[Code of Federal Regulations]
[Title 14, Volume 3]
[Revised as of January 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR187.17]
[Page 303-306]
TITLE 14--AERONAUTICS AND SPACE
CHAPTER I--FEDERAL AVIATION ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
(CONTINUED)
PART 187_FEES--Table of Contents
Sec. 187.17 Failure by applicant to pay prescribed fees.
If an applicant fails to pay fees agreed to under appendix C of this
part, the FAA may suspend or deny any application for service and may
suspend or revoke any production certification-related approval granted.
[Doc. No. 28967, 62 FR 55703, Oct. 27, 1997]
Appendix A to Part 187--Methodology for Computation of Fees for
Certification Services Performed Outside the United States
(a) Fixed fees and hourly rates have been derived using the
methodology described below to ensure full cost recovery for
certification actions or approvals provided by the FAA for persons
outside the United States.
(b) These rates are based on aviation safety inspector time rather
than calculating a separate rate for managerial or clerical time because
the inspector is the individual performing the actual service. Charging
for inspector time, while building in all costs into the rate base,
provides for efficient cost recovery and time management.
(c) The hourly billing rate has been determined by using the annual
operations budget of the Flight Standards Service. The budget is
comprised of the following:
(1) Personnel compensation and benefits, budget code series 1100
(excluding codes 1151 and 1152--overtime, Sunday and holiday pay), 1200,
and 1300.
(2) Travel and transportation of persons, budget code series 2100
(excluding code 2100--site visit travel).
(3) Transportation of things, budget code series 2200.
(4) Rental, communications, utilities, budget code series 2300.
(5) Printing and reproduction, budget code series 2400.
(6) Contractual services, budget code series 2500.
(7) Supplies and materials, budget code series 2600.
(8) Equipment, budget code series 3100.
(9) Lands and structures, budget code series 3200.
[[Page 304]]
(10) Insurance claims and indemnities, budget code series 4200.
(d) In order to recover overhead costs attributable to the budget,
all costs other than direct inspector transportation and subsistence,
overtime, and Sunday/holiday costs, are assigned to the number of
inspector positions. An hourly cost per inspector is developed by
dividing the annual Flight Standards Operations Budget, excluding the
items enumerated above, by the number of aviation safety inspections
(OMB position series 1825) on board at the beginning of the fiscal year,
to determine the annual cost of an aviation safety inspector. This
annual cost of an aviation safety inspector is divided by 2,087 hours,
which is the annual paid hours of a U.S. Federal Government employee.
This result in the hourly government paid cost of an aviation safety
inspector.
(e) To ensure that the hourly inspector cost represents a billing
rate that ensures full recovery of costs, the hourly cost per inspector
must be multiplied by an indirect work factor to determine the hourly
inspector billing rate. This is necessary for the following reasons:
(1) Inspectors spend a significant amount of time in indirect work
to support their inspection activities, much of which cannot be
allocated to any one client.
(2) Not all 2,087 annual paid hours are available as work hours
because training, providing technical assistance, leave, and other
indirect work activities reduce the work time that may be directly
billed. Consequently, the hourly cost per inspector must be adjusted
upwards by an indirect work factor. The calculation of an indirect work
factor is discussed in paragraph (f) of this appendix.
(f)(1) The indirect work factor is determined using the following
formula:
[GRAPHIC] [TIFF OMITTED] TR19AP95.000
where:
a=indirect work rate, and
b=leave usage (total leave hours divided by total hours available for
work.
(2) The components of the formula are derived as follows:
(i) a=indirect work rate. Indirect work rate is take from the Flight
Standards Staffing Standard Order and is used to project the amount of
time an aviation safety inspector spends in indirect activities, as
opposed to certification and surveillance work. The indirect work
activities are:
(A) Development of master minimum equipment lists on Flight
Operations Evaluation Board.
(B) Development of aircraft training documents on Flight
Standardization Board.
(C) Development of Maintenance program documents on Maintenance
Review Board.
(D) Providing technical assistance.
(E) Assisting legal counsel.
(F) Evaluation of technical documents.
(G) Leave (all types).
(H) Training.
(I) Administrative time.
(J) Travel for indirect work.
