98-32879. National Technical Systems, Recognition as an NRTL  

  • [Federal Register Volume 63, Number 237 (Thursday, December 10, 1998)]
    [Notices]
    [Pages 68306-68309]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-32879]
    
    
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    DEPARTMENT OF LABOR
    
    Occupational Safety and Health Administration
    [Docket No. NRTL-1-98]
    
    
    National Technical Systems, Recognition as an NRTL
    
    AGENCY: Occupational Safety and Health Administration; Labor.
    
    ACTION: Notice.
    
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    SUMMARY: This notice announces the Agency's final decision on the 
    application of National Technical Systems for recognition as a 
    Nationally Recognized Testing Laboratory (NRTL) under 29 CFR 1910.7.
    
    EFFECTIVE DATE: This recognition becomes effective on December 10, 1998 
    and will be valid until December 10, 2003, unless terminated or 
    modified prior to that date, in accordance with 29 CFR 1910.7.
    
    FOR FURTHER INFORMATION CONTACT: Bernard Pasquet, Office of Technical 
    Programs and Coordination Activities, NRTL Program, Occupational Safety 
    and Health Administration, U.S. Department of Labor, 200 Constitution 
    Avenue, NW, Room N3653, Washington, DC 20210, or phone (202) 693-2110.
    
    SUPPLEMENTARY INFORMATION:
    
    Notice of Application
    
        The Occupational Safety and Health Administration (OSHA) hereby 
    gives notice of its recognition of National Technical Systems (NTS) as 
    a Nationally Recognized Testing Laboratory, for testing and 
    certification of the equipment or materials, and use of the site and 
    the supplemental programs, listed below. OSHA recognizes an 
    organization as an NRTL, and processes applications related to such 
    recognitions, following requirements in Section 1910.7 of Title 29, 
    Code of Federal Regulations (29 CFR 1910.7). Appendix A to this section 
    requires that OSHA publish this public notice of its final decision on 
    an application.
        NTS applied for recognition as an NRTL, pursuant to 29 CFR 1910.7, 
    and OSHA published the required notice in the Federal Register (63 FR 
    46079, 8/28/98) to announce the application. The notice included a 
    preliminary finding that NTS could meet the requirements for 
    recognition detailed in 29 CFR 1910.7, and invited public comment on 
    the application by October 27, 1998. OSHA received no comments 
    concerning this application for recognition.
        You may obtain or review copies of all public documents pertaining 
    to the application by contacting the Docket Office, Occupational Safety 
    and Health Administration, U.S. Department of Labor, 200 Constitution 
    Avenue, NW, Room N2625, Washington, DC 20210. You should refer to 
    Docket No. NRTL-1-98, the permanent record of public information on the 
    NTS recognition.
        The address of the testing facility (site) that OSHA recognizes for 
    NTS is: National Technical Systems, 533 Main Street, Acton, 
    Massachusetts 01720.
    
    Background on the Applicant and the Application
    
        National Technical Systems, according to its application, is 
    headquartered in Calabasas, California, and became established in 1963. 
    Also, NTS became a public company in 1968 and is listed in the NASDAQ 
    exchange. The applicant asserts it is an independent testing, 
    engineering, research, and support services organization, with more 
    than 30 years of product testing experience. NTS also states that it 
    has provided testing services to the military/aerospace, commercial, 
    and power industry, and has conducted qualification testing for the 
    nuclear power industry for more than 20 years. The engineering services 
    that NTS provides include design of instrumentation and specialized 
    hardware, and electrical and mechanical engineering.
        NTS submitted an application for recognition, dated September 30, 
    1994
    
    [[Page 68307]]
    
