2-7 compliance statement, see Appendix D, Guidance for Developing a Compliance Statement.
2.6.2 De c laration of Compliance. A document submitted to the FAA that declares the aviation organization has developed and implemented an SMS in compliance with part 5 whether required by regulation or implemented voluntarily.
2.6.3 H azard . A condition or an object that could foreseeably cause or contribute to an incident or aircraft accident as defined in Title 49 of the Code of Federal Regulations (49 CFR) part 830, § 830.2.
2.6.4 Person. The term “person” is defined in 14 CFR part 1, § 1.1 as “an individual, firm, partnership, corporation, company, association, joint-stock association, or governmental entity. It includes a trustee, receiver, assignee, or similar representative of any of them.”
This definition includes certificate holders (CH), service providers, or other types of individuals or business entities and is used throughout 14 CFR. For the purposes of part 5, the term “person” can be used to refer to an individual or to an aviation organization.
2.6.5 P rocess Owner . The individual responsible for ensuring that one or more process areas are performing as intended from an aviation safety standpoint.
2.6.6 Ri sk . The composite of predicted severity and likelihood of the potential effect of a hazard.
2.6.7 R isk Control . A means to reduce or eliminate the effects of hazards.
2.6.8 Safety Assurance. Processes within the SMS that function systematically to ensure the performance and effectiveness of safety risk controls and that the organization meets or exceeds its safety objectives through the collection, analysis, and assessment of information.
2.6.9 S afety Management System (SMS) . The formal, top-down, organization-wide approach to managing safety risk and ensuring the effectiveness of safety risk controls. It includes systematic procedures, practices, and policies for the management of safety risk.
2.6.10 S afety Objective . A measurable goal or desirable outcome related to safety.
2.6.11 Safety Performance. Realized or actual safety accomplishment relative to the organization’s safety objectives.
2.6.12 S afety Policy . The person’s documented commitment to safety, which defines their safety objectives and the accountabilities and responsibilities of its employees in regard to safety.
2.6.13 S afety Promotion. A combination of training and communication of safety information to support the implementation and operation of an SMS in an organization.
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2.6.14 Safety Risk Management (SRM). A process within the SMS composed of describing the system, identifying the hazards, and analyzing, assessing, and controlling risk.
2.6.15 S ystem Safety . The application of technical and managerial skills to the systematic, forward-looking identification and control of hazards throughout the life cycle of a project, program, or activity. The primary objective of system safety is accident prevention.
3-1 CHAPTER 3. SAFETY MANAGEMENT SYSTEM (SMS) COMPONENTS
EXPLAINED
3.1 Overview of This Chapter. SMS requirements are organized around the four components of safety management. These components are broken down into subparts of 14 CFR part 5 (e.g., Part 5 Subpart B, Safety Pol icy). This chapter contains a description of each SMS requirement contained in part 5. After the title of each requirement, where appropriate, the following information is provided.
3.1.1 References. This pa ragraph contains references for part 5. Where applicable, other related regulatory requirements are provided for cross-reference purposes. These other regulatory references are hyperlinked for ease of access.
3.1.2 Regulatory Text Box. A copy of the part 5 regulatory tex t for reference. The discussions in this chapter apply equally to aviation organizations subject to part 5 requirements and those seeking to implement a voluntary SMS.
Note 1: T he word “person” in the regulatory text box typically refers to the aviation organization. When a specific individual is required to be identified, the regulatory language will use the term “individual.”
Note 2: This AC does not include guidance on part 5 regulations applicable only to type certificate holders (TCH) and licensees and production certificate holders (CH) under 14 CFR part 21. For info rmation applicable to a ircraft certification products and service providers, refer to AC 21-58, Safety Management Systems for Part 21 Type and Production Certificate Holders.
3.1.3 Discussion. A more detailed plain language explanation of the process as it relates to the SMS. It includes some examples, when appropriate, and offers optional recommended design characteristics.
3.1.4 Implementation Strategies.
3.1.4.1 A short discussion, where applicable, of potential methods different-sized aviation organizations could use to meet the pertinent SMS requirements that could be scaled to the size and complexity of their organization. The Safety Management International Collaboration Group (SM ICG) SMS for Small Organizations3 document defines a small organization as one with between 5 and 20 staff and a very small organization as one with less than 5 staff. The FAA has not defined these organizations because an SMS is designed to be adaptable based on the size and complexity of the organization. So, it is possible for an organization to be very small but highly complex, and a large organization could be low complexity based on the aviation activity they are involved with.
