Useful links

  • ADS Business Ethics Network
  • ADS Business Ethics Toolkit v2015 – Revised November 2015
  • Forthcoming IFBEC Conference (exp. 25-26 October 2017)The 8th Annual Conference for the International Forum on Business Ethical Conduct (IFBEC) for the Aerospace and Defence Industry, is scheduled to take place at the George Washington University School of Law (https://www.law.gwu.edu/), in Washington DC, on Wednesday 25th and Thursday 26th October 2017. This is an excellent opportunity for the aerospace and defence industry, government officials, and other stakeholders to learn more about trends, challenges, and opportunities with respect to ethical business conduct.  It also provides an opportunity to help shape the dialogue on ethics in our industry.
    The conference agenda is still being finalized, but will include a day with an academic focus and a day with a practitioner focus. The selected conference hotel to provide accommodation to delegates is the Key Bridge Marriott (http://www.marriott.com/hotels/travel/waskb-key-bridge-marriott/), located in Arlington, Virginia, just across the Potomac River from Georgetown, in Washington, DC. IFBEC has secured a discounted group rate, details of which are available at this link.Further information about IFBEC and its membership can be found at www.ifbec.info.
  • Forthcoming BEN Meeting  (exp. 8 November 2017)There are tentative plans for BEN to have a FREE-TO-ATTEND two-hour meeting in London on the late afternoon of Wednesday 8th November. Details of the specific topics to be covered will be available nearer the time, but Members are asked to make a note in their diaries of the date.
  • Forthcoming ABC Conference (exp. 21-22 November 2017)ADS has been contacted by AMLP Forum – The Financial Crime & Corruption Prevention Association (www.amlpforum.com),  the organisers of the annual Anti-Bribery & Corruption Forum, which is due to take place in London on Tuesday 21st and Wednesday 22nd November 2017. At this link it is possible to find the details of the event. The Chairman of the Business Ethics Network, Mr Steve Pegg, of Lockheed Martin UK, is one of the speakers at this event. Further details are available from to Lili or Gosia at events@amlpforum.com.
  • SFO Investigations into Amec Foster Wheeler (exp. January 2018)The Serious Fraud Office has announced that it has opened an investigation into the project management and services firm Amec Foster Wheeler PLC (https://www.amecfw.com/). The probe will cover the London-based firm “and any predecessor companies” that owned or controlled the business, as well as the activity of any of its subsidiaries, officers, employees or anyone else associated with it “for suspected offenses of bribery, corruption and related offenses”, said the SFO in a statement. The company primarily serves the oil, gas, chemicals and mining sectors. Amec Foster Wheeler said in a statement to the London Stock Exchange it disclosed to shareholders in May that the SFO “may well commence” a probe into the company. The statement said the company was told on 11th July that the investigation has begun and the probe concerns the past use of third parties and possible bribery.
  • The Potential Benefits of Self-Disclosure (exp. January 2018)The Department of Justice has decided not to prosecute a US engineering and construction firm for bribery of foreign officials, citing the company’s self-disclosure, remedial measures, and other factors. This decision appears consistent with an ongoing DOJ pilot program designed to motivate companies to voluntarily self-disclose Foreign Corrupt Practices Act-related misconduct and remediate flaws in their controls and compliance programs. A DOJ investigation found that the company had paid c.US$1.18m in bribes to government officials in India in exchange for contracts resulting in c.US$4m in net profits. All senior management at the company’s India subsidiary were aware of the bribes and approved or participated in the misconduct. However, the DOJ decided to close its investigation without prosecution based on a number of factors, including the company’s:
    • timely, voluntary self-disclosure;
    • thorough and comprehensive internal investigation;
    • full cooperation, including provision of all known relevant facts about the individuals involved in or responsible for the misconduct;
    • steps to enhance its compliance program and internal accounting controls; and
    • full remediation, including terminating all of the responsible executives and employees.In addition, the company agreed to disgorge US$4.04m in profits from its illegal behavior.
  • FCPA Guilty Plea relating to Haitian Bribery (exp. January 2018)The US Department of Justice (DOJ) has announced that Amadeus Richers, 66, of Brazil, the former general manager of a Miami-based telecommunications company, has pleaded for his role in a scheme to pay US$3m in bribes to various Haitian officials to secure a lucrative contract with Telecommunications D’Haiti (Haiti Teleco), the state-owned and state-controlled telecommunications company in Haiti. According to admissions in the plea documents, beginning in 2001 and lasting until 2004, Richers and his co-conspirators paid roughly US$3m in bribes directly and indirectly to foreign officials employed by Haiti Teleco and to a foreign official in the executive branch of the Haitian government to secure a favourable contract and favourable treatment in connection with that contract from Haiti Teleco. The co-conspirators funnelled some of the money through third-party intermediaries and paid other money directly to officials or relatives of officials, Richers admitted. Richers is the ninth defendant to have pled guilty or to have been convicted at trial in this case. Further details are available at: https://www.justice.gov/opa/pr/telecom-executive-pleads-guilty-fcpa-charge-connection-haitian-bribery-scheme.
