OIG Says Substandard Parts Allowed Into US Planes

Boeing promises a serious review of a new report from the US Department of Transportations Office of the Inspector General, which claims poor FAA oversight of foreign manufacturers continues to allow substandard parts to find their way into US airliners.

According to The Washington Post, the report was made public by the Project on Government Oversight, a nonprofit organization that focuses on government accountability. The OIG charges the FAA's new records-review-based oversight model is missing problems which would be obvious if actual on-site inspections were conducted at foreign parts suppliers.

"Neither manufacturers nor FAA inspectors have provided effective oversight of suppliers; this has allowed substandard parts to enter the aviation supply chain," reads the report, dated February 26. "The nature and number of discrepancies found at suppliers we visited would not have been identified through records reviews only... For example, a supplier of fuel system parts for a major manufacturer had no record of the manufacturer ever completing an on-site audit of their facility. We found numerous deficiencies at this facility, including problems with the calibration program, employee training and product inspection."

The OIG notes four engine failures in 2003, that were traced to "unapproved design changes made by a . . . supplier" of engine fuel pump sensors. The report goes on to specifically mention concerns raised by Boeing's widespread international sourcing of parts and subassemblies for the upcoming 787 Dreamliner.

The OIG states the FAA needs to immediately review its own procedures and guidelines... and make the necessary changes.

"We found that FAA's risk-based oversight system for suppliers needs improvement as it does not consider the degree to which manufacturers now use suppliers to make aviation products," the OIG report states. "Specifically, (1) FAA has not ensured that manufacturers are providing oversight of their suppliers, (2) FAA does not require inspectors to perform enough audits of suppliers to determine how well manufacturers' quality assurance systems are working, and (3) the systemic deficiencies we identified at 21 supplier facilities indicate that both manufacturers and FAA need to strengthen their oversight of these facilities."

Downplaying the ominous undertones of the OIG report, the FAA stressed "there are absolutely no imminent safety issues raised by the report," according to agency spokeswoman Alison Duquette.

As with many products in today's highly globalized world, there isn't really such a thing as an "American" or "European" commercial airliner anymore. Aerospace companies contract with firms all over the world to supply parts for their planes, as labor costs are often much cheaper in countries such as China, Japan, Brazil, and Italy. Such outsourcing also allows the manufacturer to trim its own overhead costs.

Given the report's potential impact to its most highly-anticipated new aircraft program, Boeing took particular interest in the OIG's findings. The report notes of 17 major structures on the Dreamliner, 13 are to be produced at least in part by overseas companies.

"Oversight is really important in maintaining a high-quality supply system," said spokeswoman Liz Verdier. "We're reviewing the report, and then certainly if it's necessary to make changes to our process, we'll make changes."

FMI: Read The Report (.pdf), www.boeing.com