![](media/image1.emf)

**QUALITY/RELIABILITY OFFICER**

**GUIDEBOOK**

**FEDERAL AVIATION ADMINISTRATION**

**QUALITY ASSURANCE DIVISION**

**ASU-200-01**

**FORWARD**

**[Purpose]{.underline}:** This document is issued to provide guidance
to FAA Quality Assurance personnel involved in all quality related
aspects of FAA procurements for material and services. It is
specifically directed to Quality and Reliability Officers (QROs) and
Associate (Alternate) QROs of the QA Division (ASU-200).

**[Applicability]{.underline}:** The broad guidelines herein are
intended to be applied to a contract to which FAA quality
representatives are assigned, regardless of the specific quality system
requirements or the material or services procured. These guidelines are
intended to be illustrative/descriptive of the best available practices
rather than regimental in content. This will facilitate an evolving
approach to the administration of Quality Assurance within the Quality
Assurance Division, (ASU-200) and the Federal Aviation Administration.

**[Obligation]{.underline}:** In the detailed procedures that follow,
actions which are considered essential by the FAA Quality
Representatives are distinguished by the use of words of direction, such
as "shall" or "is required". However, none of the information presented
shall be used to impose any requirement on a contractor that is outside
the scope, terms or conditions of the contract. The varied contractual
requirements and Integrated Product Team (IPT) methodologies may require
the QRO to tailor his/her methods accordingly.

**[Distribution]{.underline}:** The document is distributed to each
employee of the Quality Assurance Division (ASU-200). Copies are also
available to all FAA Product Team (PT) members and FAA contractors upon
request to the QRO assigned to the contract involved or to the Manager
of the Branch to which the QRO reports.

**[Request for Information and Changes]{.underline}:** Requests for
further information or questions relating to this document should be
addressed to the Manager, Quality Assurance Division, ASU-200.
Recommended corrections, additions, or deletions should also be sent to
ASU-200.

[\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_]{.underline}
[\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}

Richard Heironimus Date

Manager, Quality Assurance Division

**i**

**[TABLE OF CONTENTS]{.underline}**

CHAPTER 1.
GENERAL\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...1

SECTION 1. QUALITY STANDARDS 1

CHAPTER 2. QRO INITIAL OPERATIONS 3

SECTION 1. DUTIES 3

SECTION 2. REVIEW OF CONTRACTUAL DOCUMENTS 3

SECTION 3. DEVELOPMENT OF THE QRO CONTRACT PLAN 4

SECTION 4. REVIEW OF CONTRACTOR\'S DOCUMENTS 6

SECTION 5. DEVELOPMENT OF AUDIT GUIDELINES 7

*FIGURE 1. TYPICAL KEY EVENTS AND MILESTONES* 8

CHAPTER 3. RECURRING OPERATIONS 11

SECTION 1. AUDITS 11

SECTION 2. INSPECTION/TEST WITNESSING 12

SECTION 3. OPERATIONS UNDER QUALITY SYSTEMS 14

SECTION 4. QUALITY RECORDS AND INDICATORS 16

SECTION 5. CORRECTIVE ACTION 17

SECTION 6. PROCESSING OF NONCONFORMING SUPPLIES 17

SECTION 7. QUALITY RECORDS 20

CHAPTER 4. ADMINISTRATIVE DUTIES 21

SECTION 1. FIELD CONTRACT FILE 21

SECTION 2. CONTRACT PROGRESS REPORTS 22

SECTION 3. ACCEPTANCE 24

*FIGURE 2. INSPECTION REPORT OF MATERIAL AND/OR SERVICES (FORM-FAA-256)*
28

SECTION 4. PROGRESS PAYMENT REQUESTS 30

SECTION 5. CLOSE-OUT OF FIELD CONTRACT FILE 32

SECTION 6. CONTRACTOR PERFORMANCE EVALUATION 32

CHAPTER 5. COLLATERAL DUTIES 35

SECTION 1. PROVISIONING CONFERENCES 35

SECTION 2. POST-AWARD CONFERENCE 35

SECTION 3. FAA TEST AND EVALUATION 36

SECTION 4. SUPPORT FOR THE PRODUCT TEAM 36

SECTION 5. CONTRACT PROPERTY ADMINISTRATION SUPPORT 37

SECTION 6. STRIKES/LABOR PROBLEMS 39

SECTION 7. SITE OPERATION 39

SECTION 8. DATA COLLECTION/METRICS REPORTING 39

SECTION 9. GIDEP SUPPORT 40

**ii**

# CHAPTER 1. GENERAL

## SECTION 1 QUALITY STANDARDS

**[1.1.1 Background.]{.underline}** As of April 1, 1996, the FAA
Acquisition Management System (AMS) was officially initiated to replace
the existing Federal Acquisition Regulation (FAR) for future
procurements in the FAA. Under this reformed acquisition system, the
general quality policy as stated in FAA Order 4630.8 remains unchanged,
i.e., that a quality program/system shall be provided for, and included
in, the documentation for National Airspace System (NAS) acquisition, of
all systems, equipment, material and services. Almost concurrent with
the planning for the reformed Acquisition Management System, the Office
of Acquisitions initiated the use of international quality system
standards published by the Office of International Standards (ISO) to
replace the prior FAA quality system/program standards considered high
level contract quality requirements under the FAR, e.g. FAA-STDs -013,
-016, -018.

The ISO standards, referred to in the U.S. as ANSI/ASQC standards, are
applicable as follows:

1\. [ISO 9001.]{.underline} For contracts involving design, development,
production, installation and servicing, ANSI/ASQC Q9001 (or ISO 9001) is
applied.

2\. [ISO 9002.]{.underline} For contracts involving only production,
installation and servicing, ANSI/ASQC Q9002 (or ISO 9002) is applied.

3\. [ISO 9003.]{.underline} For contracts which specify that conformance
to requirements may be assured by the supplier via final inspection and
test alone, ANSI/ASQC Q9003 (or ISO 9003) is applied.

In addition to the above ISO standards, the FAA will continue to invoke
"contractor inspection" system requirements and "standard inspection"
system requirements as follows:

4\. [Contractor Inspection.]{.underline} This is the minimum level
requirement. It assigns total responsibility to the contractor for all
aspects of product or service quality delivered, with no Government
commitment to verify acceptability. It normally is applied for
relatively simple products and/or services that are not critical and
which are almost always procured per the contractor's design.

5\. [Standard Inspection.]{.underline} This is the next higher level
requirement. It requires that a contractor provide an inspection system
acceptable to the Government and it provides an opportunity for
Government inspection at the source. It is normally used for equipment
and services that are sufficiently complex and/or critical to require
more control and confidence regarding the delivered quality than that
used for "contractor inspection". This quality level is above that
expected for the "contractor inspection" system, but less than that
required by the "higher level" quality system requirements (ISO 9000
series).

> Under this quality requirement, the QRO assigned to evaluate the
> contractor's inspection system for acceptability should select the
> relevant quality elements from ISO 9000-1,-2,-3, (e.g., quality
> records, control and calibration of measuring and test equipment,
> control of non-conforming material, etc.) appropriate to the
> operations and technical requirements involved.

**[1.1.2 Quality Standard Selection.]{.underline}** The initial
recommendation regarding the quality standard to be applied to an
acquisition contract is provided by ASU-210, the Industrial Evaluation
and Contract Support Branch, to the Product Team (PT) in the early
planning stages for a program.

**[1.1.3 Existing FAA Contracts.]{.underline}** All existing contracts
shall be monitored for compliance with the existing quality system
standard specified in the contract. Only formal contract changes can
impose newer quality standards (e.g., ISO/ANSI/ASQC 9001). The
contractor may, however, provide a quality system "better than" the
quality system specified in the contract provided there is no cost to
the Government, and the new quality standard is reviewed by the QRO, PT
and approved by the FAA Contracting Officer.

**[1.1.4 Quality Standard Differences.]{.underline}** There are some
significant differences between the FAA Quality System Standards
(FAA-STD- 013, -016, -018) and ISO/ANSI/ASQC (ISO) Quality Standards
worthy of note, as follows:

1\. The control of content to the ISO standards is totally within the
purview of the ISO organization, and revision may be expected more
frequently than FAA standards.

2\. There is currently no separate ISO software quality system standard.
Rather, it is considered that the total quality system document (e.g.,
ISO 9001, 9002) covers all products and processes including computer
software. There is, however, an ISO standard, 9000-3, which is designed
as a guide for application of the 9001 and 9002 standards to development
of computer software.

3\. The differences between the three ISO quality standards (9001, 9002,
9003) do not depend on complexity or criticality, but rather on the
scope of the activities to be provided. For example, (a) ISO 9001
applies when design and development are involved; (b) ISO 9002 applies
for production, installation and servicing (with no design effort
involved); (c) ISO 9003 applies when only final inspection and test are
required.

4\. The ISO standards are subject to relatively frequent review and
revision. Since revisions are normally identified by date only, it is
important to be mindful of the revision date of the contractually
applicable standard.

5\. The ISO standards, as well as most, if not all, other industry
standards are copyrighted. Accordingly, it is illegal to reproduce them
for any reason, without appropriate legal authority. Copies should be
obtained via the Contracting Officer or the Quality Assurance Branch
Manager. Contractors or PT members who request copies should be directed
to the CO.

# CHAPTER 2. QRO INITIAL OPERATIONS

## SECTION 1 DUTIES

**[2.1.1 GENERAL.]{.underline}** The QRO is required to perform the
following operations during the initial or \"set-up\" phase of a
contract:

1\. Review contractual documents.

2\. Develop QRO contract plan.

3\. Review contractor documents.

4\. Develop audit guides (where applicable) and related records.

**[2.1.2 SUPPORT FOR THE PRODUCT TEAM.]{.underline}** A recent FAA
restructuring involved the establishment of an IPT structure that
includes PTs within an IPT. Accordingly, the role of the QRO and
Associate QROs may be broadly defined as "the eyes and ears of the PT"
in a contractor's facility. While the specific QRO duties are identified
in this document, the following guidelines clarify the ASU-200
management expectations of this relationship:

1\. The QRO becomes a member of the PT upon being assigned to the
contract, which normally occurs immediately after contract award. Prior
to that time, a representative of the Industrial Evaluation and Contract
Support Branch, ASU-210 fills that role.

2\. Each member of the PT is a "prime customer" of the QRO staff, with
particular emphasis on the CO, TO and Product Team Lead (PTL). All
services within the guidelines herein should be provided in the most
effective and efficient manner.

3\. Requests for services outside the scope of the Quality function as
described herein, should be discussed with the QA Branch Manager and
should be provided to the maximum degree possible without detracting
from the QRO's prime responsibilities.

4\. The QRO is required to plan activities based on information provided
by the contract and the PT representatives, including the PT
representative from ASU-210.

**[2.1.3 QRO Support/Assistance.]{.underline}** In the event that the
QRO requires additional support or assistance, the QRO shall submit a
request to the Branch Manager or appropriate support organization.

## SECTION 2. REVIEW OF CONTRACTUAL DOCUMENTS

**[2.2.1 GENERAL.]{.underline}** Upon assignment as the QRO to a
contract, the QRO will receive from his/her Branch Manager a copy of the
basic contract. The Branch Manager should also identify key support
personnel (e.g., software, hardware, property administration, etc.). The
QRO shall be responsible for obtaining the remaining relevant
specifications and documents. These documents will normally consist of:

1\. The contract schedule.

2\. The equipment specification.

3\. General specifications referenced, e.g., FAA-G-2100 or equivalent.

4\. Technical Proposal (if applicable).

5\. The contractor\'s quality plans.

6\. Pre-award survey or summary, if available.

7\. Drawings, test procedures, plans and other relevant information.

**[2.2.2 REVIEW.]{.underline}** Upon receipt of these documents, the QRO
shall perform a detailed review for the purpose of verifying their
completeness, understanding the requirements, and detecting obvious
technical or administrative deficiencies.

1\. [Completeness.]{.underline} The QRO should ensure that the contract
package contains relevant documents referenced in the contract.
Documents that are not included should be obtained from the contractor
or Government sources listed in the contract.