  • FCPA Enforcement may change (exp. January 2018)Defence lawyers say a recent Supreme Court ruling could change the way the Securities and Exchange Commission enforces US foreign-bribery law. The Supreme Court ruled earlier this month that disgorgement, a form of clawing back ill-gotten funds from defendants, faces a statute of limitations because it is a penalty under the law. The method of punishment, which the SEC uses frequently when pursuing companies in Foreign Corrupt Practices Act cases, now faces the same five-year time limit as a traditional civil penalty. FCPA cases typically take several years to resolve and involve settlements that historically have included disgorgements that concern conduct that goes far beyond the penalty period. Several of the biggest FCPA settlements in recent years involved disgorgements clawing back ill-gotten gains from old misconduct. Defence attorneys said in several alerts to clients since the decision that it could change the calculus for the SEC’s approach toward FCPA enforcement, and for how companies may respond to SEC allegations.
  • UK Banker Found Guilty of Taking Bribes (exp. January 2018)The Old Bailey has sentenced a former banker at the European Bank for Reconstruction and Development (EBRD) to six years in prison for accepting US$3.5m in bribes from a Pennsylvania-based consultant.  Andrey Ryjenko, a dual UK and Russian citizen, was convicted by a jury of a bribery conspiracy, and was also convicted of money laundering and sentenced to two years in prison, which will run concurrently. At the London-based development bank, Ryjenko reviewed applications for loans and investments submitted by eastern European oil, gas and mining firms.  Between July 2008 and November 2009, he agreed to take 50% of the commissions the Pennsylvania consultant would earn when the loans were approved.  The consultant paid the money into accounts held by Ryjenko’s sister, Tatjana Sanderson. She was charged but later declared unfit to stand trial.  In the United States, the DOJ charged the consultant with violating the Foreign Corrupt Practices Act (FCPA).  Dmitrij Harder, a Russian national resident in the US who owned Chestnut Consulting Group Inc., pleaded guilty in 2016 to two counts of violating the FCPA. In return for US$3.5m in bribes to Ryjenko, one of Chestnut’s clients, won approval for an EBRD investment of US$85m and a €90m (US$100m) loan.  Another client secured a US$40m EBRD investment and a US$60m convertible loan.  Harder and Chestnut earned about US$8m in “success fees” from the EBRD’s approval of the two applications.  Harder is scheduled to be sentenced on July 18, and he faces up to ten years in prison.
  • Former U.S. Naval Attaché and Military Advisor to the U.S. Ambassador in the Philippines Sentenced for Taking Bribes in Massive Navy Corruption Scandal (exp. January 2018)A Retired US Navy Captain was sentenced in federal court to 41 months in prison for his role in a massive bribery and fraud scheme involving foreign defense contractor Leonard Glenn Francis and his firm, Singapore-based, Glenn Defense Marine Asia (GDMA). In addition to the 41-month prison sentence, US District Judge Janis L. Sammartino ordered Michael Brooks, 59, of Fairfax Station, Virginia, to pay a US$41,000 fine and US$31,000 in restitution to the U.S. Navy.  Brooks pleaded guilty in November 2016 to one count of conspiracy to commit bribery.Brooks, who served as the US Naval Attaché at the U.S. Embassy in Manila, Philippines, from 2006 to 2008, had admitted to accepting bribes of travel and entertainment expenses, hotel rooms and the services of prostitutes. In return, Brooks admitted that he used his power and influence to benefit GDMA and Francis, including by securing quarterly clearances for GDMA vessels, which allowed GDMA vessels to transit into and out of the Philippines under the diplomatic imprimatur of the US Embassy. Neither GDMA nor any other defence contractor has ever been granted such unfettered clearances.Brooks admitted that he also allowed Francis to ghostwrite official US Navy documents and correspondence, which Brooks then submitted as his own. For example, Brooks admitted allowing GDMA to complete its own contractor performance evaluations. A November 2007 evaluation, drafted by GDMA and submitted by Brooks, described the company’s performance as “phenomenal”, “unsurpassed”, “exceptional” and “world class.” Brooks also admitted providing Francis with sensitive, internal US Navy information, including US Navy ship schedules and billing information belonging to a GDMA competitor, at times using a private Yahoo! e-mail account to mask his illicit acts.