    (see Exhibit 2A). It separately submitted a Quality Manual (QM), dated 
    June 24, 1997, and Quality Assurance Procedures (QAPs), dated December 
    22, 1997, specifically for the activities it plans to undertake as an 
    NRTL (see Exhibits 2C and 2E). In this notice, these two documents are 
    referred to as ``NRTL QM'' and ``NRTL QAPs,'' respectively. The NRTL QM 
    replaced the Quality Manual submitted by NTS in the original 
    application. The QAPs were marked confidential by the applicant. The 
    applicant originally requested recognition for a facility in Acton and 
    for another facility in Boxborough, both in Massachusetts. The 
    applicant also originally requested recognition to test and certify to 
    more than 90 test standards.
        OSHA performed an on-site assessment (review) of the Acton and 
    Boxborough facilities, on January 23-26, 1995. The review determined 
    that NTS did not meet all the requirements for recognition under 29 CFR 
    1910.7, and the applicant was so informed. After OSHA completed the 
    review, NTS eliminated the Boxborough facility from consideration. In 
    response to the findings of the review, the applicant also submitted 
    amendments to OSHA, dated April 10, and September 22, 1997 (see 
    Exhibits 2B and 2D). Through these amendments, NTS reduced the number 
    of test standards it requested for recognition to 13. Also, it 
    developed and submitted the previously mentioned NRTL QM and NRTL QAPs.
        In the submittal covering the NRTL QM, NTS also applied to OSHA for 
    recognition to use the supplemental programs, under which an NRTL may 
    use outside parties to perform some of the activities involved in 
    testing and certification of products. OSHA's approval to use any of 
    these programs is based on criteria first detailed in a March 9, 1995 
    Federal Register notice (60 FR 12980). Finally, in response to OSHA's 
    request for clarification, dated March 18, 1998 (see Exhibit 2F), NTS 
    submitted amendments to its NRTL QAPs and to its NRTL QM, dated April 
    8, 1998 (see Exhibit 2G). It also eliminated one test standard since 
    the standards organization had withdrawn it. As a result, the 
    recognition covers 12 test standards.
        According to the applicant, the NRTL QM is the first tier document 
    that will direct its NRTL activities. The NRTL QAPs provide more 
    detailed policies, processes, and steps for those activities. In 
    addition, the on-site review report references other procedures and 
    practices that NTS uses for the parts of its operations that can be 
    designated ``non-NRTL'' activities. However, the recognition will not 
    apply to any aspect of the non-NRTL activities, except to those product 
    testing or certification procedures and practices that are incorporated 
    in the NRTL QM and NRTL QAPs, and are in conformance with the 
    requirements of 29 CFR 1910.7.
        The requirements for recognition are presented below, along with 
    examples that illustrate how NTS has met each of these requirements.
    
    Capability
    
        Section 1910.7(b)(1) states that for each specified item of 
    equipment or material to be listed, labeled or accepted, the laboratory 
    must have the capability (including proper testing equipment and 
    facilities, trained staff, written testing procedures, and calibration 
    and quality control programs) to perform appropriate testing.
        According to the on-site review report, NTS has adequate space and 
    utilities to perform the testing required. It has security measures in 
    place to restrict or control access to its facility. The report also 
    indicates that NTS has, available in the laboratory, all general test 
    equipment required to perform testing to the test standards requested, 
    and that it maintains records of repair, routine maintenance, and 
    calibrations. The NRTL QAPs cover the general processes and practices 
    NTS will use for its equipment calibrations, and NTS has detailed 
    procedures for the calibration of specific items of equipment.
        The application and revisions address personnel qualifications and 
    training, and identify NTS staff involved with product testing, along 
    with a summary of their education and experience. Also, the on-site 
    review report indicates that NTS personnel have the necessary 
    education, training, technical knowledge, and experience specified by 
    their position descriptions.
        According to the review report, the NRTL QM and NRTL QAPs, and NTS' 
    Internal Audit Program are the primary means of quality assurance. 
    Other aspects of quality assurance will be the individual testing 
    procedures and standard operating procedures. Also, the report 
    indicates that the engineer assigned to handle the testing for a 
    customer writes a unique procedure for each product that NTS tests in 
    its ``non-NRTL'' activities, and that this approach may be used for the 
    NTS operations as an NRTL. Such an approach would not meet the 
    requirement in 29 CFR 1910.7 (b)(1) for ``written testing procedures,'' 
    which, like any other procedure, are intended to be a general set of 
    instructions that are applicable to each test. These procedures must 
    cover the steps and methods that recur in examining and testing 
    products.
        The review report indicates that NTS has done only partial testing 
    to portions of the test standards, as required for compliance of 
    nuclear facility products and other testing programs. The applicant 
    submitted samples of written testing procedures in its original 
    application. These procedures illustrate how some requirements of the 
    standard will be verified, but did not address all the requirements of 
    the standard in all cases. NTS will need to develop and/or identify 
    written testing procedures that will be applicable over the broad range 
    of products that it plans to test and certify as an NRTL. These 
    procedures will need to be in place when OSHA performs its first review 
    of NTS after it has been recognized. Therefore, OSHA has not yet 
    evaluated the testing and reporting procedures that NTS will utilize 
    for purposes of certifying to a complete test standard, and OSHA needs 
    to investigate this aspect of NTS operations when these procedures are 
    in use.
    