2\. [Understanding.]{.underline} The primary purpose of the review is
for the QRO to gain complete understanding of all requirements of the
contract including:

> \(1\) Equipment and service requirements including site installation
> and maintenance operations where applicable.
>
> \(2\) Type of quality requirements
>
> \(3\) Requirements for documentation and support, such as, instruction
> books, provisioning documents, and spare parts.
>
> \(4\) Delivery Schedule
>
> \(5\) Special provisions included in the contract
>
> \(6\) Provisions for Government‑Furnished Property (GFP)
>
> \(7\) Contract terms and conditions

3\. [Deficiencies.]{.underline} Any deficiencies in contractual, design,
or technical requirements that are noted during the QROs review should
be forwarded to the CO, PTL, TO and the ASU-200 Branch Manager in a
timely manner. Comments should include a full explanation of the
deficiencies as well as recommendations.

## SECTION 3. DEVELOPMENT OF THE QRO CONTRACT PLAN

**[2.3.1 GENERAL.]{.underline}** After the contractual documents have
been thoroughly reviewed, the QRO shall develop a \"QRO Contract Plan\".
This plan, as a minimum, shall consist of two parts. One part shall be
entitled \"Contract Review Record\" (CRR) and the other part shall be
entitled \"QA Plan\". A copy of the contract plan shall be submitted to
the Branch Manager; also to PT members (if requested). A copy of the
contract plan shall be retained in the field contract file.

**[2.3.2 CONTRACT REVIEW RECORD (CRR).]{.underline}** The CRR shall, as
a minimum, consist of the following items:

1\. Contractor\'s name, address, and telephone number.

2\. Contract number, date of award, type, current contract modification
number, and current dollar value.

3\. Equipment name and description.

4\. Names and routing symbol information of FAA personnel who
participate in the contract, including functions and responsibilities
(e.g. Technical Officer, Contracting Officer, Transportation Officer,
and other PT members).

5\. Names and other identifying information of the contractor\'s
personnel, including functions and responsibilities; particularly the
company official(s) with authority and responsibility for final
decisions (e.g., Program Manager, Quality Assurance Manager, Contract
Manager).

6\. Distribution list, including frequency and distribution of quality
generated documents, and the type of correspondence required for the
contract (i.e., progress reports, Form FAA-256, etc.).

7\. Delivery and inspection/acceptance information (i.e., FOB point,
place of inspection and acceptance, and other related information).

8\. List of major applicable specifications including revision level and
date.

9\. List of deliverable contract line items including provisioning
requirements with quantities and delivery schedules, as well as
documentation which is not a contract item but is required by
specification.

10\. Progress payment and contractor\'s progress report information.

11\. Special packing, marking, and shipping instructions, if applicable.

12\. A milestone schedule or chart that indicates the key activities and
milestones of the contract. The level of detail of this chart will be
proportional to the magnitude or nature of the contract. For relatively
simple contracts such as those for commercial off-the-shelf items, the
milestone chart may be limited to such events as equipment delivery
dates and submission of test procedures. On more complex procurements
the key events may consist of such items as: beginning and completion of
design; procurement (order and receipt) of parts and materials;
fabrication of initial units; submission of test procedures and other
documents; beginning and completion of test required by contract;
beginning of production and shipments of equipment and other deliverable
items. Figure 1 is a relatively complete listing of possible events that
may be used as a guide for selecting milestones. It should be noted that
the contractor may have prepared a milestone chart. If available and
adequate, this may be used or supplemented by the QRO. Other planning
documents prepared by the contractor such as flow charts, PERT charts,
narrative plans, and production schedules should be obtained if
available, and used to prepare the milestone chart. Depending on their
volume and significance, these documents may also be included in the CRR
at the discretion of the QRO.

13\. Other relevant information as deemed appropriate by the QRO (e.g.
information requested by Product Team members or the Branch Manager).

**[2.3.3 QA PLAN.]{.underline}** This document shall describe the QRO\'s
overall plan for fulfilling his/her responsibilities. It shall include,
as a minimum, the following sections. If any of the following elements
are not directly applicable to a specific contract, a notation of \"not
applicable\" should be used.

1\. [Program overview.]{.underline} This section shall consist of a
brief narrative description of the QA program.

2\. [Description of major phases and QRO activities.]{.underline} This
section shall describe the major phases of the contract as shown on the
milestone chart (contained in CRR) and shall describe the planned
activities that the QRO anticipates related to those phases. This
section should address the QRO's approach to monitoring the contractor's
performance. Certain activities, such as development of audit guidelines
that are pertinent to the contractor\'s internal operations should also
be addressed.

3\. [Audit guides, schedules, and other records.]{.underline} In this
section, the QRO shall describe the planned use of audit guides,
schedules, and other types of guidance records. A listing shall be
included of the operations for which the QRO plans to develop audit
guides (e.g., receiving inspection, calibration system, PCB flow,
packing and shipping, etc.). The generation of the audit guides shall be
prioritized such that the earliest required events (e.g., design,
purchasing, etc.) are generated first. A schedule shall also be included
describing the planned frequency for conducting audits. This section
shall also describe any other type of records and forms that the QRO
intends to use, such as deficiency reports and rejection notices. In
addition, the QRO shall include the projected schedule for the
generation of the audit guides, schedules, and other records.

4\. [Special Provisions.]{.underline} This section should include a
description of any special or unusual activities/actions that will be
required of the QRO (e.g., site acceptance activities if required by
contract).

5\. [Manpower Estimates.]{.underline} This segment shall describe the
manpower requirements needed to efficiently implement the Quality
Assurance Plan. The basic method and assumptions used for this
estimation should be detailed. It is suggested that the estimate be
keyed to the milestone chart, though other methods may be utilized if
they relate the manpower requirements to specific time frames and
activities (e.g., first article and type test witness/monitoring).

**[2.3.4 SUBMISSION OF QRO CONTRACT PLAN.]{.underline}** The Contract
Plan, as described in this section, shall be developed as soon as
possible after assignment to a contract, but not later than sixty (60)
days unless approved by the Branch Manager. It is recognized that some
portions of the plan will change during the life of the contract (e.g.,
delivery schedules, manpower estimates). Accordingly, the QRO Contract
Plan should be reviewed annually and updated as appropriate. Copies of
plan updates should be forwarded to the original recipients.

## SECTION 4. REVIEW OF CONTRACTOR\'S DOCUMENTS

**[2.4.1 REVIEW OF CONTRACTOR\'S DOCUMENTS.]{.underline}** After (or
concurrent with) the review of the contractual documents and the
development of the QRO\'s contract plan, the QRO shall review a
sufficient number of the contractor\'s documents in sufficient detail to
develop a clear understanding of the contractor\'s operations. The term
\"contractor\'s documents\" may include operation procedures, work
instructions, quality instructions, workmanship standards, etc., which
are applicable to the contract. The purpose of this review is to develop
an understanding, by the QRO, of the contractor\'s operations, to assure
that the contractor\'s documents do not conflict with the requirements
of the contract, and to enable the QRO to develop the necessary audit
guides and other records for implementation of the QRO Quality Assurance
Plan.

**[2.4.2 SPECIFIC DOCUMENTS.]{.underline}** The specific documents that
are to be reviewed will depend upon the nature of the contract and the
organization of the contractor\'s operations. In general, the documents
will be evaluated for their adequacy and accuracy in describing those
operations, controls, and actions to be performed by the contractor to
meet all contract provisions. The procedures to be evaluated will cover
various items such as: (a) nonconforming materials; (b) government
furnished property; (c) complete items inspection and test; (d)
corrective action; (e) drawings, documentation, and change control; (f)
government source inspection; (g) handling, storage, and delivery; (h)
indication of inspection status; (i) materials and material control; (j)
measuring and testing equipment; (k) process control; (I) organization,
including individuals responsible for the various elements; (m) supplier
material; (n) records, and; (o) work instructions. At a minimum, they
should describe the controls provided for all elements described in the
applicable quality system standard (e.g., ISO 9001).

**[2.4.3 GUIDELINES.]{.underline}** The following guidelines apply to
procedures review:

1\. The contractor\'s written procedures need not be contained in a
single publication. They may be in quality or inspection manuals,
workmanship standards manuals, test procedures, inspection instructions,
work orders or instructions, operating procedures, technical/quality
agreements with vendors/subcontractors, engineering manuals, or other
documents. The QRO shall make arrangements with the contractor to obtain
copies of the procedures that are deemed relevant.

2\. Upon completion of a document review, it may be disapproved,
notifying the contractor in writing of the reasons for disapproval. For
acceptable documents the QRO may issue a letter to the contract file
indicating the specific documents reviewed and found acceptable. Since
disapproval is based on a conflict with a valid requirement, any
disapproved document must be corrected and resubmitted prior to use on
the contract.

3\. Changes to the contractor\'s written procedures shall be reviewed in
the same manner prescribed for the original procedures.

## SECTION 5. DEVELOPMENT OF AUDIT GUIDELINES

**[2.5.1 GENERAL.]{.underline}** Audit guidelines should be developed by
the QRO for all contracts, regardless of which quality standard(s) are
included. Development and use of these guidelines is mandatory. The
contractor's quality plans, procedures and standards should be used as a
basis for developing the guidelines.

**[2.5.2 PROCEDURES.]{.underline}** The QRO shall break down the
requirements in the contractor\'s quality plan (e.g., Quality Control
Program Plan (QCPP), Quality Control System Plan (QCSP), Computer
Software Quality Program Plan (CSQPP), or Quality System Plan (QSP))
into the form of guidelines. These guidelines shall be in the form of
checklists of characteristics that describe each of the contractor\'s
specific commitments to be verified by the QRO.

1\. The characteristics shall be defined to the degree necessary to
confirm acceptability of the contractor\'s process and to adequately
describe the process for evaluating each operation, and each area to be
audited.

2\. When appropriate, the plant location(s) at which the characteristics
in the guideline will be observed shall be selected, and such locations
shall be recorded on the guidelines. For this purpose a detailed plant
layout should be obtained from the contractor for each of the facilities
involved.

3\. The audit frequency shall be identified for each guideline.

4\. A Quality Deficiency Report (QDR) should be used as a vehicle of
notification to the contractor of any discrepancies found during the
performance of scheduled or unscheduled audits. Other comparable means
may also be used. These reports will be sequentially numbered for
reference.

### FIGURE 1. TYPICAL KEY EVENTS AND MILESTONES

[DESIGN]{.underline}

Preliminary System Design Interface Requirements

Electrical/electronic Design Design Data

Mechanical Design Design Review

Printed Circuit Board (PCB) Design Site Design

Unit Design Design Specifications for Subcontractors

Final System Design

[FIRST UNIT PROTOTYPE PRODUCTION]{.underline}

Breadboards Parts/Materials

PCB Fabrication & Assembly Long-Lead Items

Unit Fabrication & Assembly Subcontracted Items

Assembly Fabrication & Assembly System Integration

System Fabrication & Assembly

[DOCUMENTATION]{.underline}

QC Plan Final Instruction Book Review

Test Plan Printed Instruction Books Available

Design Qualification Test Procedures Provisioning Documentation

Production Test Procedures PERT Reports

Type Test Procedures Management Reports (Status, Cost, etc.)

Reliability Demonstration Procedures Installation Drawings

Maintainability Demonstration Procedures Construction Drawings

Site Test Procedures Reliability Plan/Reports

Factory Acceptance Test Procedures Maintainability Plan/Reports

Instruction Book Manuscript Plan Training Manuals

Instruction Book Validation Plan Specifications

Instruction Book Draft Manuscript As-Built Drawings

Instruction Book Camera Copy Interface Documents

**FIGURE 1. TYPICAL KEY EVENTS AND MILESTONES continued**

[TEST]{.underline}

Design Qualification Tests Factory Acceptance Tests

Production Tests Site Acceptance Tests

Type Tests Unit Tests

Contractor Preliminary Tests Assembly Tests

Reliability Demonstration System Tests

Maintainability Demonstration Vendor Tests

[PRODUCTION]{.underline} (AFTER FIRST UNIT PROTOTYPE)

Pre-Production Planning Test of Production Units

Design Release to Production Acceptance of Production Units

Parts/Material Delivery of Production Units

Fabrication of Production Units Site Installation

Assembly of Production Units Delivery of Spares

Subcontract Items

[OTHER]{.underline}

Provisioning Conference Training

Site Preparation Government Furnished Property

Support after Delivery (Engineering/maintainability)

[COMPUTER SOFTWARE]{.underline}

System Development Plan Integration Testing

Computer Program Functional Spec. Acceptance Testing

Program Design Specification Computer Soft ware Quality Program Plan

Software Coding System Testing

System Test Plan Software Testing

Module Testing Software/Hardware Integration

Subsystem Testing Software Programs (Tapes, Cards and Listings)

Software Design Data (Flow Charts, Table Design, etc.)

