1/ 8 /15 8900.1 CHG 37 4

1 UNCONTROLLED COPY WHEN DOWNL OADED Check with FSIMS to verify current version before using **VOLUME 17 SAFETY MANAGEMENT SY**  **STEM CHAPTER**  **2 ACCEPTING A CERTIFIC**  **ATE HOLDER’S SMS**

**Section 1 Description and Methods**  **17 -**  **2 -**  **1 -**  **1 GENERAL.**  **A. Purpose.**  This chapter provides guidance for Federal Aviation Administration (FAA) Flight Standards Service (AFS) personnel on the acceptance of Title 14 of the Code of Federal Regulations ( 14 CFR) part 121 certificate holders’ Safety Management Sy stem s (SMS) , as re quired b y 14 CFR part 5, § § 5.1(a) and 5.3(a). **B. Scope**  **.** This chapter explains “what ” a Certificate Management Team (CMT) should evaluate regarding a certificate holder’s SMS and “how ” it should evaluate and record the acceptance of the SMS. **17 -**  **2 -**  **1 -**  **3 REGULATORY REQU**  **IREMENT.** Part 5 requires a certificate holder authorized to conduct operations in accordance with the requirements of part 121 to have an SMS that meets the requirements of part 5 and is acceptable to the Administrator by March 9, 2018. **17 -**  **2 -**  **1 -**  **5 SMS ACCEPTANCE TO**  **OLS.** Air Transportation Oversight System (ATOS) Data Collection Tools (DCT). **A. Safety Attribute Inspections (**  **SAI )**  **.** The FAA has developed eight SAIs (four for O perations and four for A irworthiness ) in the ATOS System 8 to evaluate and record a certificate holder’s SMS design
. They are: Element 8.1.1, Safety Policy ; Element 8.2.1, Safety Risk Management; Element 8.3.1, Safety Assurance; and Element 8.4.1, Safety Promotion, and are described in Volume 10 , Air Transportation Oversight S ys tem
. The ATOS sy stem 8 SAIs will be the primary

tool for inspectors to evaluate and record the certificate holder’s SMS implementation efforts and for continuing oversight once an SMS is fully implemented. 1 **B. System Attributes.**  Because an SMS is a complete sy stem, s ys tem attributes (e. g. , controls, interfaces, and measures) are built into the SMS SAI s’ procedures section questions (unlike current ATOS element DCTs). As the other system attribute sections are addressed in the procedures section, they require no separate input
. Additionally , SMS DCT questions are “s ys tem oriented.” This means that most SMS questions ask about an entire sy stem, process, or policy . In all other aspects, the ATOS Sy stem 8 DCTs follow Volume 10 functionality
. **C. National SMS Implementation Con**  **DOR.** To aid inspectors in the completion of SMS validation activities, Sy stem 8 SAIs and, National SMS Implementation Constructed Dy namic Observation Reports (ConDOR) templates have been created using the S ys tem 8 SAI questions. The National SMS Implementation ConDORs may be used, as necessary , to evaluate and record the certificate holder’s SMS implementation, piece by piece, as the SMS is developed
.
1 As ATOS is replaced by the Safety Assurance System (SAS), equivalent SAS tools and processes will be utilized in place of ATO S.1/ 8 /15 8900.1 CHG 37 4

2 UNCONTROLLED COPY WHEN DOWNL OADED Check with FSIMS to verify current version before using **17 -**  **2 -**  **1 -**  **7 HOW TO EVALUA**  **TE A CERTIFICATE HOLDER’S SMS FOR ACCEPTANCE.**  This paragraph provides standardized guidance for the evaluation process. The CMT and the certificate holder or applicant may come to an agreement upon any typ e of SMS that suits the certificate holder’s unique business needs, provided that the result meets the requirements of part 5. **A. Follow the**  **Certificate Holder’s Implementation Plan**  **.** The certificate holder ’ s implementation plan should describe h ow they intend to comply

with the part 5 requirement s This may in clude plans for new s ys tems, processes or procedures as well as incorporation of existing programs and processes.

