Statement of

Raymond G. Kammer

Director

National Institute of Standards and Technology

Before the

House Committee on Science

Subcommittee on Technology

Fastener Quality Act: Needed or Outdated?

October 8, 1998

Chairwoman Morella and other Members of the Subcommittee, I am pleased to testify before you today on recent changes to the Fastener Quality Act (FQA or Act). I will briefly describe actions taken by the Department of Commerce over the past several weeks, including plans for carrying out a major study called for by Congress and welcomed by the Department.

The FQA was passed in 1990 out of concern that millions of mismarked, substandard, and counterfeit fasteners had dramatically increased the risk of equipment and infrastructure failures in both the civilian and military sectors. Fasteners include a variety of bolts, screws, and other items used to secure parts together. The Act was amended in 1996 to address concerns expressed by industry regarding the costs of implementing the FQA as originally enacted.

The FQA has three major parts. The law has the following key attributes:

After several years of discussion with the producers, testers and users of fasteners, the National Institute of Standards and Technology (NIST) published regulations implementing the Act on September 26, 1996. Those regulations established procedures for (1) NIST to approve private sector organizations to accredit laboratories; (2) foreign laboratories, particularly those in the private sector, to satisfy the laboratory accreditation requirements and (3) NIST to accredit laboratories in the event the private sector could or would not meet demand. The regulations also established a marking system within the Patent and Trademark Office to identify the manufacturers or distributors of covered fasteners. The regulations were to be implemented for fasteners manufactured after May 27, 1997, the implementation date.

On April 18, 1997, NIST announced a one-year extension of the implementation date of the regulations because there were not enough accredited laboratories to conduct the inspection and testing required by the Act. During that extension, NIST established procedures for registering in-process inspection activities of manufacturing facilities that use fastener Quality Assurance Systems. These additional procedures were designed to accommodate advances in the manufacture of fasteners since the 1990 enactment of the FQA. Additionally, the new implementation date was set for July 26, 1998.

On June 30, 1998, NIST announced that there still were not enough accredited laboratories, and we extended implementation until October 25, 1998. That decision was based in part on the very heavy volume of information provided by industry that made it clear that accreditation capabilities were not adequate to properly and fairly implement the law.

On August 14, 1998, President Clinton signed Public Law 105-234, which amended the FQA by exempting certain aircraft fasteners. The law also delays implementation of the regulations until June 1, 1999 or 120 days after the Secretary of Commerce submits a report to Congress, whichever is later. The report is to address (1) changes in fastener manufacturing processes since 1990; (2) a comparison of the Fastener Quality Act to other fastener regulatory programs; and (3) recommended changes in the Act. The Administration agreed to all of these amendments, and we are enthusiastic about conducting the study. We think it is a good idea.

The Commerce Department study is being conducted with oversight by Ms. Ellen Bloom, the Department’s Deputy Chief of Staff. A senior mechanical engineer at NIST who has not been involved the development of any of NIST’s fastener regulations is leading the study team. He is being assisted by the Department’s legal staff. Several other federal agencies with extensive experience in the fastener industry also have agreed to participate in an interagency group advising our development of the report: the Defense Industrial Supply Center, the National Highway Traffic Safety Administration, the Federal Aviation Administration, and the National Aeronautics and Space Administration.

The study team is using three approaches to gather information.

First, the Department published a Federal Register notice yesterday, October 7, 1998, requesting information from the public about important issues related to the study including changes in fastener manufacturing technology over the past eight years and information on other regulatory programs. In addition, we have asked a series of FQA-specific questions: Are the conditions that led to the Act in 1990 still valid? Are the definitions of fasteners covered by the Act still appropriate? Given the change in manufacturing technology over the past eight years, are there more appropriate methods for sampling, testing, and reporting compliance to standards and specifications?

Second, the American Society of Mechanical Engineers (ASME) will conduct a three-day workshop in mid-November to document how fastener manufacturing technology has changed since 1990. ASME is the premier technical and educational society in mechanical engineering with more than 10,000 of its members working in manufacturing. They have recent and direct experience in conducting such studies. They will appoint a five-member steering committee from among their manufacturing leaders to plan and guide the workshop. ASME will invite

20-30 representatives from the fastener and related industries to participate. Their goal is to quantify not only the sophistication of the technology now being used, but also to learn the extent to which it is used across the industry. We anticipate a workshop report from ASME in

December in time to incorporate their findings into the Department’s report.

Third, staff from NIST not previously involved in fastener activities will document other fastener regulatory programs. They also will assist the DOC team in looking for alternate methods of regulation.

Throughout the study, the Department team will make every effort to meet with, visit, and be open to comments from all interested parties. For example, the Federal Register notice is being mailed to manufacturers overseas. In addition, the staff of the Department’s International Trade Administration will provide information to participants in the European TransAtlantic Business Dialogue who have expressed interest in this topic.

The Department is working vigorously to complete the fastener study. We are actively soliciting -- and will consider seriously -- all suggestions for changes to the Act. The Department will recommend changes that are consistent with reducing regulatory requirements while maintaining public safety. I can assure you that this study will be comprehensive and candid. In addition, we have established a schedule to see that the study is completed on time. It is a high priority for the Department.

Thank you Madame Chairwoman, I would be happy to any answer questions.