[SOFTWARE INSTRUCTION BOOKS]{.underline}

Operator's Manual Programmer's Reference Manual

User\'s Manual Utility, Test & Maintenance Manual

# CHAPTER 3. RECURRING OPERATIONS

## SECTION 1. AUDITS

**[3.1.1 GENERAL.]{.underline}** Audits are scheduled formal reviews,
examinations, and verifications of activities and operations which
affect the quality of products, processes or services. They provide a
means for assuring compliance with contractual requirements. Audits also
provide a means for evaluating the effectiveness of the overall program,
identifying areas in need of improvement, and verifying the results of
improvements instituted. The scope of auditing required varies with the
stage of the contract, type of contract and level of confidence
developed from previous audits.

**[3.1.2 AUDIT PERFORMANCE.]{.underline}** The QRO shall perform audits
in accordance with the schedule and audit guidelines developed for
inclusion in the QRO QA Plan and the following guidelines:

The QRO should verify that:

1\. The audit schedule and details are documented.

2\. Audits are scheduled at an adequate frequency.

3\. Records reflect compliance with schedules.

4\. Records/reports of audits are appropriately documented.

5\. Description of complete corrective action is documented.

6\. Corrective action is effective.

7\. Follow-up audits are accomplished to verify effectiveness of
corrective action.

8\. Reports are distributed to appropriate personnel.

**[3.1.3 AUDIT LOCATIONS.]{.underline}** Audit locations shall be
established to verify the implementation of the Contractor's Quality
Program and to evaluate the acceptability of the product and processes.
The number of audits and audit locations shall be adequate to separate
the contractor's activities into manageable increments. The locations
selected should provide the opportunity to verify contractor performance
for compliance with all contractual requirements.

**[3.1.4 AUDIT FREQUENCY.]{.underline}** The frequency of audits shall
be determined by the QRO and should depend on the activity of the
affected area and the findings of previous audits. Areas found to have
major discrepancies or numerous minor discrepancies, may be audited more
frequently and in greater depth, and then should be re-audited to verify
the effectiveness of contractor corrective action. The frequency and/or
depth of an audit may be reduced in areas where the findings warrant
such.

**[3.1.5 AUDIT RESULTS.]{.underline}** When contractor corrective action
is found to be ineffective, the QRO may, as FAA program interests
warrant, increase the amount of surveillance over the contractor's
quality operations and also increase the amount and intensity of direct
inspection and test witnessing. Conversely, the amount and intensity of
FAA's verification operations should be reduced when quantitative and
qualitative data warrants. They may also be temporarily terminated
and/or acceptance withheld when the contractor is particularly deficient
in taking required corrective and/or preventive action.

## SECTION 2. INSPECTION/TEST WITNESSING

**[3.2.1 GENERAL.]{.underline}** The primary responsibility for
inspection and test of equipment, material and services rests with the
contractor. However, it is necessary for the QRO to verify and validate
the effectiveness of the contractor's quality system, operations, and
the acceptability of the products being submitted by performing some
degree of inspection and test witnessing.

**[3.2.2 INSPECTION.]{.underline}** Inspection is the examination of
supplies or services (including when appropriate, raw materials,
components, intermediate assemblies, software products, etc.) to
determine whether they conform to contract requirements. It is used in
conjunction with testing and auditing to evaluate overall contractor
performance on a contract. The QRO shall select those characteristics to
be inspected depending on importance, previous findings, and/or specific
contract requirements.

**[3.2.3 TESTING.]{.underline}** Testing is a means of determining the
performance of a product (software or hardware) in relation to
requirements. When a contract requires the use of FAA approved test
procedures the QRO shall verify that the tests are conducted in
accordance with the approved procedures. The QRO shall examine the test
equipment that is used during contractually required testing and
ascertain that the test equipment is calibrated in accordance with
contract requirements. Additionally, the QRO should assure that the test
equipment is in accordance with, or equivalent to, that specified in the
proper revision of the test procedure. The QRO will determine whether a
test has been successfully completed (i.e., the hardware/software under
test has either passed or failed). The QRO may allow a test to be
resumed at an intermediate point, rather than being restarted, depending
on the circumstances of the test, the test discrepancy, and/or the
contractor\'s corrective action. In every case however, the contractor
may continue unofficial testing at his own risk. The Test Director (TD),
and/or Technical Officer (TO), and the Contracting Officer (CO), should
be advised of the status of tests and the contractor\'s actions
resulting from a test failure, when requested.

**[3.2.4 CLASSIFICATION OF TESTS.]{.underline}** There are five general
categories of tests identified in specification FAA-G-2100. The test
categories that apply will be as stated in the contract and/or
specifications. The categories are as follows: Contractor\'s Preliminary
Tests, Design Qualification Tests, Type Tests, Production Tests, and
Federal Communications Commission (FCC) Type Acceptance and Registration
Procedures. When specified, Reliability and/or Maintainability
Demonstration Tests shall also be conducted.

1\. [Contractor\'s Preliminary Tests.]{.underline} Preliminary tests
shall be performed on one production equipment or on one prototype model
as specified in the contract. The contractor\'s preliminary test does
not satisfy the requirement for performing the other classes of tests
required by the contract, equipment specification or general
specifications, and are not normally witnessed by the QRO. Reliability,
Maintainability, and FCC Type Acceptance and Registration Procedures are
not normally required to be performed as part of the contractor\'s
preliminary test program. Before notifying the Government that the
initial production items are ready for inspection and official test, the
contractor shall have completed all required contract requirements
associated with preliminary testing.

2\. [Design Qualification Tests.]{.underline} Design qualification
tests, as required by contract and/or specification, shall be made on
one of the first regular production units normally selected by the QRO.
These tests generally include rating verification on parts and
materials, other general specification tests, and design qualification
tests required by the equipment specification. These tests shall be
performed in accordance with FAA approved test procedures.

3\. [Type Tests.]{.underline} Those tests specified as type tests in the
equipment specification shall be made on selected regular production
units. The equipment to be delivered shall be assigned numbers, as
required by the contract, in the order of reaching the stage of
completion and readiness for testing. Using these numbers, the equipment
will be divided into groups. The quantity of equipment within each type
test group is determined by the contract. Selection of equipment for
type test within the group shall be made by the QRO. When selecting the
type test unit, the QRO shall consider all pertinent information. These
tests shall be performed in accordance with FAA approved test
procedures. Release for delivery of units in each type test group shall
be in accordance with contract requirements. This issue is normally
covered in general specifications, e.g., FAA-G-2100.

4\. [Production Tests.]{.underline} Production tests, as specified in
the contract, shall be performed on each production item.

5\. [Federal Communications Commission (FCC) Type Acceptance
Procedures.]{.underline} Where contractually applicable (typically RF
radiating equipment), the first production equipment shall be subjected
to FCC Type Acceptance procedures in accordance with FCC rules and
regulations. In addition, during the life of the contract, the
contractor shall comply with FCC regulations in connection with any
approved changes made to production items which are relevant to the FCC
Type Acceptance.

**[3.2.5 "OFF‑THE‑SHELF\" PRODUCTS.]{.underline}** "Off-the-shelf\"
normally refers to items designed, tested, produced and placed in stock
by a contractor, or stocked by a distributor, before receiving orders or
contracts for its sale. These products are generally procured under a
"contractor inspection" requirement or "standard inspection"
requirement.

**[3.2.6 CONTRACTOR INSPECTION.]{.underline}** This condition places
total responsibility for delivery of acceptable product or services on
the contractor and normally does not require QRO involvement.

**[3.2.7 STANDARD INSPECTION OF FAA PRODUCTS.]{.underline}** Under
"standard inspection", the QRO is required to verify that the contractor
has an inspection system acceptable to the Government. In this
situation, the QRO shall use some of the same tools and techniques used
for a "high level" quality program, i.e., audits, inspection, test
witnessing, to verify the acceptability of the inspection system and the
products and services provided. When this requirement is applied to
"Off-the-Shelf" equipment, documents used for inspection/test will be
those developed by the manufacturer, e.g., manufacturer's catalogs and
instruction books.

## SECTION 3. OPERATIONS UNDER QUALITY SYSTEMS

**[3.3.1 GENERAL.]{.underline}** The following methods shall be used for
contracts specifying ISO-9001 Quality System Plan (QSP) or FAA-STD-016
Quality Control System Plan (QCSP) type requirements. The QRO shall
assure that the detailed procedures, including all changes thereto,
which are released to implement the QSP/QCSP, do not conflict with the
requirements and commitments in the contract. This will necessitate a
review of these documents before or after release. Arrangements for
these reviews should be made between the QRO and the contractor's
Quality Assurance Manager.

**[3.3.2 METHODS.]{.underline}** The following methods apply:

1\. The QRO shall perform independent audits of the Contractor\'s
compliance with his own systems and procedures.

2\. The QRO\'s own product verification operations (inspection and test
witnessing) shall be utilized as a final means of evaluating the
effectiveness of the contractor\'s quality system and its implementation
by the personnel assigned. This operation is vital for the QRO since it
is possible that the system and records may be acceptable, but if the
personnel or equipment involved are ineffective, the product could be
unacceptable. In this regard, any product defect may be considered as a
possible \"system\" failure in that it was not prevented, nor detected
by the contractor\'s organization. In this case, the contractor\'s
corrective action must include:

\(1\) Correction of the product involved

\(2\) Screening of all products potentially defective in a similar
manner.

\(3\) Action to prevent recurrence of the deficiency, including
detection if it does exist.

3\. The QRO should take advantage of contractor collected data, such as
quality indicators, detailed inspection records, and audit reports, to
the extent practicable. This data, along with QRO collected data, will
be used to determine which areas or operations indicate unsatisfactory
conditions or trends and, therefore, are in need of corrective action.

4\. After identifying those conditions requiring correction, the QRO
should review the contractor\'s recorded actions to evaluate their logic
and effectiveness. Action to preclude repetition as well as screening
action (inspection and/or test) for products that may have passed
through with undetected defects should be indicated in the records.

5\. In addition to reviewing the records of action taken, the QRO should
make independent observations to verify that the action was implemented
as recorded. The QRO should also verify whether the action was effective
in precluding further deficiencies and recovering those which may have
passed improperly before the screening.

**[3.3.3 TECHNIQUES.]{.underline}** The following techniques apply:

1\. The QRO shall start with sufficient observations to verify that the
Contractor is complying with the documented system and procedures. This
may initially involve a review of relatively large numbers of such items
as drawings, purchase orders, standard repairs, or the first run of
printed circuit boards. The QRO should then reduce the amount of direct
verification observations as confidence is developed, based on the
QRO\'s and the contractor\'s quality records.

2\. Regardless of the level or amount of verification performed by the
QRO, most of that effort shall be devoted to verifying the acceptability
of the major characteristics of the system, procedure, product or test
involved.

3\. The QRO shall maintain sufficient records necessary to make
objective decisions regarding quality and variations in the amount and
intensity of future FAA observations and inspections. These records
shall include corrective action requests and responses.

**[3.3.4 OBSERVATIONS.]{.underline}** Consistent with the methods and
techniques described above, the QRO may use sampling techniques in
making observations for verification purposes. For this purpose,
reference may be made to ANSI/ASQC 21.4-1993, or other reference
documents. The Acceptable Quality Level (AQL) shall reflect
considerations of the criticality of the items/ characteristics
involved. Any defective items/defects found using a sampling plan, even
those within the acceptance number, must be repaired or replaced in
accordance with procedures for non-conforming material. When the number
of defective items/defects in the sample exceeds the acceptance number,
the entire lot should be rejected and returned to the Contractor for
appropriate corrective action. In those cases where sampling inspection
is contractually required, action shall be taken as prescribed by the
contract.

**[3.3.5 DESIGN REVIEW MEETING ATTENDANCE.]{.underline}** The QRO should
attend design review meetings to the extent that the QRO workload
permits, in order to understand design concepts and intentions, and to
be aware of and evaluate commitments (i.e., action items, etc.). As a
minimum, the QRO should review the minutes of the meetings. The
attendance/review is intended to monitor timeliness of action taken by
both the FAA and contractor.

