AIR-16-0005-E Exemption No. 16637

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

WASHINGTON, DC 20591

In the matter of the petition of

BOEING - CARGO HELICOPTER Regu latory Docket No. FAA-2016-0833

SUSTAINMENT

for an exemption from § 21.9 of

Title 14, Code of Federal Regulations

GRANT OF EXEMPTION

By letter dated January 12, 2016, Mr. Steven Dooley, Boeing - Cargo Helicopter Sustainment (Boeing), P.O. Box 16858, Mail Stop P01-05, Philadelphia, PA 19142, petitioned the Federal Aviation Administration (FAA) on behalf of Boeing for an exemption from § 21.9 of Title 14, Code of Federal Regulations (14 CFR). The proposed exemption, if granted, would allow Boeing to produce, represent for sale, and sell new replacement parts for installation on CH-47D Chinook helicopters declared surplus by the U.S. Armed Forces that are type certificated under 14 CFR § 21.25(a)(2) and operated in the restricted category.

The petitioner requests relief from the following regulations:

Section § 21.9(a) prescribes that if a person knows, or should know, that a replacement or modification article is reasonably likely to be installed on a type-certificated product, the person may not produce that article unless it is produced under a type certificate; produced under an FAA production approval; a standard part (such as a nut or bolt) manufactured in compliance with a government or established industry specification; a commercial part as defined in § 21.1 of this part; produced by an owner or operator for maintaining or altering that owner or operator's product; or fabricated by an appropriately rated certificate holder with a quality system, and consumed in the repair or alteration of a product or article in accordance with part 43 of this chapter.2

Section § 21.9(b) prescribes that except as provided in paragraphs (a)(1) through (a)(2) of this section, a person who produces a replacement or modification article for sale may not represent that part as suitable for installation on a type-certificated product.

Section § 21.9(c) prescribes that except as provided in paragraphs (a)(1) through (a)(2) of this section, a person may not sell or represent an article as suitable for installation on an aircraft type-certificated under §§ 21.25(a)(2) or 21.27 unless that article was declared surplus by the U.S. Armed Forces, and was intended for use on that aircraft model by the U.S. Armed

Forces.

The petitioner supports its request with the following information:

The petitioner states that 14 CFR § 21.9 requires manufacturers of aircraft replacement parts, who sell those parts for installation on a type- certificated product, to hold an FAA production approval for those parts. Boeing is seeking an exemption from this requirement for the purpose of manufacturing and selling new replacement parts for installation on military surplus CH-47D Chinook helicopters type certificated under § 21.25(a)(2) and operated in the restricted category.

Boeing bases its request on being the original designer and manufacturer of the CH-47D aircraft that were originally delivered to the U.S. Army. Boeing is the current manufacturer of the CH-47F model which is derived from and in general shares common rotor head, blades, drive, control and hydraulic systems, landing gear utility systems, and cabin installations with the CH-47D. Boeing states that most of the parts required by operators of civil restricted category Chinooks are common between the CH-47D and CH-47F.

Boeing further states that CH-47D civil opera tors are seeking, or have obtained, contracts from the U.S. Forest Service to provide forest or wild fire fighting contracts. The CH-47D is an aircraft well suited for these aerial firefighting efforts with the capability of carrying a several thousand gallon water bucket suspended under the aircraft or an internal water/foam suppressant tank. Firefighting is a service provided to the U.S. Government that reduces the potential for loss of life or injury, and property damage associated with forest fires.

Boeing also states that another potential use for these helicopters is stream reclamation work to restore damaged streams to their natural configuration. This can be accomplished using large helicopters to relocate logs, rocks, and fill into waterways. This slows the water flow and reduces run-off and erosion, thus promo ting more conducive environments for fish.

Boeing asserts that granting this exemption would allow operators to obtain the required parts to support these operations sooner and without duplicating the existing manufacturing oversight provided by the Defense Cont ractor Management Agency (DCMA).

A summary of the petition was published in the Federal Register on March 16, 2016 (81

FR 14174). Four comments were received. All four commenters were supportive of granting the exemption. One commenter who operates CH-47D ai rcraft strongly encourages the FAA3

to grant Boeing’s petition for exemption and stated that “this petition is necessitated by the urgent need for CH-47D restricted-category t ype certificate holders to establish a steady and reliable supply of airworthy replacement parts.” The commenter also mentioned a further use of the aircraft in disaster relief efforts that are also in the public’s interest.

