CAVU Café: Royboy’s Prose & Cons, Page 14 of 17![]() The views expressed in CAVU Café: Royboy’s Prose & Cons blog are those solely of the writer and are not necessarily shared by the Aviation Suppliers Association or the Association’s staff, members, or Board of Directors. About Roy Resto AIRLINE BID POSTINGS FOR MRO WORKPosted By Roy Resto | October 14, 2013
Don’t you hate it when you go out shopping for a product, try several stores, and make your purchase, then discover that someone else had the same product for a lower price? The truth is I was likely conditioned to assume that only those stores I tried could offer that product at a price I thought competitive. Perhaps those stores had culled my favor by being the biggest, or what I thought was the only source of the product. Regardless, the seasoned shoppers among you would tell me that my process was flawed since I did not get the best value. What about airlines that send out Bids for MRO work for their aircraft and components thereof? Do they always get the best value following the RFQ/RFP process?
I’m here to tell you no.
Nearly every news outlet channel associated with MRO activity publishes summaries of firms which were awarded MRO contracts. An oft expressed frustration among MRO Salespersons is “I wish we had been presented the opportunity to bid on that one, not fair!” You don’t have to major in Quantitative Analysis to understand that the greater the pool of respondents, the greater the probability that you will have attained your goal of best value for your airline’s MRO buck. The fact remains however, that many airline MRO bids, RFP’s or RFQ’s continue to be offered to a limited number of firms. Why?
BTW, I’m disturbed that so many people are fixated on conspiracy theories. There are whole and continuing TV programs servicing this popular phenomenon. A conspiracy theory behind every major event! No doubt this lines the pockets of those selling airtime and books; perhaps it’s an emerging genre in literature? Don’t get me started please! I’m going to coin a new Medical acronym: CTS, for Conspiracy Theory Syndrome. In the worst of cases, behavior is marked by delusional, paranoiac visions of hidden agendas and government agencies out to get us. CTS can be treated by gratuitous amounts of overly prescribed and popular psyche-active drugs, or in some cases a swift slap in the face followed by a shoulder-shaking “SNAP OUT OF IT!” from a close friend. But I digress…
Cynicism and CTS aside, all this brings to mind a best-practice in government (yes those do exist); a well-used website called FedBizOpps for Federal Business Opportunities at http://www.fbo.gov/.
It seems there are laws which require most Federal Bids, called solicitations, be posted on a publically accessible platform so that anyone qualified can participate in the response. The solicitations target those firms with matching NAICS codes, or North American Industry Classification System. This is simply a code that matches the type of firm you have. For example, there are codes for Consultants like myself. I have a virtual agent set up in FBO that sends me notifications and links to all Solicitations with my code. Every day I get email from FBO regarding new or revised Solicitations. According to FBO, at this writing there are more than 31,700 active Federal Solicitations. The Solicitations are fairly uniform regardless of the originating government source. All this lends an air of fairness and uniformity; quite lacking in the civilian sector as I have eluded. Wouldn’t it be cool if such functionality existed and was practiced in the civilian MRO world? If necessary you could outsource the gate-keeping to manage the expected big number of respondents; in case you are staff challenged.
Bottom line? You will have greater assurance that you got the best deal for your airline. It may be that competition is increased, further tamping prices, and getting your airline the best deal. Neat, eh?
Now, I know that many of you are going to say that this-or-that website was tried, exists, or is emerging. Agreed, but why then aren’t most airlines on board with those, or a broader base of respondents targeted? Why is the behavior continuing? Regardless, leave a comment. I hear all the time how your comments are appreciated and they add insight and useful information.
Psst. Don’t look around, but just between you and me, I heard from an undisclosed but reliable source that the NSA is monitoring the aforementioned flawed bidding practices. It seems there is a link between secretive groups seeking the economic collapse of our nation and the unexplained continuing bidding practice. Just yesterday I’m sure I saw a drone overhead being controlled from a person behind that grassy knoll and…nah, it can’t be…
Over ‘n out Roy Resto Fully Profiled on Linked In at: ACCELERATION OF PRIVATIZATION OF GOVERNMENTAL SERVICESPosted By Roy Resto | April 25, 2013
Governmental Agencies provide a host of services including, but not limited to Certifications and Inspections. Certifying Fish, Meat, Airplanes, Repair Station Applicants, Aircraft Parts, Health and Sanitary Inspections, Air Traffic Control, and Hospitals comprise just a short list of those services. Most commonly, the continuance of business relies on those certifications, services, or inspections. This brings us to the current ‘sequestration’ environment. In the media we see rising alacrity among business leaders and trade associations regarding the apparent slowdown of those governmental services; pick your industry, and you’ll likely find such evidence. Frankly, during a time when governments have a clear mandate to do whatever it takes to stimulate business and therefor their economies, it seems inconceivable to engage in legislation that would manifest predictable, collateral damage to the efficient conduct of business, but here we are.
Although the term ‘sequestration’ is associated with the US, there can be no mistaking the fact that ‘sequestration’ is clearly equated with the ‘austerity’ measures widely reported now by so many nations, so the phenomena reported herein is really a global occurrence. There can be no question that as the slowdown of governmental services becomes entrenched, economies are affected, and the frustration of business leaders mounts, there will be a call to privatize the performance of those services. Note that the title of this blog infers the acceleration, not the onset of such privatization. For years there has been what I’ll characterize as ‘privatization creep’ of this trend, and in case you think there are any untouchable fields, consider a sampling of the following existing areas:
If, in the past, the trend was merely a creep, watch it accelerate. So, who will champion the charge to privatization of certain governmental services? I predict the following:
The natural evolution of the privatization process involves the likely outcome of the following:
In many countries, civilian government workers are represented by unions. In the current sequestration/austerity environment, there is the appearance in the media that those unions or workers may engage in slowdowns in an effort to exacerbate the effects of the sequestration/austerity measures, and to gain public support to remedy those measures. If so, those groups should be careful that the purported slowdowns may actually result in hastening the call to privatize.
For our ASA members, there is a story worth reciting. In the early 1990’s, when the ‘bogus parts’ issue was getting huge attention in the halls of Congress, the media, and FAA, one of the gaps identified in the processing of aircraft parts was that middlemen distributors (including Stockists and brokers) were unregulated, unlike manufacturers and operators which were, and continue to be highly regulated. It was thought that if unapproved parts were going to be infiltrated into the aviation system, this unregulated link was the likely place. I was working at a major airline at the time, and distinctly recall the emerging arguments and positions taken by various parties regarding how to close the unregulated distributor gap. One of those positions was a strong call to have the distributors regulated, much like manufacturers, repair stations, and operators. This would force them to implement aviation-style quality systems, and to also have a degree of oversight by the regulators. At the time it was estimated that there were about 2000 distributors globally who fit the bill of unregulated aircraft parts distributors. It did not take long for representatives of the regulator to share that unless there was a corresponding huge increase in their budget necessary to regulate and surveil those many more entities; a highly unlikely outcome, the regulated option was not viable. Then a curious thing happened. We all got a draft copy of the FAA’s AC 00-56, “Voluntary Distributor Accreditation Program”. At the airline, we had received our draft copy via the retained services of the Air Transport Association, and I was tasked with writing our airline’s position on the draft. It did not take long before we were sending out notices to our aftermarket suppliers expecting them to become accredited or face suspension from our approved suppliers list.
We often hear from government agency administrators that problems are most successfully addressed only with the cooperation of industry. I continue to herald that the FAA’s AC 00-56 was historic in establishing a government-industry cooperation model which effectively addressed a huge problem back then. Perhaps it’s time to apply such problem solving creativity to the current sequestration/austerity environment.
Make it happen,
Roy RESTO Fully profiled on Linked-In THE USE OR MIS-USE OF CONDITION CODES FOR NEW, FACTORY NEW, OR NEW SURPLUS PARTSPosted By Roy Resto | March 18, 2013
According to the book “Slang: The Topical Dictionary of Americanisms” by Paul Dickson, during WW II the use of slang by American and Royal Air Force flyers got so deep, that the newspapers had to run occasional articles to point out that bombs were eggs, anti-aircraft balloons were pigs, student pilots were kiwis, etc. Unsurprisingly, Dickson points out that aviation contains a great deal of slang or jargon, and this extends to our colleagues who are directly involved in the vocation of sales or purchasing of aircraft parts. For anyone involved in sales or purchasing, price is the primary behavioral motivator affecting nearly every action. Any factor that can enhance or detract from a stated price will be leveraged for negotiation. Such is the use of the terms “Factory New” and “New Surplus”. These describe the status of the part, and common condition codes are FN and NS respectively. We should share straight out that these two terms have no regulatory definitions. Whenever I try to bring sense and order to an issue, I defer to Royboy’s Hierarchy of Aviation Definition Needs. In their order, these are:
By the way, after having completed my Military and Post Graduate studies, there was a time in my life when I thought that if I heard the term “Maslow’s Hierarchy of Needs” one more time, my body would engage in reverse peristalsis (Slang: puke, ralph, barf, up-chuck, hurl). Picture Royboy’s Hierarchy within a pyramid for flashbacks. Having already established that FN and NS have no regulatory definition, is there anything reflected in published standards? Not really, but what’s out there? I’m a fan of the many definitions contained in the Air Transport Association’s Specification 106, commonly referred to as ATA Spec 106 titled “Sources and Approved Parts Qualifications Guidelines”. What are some of the relevant definitions contained there? NEW: A product, assembly, accessory, component, part or material produced on conformity with approved data that is accompanied by a manufacturer’s material certification at the time of sale, and has no operating time or cycles NEW-UNUSED (SURPLUS): A product, assembly, accessory, component, part or material produced on conformity with approved data which has been released as surplus by the military, manufacturer, owner-operator, repair facility etc., has no operating time or cycles, and may be accompanied by the manufacturer’s certification at the time of sale, and which is being sold by a person other than the original equipment manufacturer. SURPLUS: Indicates a specified quantity of an item which is over and above that required to meet forecasted stock requirements in support of normal stock operations Discussion of New Surplus: From the ATA language, we can make some reasonable statements regarding the characteristics of a NS part; they are:
New Part>Sold to a Distributor>Sold to another Distributor>The part is still represented as New New Part>Sold to an Airline>Sold to a Distributor>The Part is now represented to the market as New Surplus (NS) Discussion of Factory New (FN): Deferring to Royboy’s Hierarchy of Aviation Definition Needs, our discussion must reflect de-facto use, since there is no regulatory or aviation standard definition. FN has always inferred the ‘freshness’ of the part; in other words that it just came off the factory line with its birth documents. There is great variance in opinion as to how long this condition code should be carried. For example, a distributor receives a quantity of parts directly from the factory line, and some of them remain unsold on the shelf. Three years later a part sells; is it still ‘Factory New’?, How about two years later or one year later? For most people, saying a part is FN after it has sit on the shelf for three years probably crosses the line of credibility, and should be sold as New vs. Factory New. So what’s reasonable regarding the time line of how long to call it FN? There is another widely observed de-facto practice we should perhaps borrow from to establish the line of credibility as to when to change a part’s condition code from FN to New. For parts with Airworthiness Tags, certain customers want the tags to be no older than 2 years. The often heard phrase, is to send the part back out to a service provider to have its tag ‘refreshed’ or to get a ‘fresh’ tag. If you apply this common threshold to FN parts, you could call it FN for up to 2 years from the date on its birth paperwork. HIERARCHY OF SALES AND PURCHASING PRICING: For devotees of Pyramidal Hierarchies, here’s another, the pricing hierarchy. I’m placing it here in this blog because some of you not involved in purchasing or sales may be wondering why are there such coded distinctions in the purchasing/sales community? The unique codes were created to reflect pricing strata. From highest to lowest, here is the hierarchy, Ceteris Paribus (all things being equal):
Reality Check: Note that I said Ceteris Paribus, all things being equal when referring to the pricing hierarchy. In reality, the market establishes price, and the market is pretty dynamic. Again, for the non-purchasing/sales community, the only purpose in inserting this information is to give some indication as to why there are so many condition distinctions; it’s strictly financial. POTENTIAL ABUSES: With all this established, we have to spend a little time giving an overview of how some of these are routinely abused. In all fairness, some of these are intentional, and some are not; some result from greatly defended positions, you decide.
Where money is involved, the temptation to engage in dodgy (English slang for ‘not to be trusted’) transactions will exist. On the other hand, in the absence of clearly defined terminology such as might exist in regulations, the potential for variation in parts representation is great. I know many of you have opinions on these topics. Don’t hesitate to leave comments on the blog site! Time to leave (Slang: Bug out, split, vamoose, peace out, hit the road, pull chocks, take off, skedaddle, beat it, bail, cut out, mosey, pack it in, scram, see a man about a dog ) C of C’s, BEWARE THE DIFFERENCESPosted By Roy Resto | January 09, 2013
Some gestures are universally understood. When a person with first aid skills observes another person at a restaurant frantically clutching their throat, that is a universal sign that aid should be rendered to extricate the offending victual from the patron’s airway. One of my callings in life is to let drivers know when one of their taillights is out. I’ll pull up alongside and gesture with a circular motion for them to roll down their windows, whereupon I inform them of the condition requiring further maintenance. That circular-motion gesture continues to be universally understood, even though most cars these days have electric windows. When it comes to understanding C of C’s, however, it seems that these documents are not so universally understood.
I have often overheard conversations between sales/purchasing persons describing the types of documentation to be expected with a shipment. “C of C” is quite common, but not all C of C’s are created equal, and in some cases, not worth much. The following discussion refers to C of C’s as may be expected from a manufacturer or distributor of new or aftermarket parts.
WHAT DO THESE MEAN?