**[3.3.6 OPERATIONS UNDER COMPUTER SOFTWARE QUALITY PROGRAM
PLAN.]{.underline}** In performing recurring QRO tasks on computer
software programs (alone or as part of hardware/software systems), the
basic tools are similar to those utilized on hardware programs (e.g.,
audits based on audit guides and records). The format of these documents
is identical to those described previously. Audit guides shall be
generated to evaluate the adequacy of a contractor\'s compliance with
the audit requirements of FAA-STD-018 or other contract software quality
system standard.

1\. [Software vs. Hardware Operations.]{.underline} In-process
evaluation of computer software involves a variety of ways (form as well
as substance) in which a particular computer software design objective
can be accomplished. Therefore, in-process monitoring by QROs must rely
heavily on evaluating the degree of compliance with applicable standards
and procedures, as preventive techniques, rather than on technical
evaluation of the programs in process. For the same reason, emphasis
must be placed on assuring strict compliance with specified test
procedures, controls, and documents to validate or demonstrate
acceptability of computer software, both in‑process and at final
inspections.

2\. [Terminology.]{.underline} In order to assure a common understanding
of terms used in computer software, it is necessary that a common
reference be used. IEEE, STD 729, entitled "A Glossary of Software
Engineering Terminology" is the standard prescribed, unless otherwise
specified.

3\. [Audits and Test Witnessing.]{.underline} After the initial phase
operations described in Chapter 3, the QRO shall ensure the
acceptability of the contractor\'s operations and resultant computer
software by means of audits of contractor operations and witnessing
tests of units/modules, subroutines, integration and systems test. Since
the software development phase is the primary activity that determines
the quality of the resulting software, more emphasis is required by the
QRO at that time in the process. This monitoring should include
evaluation of selected design documents, listings, and other software
related documentation for compliance with contract requirements.
Compliance with appropriate configuration management controls is
particularly important. In evaluating the adequacy of such controls, the
QRO may use documents such as MIL-STD-973 for guidance only, even when
that specification is not contractually applicable.

**[3.3.6.1 SUPPLEMENTAL GUIDELINES FOR SOFTWARE QUALITY ASSURANCE (SQA)
PROCESSES.]{.underline}** Detailed instructions, sample work products
and generic audit guides are located in the SQA Tool Box. The Tool Box
will be maintained and updated to include current information. Contact
the Quality Software Support Branch for more information and access to
the Tool Box.

## SECTION 4. QUALITY RECORDS AND INDICATORS

**[3.4.1 GENERAL.]{.underline}** Quality indicators are data items that
can be used as input for decisions pertaining to the acceptability of
the product and the quality system. These can take the form of, but are
not limited to, QRO and/or contractor data such as audit reports, trend
charts, and records of inspections and test witnessing.

**[3.4.2 AUDIT RECORDS.]{.underline}** As a quality indicator, audits
should provide an evaluation of an area, operation, process, or product.
Audits are intended to determine the degree to which the contractor is
complying with quality or other applicable procedures. The number and
severity of the discrepancies should be recorded with sufficient
descriptive detail and should be considered when evaluating the
effectiveness of contractor control.

**[3.4.3 TREND CHARTS.]{.underline}** Trend charts provide a graphic
presentation for evaluating the effectiveness of the contractor\'s
quality program. Trend charts should provide an indication of the
present quality level in comparison with past periods. A continuous
and/or significant increase in the number of defects indicates that the
quality of a process or product is deteriorating. A steady, but
unacceptable level indicates that the contractor\'s process may be out
of control and/or their corrective action may be ineffective.

**[3.4.4 RECORDS OF TESTS OR INSPECTIONS.]{.underline}** Records of
contractor and/or QRO tests or inspections provide a data base for
evaluation of the contractor\'s overall control of operations,
processes, or product characteristics. Effective control generally
dictates that items should not reach inspection or test with existing
discrepancies. Items reaching this stage with discrepancies may indicate
inadequate or ineffective control.

**[3.4.5 FIELD FAILURE REPORTS.]{.underline}** Upon receipt of a field
report, the QRO shall ensure that the contractor takes appropriate steps
to investigate the cause of failure and take appropriate corrective
action. The QRO may need to perform an audit, review, examine, or
reevaluate the cause of the failure, to ensure the removal of all
existing deficiencies and prevention of future ones.

## SECTION 5. CORRECTIVE ACTION

**[3.5.1 GENERAL.]{.underline}** Any breakdown in the contractor\'s
quality system requires the QRO to assure that product quality is not
compromised. The contractor is then required to correct defects and
deficiencies as well as eliminate the root cause(s) in the system.
Corrective action shall be requested by one or more of the following
methods and normally in the sequence listed, depending upon the
frequency and significance of the defect or deficiency:

1\. On-the-spot corrective action requesting the responsible
contractor's personnel to eliminate the deficiency(ies) and cause(s). A
written record of these requests shall be maintained in the QRO file.

2\. A Quality Deficiency Report (QDR) initiated to notify the
contractor's quality management in writing of the deficiency(ies) found
and the requirement for corrective action.

3\. A written notification escalated to the contractor\'s management
requesting immediate correction of causes for documented deficiencies.

4\. Recommendation made to the Contracting Officer (in coordination with
the PT) that the contractor be notified that, pending receipt and
acceptance of contractor\'s proposed corrective action, acceptance of
end items of the contract may or will be withheld. The QRO shall inform
his/her Branch Manager before proceeding with this step.

**[3.5.2 SUBCONTRACTS.]{.underline}** Subcontractors are considered an
extension of the prime contractor. Accordingly, when deficiencies are
detected in subcontractor products or processes, the QRO shall inform
the prime contractor of the circumstances and request the prime
contractor to take immediate action with the subcontractor.

**[3.5.3 NONCONFORMING SUPPLIES.]{.underline}** Contracts establish
technical requirements for supplies through reference to plans,
drawings, specifications, purchase descriptions, etc.. Supplies that
depart from these requirements are termed \"nonconforming\". During the
manufacture of supplies for sale to the Government, the contractor is
permitted to establish dimensions, tolerances, test limits, and process
or other controls which are either more stringent than required by
contract or not specifically covered by contract.

1\. The contractor is solely responsible for the control of
nonconforming supplies intended for use on Government contracts. This
control involves adequate identification, segregation (to prevent
unintended use), and disposition by authorized personnel.

2\. Repeated offering of nonconforming supplies, including those with
minor defects, should be discouraged decisively by appropriate actions
such as requiring corrective action and/or rejecting the supplies.

## SECTION 6. PROCESSING OF NONCONFORMING SUPPLIES

**[3.6.1 GENERAL.]{.underline}** The final decision regarding acceptance
of nonconforming supplies is solely the prerogative of the Government.

1\. [Major Nonconformances.]{.underline} Major nonconformances (includes
all nonconformances except those defined under minor nonconformances)
are those which are likely to result in failure, or to reduce materially
the usability of the items or services. Major nonconformances may be
accepted by the CO, in coordination with the PT. Such acceptance will be
based upon information furnished by the contractor, by the TO and, as
appropriate, by the QRO. The submission of a formal request to the CO,
with appropriate recommendations by the QRO, will be as prescribed in
the contract and related documents.

2\. [Minor Nonconformances.]{.underline} Minor nonconformances are
nonconformances that do not adversely affect safety, durability,
reliability, performance, interchangeability of parts or assemblies,
maintainability, weight (where weight is of significance), or any other
significant objective of the items or services, and do not increase
price or affect delivery under the contract. This shall be made clear to
the contractor at the time that minor nonconformances are accepted.
Minor nonconformances may be approved by the QRO in accordance with the
contract clause and/or letter of designation. Prudent judgment shall be
exercised when accepting a minor nonconformance. If in doubt about its
significance, the matter should be coordinated with the CO, and/or other
members of the PT as appropriate. The approval/disapproval action shall
be documented.

**[3.6.2 PARTICIPATION IN MATERIAL REVIEW BOARD.]{.underline}** Normally
the QRO does not participate as a member of the MRB. However, when
considered to be in the best interest of the Government, the QRO may
participate as a non-voting member of the group.

**[3.6.3 MATERIAL REVIEW BOARD (MRB).]{.underline}**

1\. The results of MRB actions will be processed by the QRO when: (1) it
is considered to be in the best interest of the Government as determined
by the CO, in coordination with the PT, (2) nonconforming materials are
processed in the format prescribed by the contract (e.g.,
deviations/waivers), (3) the contractor establishes and implements the
written MRB procedures acceptable to the QRO, (4) the contractor
provides complete supporting documentation of the MRB action, and (5)
the contractor\'s personnel are fully knowledgeable of product technical
and quality requirements when participating in the MRB.

2\. MRB actions should not be used by the contractor as a procedure for
continued and repetitive submission of nonconforming supplies. The QRO
shall discourage the repeated tender of nonconforming supplies or
services, including those with only minor nonconformances, by taking the
appropriate action, such as rejecting the nonconforming supplies or
services, documenting the contractor\'s performance record and requiring
appropriate corrective action.

3\. The QRO shall periodically audit the MRB corrective action and
disposition system for nonconforming material for compliance with
contract requirements and to ensure system effectiveness, in the normal
QRO audit process.

**[3.6.4 SUBCONTRACT OR SUPPLIERS NONCONFORMANCE.]{.underline}** Unless
otherwise specifically authorized by contract, subcontractors\' and
other suppliers\' requests for acceptance of nonconformance must be
submitted to the FAA after approval by the prime contractor.

**[3.6.5 REQUEST FOR DEVIATION WAIVER.]{.underline}** It is the
contractor\'s prerogative to submit requests for deviation/waiver to the
CO. The contractor must furnish a copy of the request to the QRO.
Pertinent comments or recommendations to the CO, concerning the request
shall be made by the QRO. In unusual circumstances, it may be to the
Government\'s best interest to consider acceptance of nonconforming
supplies even though the contractor has not elected to submit a request
for their acceptance. For example, if the raw material is Government
furnished and is highly expensive, and the contract is
Cost-Plus-Fixed-Fee (CPFF), the contractor may have little incentive to
submit a Request for Deviation/Waiver. In such cases, the QRO should
notify the CO and request appropriate instructions.

**[3.6.6 PREPARATION OF REQUEST FOR DEVIATION/WAIVER.]{.underline}** A
request for acceptance of a nonconformance is prepared by the contractor
on his own form or letterhead, unless specific forms are prescribed for
use in the contract documents. A subcontractor initiated request must be
thoroughly evaluated and approved by the prime contractor. Only
authorized prime contractor personnel are permitted to formally submit a
copy of the request to the QRO. If the request format is not included in
the contract requirements, the QRO should recommend to the CO the
following information, as a minimum, be requested from the contractor.

1\. Name and address of contractor, or if applicable, subcontractor.

2\. A request number, such as a serial number starting with \"1\" on
each contract, preceded by contract number (i.e., FA70WA‑0000‑1).

3\. Complete identification information, such as: (1) contract number;
(2) part name and number including revision date, specification or
drawing number including revision date, and; (3) lot, model, and/or
serial numbers.

4\. Quantity of nonconforming items.

5\. Details of each deficiency with respect to the technical
requirements, including a statement of the effect on other areas of
consideration. Recurrence data for each deficiency also should be
provided. If appropriate, marked drawings should also be included.

6\. Reason for submission of request.

7\. Corrective action taken to prevent recurrence, including effective
date and/or serial number of equipment, whichever is applicable. If
prevention is impossible, state reasons, including action taken to
reduce the probability of recurrence.

8\. Effect on contract price, delivery schedule, and other contract
requirements.

9\. If initiated by a subcontractor or other supplier, a statement by
the prime contractor agreeing to the need of the deviation/waiver.

10\. Signature and title of authorized contractor representative.

**[3.6.7 PROCESSING OF REQUEST FOR DEVIATION/WAIVER.]{.underline}** Upon
receipt of requests for deviation/waiver from a contractor, the QRO
shall:

1\. Assure that nonconforming supplies have been properly identified and
segregated.

2\. Review the request for deviation/waiver to assure all prescribed
information is complete and accurate.