    Twenty-one current and former Navy officials have been charged so far in the fraud and bribery investigation; 10 have pleaded guilty and 10 cases are pending. In addition, five GDMA executives and GDMA the corporation have pleaded guilty.

Guide to Nadcap

Nadcap is the leading worldwide cooperative program of major companies designed to manage a cost-effective consensus approach to special processes & products and provide continual improvement within the aerospace & automotive industries.

Nadcap is a brand name for a global programme that is focused upon compliance to standards and continual improvement of special processes.

List of current Nadcap programmes is detailed below:

Special Processes

  • Nondestructive Testing (NDT)
  • Materials Testing (MTL)
  • Heat Treating (HT)
  • Coatings (CT)
  • Chemical Processing (CP)
  • Welding (WLD)
  • Nonconventional Machining & Surface Enhancement (NMSE)

Systems & Products

  • Sealants (SLT)
  • Distributors (DIST)
  • Aerospace Quality Systems (AQS) – AC7004
  • Fluid Distribution Standards (FLU)
  • Elastomer Seals (SEALS)
  • Composites (COMP)
  • Electronics (ETG)

Under Development

  • Fasteners (FAST)

NADCAP PROCESS FLOW

Nadcap process flow chart

Performance Review Institute (PRI) contacts list

A list of contacts can be found on the PRI website. Click here

Nadcap Customer Support Initiative (NCSI)

NCSI is a free, web-based training program designed to walk suppliers through the Nadcap process. The training discusses everything from audit preparation to non-conformance responses, as well as the additional training tools provided by PRI. To be taken to the website click here.

Common Standards for Certification

SC21 objectives

The SC21 expectation is that all members will gain certification to AS/EN9100 (or applicable standard) and that this shall be flowed throughout the supply chain.

Customer Expectations

Certification to AS/EN9100 and Nadcap is increasingly becoming an international customer contractual requirement and is often used as a discriminator during supplier selection.

What is the AS/EN9100 Standard?

It specifies quality management system requirements for the aerospace & defence industry and is the model for quality in design, development, production, installation and servicing in the industry.

The highest quality and standards in production are of critical importance to the UK aerospace and defence supply chain. Certification and quality management audits have emerged as the methods of ensuring safety and reliability standards are met. A company supplying to more than one company could face numerous quality audits and checks to satisfy each customer, this results in unnecessary audit duplication. SC21 companies have agreed to cut the number of audits through the recognition of quality system certification based on international standards. UK supply chains that have achieved AS/EN 9100 and Nadcap approval for special processes where applicable, will not receive further quality system audits from customers who are part of SC21. Companies with AS/EN 9100 approval have experienced significantly reduced levels of auditing compared with those that have not achieved approval.

The AS/EN 9100 standard was originally developed as the recommended quality system standard for aerospace by the International Aerospace Quality Group (IAQG), and is fully supported by all the major aerospace prime manufacturers world wide. To achieve this standard a company needs to obtain independent approval from an accredited third party certification body. These organisations are covered by an industry oversight programme administered in the UK by the SBAC, with experienced quality audit professionals from UK industry undertaking the oversight audits. The UK scheme is in turn subject to oversight as part of an international process directed by the IAQG. Companies formally registered to AS/EN 9100 are entered onto an international database, identified as the Online Aerospace Supplier Information System (OASIS), with more than 1000+ UK aerospace sites already registered.

What is the Nadcap Standard?

Nadcap The internationally recognised Nadcap system of special process audits is the recommendation for special process assessment. A growing number of major primes are now requiring Nadcap approval(s), which is overseen by the Performance Research Institute (PRI), based in the US with an office in the UK, using experienced special process professionals. Processes covered by this approach include:Chemical Processing
Coatings
Composites
Distributors
Elastomer Seals
Electronics
Fluid Distribution Systems
Heat Treatment
Materials Testing Laboratory
Non Destructive Testing
Nonconventional Machining and Surface Enhancement
Sealants
WeldingWith other special processes being progressively added

Guide to AS/EN9100

Background

As an important part of the SC21 programme, quality is a critical performance area. The promotion of common industry standards is an important objective to focus on, one standard being quality system certification to AS/EN9100.

The AS/EN9100 standard includes ISO9001:2001 quality management system requirements and specifies additional requirements for the aerospace industry.

ADS objectives

ADS’s expectation is that all SC21 members will gain certification to AS/EN9100 (or another industries equivalent standard) and that this shall be flowed throughout the supply chain.

Customer expectations

Certification to AS/EN9100 is increasingly becoming a customer contractual requirement which is often used as a discriminator during supplier selection.

Benefits

  • Certification to AS/EN9100 (or equivalent) is recognised by customers
  • Companies certified to AS/EN9100 will be entered onto the OASIS (online aerospace supplier information system) database which advertises capability to prospective customers enabling future business opportunities
  • Enhanced sense of belonging to the fraternity of recognised quality suppliers

How to obtain certification to the AS9100 standard

  • Obtain a copy of the standard from SAE International
  • Undertake a quality management system ‘gap analysis’ between ISO9001 and AS/EN9100
  • Initiate discussion with a UKAS (United Kingdom Accreditation Service) accredited aerospace certification body who will provide guidance as to the process to be followed

Further information

Prior to implementation, consider transition training, between the standards, for key member personnel (details of training providers can be obtained via the internet by searching on AS/EN9100).

Approved AS/EN9100 providers

Below is a list of providers approved by ADS’s Certification Body Management Committee, to find out more simply click on the name to link directly to their respective website:

Approved AS/EN9100 training providers

ASCS ADS approved training organisations:

  • TEC Transnational Ltd
  • TPT Consultancy and Training

The links below provides further information on quality standards and systems: