This white paper, the second in a series of DO-254-related white papers, will explore software tools as they relate to meeting the DO-254 Design Assurance Guidance for Airborne Electronic Hardware specifications, and what steps must be performed in order to use your typical design automation tools such as simulation, synthesis, etc. This paper will also explain how DO-254 views tools, learn which tools receive the highest scrutiny and why, and how to manage the tool assessment/qualification process.