3\. Assure that the reported corrective action has been, or will be
taken to correct and prevent recurrence of conditions causing the need
for deviation/waiver.

4\. Contact the CO by telephone when expediting of the request is
considered to be in the best interest of the Government. If verbal
approval is received, such approval must be subsequently confirmed in
writing by the CO. Pending receipt of the written confirmation, the
details, including the name(s) of individual(s) authorizing the
approval, shall be documented on the request and later in the Progress
Report.

## SECTION 7. QUALITY RECORDS

**[3.7.1 GENERAL.]{.underline}** The QRO QA Program should provide for
the accumulation and maintenance of documented objective evidence
gathered during inspection, test witnessing and audits of the
contractor\'s quality system and the product. Maintenance of adequate
records is necessary in order to provide for continuity in the
day-to-day operations, and to provide a data base upon which quality
decisions can be made.

**[3.7.2 TYPES.]{.underline}** Records can include, but are not limited
to, test results, audit data, QDRs, inspection data, and any other
information deemed necessary by the QRO.

**[3.7.3 MAINTENANCE.]{.underline}** Normally, records will be
maintained until the contract is officially closed out by the CO.

**[3.7.4 AUDIT RECORDS.]{.underline}** Audit records should include:

1\. The area or quality control system element to be checked.

2\. The audit guide identification.

3\. The frequency and schedule for making observations with the audit
guide.

4\. The facility(ies) at which the observations will be made.

5\. The facility layout location(s) at which the audit guide will be
used.

6\. An indication of completion, including the name of auditor and date.

7\. The number of observations and discrepancies observed.

8\. The number and date of \"QDRs\" on which the deficiencies observed
were reported to the Contractor and a report of corrective action.

**[3.7.5 ADDITIONAL RECORDS.]{.underline}** Additional records desired
by the QRO may be developed and utilized. However, in general, every
effort should be made to use the Contractor\'s records provided they are
retrievable in the form that the QRO considers necessary.

**[3.7.6 DISPOSITION.]{.underline}** Upon close-out of the contract, the
QRO shall request disposition in accordance with Chapter 4, Section 5.

# CHAPTER 4. ADMINISTRATIVE DUTIES

## SECTION 1. FIELD CONTRACT FILE

**[4.1.1 GENERAL.]{.underline}** The FAA QRO shall establish a contract
file upon receipt of the contract package. Initially, the file shall
contain, as a minimum, a copy of the contract with all modifications,
drawings, applicable specifications, relevant correspondence, etc.
Subsequently, throughout the contract administration phase, the field
contract file will be maintained current to clearly reflect:

1\. The QRO developed \"QRO Contract Plan\", as prescribed in Chapter 2.

2\. Historical objective evidence relative to the application of the QRO
QA Plan.

3\. Copies of relevant correspondence, (Form FAA-256, progress reports,
telephone conversation records, minutes of inplant FAA/contractor
meeting, recommendations to CO and TO).

4\. Audit guidelines and related records.

5\. Other relevant material as dictated by good management practices.

**[4.1.2 COMMUNICATION INTERCHANGES.]{.underline}** Copies of relevant
correspondence from the Contracting Officer to the contractor will be
forwarded to the QRO through prescribed channels. Likewise, all
correspondence generated by the QRO will be prepared and distributed in
accordance with instruction prescribed herein. Typical correspondence
generated by the QRO is discussed in detail in subsequent parts of this
chapter. This correspondence includes:

1\. Progress reports

2\. Special reports, interim reports, information/alert bulletins

3\. Trip reports

4\. Acceptance/rejection reports, Form FAA-256

5\. Telephone conversation records

6\. In‑plant conference records

7\. Progress payment recommendations

8\. Technical document recommendations

9\. Audit Reports

**[4.1.3 CORRESPONDENCE CONTROL.]{.underline}** A control system should
be established which identifies all incoming/outgoing correspondence.
Responses should be made in a timely manner. If this is not practical,
an interim reply should be made.

## SECTION 2. CONTRACT PROGRESS REPORTS

**[4.2.1 GENERAL.]{.underline}** This section establishes requirements
for progress reports, trip reports, interim reports, and special reports
(also see Section 5 for final report). Based on QRO observation and
knowledge, these reports give contracting officers, engineers, Quality
Assurance Division Management, and other acquisition and PT personnel
first‑hand information about the contractor\'s progress on each
contract, the status of QRO and quality assurance operations, and those
items which affect contract technical requirements and delivery
schedule. These reports document observations made and action taken
during manufacture, inspection and testing, and acceptance or rejection
of contractor\'s offered equipment and material. These reports must also
describe those actions which, in the QRO\'s opinion, should be taken by
FAA to alleviate actual or potential problems.

1\. [Progress Reports.]{.underline} A separate progress report is
required on each contract from the resident QRO. These reports shall be
submitted monthly unless otherwise approved by the Branch Manager.

2\. [Special Reports.]{.underline} Special reports are used to report
unusual situations or actions (e.g., waste/fraud/abuse/mismanagement)
which, in the QRO\'s opinion, warrant action by the Branch Manager.
These reports shall be submitted to the Branch Manager with no other
distribution.

3\. [Trip Reports.]{.underline} A trip report is required on every
itinerant contract assignment even if activities such as: audits of
processes, system/procedure compliance, inspection, test, and acceptance
of the material or equipment are completed within a working day. If no
items are ready for inspection, the contract status or progress shall be
reported. Reports describing the status shall be submitted at least
monthly, even if no trip was made.

4\. [Interim Reports.]{.underline} Interim reports are used to inform
management of planned scheduled events which have not been completed
because of significant problems encountered, and may be made during the
period between normal progress reports. This report documents specific
problems and does not replace the normal progress report. The document
should be identified as an interim report, the subject stated and the
contents written in a clear concise narrative form.

5\. [Information/Alert Bulletins.]{.underline} These bulletins should be
forwarded by email to the QA Branch Manager, CO, TO and PT to inform or
alert management about significant events that occur within the company
to which the QRO is assigned. These reports should be used to transmit
such items as: significant changes in company management/organization;
impending strikes; major financial issues; etc.. The Branch Manager will
then forward the information to other levels of ASU management, as
warranted.

**[4.2.2 FORMAT OF PROGRESS AND TRIP REPORTS.]{.underline}** Reports
shall be numbered consecutively. The subject shall identify the contract
number, name of contractor, and city and state of contractor. Major
items on the contract should be described directly below the address
portion of the letter in the following format:

1\. Contract Line Item Number(s) and item description(s).

2\. Contract delivery dates: First \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_; Last
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

3\. Contract is behind schedule (days/weeks); or contract is on
schedule, as appropriate.

4\. Total quantity on order.

5\. Total quantity accepted to date.

6\. Balance remaining.

[NOTE:]{.underline} When a number of items are listed in the contract
schedule, only the major items are to be listed in the format depicted
above. Major items are to be described in narrative form immediately
below the major item. Major items are defined as systems, subsystems,
and integral units, such as receivers and transmitters. Minor items are
defined as spare parts, provisioning parts lists, instruction manuals,
and item identification lists. Minor items should be treated as major
items if they become pacing items affecting, or likely to affect,
delivery.

**[4.2.3 NARRATIVE PORTION OF REPORT.]{.underline}** The narrative
portion of the report must be informative, factual, concise and based on
firsthand observations. Predictions, opinions or secondhand information
should be identified as such.

1\. [Contract Progress.]{.underline} The contractor\'s progress should
be described in terms of production quantity, quality and schedule. If
the contract is behind schedule or it is anticipated the contract will
become delinquent, the reasons shall be reported together with the
forecast as to when the problem should be resolved and delivery made. If
a technical, production or process problem exists, the problem and the
contractor\'s efforts to resolve the problem should be described.

When a contractor attributes the delinquency to vendor delays, the
vendor\'s name, location, and item produced should be added to the above
information. If the contractor attributes the delinquency to another
cause, the cause as well as the contractor\'s reasons should also be
added to the above information.

2\. [Contract Quality Status.]{.underline} This paragraph should discuss
any quality functions, issues, concerns or problems that could effect
product quality and/or schedule. A brief description of the status,
disposition and/or resolution should be included. Also list any audits,
inspections, or testing performed and the results. Any QDRs issued
should be identified along with the status of the requested corrective
action(s).

3\. [Action Recommended.]{.underline} In this paragraph of the report,
describe clearly those actions to be taken by the FAA to alleviate
problems and the date when a decision is necessary to avoid delay in
production and timely delivery. To the extent possible, identify the
cognizant FAA segment responsible for taking action. Examples:

> \(1\) [Technical Officer.]{.underline} A decision on contractor\'s
> request for or review and approval of test procedures and instruction
> books is required by (day, month, and year) to avoid delaying start of
> production or production tests or environmental tests, etc.
>
> \(2\) [Contracting Officer.]{.underline} A decision on issuance of
> contract modifications, issuance of shipping instructions, or delivery
> of GFP is required by (day, month, and year) to avoid delaying
> shipment for first system, etc.

**[4.2.4 DlSTRlBUTlON.]{.underline}** Progress reports, trip reports,
and interim reports shall be addressed to the CO with copies distributed
as follows:

1\. Original to the CO.

2\. Copy to the cognizant PTL and TO.

3\. Copy to QRO\'s Branch Manager.

4\. Copy to QRO contract field file.

6\. Copies of contract progress reports affecting initial provisioning
actions and schedules should be furnished to the FAA Logistic Center,
Attention: NAS Project and Provisioning Section.

**[4.2.5 TIMELINESS.]{.underline}** When feasible, each progress report
should be submitted on the same day of the week. Monthly reports should
be submitted within 3 work days of the same date each month. Trip
reports should be submitted within 3 work days after completion of the
trip. Branch Managers may designate specific days to submit reports in
order to meet deadlines for submitting reports to higher levels.

## SECTION 3. ACCEPTANCE

**[4.3.1 GENERAL.]{.underline}** Acceptance (or rejection) of supplies
or services under FAA contract shall be made by the QRO on Form FAA-256,
Inspection Report of Material and/or Services, unless the contract
specifies otherwise. Under Inspection Interchange Agreements, the
Quality Assurance Division may be requested to administer, inspect, and
accept supplies or services for other Department of Transportation
agencies, or for other Government departments. Acceptance under these
contracts will be made as prescribed, using the forms specified therein.

[**4.3.2 SHIPMENTS**.]{.underline}

1\. The QRO shall ensure that the contractor preserves, packages, packs,
and marks the equipment and materials in accordance with specified
contractual requirements and that shipping instructions are followed.

2\. The QRO will also ensure that the contractor properly executes
Government Bills-of-Lading, FAA Form 4500-1 and other related shipping
documents, and accomplishes forwarding action in accordance with
contractual requirements.

**[4.3.3 SECURITY CLASSIFICATION.]{.underline}** Classified information
shall not be included on Form FAA-256 or any other prescribed acceptance
form. When classified material is to be shipped and the contract
description of the material is classified, enter only a general
description which does not require security classification, for example,
\"Standard Materials\", \"Electronic Equipment\", or the like. When
information other than the description of the contract item is
classified by the contract, the applicable space of the form shall be
left blank.

**[4.3.4 CERTIFICATES OF COMPLIANCE (COC).]{.underline}**

1\. When a COC is permitted by a contract and the QRO deems its use
warranted, the QRO shall coordinate with the TO and CO, as appropriate,
through his/her Branch Manager for the advisability of using the
contractor\'s COC as a basis for acceptance of supplies and services.
The following should be considered in making the determination:

> \(1\) Nature of the supplies and intended use.
>
> \(2\) Administrative costs associated with accomplishment of required
> quality assurance functions.
>
> \(3\) Risk of receiving defective material in the FAA based on the
> contractor's past record, current quality system, and other relevant
> factors.

2\. If the COC clause contained in the contract is considered
inappropriate, the CO shall be notified accordingly.

3\. The COC statement required by the contract shall be prepared by the
contractor and submitted to the QRO. Copies will be attached to all
completed copies of Form FAA-256.

**[4.3.5 INSPECTION REPORT OF MATERIAL AND/OR SERVICES, FORM
FAA-256.]{.underline}** The following instructions apply when Form
FAA-256, Figure 2, is issued as the official inspection/acceptance
record. The QRO shall ascertain that all information, including
signature is legible on all copies.