**1) The Certificate Holder’s Approved Implementation Plan.**  a) Following approval of an implementation plan , the certificate holder will begin to deve lop and implement their SMS. For part 5 requirements with which they are not yet compliant , the certificate holder will describe their intended compliance action(s), name the organization/group and/or individual(s) responsible for the action(s), and provide an estimated completion date for compliance.

b) Adjustment of estimated completion date s during the implementation process is expected, especiall y during the first year or two. As the certificate holder proceeds with their SMS implementation, they may need to reconsider various facets of their SMS and make revisions. Such revisions may necessi tate delay

of estimated completion dates . Some extension of estimated completion date s may be considered acceptable, but an excessive number of estimated completion date delay s may impact the CMT’s ability to effectively

review and evaluate the certificate holder ’ s proposed SMS. Changes to the certificate holder’s approved implementation plan must be submitted to the CMT as soon as is practical and may or may not be approved. NOTE: It should be made clear to the certificate holder that CMT approval of modified es timated completion date s in no way negates the certificate holder’s responsibility

to have an SMS that meets the requirements of part 5 and is acceptable to the Administrator by March 9, 2018. **2) Determine**  **that the Certificate Holder Complies With**  **Part 5 Requ**  **irement s**  **.** a) The CMT will evaluate certificate holder documentation to ensure the design of the certificate holder’s SMS is in compliance with part 5 requirements.

b) Examples of documentation include :

 References to an organizational manual that describes the po licy , procedures, controls, interfaces, etc. of the process that complies with part 5 requirements.  O ther documents, such as training material, records, interviews, observations, correspondence ( e.g., email or memo), organizational charts, or meeting minutes.1/ 8 /15 8900.1 CHG 37 4

3 UNCONTROLLED COPY WHEN DOWNL OADED Check with FSIMS to verify current version before using c) To assist the recording of evaluations , CMTs may utiliz e the ATOS System 8 SAI DCTs and National SMS Implementation ConDORs, per Volume 10 (ATOS) , Chapter 2, Procedures for Design and Performance Assessment. The result of CMT evaluations should be maintained in accordance with these procedures
. There is no requirement to attach copies of certificate holder documents to the ConDOR. See further discu ssion below.

d) National SMS Implementation ConDORs can be opened and closed relativity quickly and allow the principal inspector ( PI ) the flexibility to assign ConDORs as the need arises. ConDORs allow the PIto gather oversight information across different time intervals as the certificate holder presents SMS processes for evaluation. For example, it may take some certificate holders the full 3 years allowed b y part 5 to implement their SMS; however, keeping an SAI open for 3 years would be impractical. Using one or more National SMS Implementation ConDORs and assigning them at different timeframes might be a viable option.

e) The certificate holder may implement the same SMS processes in different departments or areas of functional responsibility within their o rganization
. For example, the certificate holder may

have an SRM process at the corporate level, at the maintenance division level, and within an engine repair department
. This may be the same process ( e.g., SRM) that has been implemented at the same carri er at three different levels of the organization : the corporate, division , and department. Evaluate the manner in which the SRM process is implemented at each level. Do not assume that an SRM process implemented at the corporate level reflects equivalent implementation o f this process at other levels. A certificate holder is under no obligation to implement SRM or any

other SMS process at multiple levels of their organization , nor is there an obligation for SMS to apply to non - aviation
- safety
- related proce sses . The SRM process is a certificate holder’s responsibility ; CMT evaluation should focus on establishment and utilization of the SRM process. If a certificate holder implements an integrated SMS, the CMT will not provide assistance or evaluation on the non - aviation
- related processes.

f) In the example above , a PImay want to construct an Element 8.2.1 N ational SMS Implementation ConDOR for the SRM process at the corporate level, another ConDOR for the maintenance division , and a ConDOR for the engine department.