CERTIFICATE OF CONFORMITY: Certain words in aviation carry a great deal of weight, such as the term ‘Airworthy’. Another term with considerable gravity is ‘Conformity’. When someone attests that an airplane, assembly, part, repair, or alteration conforms, they are generally stating that it conforms to one or a combination of the following:
In the aircraft parts sales world, these are the characteristics of a Certificate of Conformity:
CERTIFICATE OF COMPLIANCE: Usually, these are affirmations that the supplier has complied with your purchase order. I’m found to scratch my head while wondering about the worth of this type of C of C. Excuse me but remember your Business Law 101 classes? Is a Purchase Order a contract? Yes it is. If you have not accurately fulfilled the PO, you have not fulfilled a contract, so such a Certificate of Compliance seems wholly superfluous.
CERTIFICATE OF CONFORMANCE: These seem to fall somewhere between the two previously discussed types.
REALITY CHECK, PLEASE: Greatly clouding this discussion are the following realities:
THE REGULATED WORLD OF CONFORMITIES: Up to now we’ve basically confined our discussion to the distribution of aircraft parts. If it seems there’s not much uniformity in that world concerning C of C’s, then my subtle hints have not been missed. For persons not involved in the distribution of aircraft parts, there really is a world of regulated conformities. These typically involve, but are not limited to, activities such as the following:
In this world, statements of conformity, language, and the forms to be used are highly regulated by the applicable Civil Aviation Authorities.
BEWARE THE DIFFERENCES The question becomes, What value do you place on C of C’s and why? Consider the following, re-summarized:
As with the great variation in C of C statements, there is variation in written processes and procedures, agreements, contracts, legal reviews, and in some locales, laws. This blog is not meant to pre-empt those, but to be food for thought. Feel free to post your comments on the blog site; they are welcomed.
Back to gestures. Have you noticed, since face to face social interaction has been greatly supplanted by electronic social media, the dominance of hand, bodily or facial gestures is on the wane? Because of this, the reaction has been the immergence of those emoticons; yes my lips are pressed and my head is shaking from side to side ;-)
Over ‘n out Roy ‘Royboy’ Resto OBSERVATIONS FROM A HEAD HUNTERPosted By Roy Resto | December 06, 2012
When I first drafted this blog, I considered using the formal term “Recruiter”, but then I thought someone might think this was an article about signing up to join the military. On the other hand, it is neither about the practice of taking and preserving a person’s head after killing them.
I have the pleasure of working with a Staffing/Recruiting firm called Division 10 Personnel and Aerostaff.net1. Aerostaff.net has a specialty in recruiting and staffing for the Aviation industry which is why I’m writing this blog. I have come to observe some behaviors of candidates on the market which detract from their efforts to gain employment, and other behaviors which aid those efforts. Here’s a few:
If you get speared by a head hunter, don’t roll over and play dead (Yes, I’ve exhausted my puns for this blog). Recruiters, who have the relationship with the hiring firm, want you to get hired, and will work with you to prep you or improve your resume for that first meeting or phone interview. You can count on discreet contacts with your recruiter.
Advice to job seekers could easily fill 10 blogs, which is not the purpose of this forum, but as a hiring manager or job seeker, if you have any pet-peeves or interesting insight, please leave a comment on this blog.
Over ‘n out
1: http://www.division10personnel.com/
2: http://www.forbes.com/2006/05/20/resume-lies-work_cx_kdt_06work_0523lies.html Posted By Roy Resto | December 06, 2012
When I first drafted this blog, I considered using the formal term “Recruiter”, but then I thought someone might think this was an article about signing up to join the military. On the other hand, it is neither about the practice of taking and preserving a person’s head after killing them.
I have the pleasure of working with a Staffing/Recruiting firm called Division 10 Personnel and Aerostaff.net1. Aerostaff.net has a specialty in recruiting and staffing for the Aviation industry which is why I’m writing this blog. I have come to observe some behaviors of candidates on the market which detract from their efforts to gain employment, and other behaviors which aid those efforts. Here’s a few:
If you get speared by a head hunter, don’t roll over and play dead (Yes, I’ve exhausted my puns for this blog). Recruiters, who have the relationship with the hiring firm, want you to get hired, and will work with you to prep you or improve your resume for that first meeting or phone interview. You can count on discreet contacts with your recruiter.
Advice to job seekers could easily fill 10 blogs, which is not the purpose of this forum, but as a hiring manager or job seeker, if you have any pet-peeves or interesting insight, please leave a comment on this blog.
Over ‘n out
1: http://www.division10personnel.com/
2: http://www.forbes.com/2006/05/20/resume-lies-work_cx_kdt_06work_0523lies.html |
