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-   -   FAA $3.7M penalty against Navworx (https://vansairforce.net/community/showthread.php?t=154715)

rleffler 10-28-2017 04:52 PM

FAA $3.7M penalty against Navworx
 
FAA Proposes Civil Penalty of Nearly $3.7 Million Against Manufacturer of ADS-B Navigation Units

October 27, 2017
Contact: Lynn Lunsford
Phone: 817-222-4455

FORT WORTH, Texas ? The U.S. Department of Transportation?s Federal Aviation Administration (FAA) proposes a civil penalty of $3,685,000 against NavWorx Inc. of Rowlett, Texas, for allegedly producing and selling navigation units that did not meet FAA requirements and for allegedly misleading customers about those products.

?The FAA has strict requirements for navigation units to ensure the reliability of the information they provide both to pilots and to air traffic controllers,? said FAA Administrator Michael Huerta. ?Customers of these products must be able to trust that their equipment meets our safety standards."

During an investigation, the FAA found that NavWorx produced certain Automatic Dependent Surveillance-Broadcast (ADS-B) navigation units containing an internal Global Positioning System (GPS) chip that did not meet the FAA?s standards for integrity.

In March 2015, the FAA notified the aviation industry that it had tightened its System Integrity Level (SIL) standards for GPS chips in units that meet the FAA?s January 1, 2020 mandatory deadline for operators to equip their aircraft with ADS-B transmitters. Such units, when properly manufactured and operated, broadcast an aircraft?s precise position.

The FAA alleges that, rather than replace the chips in its ADS600-B units, NavWorx knowingly altered the units? internal software to transmit a code that indicated the units met the new SIL standard even though they did not. The FAA further alleges that the company subsequently refused to comply with the FAA?s direction to modify the software to transmit an accurate code.

The FAA also alleges that NavWorks advertised on its company website and through transactions with customers that ADS600-B part numbers 200-0012 and 200-0013 met the FAA?s tighter standards for the 2020 installation deadline. These advertisements omitted and materially misrepresented the essential fact that the units contain a GPS chip that is incapable of meeting the FAA?s standards.

In November 2016, the FAA issued an emergency order suspending the authorization that NavWorx uses to manufacture the affected ADS-B units after the company repeatedly refused to allow the FAA to inspect its records and manufacturing facilities. The authorization, known as a Technical Standard Order Authorization (TSOA), enables suppliers to produce components for use on aircraft after proving that each component meets FAA standards.

Federal regulations set forth FAA?s authority to inspect suppliers? quality systems, facilities, technical data, and products to determine whether they meet safety standards. These regulations also provide that the FAA may witness any tests necessary to determine a product?s compliance. The company subsequently allowed the inspections to occur and the FAA reinstated NavWorx?s manufacturing authorization.

The FAA is continuing to work with NavWorx customers to ensure the safety and accuracy of the affected products. In June 2017, the FAA published a final Airworthiness Directive (AD) that requires owners to remove or disable these ADS-B units. The AD also allows the owner to modify the unit by linking it with a GPS unit that contains a certified chip that meets FAA standards.

NavWorx has been in communication with the FAA about the case.

DaleB 10-28-2017 05:49 PM

Interesting. I wonder if they did the same for Ameri-King (didn't find any indication they did), and if not why the two cases would be so different.

PilotjohnS 10-28-2017 05:54 PM

Did we see this coming?
 
When I read the recent history written by a Navworx person, I thought it sounded fishy changing the SIL without changing the hardware. Maybe they thought this was OK as a stop gap measure, but I guess the FAA didnt see it that way. Sorry for all the people hurt by this.

Timberwolf 10-28-2017 07:19 PM

No mention of the exp units. We are still left with our pants around our ankles....

dtw_rv6 10-28-2017 07:49 PM

So what in the world will they do with 3.7MM? Seems like they could easily make the end users whole again and have plenty of boot money left over....:rolleyes:

azflyer21 10-28-2017 07:57 PM

Unfortuneately, if Navworx had their corporate structure in better order than their operational structure the lawyers have covered them so the potential fine will not be paid.

