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Date Issued
Submitting OIG
Department of Transportation OIG
Other Participating OIGs
Department of Transportation OIG
Agencies Reviewed/Investigated
Department of Transportation
Components
Federal Aviation Administration
Report Number
AV2025002
Report Description

Our Objective(s)To evaluate FAA’s oversight of Boeing 737 and 787 production, specifically its processes for (1) identifying and resolving production issues and (2) addressing allegations of undue pressure within the production environment.Why This AuditAviation safety is FAA’s primary mission, and FAA’s oversight of passenger aircraft in the United States includes ensuring that aircraft manufacturers meet requirements when producing new aircraft. However, since 2018, Boeing has experienced multiple manufacturing issues, in addition to complaints alleging ongoing production deficiencies and undue pressure on staff. In response to these concerns, the Chairmen and Ranking Members of the House Transportation and Infrastructure Committee and its Subcommittee on Aviation and the Chair of the Senate Committee on Commerce, Science, and Transportation requested this audit.What We FoundWeaknesses in FAA’s oversight processes and systems limit its ability to identify and resolve Boeing production issues.FAA’s approach to overseeing Boeing manufacturing and production does not use data-driven assessments to target audits, and FAA has not structured its audits to perform comprehensive assessments.FAA has not adequately ensured that Boeing and its suppliers can produce parts that conform to the approved design. FAA does not require its inspectors to review First Article Inspections that are intended to ensure a manufacturer’s processes can, at the outset, produce parts that meet engineering and design requirements.Further, FAA’s compliance system cannot track milestones or determine whether potential repetitive noncompliances have occurred, nor has FAA assessed the effectiveness of Boeing’s Safety Management System.Finally, FAA has not established criteria to return delegated authority to Boeing’s Organization Designation Authorization (ODA).FAA continues to face challenges addressing allegations of undue pressure within Boeing’s aircraft manufacturing.FAA issued guidance for reporting allegations of interference to FAA. However, FAA has not enforced requirements that Boeing provide information in sufficient detail on alleged undue pressure allegations. Additionally, changes to FAA’s review process have delayed FAA’s ability to resolve allegations of undue pressure reported by Boeing.Further, despite FAA organizational changes to improve oversight, FAA managers did not know about the investigations of ongoing undue pressure allegations when they initiated a request to expand the authorized functions of Boeing’s ODA.RecommendationsWe made 16 recommendations to improve FAA oversight of Boeing aircraft production. 

Report Type
Audit
Agency Wide
Yes
Number of Recommendations
0
Questioned Costs
$0
Funds for Better Use
$0

Open Recommendations

This report has 16 open recommendations.
Recommendation Number Significant Recommendation Recommended Questioned Costs Recommended Funds for Better Use Additional Details
1 Yes $0 $0

Develop and implement inspector guidance on how to assess risk within Boeing manufacturing facilities.

2 Yes $0 $0

Develop and implement a structured oversight approach for planning and performing audits to provide a comprehensive assessment of Boeing production.

3 Yes $0 $0

Assess the Aircraft Certification Audit Information System to determine whether the system incorporates the functions that the inspectors need to plan and manage effective audits. Based on the assessment results, implement changes to the system as appropriate.

4 Yes $0 $0

Clarify FAA Order 8120.23A defining isolated and systemic findings and how inspectors should categorize these findings.

5 Yes $0 $0

Revise guidance to require inspectors to evaluate Boeings risk assessments of suppliers, including subtier suppliers, and incorporate the results of those assessments into FAAs audit planning.

6 Yes $0 $0

Enhance inspector guidance to account for the number of Boeing suppliers, including subtier suppliers; what each supplier manufactures; and the number of audits needed to ensure Boeing effectively controls its suppliers

7 Yes $0 $0

Develop and implement procedures that require FAA to disposition recommendations from joint FAA and industry reviews related to Boeing production and manufacturing.

8 Yes $0 $0

Develop and implement guidance requiring inspectors to evaluate Boeings supplier control, including review of first article inspections, to verify suppliers can produce conforming parts.

9 Yes $0 $0

Assess whether the Compliance and Enforcement Action system has the functionality that inspectors need to manage noncompliances, including the ability to track deadlines and identify potential repetitive issues. Implement changes to the system as appropriate based on the assessment results.

10 Yes $0 $0

Develop and implement processes used by the Boeing oversight group to evaluate root causes of noncompliances and the associated corrective actions.

11 Yes $0 $0

Train inspectors on updated guidance and system updates for the Aircraft Certification Audit Information System and the Compliance and Enforcement Action system.

12 Yes $0 $0

Establish procedures to periodically evaluate Boeings Safety Management System, including how it interfaces with Boeings existing quality system.

13 Yes $0 $0

Establish specific and measurable criteria for Boeing to meet before FAA can return delegation to Boeings Organization Delegation Authorization (ODA), including criteria from the FAA team overseeing Boeing's ODA.

14 Yes $0 $0

Enforce requirements for Boeing to report allegations of undue pressure with sufficient detail, in compliance with FAA Notice N 8100.18.

15 Yes $0 $0

Evaluate the impact of ongoing policy revisions and additional internal review requirements on FAA inspectors abilities to address allegations of undue pressure in a timely manner. Develop and implement corrective actions based on the evaluation.

16 Yes $0 $0

Evaluate organizational changes promoting communication across FAA groups overseeing Boeing. Develop and implement corrective actions based on the evaluation.

Department of Transportation OIG

United States