C.A.S.E. Presentation to FAA Leadership Washington, DC

2. C.A.S.E. Presentation to FAA LeadershipWashington, DC • February 27, 2012

3. An Overview of C.A.S.E. Coordinating Agency for Supplier Evaluation

4. What is C.A.S.E.? C.A.S.E.: • Is a Non-Profit organization operated for the benefit of the Corporation’s members through shared oversight burden • Improves oversight through standardization of training, auditor qualification and biennial re-qualification to validate competency • Provides a mechanism for distributing non-prejudicial* vendor/supplier and parts distributor surveillance information to members • This information is provided to the C.A.S.E. Data Center by the members themselves • Through issuance of Ops. Spec. D090, the FAA recognizes the C.A.S.E. program as an acceptable means of complying with the surveillance requirements of 14 CFR 121.373 (a) and 135.431(a) * See slide later in the presentation.

5. Members’ Unique Requirements • The 1-A standard has never been intended to meet all the requirements of all sustaining members CASS • Participation in C.A.S.E. is only one element of an Air Carrier’s CASS • It is continuously updated to ensure that the items that are common to all members are addressed and that adequate consideration is given to any items that individual members wish added to the standard • The standard is supplemented by an Appendix which outlines the specific Carrier needs that are required to be addressed during an audit • It has always been the responsibility of the members themselves to address items that fall outside of this process • The standard is further supplemented with sections addressing EASA and Transport Canada considerations as brought forth by members located in those regions

6. Purpose of C.A.S.E. The primary purpose of the Air Carrier Section of C.A.S.E. is to provide air carriers with a vehicle to exchange non-prejudicial audit information and to share the burden of vendor/supplier and parts distributor surveillance responsibilities while never compromising Safety, Quality, and Compliance.

7. C.A.S.E. History • 1960s • Individual Aerospace/Marine Contractors were performing evaluations of their own vendors/suppliers and, in many instances duplicating efforts • 1963 • Aerospace/Marine Contractors, with concurrence from their vendors/ suppliers, decide to share evaluation data, eliminating redundancy • C.A.S.E. is formed • 1980s • Federal Express Corporation joined the organization as the first Air Carrier Member, subsequently forming the Air Carrier Section in 1984 • 1991 • C.A.S.E. incorporated under the laws of the State of California as anon-profit, mutual benefit corporation

8. Membership • Limited to certificated Air Carriers and certificated Repair Stations operating in accordance with the aviation regulations of their certificating government • Member Responsibilities: • Maintain vendor/supplier and parts distributor surveillance program, related manual coverage, and related documentation in a manner compatible with FAA/NAA (as applicable) and C.A.S.E. requirements • Actively participate in the work of the organization by attending meetings regularly • Support the maintenance of and enhancements to existing Standards to ensure currency with relevant Regulations and Air Carrier requirements. • Act as stewards of the organization in support of a continued, robust program holding discipline and integrity at it’s core

9. Membership • Three levels of membership: • Sustaining • Voting members who control the operation of their respective section • Entitled to one vote on each matter submitted to the membership for vote • Must have at least one Level III Auditor or Level IV Evaluator • Associate • Non-Voting members • Have the right to attend section meetings • Have met requirements for entry level membership and passed an audit by the Membership & Promotions committee • Entry-level • Non-Voting members • Have the right to attend section meetings • Have met the requirements for entry level membership

10. Air Carrier Section 56 Sustaining 11 Associate 5 Entry Level Repair Station Section 9 Sustaining 31 Associate 0 Entry Level C.A.S.E. Current Membership Membership includes both U.S. and non-U.S. based Members, i.e. Lufthansa, Copa, Korean, Air Canada, and MTU (among others) FAA (or foreign Regulator) representation is welcomed at any C.A.S.E. event

11. Structure of C.A.S.E.Board of Directors

12. Structure of C.A.S.E.Sections

13. Air Carrier Section Organization

14. Documents Governing The Organization • C.A.S.E. Bylaws • Establishes overall C.A.S.E. operating rules • Were developed in conjunction with legal counsel • Apply to all Sections • Section Policy and Procedures Manual (P&P) • Establishes Policies and Procedures applicable to the respective Section • Contains many similarities while allowing for variations based on applicability to each Section • Revised biannually as voted upon by Sustaining Members of their respective Section • Standards and Supporting Checklists • 1-A Standard – Applicable for use in evaluating 14 CFR 145 Repair Stations. Based on 14 CFR 121, 135, and ACS requirements • 2-A Standard – Applicable for use in evaluating providers of Aviation Fuel – Storage and Into-plane • 3-A Standard – Applicable for use in the unregulated Surplus/Parts Distributors environment by Air Carrier Sustaining Members

15. Audit Personnel • Requirements for Auditor authorization are contained in each Section’s Policy and Procedures • Audit personnel are required to: • Adhere to the Code of Ethics • Maintain personal integrity and objectivity • Maintain independence – No Conflict of Interest • Demonstrate auditing competency to the respective Standard on a biennial basis

16. Auditor Authorization Program • Managed by Audit and Compliance committee • Purpose is to verify that members’ auditors are qualified to conduct satisfactory audits • Consists of four Levels: • Level I – Company Auditor Trainee • Level II – Qualified Company Auditor • Level III – C.A.S.E. Authorized Auditor • Level IV – C.A.S.E. Authorized Evaluator

17. Auditor Authorization Program • Training sessions are available on a biannual basis (twice each year) NOTE: FAA personnel are welcome to attend and participate in training sessions and are exempt from registration fees • Level III and IV qualified individuals are required to successfully complete training once every four training sessions • Training is intended for experienced Auditors only – not those new to the discipline • Auditors receive standardized training in the applicable C.A.S.E. Standard(s) and Section policies • Auditor candidates must substantiatecompliance to the requirements of the ACS P&P via an application, which is reviewed and approved through the Audit and Compliance committee • Once approved, Auditors must pass a check-ride evaluation conducted by a C.A.S.E. Level IV Evaluator – demonstrating their ability to conduct an audit adequate to meet membership requirements • Qualified Auditors are subject to biennial recurrent check-rides to ensure continued competence

18. C.A.S.E. ACS Register • Purpose: • To provide a current list of vendors/suppliers and parts distributors that have been evaluated and accepted by a C.A.S.E. authorized auditor as meeting an applicable standard • Listing in the Register only indicates an audit has been performed, that the facility has sufficient quality programs in place to support acceptable levels of compliance with Regulatory, ACS, and customer requirements • C.A.S.E. Data Center: • An electronic data collection and dissemination tool • Contains the vendor pool which is a listing of all vendors/suppliers and parts distributors submitted by the membership • Contains the ACS Register • Conduit for submitting member and vendor information • Maintains the C.A.S.E. website • FAA specifies that only ACS sustaining members may use the Register to satisfy their surveillance requirements

19. Non-Prejudicial Information Anti-trust laws prohibit C.A.S.E. from : • Providing information within its organization which may bias a member against a vendor/supplier or parts distributor. • Providing a business advantage for one vendor/supplier or parts distributor over another • Sharing specific audit findings, however, C.A.S.E. requests auditees to voluntarily provide audit results to those sustaining ACS members who use their services. A listing of those members is provided during the audit and is also used by the auditors to determine which member’s specific requirements (R.O. instructions, technical data, specific carrier-unique Engineering Documents etc.) to look for during the audit

20. Sample of Air Carrier C.A.S.E. Register

21. Questions? Thank you for your time and consideration