1\. [Block No. 1 - Report Number]{.underline}. Generally, report numbers
will be in sequence, starting with No. 1, for each line item of the
contract. Rejection reports will be part of the sequence. However, items
may be combined on a single report form for one‑time
inspection/acceptance where all, or nearly all, items are accepted the
same day or where there are so few reports that there can be no
confusion. If it becomes necessary to correct Form FAA-256, a new form
will be issued using the same report number as the original with
addition of the word \"Amended\" in block number 1. The reason for the
amendment shall be entered in block number 23.

2\. [Block No. 2 - Date.]{.underline} Enter the date of the report. This
is the date the report is filled out (which might be later than the
acceptance date which is shown in Block No. 14).

3\. [Block No. 3 - Order Number.]{.underline} When applicable, enter the
purchase order number covering equipment or services on a contract or on
an open market purchase.

4\. [Block No. 4 - Contract Number.]{.underline} Enter the contract
number. On small purchases (purchase orders), this block does not apply
and will not be completed.

5\. [Block No. 5 - Item Number.]{.underline} Enter the number(s) of the
contract line item(s) covered by the report. All-encompassing figures
may be used as \"1 through 39\" or \"1 through 22, except Item 17\".
Where sample units are inspected in accordance with a clause of the
contract and held at the Contractor\'s plant for delivery at a future
date, mark after the item number \"Clause \_\_\_\_\_\_\_\_\_\_\_\_\_\_of
the contract\" and indicate that the item was inspected in accordance
with a special clause of the contract and that it is not final
acceptance of a production unit of the line item. When one report covers
the entire contract, Blocks 16, 17, 19, and 21 should show \"all units
and items\". Individual line item(s) with quantities and serial numbers
will be listed on the continuation sheet, Form FAA-256a.

6\. [Block No. 6 - Material and/or Services Inspected.]{.underline}
Enter the contract nomenclature for the line item(s) covered by the
report. In the event several line items are covered, use terminology of
all, such as \"instruments\", \"tools\", \"spare parts\", or the like.

7\. [Block No. 7 - Contractor.]{.underline} Enter name and address of
Contractor awarded the contract.

8\. [Block No. 8 - Manufacturer.]{.underline} Enter name and address of
company presenting material for inspection/acceptance.

9\. [Block No. 9 - Place of Inspection.]{.underline} Enter the name and
address of the company where inspection/acceptance is performed. If the
same as Block No. 8, enter the words \"same as above\".

10\. [Block No. 10 - Serial No(s).]{.underline} When the line item has
subassemblies containing several serial numbers, list only the number on
the governing nameplate, except where special equipment requires more
than one serial number because it is an assembly of two or more major
assemblies. In that case, the two or more significant serial numbers
should be identified and recorded. Serial numbers of all items,
differentiating between rejections and/or acceptance will be entered.
The total number of serial numbers entered should equal the sum of the
quantities shown in Blocks 15 and 16.

11\. [Block No. 11 - Date notice Received.]{.underline} Leave Blank.

12\. [Block No. 12 - Date Ready.]{.underline} Enter the actual date
material (contract line item) is presented for inspection/acceptance.

13\. [Block No. 13 - Date Started.]{.underline} Self‑explanatory.

14\. [Block No. 14 - Date Completed.]{.underline} Enter the date the
inspection was completed. Final inspection and acceptance is not
completed until packing and marking have been observed. In cases where
packing and marking are separate line items on the contract and may be
witnessed by another representative, or the time between acceptance of
the material and packing and marking is three working days or more, so
state in Block No. 23 \"Remarks\".

15\. [Block No. 15 - Rejected.]{.underline} Ordinarily, when a unit is
found to be defective, then corrected, resubmitted, and accepted before
the lot inspection is complete, the unit will not be classified as a
reject nor will it be entered in Block No. 15 as such. In special cases,
such as the contractor\'s repeated submission of unacceptable units, it
is proper to issue an Form FAA-256 rejection. An Form FAA-256 rejection
will be issued on a non‑resident facility, when the QRO visits the
Contractor\'s facility and finds the submitted material is not
acceptable. A failure of type or environmental test may also be rejected
on an Form FAA-256. Specific reasons for rejection will be entered in
Block No. 23, \"Remarks\".

16\. [Block No. 16 - Accepted.]{.underline} Self-explanatory.

17\. [Block No. 17 - Submitted.]{.underline} Self-explanatory.

18\. [Block No. 18 - Rejected.]{.underline} Self-explanatory.

19\. [Block No. 19 - Total of units accepted.]{.underline} Where sample
units are inspected/accepted under a clause of the contract as described
in Block 5 above, the totals are not to reflect final acceptance of
those units until accepted as production items.

20\. [Block No. 20 - Quantity.]{.underline} Self-explanatory.

21\. [Block No. 21 - Accepted to date.]{.underline} Self-explanatory.

22\. [Block No. 22 - Balance remaining.]{.underline} Self-explanatory.

23\. [Block No. 23 - Remarks.]{.underline} This block is for pertinent
information for which no other space is provided on the form, e.g.,
conditional acceptance, destinations of direct shipments, GBL numbers,
carriers, total weights, quantity, and cubic contents of shipment.
Explanations such as \"Sample Unit to be retained at Contractor\'s plant
and shipped with final item on the contract\", \"Markings conform to
telegrams, CO, 6 July 95\" or \"Instruction books packed behind door of
control panel\" are properly entered in this space.

24\. [Block No. 24 - Inspected by.]{.underline} Type the name and title
of the QRO inspecting the material or services.

25\. [Block No. 25.]{.underline} The QRO who accepts the material or
services signs here. No one should sign for another. The person signing
is responsible for assuring that the material or services described on
the Form FAA-256 meet(s) the contract requirements. The date of
signature is the date of acceptance.

26\. [Notes.]{.underline}

> \(1\) When a contract provides that inspection shall be performed at
> the contractor\'s facility but that final acceptance shall be made at
> destination, the words \"as accepted\" in the statement following
> block 24 shall be crossed out either by typewriter or in ink, and the
> following entry shall be made in Block No. 23: \"Factory test and
> inspection satisfactory; acceptance is at destination.\"
>
> \(2\) Conditional acceptance can only be authorized by the Contracting
> officer. This must be noted in the remarks section, block 23, and the
> condition(s) must be described.

[**4.3.6 DISTRIBUTION OF COMPLETED FORM FAA-256**.]{.underline} The QRO
prepares and distributes signed copies of the report as follows:

1\. The original to the CO.

2\. Copy to the accounting office (ABA-220 for headquarters contracts,
AMZ-300 for FAA Logistics Center contracts).

3\. Copy to the contractor.

4\. Copy to the PTL and the TO.

5\. Copy to the QRO contract field file.

6\. Additional copies distributed as approved by the Quality Assurance
Branch Manager.

### FIGURE 2. INSPECTION REPORT OF MATERIAL AND/OR SERVICES (FORM-FAA-256)

  ---------------- -------------- ---------------- ------------- --------------- -------------- --------------
                                                                                                

                                  FEDERAL AVIATION                                              
                                  AGENCY                                                        

                   **INSPECTION                                                                 
                   REPORT OF                                                                    
                   MATERIAL                                                                     
                   AND/OR                                                                       
                   SERVICES**                                                                   

                                                                                                

  **1. REPORT                                                    **3. ORDER                     
  NO.**                                                          NO.**                          

                                                                                                

                                                                                                

  **2. DATE**                                      **4. CONTRACT                                
                                                   NO.**                                        

                                                                                                

                                                                                                

                                                   **5. ITEM                                    
                                                   NO.**                                        

                                                                                                

                                                                                                

  **6. MATERIAL                                                                                 
  AND OR/SERVICES                                                                               
  INSPECTED**                                                                                   

                                                                                                

                                                                                                

  **7.                                                                                          
  CONTRACTOR**                                                                                  

                                                                                                

                                                                                                

  **8.                                                                                          
  MANUFACTURER**                                                                                

                                                                                                

                                                                                                

  **9. PLACE OF                                                                                 
  INSPECTION**                                                                                  

                                                                                                

                                                                                                

  **10.**                         **INSPECTION**                                                **QUANTITY**

  **SERIAL NO/S**  **11. DATE**   **12. DATE**     **13. DATE**  **14. DATE**    **15.**        **16.**

  ***(If           **NOTICE       **READY**        **STARTED**   **COMPLETED**   **REJECTED**   **ACCEPTED**
  Applicable)***   REC\'D**                                                                     

                                                                                                

                                                                                                

                                                                                                

                                                                                                

                                                                                                

                                                                                                

                                                                                                

                   **PREVIOUS**   **THIS**         **TOTAL**     **20. QUANTITY                 
                                                                 ON ORDER**                     

                   **REPORT/S**   **REPORT**       **TO DATE**                                  

                                                                                                

  **17.                                                                                         
  SUBMITTED**                                                                                   

                                                                 **21. ACCEPTED                 
                                                                 TO DATE**                      

                                                                                                

  **18. REJECTED**                                                                              

                                                                                                

                                                                                                

  **19. ACCEPTED**                                                               **22. BALANCE  
                                                                                 REMAINING**    

                                                                                                

  **23. REMARKS**                                                                               

                                                                                                

                                                                                                

                                                                                                

                                                                                                

  **24. INSPECTED                                                **TITLE**                      
  BY**                                                                                          

                                                                                                

  **THE MATERIALS                                                                               
  AND/OR SERVICES                                                                               
  LISTED HEREIN                                                                                 
  HAVE BEEN                                                                                     
  INSPECTED, OR                                                                                 
  CERTIFIED TEST                                                                                
  DATA HAS**                                                                                    

  **BEEN EXAMINED,                                                                              
  BY ME OR UNDER                                                                                
  SUPERVISION. THE                                                                              
  MATERIALS AND/OR                                                                              
  SERVICES LISTED                                                                               
  ABOVE AS**                                                                                    

  **ACCEPTED                                                                                    
  CONFORM TO                                                                                    
  CONTRACT                                                                                      
  REQUIREMENTS.                                                                                 
  THOSE LISTED AS                                                                               
  REJECTED DO NOT                                                                               
  CONFORM AND**                                                                                 

  **MAY NOT BE                                                                                  
  DELIVERED,                                                                                    
  EXCEPT AS                                                                                     
  AUTHORIZED UNDER                                                                              
  \"REMARKS.\"**                                                                                

  **25.**                         **TITLE**                                      **DATE**       

                                                                                                

                                  ***(Use Form                                                  
                                  256a for                                                      
                                  Continuation                                                  
                                  Sheet)***                                                     

  **C FAA AC                                                                                    
  71-8350**                                                                                     

                                                                                                
  ---------------- -------------- ---------------- ------------- --------------- -------------- --------------

**[4.3.7 PROJECT MATERIAL SHIPPING NOTICE/RECEIVING REPORT FORM
4500-1.]{.underline}**

1\. FAA Order 4650.30, Vendor Shipment of nationally Furnished Project
Material, describes the activities associated with FAA Form 4500-1 in
detail.

2\. The contractor is responsible for notifying the CO of upcoming
shipments (and requesting shipping instructions on non turnkey
shipments) at least 30 days prior to anticipated shipping date, or as
soon as shipping availability is known if it is less than 30 days from
date of contract or order. The notification and request for instruction
must include the name and telephone number of the shipper, number of
pieces, weight, and dimensions to be shipped in each shipment, any
material handling equipment which may be necessary as well as any
storage requirements. If the weight and dimensions are unknown,
\"estimates for rate\" and \"routing purpose\" must be provided on the
request for shipping instructions. Lack of required information may
delay issuance of FAA Form 4500-1.

3\. The QRO at the contractor\'s plant is responsible for ensuring
contractor compliance with contractual requirements pertaining to
packaging and shipping of material. The QRO shall verify that the
shipping information supplied by the contractor is accurate and
complete. The QRO is also responsible for preparing and distributing
Form FAA-256, Inspection Report for Material and/or Services, as well as
signing copy 1 of the FAA Form 4500-1 on Free on Board (FOB) Origin
shipments and returning it to the paying office.