A second commenter stated: “as a commercial operator of the CH47D Chinook helicopter it is imperative that we procure replacement parts to maintain our aircraft in a safe and airworthy condition. The current commercial market for "surplus" military components is severely limited.”

A third commenter, also an operator of the CH-47D, stated that granting this exemption will keep the supply chain and the industrial base active, as well as the use of these aircraft “will obviously serve the public as their primary mission is fire fighting for the U.S. Government.”

Three of the four commenters also suggested an expansion of the exemption to include any parts producer(s) who can “show parts traceability to that restricted category aircraft.”

The FAA’s analysis is as follows:

The FAA finds, after a review of the petition and the comments received, that a grant of exemption would provide an equivalent level of safety to the regulations for which the relief is required. This action would be in the public interest by making available new replacement parts, produced by Boeing under DCMA oversight, to support the civil fleet of military surplus CH-47D helicopters certificated in the restricted category.

The FAA finds that the relief sought will not compromise safety, and will provide operators with needed replacement parts to support the safe operation of their aircraft. Restricted category aircraft are limited in their scope of operations and the aircraft must be operated in accordance with their type certificate data sheet. Overall, the FAA finds that granting this exemption would not introduce new risk into the operations of these restricted category

aircraft.

The FAA agrees with Boeing in its assertion that the relief sought would be in the public interest. These aircraft are used predominantly for activities like firefighting. This service benefits the public by providing rapid response to fires while reducing the potential loss of life or injury to the public and to ground-based firefighters, and also by reducing or eliminating property damage. The FAA expects that these aircraft will also be used in other operations that are in the public interest, such as environmental reclamation and disaster

relief.

In granting this exemption, the FAA recognizes Boeing as the original manufacturer of the CH-47D aircraft for the U.S. Armed Forces. The FAA has determined that as the original manufacturer of these aircraft, Boeing is in a position to safely produce replacement parts. Boeing also intends to use the same DCMA approved production and quality control system to produce new parts for these civil-registered CH-47D Chinook helicopters as was used to4

manufacture the helicopters and replacement parts for the U.S. Army. The FAA has determined that Boeing’s status as the original manufacturer of these aircraft and its use of the DCMA approved production and quality control syst em would provide an equivalent level of safety to production of parts under an FAA pr oduction oversight system. Therefore the FAA finds that granting the petitioner’s request would not adversely affect safety. Granting this exemption would allow operators to obtain the required parts to support their operations without duplicating the existing process oversight provided by the DCMA.

The FAA has also considered the commenters’ suggestion to expand the exemption to include “any parts producer(s) who can show parts traceability to that restricted category aircraft”. The FAA considers it inappropriate to expand the relief granted in this exemption to persons other than the petitioner and is additionally concerned that such an expansion would not maintain the same level of production oversight provided by Boeing’s DCMA quality system. Accordingly, the relief provided by this exemption is limited to the petitioner.

The FAA’s Decision

In consideration of the foregoing, I find that a grant of exemption is in the public interest. Therefore, pursuant to the authority contained in 49 U.S.C. §§ 106(f), 40113 and 44701, delegated to me by the Administrator, Boeing - Cargo Helicopter Sustainment is granted an exemption from 14 CFR § 21.9 to the extent necessary to allow Boeing to produce, represent for sale, and sell new replacement parts for installation on CH-47D helicopters declared surplus by the U.S. Armed Forces that are type certificated under 14 CFR § 21.25(a)(2) and operated in the restricted category, subject to the conditions and limitations listed below.

Conditions and Limitations

1. This exemption is only applicable to the production of new replacement parts for installation on CH-47D Chinook helicopters declared surplus by the U.S. Armed

Forces.

2. Boeing must own or have rights to the necessary design and manufacturing data.

3. This exemption is issued only for the purpos e of production of new parts, not aircraft.5

4. All production under this exemption must be completed under the U.S. military DCMA production oversight system.

This exemption terminates on May 31, 2021, unless sooner superseded or rescinded.

Issued in Washington, D.C., on May 11, 2016. .

/s/

Dorenda D. Baker

Director, Aircraft Certification Service