3 SM ICG guidance documents can be downloaded from https://skybrary.aero/enhancing-s afety/sm-icg-safetymanagement-products.
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3.1.4.2 Aviation organizations are each unique, not only in organizational structure and the equipment operated and maintained but also in management structure and, very often, in management style. Therefore, a one-size-fits-all approach to scaling the aviation organization’s response to each section of part 5 is not advisable. This AC stresses the importance of recognizing aviation organizations have different operational environments and different levels of resources. Less complex organizations could use simple methods for conducting the processes within the SMS. More complex organizations may require more detailed processes within the SMS.
3.1.4.3 For organizations that have only a single pilot or technician and perhaps minimal support staff to carry out daily responsibilities, this AC suggests utilizing a commonsense approach to SMS implementation and maintenance.
In the case of a single-pilot operator, that single pilot could be the one to develop, implement, and use the SMS processes. At medium and large organizations, the complexity and departmentalization of duties may require that more personnel be involved in the SMS. Regardless of the organization’s size, many aviation organizations will find their existing processes and procedures can serve as the foundation for portions of their SMS. Integration of these existing processes should be used as much as practical.
Note: Implementation strategy discussions are for illustration only and neither impose requirements nor mandate specific resource allocation by an aviation organization. Aviation organizations should integrate methods and procedures that best fit their organizational structure and that leverage processes and procedures already in place to the greatest extent possible.
3.1.5 C onsiderations for Small and Single -Individual Organizations. Where appropriate, additional guidance and recommendations are provided for small and single-individual organizations.
3.1.6 Example. Throughout this chapter, w e will use fictional aviation service provider Flyslow Aviation as an example of how a typical organization could integrate part 5 requirements into their operations.
3.2 Subpa rt A , G eneral.
3.2.1 Applicability: Who Is Required to Implement an SMS.
3.2.1.1 References. Section 5.1 and 14 CFR part 91, § 91.147 and part 119, § 119.8.
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3.2.1.2 Part 5 Requirement.
§ 5.1, Applicability.
This part applies to all of the following:
(a) Any person that holds or applies for a certificate issued under part 119 of this chapter authorizing the person to conduct operations under part 121 of this chapter.
(b) Any person that holds or applies for a certificate issued under part 119 of this chapter authorizing the person to conduct operations under part 135 of this chapter.
(c) Any person that holds or applies for a Letter of Authorization issued under § 91.147 of this chapter.
3.2.1.3 Discussion. SMSs should be applied to the aviation operational processes of the organization. For example, the aviation operational processes in a typical aviation organization may include:
• Flight operations,
• Operational control (dispatch/flight following),
• Maintenance and inspection,
• Parts receiving inspections,
• Calibrated tooling procedures,
• Cabin safety,
• Ground handling and servicing,
• Cargo handling,
• Training, and
• Recordkeeping.
Note: Information concerning implementation planning for aviation organizations wanting to develop an SMS under part 5 is outlined in greater detail in Chapter 4, Implementation: Building a Safety Management System (SMS).
3.2.2 Definitions.
3.2.2.1 References. Section 5.3.
3.2.2.2 Part 5 Requirement.
§ 5.3, Definitions.
Hazard means a condition or an object that could foreseeably cause or contribute to an incident or aircraft accident, as defined in 49 CFR 830.2.
Risk means the composite of predicted severity and likelihood of the potential effect of a hazard.
3-4 Risk control means a means to reduce or eliminate the effects of hazards.
Safety assurance means processes within the SMS that function systematically to ensure the performance and effectiveness of safety risk controls and that the organization meets or exceeds its safety objectives through the collection, analysis, and assessment of information.
Safety Management System (SMS) means the formal, top-down, organization-wide approach to managing safety risk and assuring the effectiveness of safety risk controls. It includes systematic procedures, practices, and policies for the management of safety risk.
Safety objective means a measurable goal or desirable outcome related to safety.
Safety performance means realized or actual safety accomplishment relative to the organization’s safety objectives.
Safety policy means the person’s documented commitment to safety, which defines its safety objectives and the accountabilities and responsibilities of its employees in regards to safety.
Safety promotion means a combination of training and communication of safety information to support the implementation and operation of an SMS in an organization.
Safety Risk Management means a process within the SMS composed of describing the system, identifying the hazards, and analyzing, assessing, and controlling risk.
3.2.2.3 Discussion. These definitions apply to the use of these terms throughout part 5.
3.2.3 General Requirements.
3.2.3.1 References. Section 5.5.
3.2.3.2 Part 5 Requirement.
§ 5.5, General requirements.