4\. If the equipment is conditionally accepted, i.e. not in full
compliance with contract requirements, for shipment (conditional
acceptance must be approved by the CO) on FOB origin shipments, the QRO
will notify the transportation officer (by telephone), sign copy 1 of
FAA Form 4500-1, and insert thereon a notation as to the exceptions and
other condition(s) of acceptance. In lieu of this notation and if
approved by the PTL or CO, a copy of the Form FAA-256 with exceptions
may be attached. The annotated, signed copy 1 of FAA Form 4500-1 is then
forwarded to the accounting officer as indicated in paragraph c above.
If there is an error or change on number 1 copy, the QRO will not sign
it, but inform the transportation officer.

5\. In all cases of FOB origin, the QRO receives copies 1, 3, and 4 of
FAA Form 4500-1 from the transportation officer. Copies 1 and 3 are to
be signed no later than the next workday after acceptance of the
material. Copy 1 is to sent to the paying office, and copy 3 to the
consignee's servicing accounting office. If the consignee is not an FAA
facility, copy 3 should go to the consignee. Copy 4 is for the QRO file.
See Order 4650.30, Appendix 4, for a listing of FAA Accounting offices.
If the FAA Form 4500-1 has not been received by the time QRO accepts the
shipment for the Government, the QRO shall immediately notify the
program management office.

6\. FOB destination shipments are those shipments for which the
contractor is liable for both the cost of the shipment and the material
while in transit until delivered to the Government specified location.
Government takes title to equipment at time of receipt and acceptance.
FAA Form 4500-1 copy 2 is forwarded by the transportation officer to the
contractor as shipping instructions.

7\. Normal execution of FAA Form 4500-1 as indicated above might be
impractical in some instances such as, site unavailability, production
problems, or the like. These circumstances could possibly result in
unavoidable changes in the delivery instructions, (i.e., changes in
quantities to be delivered, changes in destinations, or prices). In
these circumstances, the QRO should coordinate with the transportation
officer, PT, and the CO.

8\. When the QRO can anticipate that the quantity being produced differs
from the quantity specified in the contract delivery schedule, the QRO
should advise the transportation officer, PT, and the CO requesting
guidance.

9\. To the extent practicable, the QRO should confirm shipping addresses
prior to shipping of project material on both FOB origin and FOB
destination shipments. On Headquarters\' contracts, the QRO will notify
the appropriate Regional Material Manager, the date shipped and if
known, the estimated date of arrival. This paragraph does not apply to
shipments to the FAA Logistic Center.

10\. The QRO shall discuss the requirements for FAA Form 4500-1 in
accordance with Contract clause \"Contractor Request for Shipping
Instructions\" with the contractor. Particularly, the \"shipments shall
not be made by the contractor unless (and until) FAA Form 4500-1 has
been received.\"

Note: FAA Form 4500-1 is used on all contracts for project material
(installation or modification under Facilities and Equipment (F&E)
funds). It is not used on contracts for maintenance material under
Operations appropriation funding (OPS).

**[4.3.8 GOVERNMENT BILLS OF LADING (GBL).]{.underline}** The QRO
should, to the extent possible, verify that the GBL includes the
following information:

1\. Exact quantity, dimensions, and weight of articles shipped.

2\. Individual weights for each piece when pieces are listed separately.

3\. When exclusive use or specialized carriage (e.g. heavy hauler) is
required, type and size of vehicle ordered and furnished.

4\. Carrier\'s agent signature on the original and all copies at time
shipment is tended to carrier.

After the carrier\'s agent has signed, the contractor should mail one
yellow copy to the Transportation Officer, one to the Accounting Office,
and retain one. The blue copy should be forwarded to the consignee. The
original and all other copies should be given to the original carrier\'s
agent. No one, QRO or contractor, is authorized to make any changes to a
GBL without specific approval from the Transportation Officer.

## SECTION 4. PROGRESS PAYMENT REQUESTS

**[4.4.1 BACKGROUND.]{.underline}** To be applicable, progress payments
must be authorized by the contract. They apply only to fixed price
contracts and are generally used when there is a long lead time between
the beginning of work and the first delivery, and the necessary outlay
of moneys prior to first delivery time will have a marked impact on the
contractor\'s working funds. Progress payments are granted as the
contractor performs work under these conditions and if he (a) has an
adequate system of accounting and financial control, (b) is financially
responsible, and (c) is an otherwise competent contractor. Progress
payments for the majority of FAA procurements are based on incurred
costs and are related to actual progress. Incurred costs are those costs
identified through the use of the accrual method of accounting and
reporting.

1\. As to invoices, incurred costs include only invoices for (a)
completed work to which the prime contractor has acquired title, (b)
material delivered (to which the prime contractor has acquired title),
(c) services rendered, (d) costs billed under cost reimbursement of time
and material subcontracts for work to which the prime contractor has
acquired title, and (e) invoices for progress payments to subcontractors
which have been paid or approved for current payment in the ordinary
course of business (as specified in the prime contract), all properly
recorded on the books of the contractor and identified with the
contract.

2\. Costs incurred also include costs of direct labor, direct material,
and direct service(s) identified with, and necessary for, the
performance of the contract, and also all properly allocated and
allowable overhead (indirect) costs as shown by the books of the
contractor.

**[4.4.2 RESPONSIBILITY.]{.underline}** The QRO will review
contractor\'s requests for such payments and provide a recommendation to
the CO for approval or disapproval of the request. This will be
accomplished by (a) equating the evidence of actual progress against the
amount of money requested, (b) determining if the dollar value of the
request is substantiated by satisfactory evidence of incurred costs, and
(c) equating actual progress against the delivery requirement stipulated
in the contract. It is important that the QRO maintain awareness as to
the contractor\'s overall financial stability. Should he/she become
aware of mechanic liens, difficulty in getting financing, \"cash on
delivery\" requirements from vendors, a pending merger with another
company, possible bankruptcy or the like, these developments should be
immediately reported to the CO and his/her Branch Manager (see guidance
on Information/Alert bulletins, 4.2.1, subparagraph 5).

**[4.4.3 GUIDANCE.]{.underline}** Basically, the QRO is concerned with
entries on the Request for Progress Payment which pertain to direct
elements such as hours, personnel and material and need not be concerned
with General and Administrative Expenses (G&A), other overhead entries,
or cost computations.

1\. One of the better methods of evaluating progress payment requests is
to request a copy of the contractor\'s planned performance schedule on
the contract. Most contractors do this by using a bar chart, or similar
method which shows the number of days and planned manpower loading for
each phase (i.e., design, engineering mock‑up, purchasing, short‑and
long‑lead items, production releases, material availability,
manufacturing and so forth). Evaluator should consider the planned
progress versus the actual; these in turn versus the contract‑delivery
requirements versus moneys requested. More simply stated, when the
physical progress is reasonable, the contractor is maintaining good
effort, and delivery requirements are not impaired, then recommendation
for approval of the progress payment is in order. Conversely, should the
evaluation conclude the contractor is not maintaining a good effort, and
delivery requirements of the contracts are in jeopardy or will not be
met, then recommendation for disapproving the progress payment usually
is in order.

2\. Keep in mind that the QRO is not a cost auditor and shall not
perform an accounting \"audit\" of costs incurred. Substantive reasoning
and good judgment are sufficient to arrive at a timely recommendation
for approval or non approval. Normally, problem(s) of sufficient
magnitude to warrant recommendation of non approval should have been
identified and reported to the CO prior to the progress payment request
being submitted.

3\. Upon completion of the review, the QRO shall submit a written
statement to the CO and TO recommending approval or disapproval of the
payment. This statement should reference the contract number, the
request for progress payment number, and the date of the request. In
order to assist the CO in determining approval or non approval, the
statement must include a summary of the facts germane to the approval or
non approval of the request. The statement must conclude with a specific
recommendation that the progress payment be approved or disapproved. In
the case of a recommendation for disapproval, a copy should be sent to
the QRO's Branch Manager.

## SECTION 5. CLOSE-OUT OF FIELD CONTRACT FILE

**[4.5.1 GENERAL.]{.underline}** After delivery of the final contract
item, the QRO shall: (1) conduct a final contract review, (2) submit
final progress report, (3) submit Contractor Performance Evaluation
Form, and (4) submit notification of intent to close-out files. These
actions shall be in accordance with the following paragraphs:

**[4.5.2 FINAL CONTRACT REVIEW.]{.underline}** The final review should
focus on a verification by the QRO that all actions which are his/her
responsibility have been consummated and that these actions have been
documented to the extent practicable. When the review indicates that
there are incomplete actions, the surrounding circumstances should be
investigated and resolved to a satisfactory conclusion. The following
three (3) paragraphs are intended as a guide and represent significant
items which should be considered during the final review:

1\. Examine the Field Contract File to ensure the receipt of all
documentation, inspection and acceptance of all contract items, and that
all corrections and/or exceptions have been accomplished.

2\. Ensure that correspondence related to the items listed in paragraph
4.5.2.1 above have been distributed to the responsible personnel such as
CO, PTL, TO, etc.

3\. Verify that proper disposition has been made of Government‑Furnished
Property including the documentation and its distribution.

**[4.5.3 FINAL PROGRESS REPORT.]{.underline}** The final progress report
shall indicate that no further progress reports will be submitted on
this contract. It shall also document all significant actions not
previously documented or those previously reported as incomplete.

## SECTION 6. CONTRACTOR PERFORMANCE EVALUATION

**[4.6.1 GENERAL.]{.underline}** A Contract Performance Evaluation Form,
Form 3458, is to be executed upon completion (final shipment) of each
contract. To obtain maximum standardization, the following guidelines
for completion of the form are supplied.

1\. [Block 1 - Quality of End Product or Services.]{.underline} The fact
that the products (or services) were accepted establishes that the
products (or services) were satisfactory. However, this does not
preclude a rating of "outstanding" or "unsatisfactory". If the quality
of the products was clearly and consistently outstanding, that adjective
rating should be used; however, a brief specific narrative evaluation
should be included. If the contractor required unusually burdensome
assistance to obtain an acceptable (i.e., satisfactory) product, if
numerous defects were encountered and these facts are documented in the
files, the adjective \"unsatisfactory\" should be used. Include a brief,
specific narrative statement of the facts as documented, to substantiate
this rating.

2\. [Block 2 - Timeliness of Performance.]{.underline} Deliveries made
in accordance with contract requirements should be rated as
\"satisfactory\". If satisfactory deliveries were made ahead of contract
schedule, or, if the contractor accepted a tight delivery schedule and
delivered on time, a rating of \"outstanding\" should be considered. A
major factor to consider is the amount of time ahead of schedule as
compared to overall time for delivery.

One week ahead of schedule within 90 days after award of contract may be
more or less significant than one week ahead of schedule 360 days after
contract award. If deliveries were frequently late, a rating of
\"unsatisfactory\" should be considered. When a rating of
\"unsatisfactory\" is used, include under \"remarks\" a statement such
as the following: \"Delivery was due on (Date) and was one month
delinquent. Review of the Field Contract File discloses that the
Government did not significantly contribute to this late delivery.\" A
rating of \"unsatisfactory\" should be used only when all of the
following conditions prevail:

\(1\) Deliveries were frequently and/or significantly late.

\(2\) The Government did not contribute to the late deliveries.

\(3\) The above conditions were documented in the field contract file.

3\. [Blocks 3, 4, and 5.]{.underline} These blocks should be left blank
unless there is specific information having a significant bearing on one
of these items. In that case, describe briefly the facts bearing on
these items. Do not check any of the adjective ratings.

4\. [Distribution.]{.underline} Five copies of these reports should be
prepared and signed in the \"Prepared by\" block. In this block, cross
out \"contract specialist\" and insert your title and routing symbol.
Send one copy each to the CO, TO, PTL, ASU 210 and the Branch Manager.

[**4.6.2 NOTIFICATION OF INTENT TO CLOSE‑OUT FIELD CONTRACT
FILE**.]{.underline} At the time determination to close‑out the file is
made, the QRO shall address a memo to the CO with copies to the PTL, QRO
Branch Manager, the TO, and any other agency personnel having an
intimate interest in the contract. This memo shall request disposition
instructions for data sheets, test procedures and if applicable, extra
copies of instruction books, manuscripts, and drawings and advise the
recipients of the intent to close‑out the Field Contract File. The memo
shall also indicate that the contract files will be disposed of after 60
days unless otherwise notified.

Upon receipt of a reply, or the lack of a reply, from the CO, and with
concurrence from the QRO Branch Manager, the QRO shall make disposition.