    Control Programs
    
        Section 1910.7(b)(2) requires that the NRTL provide certain 
    controls and services, to the extent necessary, for the particular 
    equipment or material to be listed, labeled, or accepted. They include 
    control procedures for identifying the listed or labeled equipment or 
    materials, inspections of production runs at factories to assure 
    conformance with test standards, and field inspections to monitor and 
    assure the proper use of identifying marks or labels.
        According to the onsite review report, NTS currently applies a mark 
    to components used in the nuclear power industry. The report also 
    mentions that NTS has applied for a registered certification mark that 
    it will use in its operations as an NRTL. NTS must obtain approval from 
    the U.S. Patent and Trademark Office for this mark before it can issue 
    any certifications in its capacity as an NRTL. NTS has not listed or 
    labeled any products under the NRTL Program. Therefore, OSHA has not 
    evaluated the actual listing and labeling procedures NTS will use as an 
    NRTL.
        The NRTL QM and NRTL QAPs contain general descriptions of the 
    certification processes that NTS will utilize. They also contain 
    policies for the contents of the legal agreements, and outline the 
    processes that will define and control the way NTS implements its 
    certification schemes. These documents also include a description of 
    the process for selecting products for evaluation,
    
    [[Page 68308]]
    
    which may include NTS purchasing a commercial sample. NTS also 
    submitted a draft of a sample certification agreement.
        For the certification schemes that NTS proposes to use, it will 
    conduct follow-up inspections of products at the manufacturing 
    facilities at least once every three months. The NRTL QAPs also contain 
    more detailed descriptions of the processes to qualify and then audit a 
    manufacturer. According to the review report, NTS plans to utilize the 
    approach it currently uses for its vendor surveillance and audits to 
    perform manufacturer site inspections. The report further indicates 
    that the process reviewed during the onsite review was similar to an 
    NRTL follow-up program. However, NTS has just developed its NRTL 
    follow-up program and OSHA needs to investigate this new program when 
    it is in use. Therefore, OSHA has been unable to evaluate the actual 
    use of the NTS follow-up program.
    
    Independence
    
        Section 1910.7(b)(3) requires that the NRTL be completely 
    independent of employers subject to the tested equipment requirements, 
    and of any manufacturers or vendors of equipment or materials being 
    tested for these purposes.
        In its original application, NTS states that it performs all 
    testing and certification activities independently of all NTS clients, 
    and that no clients have any significant ownership position in NTS, or 
    any influence on NTS activities. The application further states that 
    NTS employees are not under the influence or control of manufacturers 
    or suppliers, and that NTS is not under the influence of any 
    manufacturer or producer of hardware items. NTS also submitted a 
    detailed listing of ``beneficial owners'' of 5% or more of NTS common 
    stock.
        NTS could conceivably perform its design and engineering services, 
    previously mentioned, for manufacturers or vendors of the products it 
    may test and certify as an NRTL. Financial considerations could give 
    these outside parties significant influence on the results of the NTS 
    testing and certification activities. For example, assume that NTS 
    sells design services for products to a manufacturer, and certifies the 
    same or different products for that manufacturer. Such a relationship 
    would violate the requirement for complete independence of an NRTL.
        Since NTS is a public company, it is also conceivable that 
    manufacturers or vendors could acquire ownership of NTS. If such an 
    acquisition were to control or influence NTS in its NRTL testing and 
    certification activities, it would no longer be ``completely 
    independent'' with respect to those manufacturers or vendors.
    
    Creditable Reports/Complaint Handling
    
        Section 1910.7(b)(4) provides that an NRTL must maintain effective 
    procedures for producing credible findings and reports that are 
    objective and without bias, as well as for handling complaints and 
    disputes under a fair and reasonable system.
        The NRTL QAPs contain the steps that the laboratory will use to set 
    up and inspect test apparatus, and record test data. Regarding the 
    handling of complaints and disputes, the NRTL QAPs describes some of 
    the process steps to handle a complaint either from a manufacturer or 
    user of the products NTS certifies.
    