g) Certificate holders participating in the Safety Management Sy stem Pilot Project (SMSPP) , the Safety Management S ys tem Voluntary Program (SMSVP), and those who have implemented an SMS on their own or through third party consultants/vendors may present their entire SMS to the CMT for acceptance as soon as part 5 becomes effective. Evaluation of an entire SMS, even for a small certificate holder, is a time
- and resource
- intensive activity for the CMT. The CMT should develop an evaluation plan and monitor progress against it. The plan should include the evaluation process steps, assign responsibility for evaluating sections of the SMS to individual CMT inspectors, and set a realistic schedule for completing the evaluation. For assistance in developing an evaluation plan, see Volume 3, Chapter 1, Section 1, subparagraph 3
- 4 F , Phase Four Planning
. The CMT should monitor progress and take appropriate action (add/reduce resources, extend or contract the timeline, etc.) for the evaluation schedule to ensure that the SMS is adequately evaluated within a reasonable time. Should noncompliance issues be found, the CMT should provide timely feedback to the certificate holder and hold that evaluation step open until it is satisfied. The schedule should be amended1/ 8 /15 8900.1 CHG 37 4

4 UNCONTROLLED COPY WHEN DOWNL OADED Check with FSIMS to verify current version before using acco rdingl y. Within ATOS, the Corrective Action Tracking Tool (CATT) is a viable tool which can be used to track initial noncompliance issues that have been discovered
.

h) The number and frequency of N ational SMS Implementation ConDORs is up to the CMT and the PI s. Once the PIs have verified that all SAIquestions for an SMS component have been satisfactorily

answered through National SMS Implementation ConDORs, they can then complete the corresponding ATOS S ys tem 8 SAI s using the information documented from the National SMS Implementation ConDORs
. When all requirements of part 5 have been satisfactoril y implemented, the CMT Manager can accept the certificate holder’s SMS
. See paragraph 1 7
- 2
- 1
- 9 , Accepting a Certificate Holder’s SMS, for acceptance procedures. **B. Un**  **satisfactory Submissions.** Section 5.1(a) requires a certificate holder to “have a Safety Management Sy stem that meets the requirements of this part and is acceptable to the Administrator by March 9, 2018 .” Unsatisfactory submissions by

the certificate hold er do not imply that the CMT is obligated to accept the submissions if they do not comply

with part 5, even if the deadline for acceptance is drawing near. Appropriate records of submissions and discrepancy

findings (National SMS Implementation ConDORs, CA TT, etc.) by the CMT should be maintained, as should evidence of evaluation timeliness on the part of the CMT. Differences of opinions between the certificate holder and the CMT on the acceptability of the SMS should be referred to the normal chain of auth ority through respective FAA regional and national offices. **17 -**  **2 -**  **1 -**  **9 ACCEPTING A CERTIFICATE HOLDER**  **’ S SMS**  **.** Procedures for acceptance of the certificate holder’s SMS implementation plan should follow guidance contained in Volume 3, Chapter 1, The General Process f or Approval or Acceptance. **A. Recording**  **A cceptance**  **of SMS**  **I mplementation**  **.** Once the CMT has determined that the certificate holder’s SMS is satisfactorily implemented, the CMT m anager ( o ffice, unit, f rontline, etc.) who is the approving entity for all collective decisions of the t eam) will accept (per Volume 3, Chapter 1, Section 1, paragraph 3
- 6 , Phase Five ), the certificate holder’s SMS implementation in a timely manner and ensure that SMS implementation acceptance info rmation is entered into the Program Tracking and Reporting Subs ys tem (PTRS) as follows:

**1)** A ctivity

number 1045
. **2)** Enter “SMS ACCEPTANCE” in the “National Use” box. **B. SMS Acceptance**  **Failures.** Failure of the certificate holder to implement an SMS by March 9, 2018 should be addressed in the same way as a noncompliance with any other 14 CFR requirement s . The CMT should document and justify any rejection(s) of the certificate holder’s SMS per Volume 3, Chapter 1, Section 1, subparagraph 3
- 3B, Incomplete or Unacceptabl e Proposal, and/or office policy
. The result of the N ational SMS Implementation ConDOR evaluations may be helpful in the development of this justification. ( See subparagraph 1 7
- 2
- 1
- 7B , Unsatisfactory Submissions )
. **17 -**  **2 -**  **1 -**  **11 through 17 -**  **2 -**  **1 -**  **25 RESERVED.**