#   {#section .unnumbered}

# CHAPTER 5. COLLATERAL DUTIES

## SECTION 1. PROVISIONING CONFERENCES

**[5.1.1 GENERAL.]{.underline}** The purpose of a provisioning
conference is to identify those parts or items that need to be stocked
at the FAA Logistic Center to support the equipment when it becomes
field operational. The QRO has first hand knowledge of the equipment.
This knowledge can be invaluable to the provisioner and PT in making
decisions on which items need to be supported.

**[5.1.2 ACTIONS PRIOR TO PROVISIONING CONFERENCE.]{.underline}** In
preparation for the provisioning conference, the QRO should review the
provisioning documentation. The documentation review may consist of
review for proper part numbers, for identification of spare parts
peculiar, and for completeness. The QRO, if requested, should provide
coordination between the provisioner and the contractor as to
availability of the equipment, of the drawings (if required), and of the
pertinent personnel for the scheduling of the conference.

**[5.1.3 PROVISIONING CONFERENCE ACTIONS.]{.underline}** The QRO should
attend the provisioning conference. During the conference, the QRO
provides technical guidance about the equipment being procured, assists
with clarification of part numbers, and advises the provisioner of any
history of part failures that could affect equipment support.

## SECTION 2. POST-AWARD CONFERENCE

**[5.2.1 GENERAL.]{.underline}** A post-award orientation conference
should be held on all contracts as soon as possible, but generally not
later than thirty (30) days after award, to clarify contract
requirements, resolve misunderstandings, and ensure that the contractor
understands and plans to meet all contract requirements. The need for a
formal post‑award orientation conference will normally be established by
the CO as a result of substantive review and analysis of the contract
and related reports. When a formal post‑award conference is not
scheduled by the CO, the QRO should coordinate with the PTL, CO and TO
scheduling an \"informal\" post‑award meeting with the contractor to
discuss quality assurance program issues. On small contracts,
particularly those with small contractors, this meeting may be attended
by only the QRO and one or two contractor personnel. However, the goals
of the \"informal\" meeting should be the same as that of a formal
conference. During this \"informal\" meeting the QRO must avoid any
actions that indicate the provisions of the contract are being, or will
be, changed. Any misunderstanding of the rights and obligations, or of
the technical requirement, should immediately be referred to the PT and
the CO.

1\. Although the remainder of this section is addressed primarily to the
formal post‑award conference, it should be used as guidance for the
conduct of an informal post-award meeting.

2\. The complexity of the contract will determine the agenda items for
the conference; an extremely complex contract may require participation
of specialists from the Contractor's Quality, Production, Engineering,
Legal, Provisioning, and Contract Administration organization.

3\. The Government\'s contribution to the post‑award conference should
be the result of a well-planned, coordinated, and informed team effort.
Consequently, it might be necessary to hold one or more in-house
meetings prior to meeting with the contractor. The conference,
therefore, will be planned and coordinated to the degree commensurate
with the complexity of the contractual requirements, and conducted in
accordance with current applicable policy and directives.

4\. If a proposed program schedule (milestone chart) was not submitted
by the contractor as part of the proposal in response to the Invitation
For Bid (IFB) or Request For Proposal (RFP), the QRO will request such a
schedule as soon as possible after award and prior to the conference.
Milestones and events listed therein should be verified for conformance
with requirements e.g., (1) all contract line items, (2) parts
procurement, (3) provisioning parts list, (4) breadboard design, (5)
subassembly design verification, (6) total system design review, (7)
drawing release, (8) submission of proposed test procedures and test
data sheet, (9) production release, (10) submission of contractor\'s
quality plan; and (11) other relevant scheduled dates and events. The
foregoing plus related items listed in the Contract Review Record may be
used in the generation of Government agenda items, as a minimum, for the
post-award.

5\. Items of particular interest to the QRO are: contractor's submittal
procedures, organizational responsibilities including those responsible
for interface with the QRO, contractor's requirement for requesting or
providing information, e.g., FAA Form 4500-1 and certification
requirements of FAA-G-2100.

6\. Contractual QA elements and QRO responsibilities should be presented
and discussed at the post-award conference.

7\. A copy of the post award conference record shall become part of he
QRO contract file.

8\. If, at the time of pre-post award and/or post-award meeting the QRO
has not been selected, the QRO will be represented by the Branch Manager
or designee.

## SECTION 3. FAA TEST AND EVALUATION

**[5.3.1 GENERAL.]{.underline}** The Quality Assurance Division will
provide support services during each stage of the Test and Evaluation
(T&E) program, as required by the contract.

## SECTION 4. SUPPORT FOR THE PRODUCT TEAM

**[5.4.1 PRODUCT TEAM REPRESENTATION.]{.underline}** As the PT's
representative, the QRO shall keep the PT advised of the status of all
pertinent contract items. The PT should be made aware of all contractor
actions that could adversely affect product quality, schedule, or price,
and should be advised of any areas where Government inaction could have
an adverse effect on contract performance. The PT may request that the
QRO investigate specific technical problems, review documents, or
perform other duties that can best be performed in the contractor's
plant. To the extent practicable, and as time and workload permit, the
QRO should perform these tasks as requested. Caution must be exercised
to avoid actions that exceed the authority delegated to the QRO. When
the contract requires Government approval of specific documents, such as
test procedures, test data sheets, name plate drawings, instruction book
manuscripts, and Provisioning Parts Lists, the QRO should provide
written comments to the PT in a timely manner.

## SECTION 5. CONTRACT PROPERTY ADMINISTRATION SUPPORT

**[5.5.1 GENERAL.]{.underline}** The Contract Support Team in ASU-210 is
responsible for property administration in ASU-200. As part of the audit
process, each QRO is expected to provide in-plant support to this
activity by monitoring the contractor's operations.

**[5.5.2 CONTRACT PROPERTY ADMINISTRATION.]{.underline}** The QRO will
verify that:

1\. The contractor has delegated or assigned a specific person as
"Property Custodian" responsible for management of Government property
accountable to a specific contract.

2\. The contractor complies with the documented property control
process.

**[5.5.3 ACQUISITION.]{.underline}** The QRO will verify that:

1\. All property is recorded and controlled in the contractor's property
management records.

2\. The contractor obtains TO prior approval and reports all
acquisitions of Contractor Acquired Property (CAP) to the FAA Property
Administrator (PA).

**[5.5.4 RECEIPT PROCESSING,]{.underline}** The QRO will verify that:

1\. For Contractor Acquired Property, the contractor maintains
appropriate records of incoming receipts per their approved written
property control procedures.

2\. For Government Furnished Property (GFP), the contractor
appropriately identifies and records discrepancies on FAA Form 4650-12,
and returns completed original to the FAA PA.

3\. The contractor notifies the FAA PA when overages, shortages, damages
and/or other relevant information are discovered upon receipt of GFP.

4\. The contractor has and complies with procedures for identifying and
segregating hazardous materials.

**[5.5.5 WAREHOUSING.]{.underline}** The QRO will verify that:

1\. The contractor segregates Government property from contractor owned
property and safeguards it from damage and deterioration.

2\. The contractor takes appropriate action and notifies the FAA PA
regarding lost, destruction or damage to Government property while in
storage.

**[5.5.6 INVENTORY CONTROL RECORDS.]{.underline}** The QRO will verify
that:

1\. The contractor has and complies with contractually required
inventory controls.

2\. The contractor has and complies with contractually required
procedures and policies governing supply support of spares.

**[5.5.7 RECEIPT AND ISSUE FILES.]{.underline}** The QRO will verify
that:

1\. The contractor provides for, and complies with, contractually
required receipt and issue records and controls.

2\. The contractor maintains and reports to the FAA PA any
material/equipment established as scrap or salvage.

**[5.5.8 PROPERTY USE.]{.underline}** The QRO will verify that:

1\. The contractor uses Government property only as authorized.

2\. The contractor reports to the FAA PA all plant equipment no longer
justified.

3\. The contractor monitors subcontractor compliance with property
provisions requiring safeguarding, care and use of Government property.

**[5.5.9 MAINTENANCE.]{.underline}** The QRO will verify that the
contractor performs and records the scheduled maintenance, including
preventive maintenance, as required by procedure.

**[5.5.10 CAPITAL-TYPE REHABILITATION.]{.underline}** The QRO will
verify that the contractor complies with contract requirements regarding
maintenance and reporting of capital equipment, including such action as
inspection of buildings and other capital equipment and reports to the
FAA Property Administrator.

**[5.5.11 PHYSICAL INVENTORY.]{.underline}** The QRO will verify that
the contractor performs physical inventories in accordance with approved
procedures and schedules.

**[5.5.12 RECORDING OF INVENTORY.]{.underline}** The QRO will verify
that the contractor develops and maintains inventory records as required
by contract and internal procedures.

**[5.5.13 REPORTING.]{.underline}** The QRO will verify that the
contractor provides timely and appropriate contractually required
reports (including annual and financial reports) to the FAA PA.

**[5.5.14 PROPERTY DISPOSAL.]{.underline}** The QRO will verify that:

1\. The contractor assures that Government identification and/or
markings are removed prior to disposal of the GFP.

2\. The contractor's description of Government property on inventory
schedules for disposal is accurate, i.e., description, quantity,
condition, etc.

3\. The contractor's disposal actions are completed and that excess
property is shipped within a reasonable time after receipt of disposal
instructions from the FAA PA; and that surplus property is screened
against ongoing contracts for possible need.

## SECTION 6. STRIKES/LABOR PROBLEMS

**[5.6.1 GENERAL.]{.underline}** The QRO should immediately notify the
PTL , the CO and the QRO's Branch Manager of any strikes, impending
strikes, or labor problems at the contractor's facility. Specific
information that should be reported includes the notification of the
impact of the strike on progress of the contract, the date(s) of votes
to end the strike, possible expansion of the strike to include
additional contract personnel, and the like. In the event of picketing,
the QRO should not attempt to cross the picket line, but should request
instructions from the Branch Manager.

## SECTION 7. SITE OPERATION

**[5.7.1 GENERAL.]{.underline}** On contracts which provide for
Contractor installation, the Contractor\'s quality plan should include
on-site quality operations as well as appropriate implementing
procedures.

1\. The QRO should refer to Chapter 3 of this guidebook for the initial
operation and related installation/on-site requirements of the contract.
Other chapters should be used as guidance to the extent practicable.

2\. Prior to each trip to a site, the QRO should coordinate with the PT,
regional personnel and the QRO\'s Branch Manager, identifying the
purpose of the trip and schedule. In those cases where site acceptance
of a turnkey installation is delegated by the CO to the Field
TO/Resident Engineer, the QRO shall provide him/her with information
regarding the contractor's quality system commitments. This information
shall include appropriate copies of contractor procedures, organization,
etc., and shall provide for feedback of deficiencies to the PT. When the
QRO is assigned the responsibility for formal acceptance of site
installation, he/she shall use the relevant tools and techniques used in
the factory.

## SECTION 8. DATA COLLECTION/METRICS REPORTING

**[5.8.1 GENERAL.]{.underline}** The QRO shall maintain accurate data on
all contracts under his/her responsibility, as follows:

1\. Contract. For each contract for which the QRO has primary QA
responsibility, the QRO shall maintain: (i) Contractor name, (ii)
contract number, (iii) IPT and PT being supported.

2\. [FORM FAA 256]{.underline}. Additionally, the QRO shall maintain an
accurate count of the number of FORM FAA 256 documents executed on each
contract and the dollar value of each FORM FAA 256 executed for each
contract separately.

**[5.8.2 REPORTING.]{.underline}** The QRO shall furnish the Branch
Manager, within five (5) working days after September 30 of each year, a
report by contract on all data specified above.

## SECTION 9. GIDEP SUPPORT

**[5.9.1 GENERAL.]{.underline}** The QRO should monitor contractor
operations regarding the Government and Industry Data Exchange Program
(GIDEP) requirements as follows:

1\. For contracts which specifically require the contractor to
participate in the GIDEP process, the QRO should verify compliance with
all detailed requirements, e.g., reviewing, preparing and distributing
appropriate reports, etc..

2\. Where no specific contract requirement exists, the QRO should
periodically check the GIDEP data base for "Alerts" and "Safe-Alerts" to
assure that the contractor is aware of relevant information and takes
appropriate action regarding equipment and/or services provided
(reference FAA Order 4470.2).