Radomir 10-28-2017 10:01 PM

Quote:

Originally Posted by dtw_rv6 (Post 1214693)
So what in the world will they do with 3.7MM? Seems like they could easily make the end users whole again and have plenty of boot money left over....:rolleyes:

Cover the cost of those ADS-B rebates they've been handing out?

rv7charlie 10-28-2017 10:14 PM

Based on reports, what the company did was just dumb, but...

"In March 2015, the FAA notified the aviation industry that it had tightened its System Integrity Level (SIL) standards for GPS chips in units that meet the FAA?s January 1, 2020 mandatory deadline for operators to equip their aircraft with ADS-B transmitters. "

Setting up a standard, letting mfgrs go into production, and then ' moving the goalposts' is not exactly sporting.

gasman 10-28-2017 10:45 PM

Quote:

Originally Posted by rleffler (Post 1214664)
FAA Proposes Civil Penalty of Nearly $3.7 Million Against Manufacturer of ADS-B Navigation Units

October 27, 2017
Contact: Lynn Lunsford
Phone: 817-222-4455

FORT WORTH, Texas ? The U.S. Department of Transportation?s Federal Aviation Administration (FAA) proposes a civil penalty of $3,685,000 against NavWorx Inc. of Rowlett, Texas, for allegedly producing and selling navigation units that did not meet FAA requirements and for allegedly misleading customers about those products.

?The FAA has strict requirements for navigation units to ensure the reliability of the information they provide both to pilots and to air traffic controllers,? said FAA Administrator Michael Huerta. ?Customers of these products must be able to trust that their equipment meets our safety standards."

During an investigation, the FAA found that NavWorx produced certain Automatic Dependent Surveillance-Broadcast (ADS-B) navigation units containing an internal Global Positioning System (GPS) chip that did not meet the FAA?s standards for integrity.

In March 2015, the FAA notified the aviation industry that it had tightened its System Integrity Level (SIL) standards for GPS chips in units that meet the FAA?s January 1, 2020 mandatory deadline for operators to equip their aircraft with ADS-B transmitters. Such units, when properly manufactured and operated, broadcast an aircraft?s precise position.

The FAA alleges that, rather than replace the chips in its ADS600-B units, NavWorx knowingly altered the units? internal software to transmit a code that indicated the units met the new SIL standard even though they did not. The FAA further alleges that the company subsequently refused to comply with the FAA?s direction to modify the software to transmit an accurate code.

The FAA also alleges that NavWorks advertised on its company website and through transactions with customers that ADS600-B part numbers 200-0012 and 200-0013 met the FAA?s tighter standards for the 2020 installation deadline. These advertisements omitted and materially misrepresented the essential fact that the units contain a GPS chip that is incapable of meeting the FAA?s standards.

In November 2016, the FAA issued an emergency order suspending the authorization that NavWorx uses to manufacture the affected ADS-B units after the company repeatedly refused to allow the FAA to inspect its records and manufacturing facilities. The authorization, known as a Technical Standard Order Authorization (TSOA), enables suppliers to produce components for use on aircraft after proving that each component meets FAA standards.

Federal regulations set forth FAA?s authority to inspect suppliers? quality systems, facilities, technical data, and products to determine whether they meet safety standards. These regulations also provide that the FAA may witness any tests necessary to determine a product?s compliance. The company subsequently allowed the inspections to occur and the FAA reinstated NavWorx?s manufacturing authorization.

The FAA is continuing to work with NavWorx customers to ensure the safety and accuracy of the affected products. In June 2017, the FAA published a final Airworthiness Directive (AD) that requires owners to remove or disable these ADS-B units. The AD also allows the owner to modify the unit by linking it with a GPS unit that contains a certified chip that meets FAA standards.

NavWorx has been in communication with the FAA about the case.

It worked for VW for quite a while, so why not try it..........................::eek:

That would be around $400. That should come out of the $3.6MM

dutchroll 10-29-2017 12:25 AM

Quote:

Originally Posted by dtw_rv6 (Post 1214693)
So what in the world will they do with 3.7MM? Seems like they could easily make the end users whole again and have plenty of boot money left over....:rolleyes:

I doubt there's anywhere in the world where Government fines get shared with ripped off customers. :)


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