(ii) b=leave usage (total leave hours divided by total hours
available for work). This is computed by using OMB guidelines of 280
average annual leave hours and 1,800 average annual hours available for
work for computer manpower requirements.
(g) The hourly inspector cost, when multiplied by the indirect work
factor, yields the hourly inspector billing rate and ensures full cost
recovery by incorporating the total amount of FAA paid hours needed to
produce one hour of direct billable inspector time.
(h) Certifications and approvals for which there are fixed times,
such as airman tests, are determined by multiplying the time used in the
Flight Standards Staffing Standard or airman test guidelines by the
inspector hourly billing rate.
(i) Certifications and approvals for which there are no fixed work
rates, such as airman and repair station facilities (air agencies), are
billed at the hourly inspector billing rate.
(j) Actual transportation and subsistence expenses incurred in
certification or approval actions will be billed in addition to the
hourly inspector billing rate, where such expenses are incurred.
(k) In no event will the fees exceed the actual costs of providing
certification or approval services.
(l) The methodology for computing user fees is published in this
Appendix. The User fee schedule is published in an FAA Advisory Circular
entitled ``Flight Standards Service Schedule of Charges Outside the
United States.'' A copy of this publication may be obtained from: New
Orders, Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA
15250-7954.
(m) Fees will be reviewed every year, at the beginning of the fiscal
year, and adjusted
[[Page 305]]
either upward or downward in order to reflect the current costs of
performing tests, authorizations, certifications, permits, or ratings.
(n) Notice of each change to a fee for a service described in the
user fee schedule will be published in the ``Notices'' section of the
Federal Register.
[Amdt. 187-5, 60 FR 19631, Apr. 19, 1995]
Appendix B to Part 187--Fees for FAA Services for Certain Flights
(a) Applicability. Except as provided in paragraphs (b) and (c) of
this appendix, this appendix applies to any person who conducts a flight
through U.S.-controlled airspace that does not include a landing or
takeoff in the United States. U.S.-controlled airspace is defined as all
U.S. airspace either directly owned by the United States or allocated to
the United States by the International Civil Aviation Organization
(ICAO) or by other countries. This is further defined, for this section
only, as Enroute and Oceanic airspace. Enroute airspace is defined, for
this section only, as airspace where primarily radar-based air traffic
services are provided. Oceanic airspace is defined, for this section
only, as airspace where primarily procedural air traffic services are
provided.
(b) Governmental flights. This appendix does not apply to any
military or civilian flight operated by the United States Government or
by any foreign government.
(c) Canada-to-Canada flights. This appendix will not apply to any
operator of a flight that takes off and lands in Canada, without an
intermediate stop outside Canada, that operates in U.S.-controlled
airspace.
(d) Services. Persons covered by paragraph (a) of this appendix must
pay a fee for the FAA's rendering or providing certain services,
including but not limited to the following:
(1) Air traffic management.
(2) Communications.
(3) Navigation.
(4) Radar surveillance, including separation services.
(5) Flight information services.
(6) Procedural control.
(7) Emergency services and training.
(e) Methodology for the computation of fees. (1) For the services
listed in paragraph (d) of this appendix, the fee is computed based on
the distance flown in either enroute or oceanic airspace (U.S.-
controlled airspace.) Distance flown is based on the great circle
distance (GCD) for the point of entry and the point of exit of U.S.-
controlled airspace based on FAA flight data. Fees are assessed using
the methodology presented in paragraph (e)(2) of this appendix. Where
actual entry and exit points are not available, the best available FAA
flight data will be used to calculate the entry and exit points.
(2) A User (operator of an overflight) is assessed a fee for each
100 nautical miles (or portion thereof) flown in each segment and type
of U.S.-controlled airspace. Separate calculations are made for
transiting Enroute and Oceanic airspace. The total fee charged for an
Overflight between any entry and exit points is equal to the sum of
these two charges. This relationship is summarized as:
Rij = $15.94*DOij + $33.72*DEij,
Where
Rij = the fee charged to aircraft flying between entry point
i and exit point j,
DOij= total great circle distance traveled in each segment of
U.S.-controlled oceanic airspace expressed in hundreds of nautical miles
for aircraft flying between entry point i and exit point j for each
segment of oceanic airspace.