    Supplemental Programs
    
        As previously mentioned, National Technical Systems applied for 
    recognition to use the supplemental programs, based upon the criteria 
    first detailed in a March 9, 1995 Federal Register notice (60 FR 
    12980). This notice lists nine (9) programs and procedures 
    (collectively, programs), eight of which an NRTL may use to control and 
    audit, but not actually to generate, the data relied upon for product 
    certification. An NRTL's initial recognition automatically includes the 
    first, or basic, program, which requires that all product testing and 
    evaluation be performed in-house by the NRTL that will certify the 
    product.
        Based on the recommendation of the staff of the NRTL Program, the 
    programs that OSHA recognizes for NTS are limited to the three listed 
    under Final Decision and Order.
        The on-site review report and the application indicate that NTS 
    meet the criteria for use of three supplemental programs. At this time, 
    OSHA does not intend to recognize NTS for the other programs it 
    requested. NTS must have documented procedures and practices in place 
    providing much greater detail, before OSHA can approve the use of the 
    remaining programs. The NRTL QAPs that are applicable to these programs 
    are, in many cases, minimal in nature, some of which just restate the 
    criteria in the March 9, 1995 notice that must be met. As such, they 
    constitute more policies than procedures. In addition, NTS needs to 
    develop certain experience to obtain recognition to use the programs 
    involving use of manufacturers to perform tests or evaluations 
    (Programs 5, 6, and 7). The March 9 notice specifies the need for a 
    confidence-building period with the manufacturer that can only result 
    after NTS has gained experience as an NRTL in certifying products for 
    those manufacturers. An additional consideration is that NTS does not 
    have experience in testing and certification to a complete standard, 
    and may have less opportunity to develop the required experience if it 
    uses others to do these activities. This experience is essential for 
    its continued recognition as an NRTL. Finally, OSHA will need to review 
    the actual implementation of certain key aspects of NTS'' operations as 
    an NRTL, which, as already noted, were not formally evaluated since 
    they were not yet in place at the time OSHA performed its on-site 
    reviews of NTS.
    
    Additional Conditions
    
        As described above, OSHA has concerns about NTS because it has not 
    had the opportunity to evaluate the actual testing and reporting 
    procedures, and use of the follow-up program, since these have not yet 
    been implemented. OSHA has also identified issues related to the 
    ownership and commercial relationships that could affect the 
    independence of NTS. Unless NTS meets certain conditions imposed by 
    OSHA, it cannot retain its recognition as an NRTL under 29 CFR 1910.7.
        OSHA's approach in imposing conditions is consistent with past 
    recognition of other organizations as NRTLs who, like NTS, were mainly 
    experienced in testing products to specific customer or partial test 
    standard requirements. OSHA indicated in the Federal Register notice 
    for those recognitions that the procedures to be used were new to the 
    organization (for example, see 56 FR 28581, 6/21/91; and 58 FR 15511, 
    3/23/93). OSHA will require NTS to take steps to correct any 
    deficiencies that OSHA may find during its initial audit of the NRTL. 
    If deficiencies are not corrected, then OSHA will commence its process 
    to revoke the recognition of the NRTL.
        Many procedures and practices for its NRTL testing and 
    certification processes will be new to NTS. Those that exist or are 
    incorporated in the NRTL QAPs may need to be supplemented by more 
    detailed specific instructions on the many activities involved in 
    testing and certifying products to a complete test standard. Also, the 
    proposed NTS approach of developing a unique test procedure for each 
    test makes it difficult for OSHA to evaluate its testing capabilities. 
    OSHA will therefore need to evaluate NTS when it implements the 
    detailed procedures and practices it plans to use to test and certify 
    products as an NRTL, and will conditionally recognize NTS subject to a 
    later
    
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    assessment of the process once it is in place.
        Regarding independence, NTS has or could potentially have 
    relationships that eliminate its complete independence, and OSHA 
    intends to impose conditions to assure this will not occur. Such 
    relationships may be the normal result of the NTS ownership structure, 
    and its financial and commercial transactions. However, as an NRTL, 
    those relationships could adversely influence the results of its 
    testing and certification processes, such that NTS may no longer be, 
    intentionally or not, impartial and objective. As a result, NTS would 
    no longer be completely independent, which is a requirement fundamental 
    to assuring that the products tested and certified are safe for use by 
    workers and employers.
        Therefore, OSHA has included appropriate conditions below to 
    address its concerns. These conditions apply solely to the NTS 
    operations as an NRTL, and are in addition to the other conditions 
    listed below, which OSHA normally imposes in its recognition of an 
    organization as an NRTL.
    
    Final Decision and Order
    
        The NRTL Program staff has examined the complete application, the 
    amendments to the application, the supporting documentation, and the 
    OSHA staff finding including the on-site review report, dated December 
    22, 1997 (see Exhibit 3). Based upon this examination, OSHA finds that 
    National Technical System has met the requirements of 29 CFR 1910.7 to 
    be recognized as a Nationally Recognized Testing Laboratory to test and 
    certify certain equipment or materials, subject to the limitations and 
    conditions listed below. Pursuant to the authority in 29 CFR 1910.7, 
    National Technical System is hereby recognized as a Nationally 
    Recognized Testing Laboratory, subject to the limitations and 
    conditions listed below.
    
    Limitations
    
        This recognition is limited to equipment or materials (products) 
    for which OSHA standards require third party testing and certification 
    before use in the workplace. OSHA's recognition is further limited to 
    the site listed above, and to the use of the following 12 test 
    standards for the testing and certification of products included within 
    the scope of these standards. OSHA has determined these standards are 
    appropriate, within the meaning of 29 CFR 1910.7(c).
    
    ANSI/UL 465 Central Cooling Air Conditioners
    ANSI/UL 484 Room Air Conditioners
    ANSI/UL 489 Molded-Case Circuit Breakers and Circuit-Breaker Enclosures
    ANSI/UL 499 Electric Heating Appliances
    ANSI/UL 1012 Power Supplies
    ANSI/UL 1459 Telephone Equipment
    ANSI/UL 1778 Uninterruptible Power Supply
    UL 1863 Communication Circuit Accessories
    ANSI/UL 1950 Information Technology Equipment Including Electrical 
    Business Equipment
    UL 2601-1 Medical Electrical Equipment, Part 1: General Requirements 
    for Safety
    UL 3101-1 Electrical Equipment for Laboratory Use; Part 1: General 
    Requirements
    UL 3111-1 Electrical Measuring and Test Equipment, Part 1: General
    
        The designations and titles of the above standards were current at 
    the time of the preparation of the notice of the preliminary finding.
        This recognition is also limited to the use of the following 3 
    supplemental programs. Recognition of these programs is contingent on 
    continued adherence to the criteria for their use.
    
    Program 4: Acceptance of witnessed testing data
    Program 8: Acceptance of product evaluations from organizations that 
    function as part of the International Electrotechnical Commission 
    Certification Body (IEC-CB) Scheme
    Program 9: Acceptance of services other than testing or evaluation 
    performed by subcontractors or agents.
    
    Conditions
    
        National Technical Systems must also abide by the following 
    conditions of the recognition, in addition to those already required by 
    29 CFR 1910.7:
        Within 30 days of certifying its first products under the NRTL 
    Program, NTS will notify the OSHA NRTL Program Director so that OSHA 
    may review NTS' adoption and implementation of its NRTL Quality Manual, 
    NRTL Quality Assurance Procedures, and other procedures from other NTS 
    Program areas for use in the NRTL Program;
        NTS must not test and certify products for a client to whom it 
    primarily sells design or similar services;
        NTS must not test and certify products for a client if an owner of 
    NTS also owns more than two percent (2%) of that client's stock;
        OSHA must be allowed access to NTS' facility and records for 
    purposes of ascertaining continuing compliance with the terms of its 
    recognition and to investigate as OSHA deems necessary;
        If NTS has reason to doubt the efficacy of any test standard it is 
    using under this program, it must promptly inform the test standard 
    developing organization of this fact and provide that organization with 
    appropriate relevant information upon which its concerns are based;
        NTS must not engage in or permit others to engage in any 
    misrepresentation of the scope or conditions of its recognition. As 
    part of this condition, NTS agrees that it will allow no representation 
    that it is either a recognized or an accredited Nationally Recognized 
    Testing Laboratory (NRTL) without clearly indicating the specific 
    equipment or material to which this recognition is tied, or that its 
    recognition is limited to certain products;
        NTS must inform OSHA as soon as possible, in writing, of any change 
    of ownership or key personnel, including details;
        NTS will meet all the terms of its recognition and will always 
    comply with all OSHA policies pertaining to this recognition;
        NTS will continue to meet the requirements for recognition in all 
    areas where it has been recognized; and
        NTS will always cooperate with OSHA to assure compliance with the 
    spirit as well as the letter of its recognition and 29 CFR 1910.7.
    
        Signed at Washington, DC, this 2d day of December 1998.
    Charles N. Jeffress,
    Assistant Secretary.
    [FR Doc. 98-32879 Filed 12-9-98; 8:45 am]
    BILLING CODE 4510-26-P
    
    
    

Document Information

Effective Date:
12/10/1998
Published:
12/10/1998
Department:
Occupational Safety and Health Administration
Entry Type:
Notice
Action:
Notice.
Document Number:
98-32879
Dates:
This recognition becomes effective on December 10, 1998 and will be valid until December 10, 2003, unless terminated or modified prior to that date, in accordance with 29 CFR 1910.7.
Pages:
68306-68309 (4 pages)
Docket Numbers:
Docket No. NRTL-1-98
PDF File:
98-32879.pdf