(a) SMS components. An SMS under this part must be appropriate to the size, scope, and complexity of the person’s organization and include, at a minimum, all of the following components:
(1) Safety policy that meets the requirements of subpart B of this part.
(2) Safety risk management that meets the requirements of subpart C of this part.
(3) Safety assurance that meets the requirements of subpart D of this part.
(4) Safety promotion that meets the requirements of subpart E of this part.
(b) Continuing requirements. Any person required to develop and implement an SMS under this part must maintain the SMS in accordance with this part.
3.2.3.3 Discussion. Implementing an effective SMS requires an organization to fully understand its structure, processes, business arrangements, and interfaces that impact the Safety Risk Management (SRM) of aviation safety. While not regulatory, developing an organizational description should be the first step in SMS development. An organizational description is a summary of the organization’s processes, activities, and interfaces that need to be considered as a part of their SMS. It describes the aviation system, the interfaces within the organization, and the interfaces with external organizations that contribute to the safe delivery of aviation services. As organizations mature and grow, it is important to ensure the SMS continues to adapt and remain effective to changing requirements. Reviewing the organizational description and
3-5 interfaces that may have changed as well as updating operational processes and procedures ensures the aviation organization’s SMS continues to perform as designed.
3.2.4 R equirements for Domestic, Flag, and Supplemental Operations.
3.2.4.1 References. Sections 5.7 and 119.8.
3.2.4.2 Part 5 Requirement.
§ 5.7, Requirements for domestic, flag, and supplemental operations.
(a) Any person authorized to conduct operations under part 121 of this chapter that has an SMS acceptable to the FAA on or before May 28, 2024, must revise its SMS to meet the requirements of this part no later than May 28, 2025.
(b) Any person applying for authorization to conduct operations under part 121 of this chapter or with such application pending on or after May 28, 2024, must develop and implement an SMS that meets the requirements of this part.
(c) Any person required to develop and implement an SMS under this section must maintain the SMS as long as the person is authorized to conduct operations under part 121 of this chapter.
(d) Any person required to develop and implement an SMS under this section must make available to the Administrator, upon request, all necessary information and data that demonstrates that the person has an SMS that meets the requirements set forth in this part.
3.2.4.3 Discussion.
3.2.4.3.1 Title 14 CFR part 121 aviation organizations are required to meet updated part 5 requirements within 12 months of the effective date of this rule.
Part 121 operators are required to revise their SMS to meet the new requirements in § 5.3 (definitions) by updating the definition of “hazard” and in §§ 5.21(a)(7) (s afety policy code of ethics), 5.53(b)(5) (SR M interfaces),
5.57 (notification of hazards to interfacing persons), 5.71(a)(7) (employee confidential reporting system), 5.71(a)(8) (investigations of hazard notifications that have been received from external sources), and 5.97(d) (SMS records). Part 121 aviation organizations will provide any required revisions to their SMS processes in accordance with existing submission procedures.
3.2.4.3.2 N ew part 121 applicants must meet part 5 requirements as a part of the certification process as defined in the Air Operator and Air Agency Certification and Application Process in FAA Order 8900.1, Volume 2, Chapter 4, The Certification Process—Title 14 CFR Part 135.4 The certification project manager (CPM) will brief the new applicants on the SMS requirements during initial meetings. For guidance on preparing a compliance
4 Order 8900.1 is available online on the FAA’s Dynamic Regulatory System (DRS) at https://drs.faa.gov/.
3-6 statement, see Appendix D, Guidance for Developing a Compliance Statement.
3.2.5 Requirements for Commuter and On-Demand Operations or Passen ger-Carrying Flights for Compensation or Hire.
3.2.5.1 References. Sections 5.9, 91.147, and 119.8.
3.2.5.2 Part 5 Requirement.
§ 5.9, Requirements for commuter and on-demand operations or passenger-carrying flights for compensation or hire.
(a) Any person authorized to conduct operations under part 135 of this chapter or that holds a Letter of Authorization issued under § 91.147 of this chapter before May 28, 2024, must:
(1) Develop and implement an SMS that meets the requirements of this part no later than May 28, 2027.
(2) Submit to the FAA, a declaration of compliance with this part in a form and manner acceptable to the Administrator no later than May 28, 2027.
(b) Any person applying for authorization to conduct operations under part 135 of this chapter or a Letter of Authorization under § 91.147 of this chapter, or with such application pending on or after May 28, 2024, must develop and implement an SMS that meets the requirements of this part.
(c) Any person required to develop and implement an SMS under this section must maintain the SMS as long as the person is authorized to conduct operations under either part 135 or § 91.147 of this chapter.
(d) Any person required to develop and implement an SMS under this section must make available to the Administrator, upon request, all necessary information and data that demonstrates that the person has an SMS that meets the requirements set forth in this part.
3.2.5.3 Discussion. Within 36 months of the effective date of the part 5 requirements, 14 CFR part 135 and § 91.147 air tour operators with a Letter of Authorization (LOA) must submit a declaration of compliance to their FAA certificate management office (CMO) as evidence the organization has met the requirements of part 5.
3.2.5.3.1 A declaration of compliance is a legal document that states the aviation organization has developed and implemented an SMS that meets the part 5 requirements.
3.2.5.3.2 A declaration of compliance must contain the following information:
1. The name of the aviation organization and its certificate number (if applicable).
2. The physical address of the aviation organization.
3. A statement that the aviation organization has developed and implemented an SMS that meets the requirements of part 5.
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3.2.5.3.3 The declaration of compliance must be signed by the accountable executive or another senior member of management.
3.2.5.3.4 Once the FAA receives the declaration of compliance, the CMO will update the organization’s status in an internal FAA database noting that they have an SMS or a voluntary SMS that meets part 5 requirements. Validation of SMS performance will occur as a part of routine surveillance activities. Areas found deficient will be addressed using existing methods for ensuring compliance with the regulatory requirements.
3.2.5.3.5 Upon development and implementation of an SMS, if an operator that has an existing SMS through a voluntary SMS or a third-party provider realizes a manual change is required, then they must submit those changes in accordance with existing regulations and procedures.
3.2.5.3.6 Organizations not required to maintain a manual system need to document their SMS policies and procedures as well as record outputs of their SRM and safety assurance processes in accordance with §§ 5.95 and 5.97.
3.2.5.3.7 New part 135 applicants must meet part 5 requirements as a part of the certification process. The CPM will brief the new applicants on the SMS requirements during initial meetings. For guidance on preparation of a compliance statement, see Appendix D. More information on the certification process is contained in the Air Operator and Air Agency Certification and Application Process in Order 8900.1, Volume 2, Chapter 4.
3.2.5.3.8 New § 91.147 LOA applicants must meet part 5 requirements as part of the LOA issuance process as defined in § 91.147(b). Additional requirements for the issuance of LOA A049, Commercial Air Tour Operations Authorization and Drug and Alcohol Testing Program Registration, are described in Order 8900.1, Volume 3, Chapter 18, Operations Specifications.
3.2.6 Single-Pilot SMS Exceptions.
3.2.6.1 References. Section 5.9(e).
3.2.6.2 Part 5 Requirement.
§ 5.9, Requirements for commuter and on-demand operations or passenger-carrying flights for compensation or hire.
(e) The following requirements do not apply to those organizations with a single pilot who is the sole individual performing all necessary functions in the conduct and execution related to, or in direct support of, the safe operation of the aircraft: §§ 5.21(a)(4), 5.21(a)(5), 5.21(c),
5.23(a)(2), 5.23(a)(3), 5.23(b), 5.25(b)(3), 5.25(c), 5.27(a), 5.27(b), 5.71(a)(7), 5.93, and 5.97(d) of this part.
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3.2.6.3 Discussion.
3.2.6.3.1 Single-pilot operations and single-individual organizations pose unique situations when implementing an SMS. As a result of these factors, the following regulatory sections are excepted from the implementation requirements for organizations with a single pilot who is the sole individual performing all necessary functions in the conduct and execution related to, or in direct support of, the safe operation of aircraft.
1. Section 5.21(a)(4): A policy that defines the employee hazard reporting program.
2. Section 5.21(a)(5): A policy that defines unacceptable behavior and conditions for disciplinary action.
3. Section 5.21(c): A documented and communicated safety policy.
4. Section 5.23(a)(2): A requirement to identify all members of management in the organization.
5. Section 5.23(a)(3): A requirement to identify and define the safety accountability for all employees in the organization.
6. Section 5.23(b): Identifies the levels of management with the authority to make decisions regarding safety risk acceptance.
7. Section 5.25(b)(3): A requirement for the accountable executive to communicate the safety policy throughout the organization.
8. Section 5.25(c): Designation of management personnel.
9. Section 5.27(a): Delegation of emergency authority.
10. Section 5.27(b): Assignment of employee responsibilities during the emergency.
11. Section 5.71(a)(7): A requirement to have a confidential employee reporting program.
12. Section 5.93: A procedure for communicating safety-related information throughout the organization.
13. Section 5.97(d): A requirement to retain records of communications provided under § 5.93.
3.2.6.3.2 SMSs are important for organizations of all sizes. SMSs are designed to be scalable and flexible for organizations of various sizes and complexity; small organizations have different needs and challenges. In an organization such as one with a single pilot where a sole individual performs all necessary functions in the conduct and execution related to, or in direct support of, the safe operation of the aircraft, trying to meet every unique requirement defined in part 5 would not be feasible as some are written for multiperson organizations.
3-9 Note: Single-pilot organizations and those with a single individual responsible for the SMS of the organization that have excepted requirements will be further discussed in the specific discussions that follow. For example, a single individual might be the sole employee in a small repair station.
3.2.6.3.3 These exceptions are built around sole-individual organizations and provide relief from activities that would be typical in a multi-individual organization.
If you look closely at the excepted sections of part 5, they are all addressing communication and some recordkeeping requirements. The excepted sections also address management duties and responsibilities throughout an organization that would not be present in a single-individual organization.
These exceptions are limited to aviation organizations with a sole individual performing all necessary functions in the conduct and execution related to or in direct support of the safe operation of the aircraft. All necessary functions generally include the performance of work related to flight crewmember duties for part 135 and LOA holders under § 91.147. The Safety Management System Voluntary Program (SMSVP) will also provide this exception for other entities who are sole individuals performing all the necessary functions applicable to them (e.g., mechanics or repair stations conducting aircraft maintenance).
3.2.6.3.4 External vendors contracted to aid or provide a service (e.g., in routine aircraft handling, such as FBO services (fueling and towing) or airworthiness (annual inspections and unscheduled maintenance)) are not a part of the organization and would not have any bearing as to the applicability of these exceptions.
These excepted areas would also apply to a repair station with a sole individual implementing a voluntary SMS. As an example, vendors contracted to maintain calibrated tools are not directly involved in the performance of the aviation service and would not be considered employees. These exceptions do not remove the requirements of § 5.57 for hazard information sharing or the receipt of hazard information in § 5.71(a)(8).
3.2.6.3.5 Determination of whether or not the exception applies can be determined by defining the organization requiring the SMS and who within the organization accomplishes all the necessary functions relating to or in direct support of the safe operation of the aircraft.
3.2.6.3.6 For example, part 145, § 145.151 requires designation of an accountab le manager as well as definition of employees who perform the service. To have the exception, one person would have to act in all of these capacities, as well as be the accountable executive under part 5, as each has a role in the conduct and execution related to or in direct support of the safe operation of the aircraft.
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3.2.6.3.7 The following are the four key steps to determine if the excepted sections would apply to your organization:
1. Define the organizational structure. Is there more than one employee?
2. Identify the necessary functions.
3. Identify who is doing each function.
4. Is there more than one employee performing functions that could affect the safe operation of the product or service? If the answer is no, the excepted sections apply.
Note 1: An organization could have someone who does not do any of the necessary functions but does other tasks within the organization
(e.g., accounting, invoicing, answering phones, and cleaning). In this situation, the exceptions may still apply.
Note 2: If the sole individual tracks and coordinates the completion of maintenance activities and utilizes a maintenance service provider to conduct those activities, such as annual inspections or unscheduled maintenance, the exception still applies. However, if the sole individual allows a service provider to track and/or coordinate the completion of maintenance activities, then the exception does not apply.
3.2.7 G eneral Applicability Example .
3.2.7.1 To meet the requirement to implement an SMS, Flyslow Aviation starts by reviewing their organization to consider the operating environment, personnel needed, any interfaces with other organizations and facilities, and materials needed to provide their aviation service or product. They may identify flight operations, maintenance, dispatch, and training departments as areas that support the aviation product or service. They might also identify external organizations that support the aviation product or service, such as fuel service providers, third-party maintenance, and catering. All this information would be documented in an organizational description that can be used to ensure all aviation-related areas are considered in the SMS development.
3.2.7.2 To ensure part 5 is fully integrated into the organization, Flyslow Aviation may develop a compliance statement for their internal tracking to document how they already meet the requirements of part 5. While not required for existing operators, a compliance statement makes identifying existing processes and procedures as well as existing methods and voluntary programs easier to verify when documenting how an organization meets the regulatory requirements. This is accomplished for all departments and areas identified in the organizational description.