DEij = total great circle distance traveled in each segment
of U.S.-controlled enroute airspace expressed in hundreds of nautical
miles for aircraft flying between entry point i and exit point j for
each segment of enroute airspace.
(f) Billing and payment procedures. (1) Billing. The FAA will send
an invoice to each user that is covered by this appendix when fees are
owed to the FAA. If the FAA cannot identify the user, then an invoice
will be sent to the registered owner. No invoice will be sent unless the
monthly (based on Greenwich Mean Time) fees for service equal or exceed
$250. Users will be billed at the address of record in the country where
the aircraft is registered, unless a billing address is otherwise
provided.
(2) Payment. Payment must be made by one of the methods described in
Sec. 187.15(d).
(g) Review of rule. The rule prescribed in this appendix will be
reviewed at least once every 2 years and adjusted to reflect the current
costs of the services covered by this appendix.
[Amdt. 187-12, 66 FR 43718, Aug. 20, 2001]
Appendix C to Part 187--Fees for Production Certification-Related
Services Performed Outside the United States
(a) Purpose. This appendix describes the methodology for the
calculation of fees for production certification-related services
outside the United States that are performed by the FAA.
(b) Applicability. This appendix applies to production approval
holders who elect to use manufacturing facilities or supplier facilities
located outside the United States to manufacture or assemble
aeronautical products after September 30, 1997.
[[Page 306]]
(c) Definitions. For the purpose of this appendix, the following
definitions apply:
Manufacturing facility means a place where production of a complete
aircraft, aircraft engine, propeller, part, component, or appliance is
performed.
Production certification-related service means a service associated
with initial production approval holder qualification; ongoing
production approval holder and supplier surveillance; designee
management; initial production approval holder qualification and ongoing
surveillance for production certificate extensions outside the United
States; conformity inspections; and witnessing of tests.
Supplier facility means a place where production of a part,
component, or subassembly is performed for a production approval holder.
Production approval holder means a person who holds an FAA approval
for production under type certificate only, an FAA approval for
production under an approved production inspection system, a production
certificate, a technical standard order authorization, or a parts
manufacturer approval.
(d) Procedural requirements. (1) Applicants may apply for FAA
production certification-related services provided outside the United
States by a letter of application to the FAA detailing when and where
the particular services are required.
(2) The FAA will notify the applicant in writing of the estimated
cost and schedule to provide the services.
(3) The applicant will review the estimated costs and schedule of
services. If the applicant agrees with the estimated costs and schedule
of services, the applicant will propose to the FAA that the services be
provided. If the FAA agrees and can provide the services requested, a
written agreement will be executed between the applicant and the FAA.
(4) The applicant must provide advance payment for each 12-month
period of agreed FAA service unless a shorter period is agreed to
between the Production Approval Holder and FAA.
(e) Fee determination. (1) Fees for FAA production certification-
related services will consist of: personnel compensation and benefit
(PC&B) for each participating FAA employee, actual travel and
transportation expenses incurred in providing the service, other agency
costs and an overhead percentage.
(2) Fees will be determined on a case-by-case basis according to the
following general formula:
W1H1+ W2H2 etc., + T + O
Where:
W1H1=hourly PC&B rate for employee 1, times
estimated hours
W2H2=hourly PC&B rate for employee 2, etc., times
estimated hours
T=estimated travel and transportation expenses
O=other agency costs related to each activity including overhead.
(3) In no event will the applicant be charged more than the actual
FAA costs of providing production certification-related services.
(4) If the actual FAA costs vary from the estimated fees by more
than 10 percent, written notice by the FAA will be given to the
applicant as soon as possible.
(5) If FAA costs exceed the estimated fees, the applicant will be
required to pay the difference prior to receiving further services. If
the estimated fees exceed the FAA costs, the applicant may elect to
apply the balance to future agreements or to receive a refund.
(f) Fees will be reviewed by the FAA periodically and adjusted
either upward or downward in order to reflect the current costs of
performing production certification-related services outside the United
States.
(1) Notice of any change to the elements of the fee formula in this
Appendix will be published in the Federal Register.
(2) Notice of any change to the methodology in this Appendix and
other changes for the fees will be published in the Federal Register.
[Doc. No. 28967, 62 FR 55703, Oct. 27, 1997]