload is expected to grow over the next 10 years because of activities  such as the introduction of new technologies and materials, such as  composite materials used in airplanes, according to one industry  committee report. Having certification and  approval processes that work well will allow FAA to better meet these  increasing workload demands and better ensure aviation safety in an era  of limited resources.
Why GAO Did This Study

Among the agency's responsibilities for aviation safety, FAA issues certificates for new aircraft and parts and grants approvals for changes to air operations and aircraft. In 2010, GAO made recommendations to improve FAA's certification and approval processes. Subsequently, the Act required FAA to work with industry to assess the certification process and address some of the findings in GAO's report. In July 2013, FAA issued reports on its efforts, including those in response to committee recommendations and FAA's implementation plans. This testimony addresses FAA's responses to the recommendations made by GAO in 2010 and the two joint FAA-industry committees concerning (1) the certification and approval processes and (2) the consistency of regulatory interpretation. It also discusses future challenges facing FAA's certification and approval processes.
This statement is based in part on GAO's 2010 report. More detailed information on the objectives, scope, and methodology for that work can be found in that report. In addition, for this statement, GAO interviewed industry representatives, reviewed the methodologies used to develop the committees' recommendations, and assessed the recommendations and FAA's planned responses to those recommendations in terms of whether they were relevant, clear, actionable, and feasible.
GAO is not making any new recommendations in this testimony.

What GAO Found

In 2010, GAO reported that industry stakeholders and experts believed that the Federal Aviation Administration's (FAA) certification and approval processes contribute positively to the safety of the national airspace system. However, stakeholders and experts also noted that negative certification and approval experiences--such as duplication of approvals--although infrequent, can result in delays that industry says are costly. GAO made two recommendations requiring, among other things, that FAA develop a continuous evaluative process and a method to track submission approvals. FAA addressed one recommendation and partially addressed the other. An FAA-industry committee established in response to the FAA Modernization and Reform Act of 2012 (the Act) made six recommendations to improve the certification and approval processes, including establishing a performance measurement process. In response to recommendations from the certification process committee, FAA developed an implementation plan with 14 initiatives, but the initiatives do not contain some elements essential to a performance measurement process, such as performance measures. Without performance measures, FAA will be unable to evaluate current and future programs.
GAO also reported in 2010 that variation in FAA's interpretation of standards for certification and approval decisions is a long-standing problem. A second FAA-industry committee, established in response to the Act, made recommendations concerning the consistency of regulatory interpretation. FAA reported that it is determining the feasibility of implementing the recommendations and expected to develop an action plan by December 2013. Further, FAA reported it would measure implementation, but not outcomes; measuring outcomes helps to understand if the action is having the intended effect.
Among the challenges facing FAA, its certification and approval workload is expected to grow due to the introduction of new technologies and materials and expected progress in the deployment of the Next Generation Air Transportation System. Having efficient and consistent certification and approval processes would allow FAA to better use its resources to meet these increasing workload demands and better ensure aviation safety in an era of limited resources.