[Federal Register Volume 63, Number 167 (Friday, August 28, 1998)]
[Notices]
[Pages 46079-46082]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23250]
[[Page 46079]]
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DEPARTMENT OF LABOR
Occupational Safety and Health Administration
[Docket No. NRTL-1-98]
National Technical Systems, Application for Recognition
AGENCY: Occupational Safety and Health Administration, Labor.
ACTION: Notice.
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SUMMARY: This notice announces the application of National Technical
Systems for recognition as an NRTL under 29 CFR 1910.7, and presents
the Agency's preliminary finding.
DATES: Comments submitted by interested parties must be received no
later than October 27, 1998.
ADDRESS: Send comments concerning this notice to: 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, D.C. 20210.
FOR FURTHER INFORMATION CONTACT: Bernard Pasquet, Office of Technical
Programs and Coordination Activities, NRTL Program at the above
address, or phone (202) 219-7056.
SUPPLEMENTARY INFORMATION:
Notice of Application
Notice is hereby given that National Technical Systems (NTS) has
applied to the Occupational Safety and Health Administration (OSHA),
pursuant to 29 CFR 1910.7, for recognition as a Nationally Recognized
Testing Laboratory (NRTL) for testing and certification of the
equipment or materials, and use of the programs and procedures, listed
below.
The address of the laboratory covered by this application is:
National Technical Systems, 533 Main Street, Acton, Massachusetts
01720.
Background
According to the applicant, National Technical Systems (NTS) is
headquartered in Calabasas, California, and was established in 1963. It
became a public company in 1968, and it is listed in the NASDAQ
exchange. Furthermore, the applicant states it is an independent
testing, engineering, research, and support services organization, with
more than 30 years of product testing experience. NTS also states 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 (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). These two documents are
hereinafter 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 necessary 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), to revise and reduce the number of test
standards it sought to include in its scope of recognition to 13. Also,
NTS 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 and procedures
permitted under the March 9, 1995 Federal Register notice (60 FR
12980). During the preparation of this notice, NTS deleted one test
standard since the standards organization had withdrawn it. As a
result, the recognition request covers 12 test standards. 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).
Regarding the merits of the application, the applicant states that
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.
In summary, NTS represents that it maintains the experience,
expertise, personnel, organization, equipment, and facilities suitable
for accreditation as an OSHA Nationally Recognized Testing Laboratory.
It also contends that it meets or will meet the criteria of recognition
defined in 29 CFR 1910.7.
The four primary criteria for recognition are presented below,
along with examples that illustrate how NTS has met each of these
criteria.
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.
The on-site review report indicates that NTS has adequate space and
utilities to perform the testing required. Security measures are in
place to restrict or control access to their facility. The report also
indicates that all general test equipment required to perform testing
to the test standards requested are available in the laboratory, and
that NTS 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. In addition, the review report indicates
that the NRTL QM and NRTL QAPs, and NTS' Internal Audit Program are the
primary means of quality assurance. The review report also indicates
that other aspects of quality assurance will be the individual test
procedures and standard
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operating procedures. The report further 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 NTS's operations as an NRTL.
However, such an approach would not meet the requirement in 29 CFR
1910.7 (b)(1) that the NRTL's capability includes ``written test
procedures.'' These procedures, like any other procedure, are intended
to be a general set of instructions that can be applied to each test,
and in this case, steps and methods that recur in examining and testing
products. The applicant submitted samples of written test procedures in
its original application which 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
test 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. The report further indicates NTS has done
only partial testing to portions of the test standards, as required for
compliance of nuclear facility products and other testing programs.
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 Procedures
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.
The onsite review report indicates that 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 will need to 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, along with requirements
for the contents of the legal agreements and for processes that will
define and control the way NTS implements its certification schemes.
They also describe the process for selecting products for evaluation,
which may include their 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 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 on-site 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 while the programs
reviewed during the onsite review were similar to an NRTL follow-up
program, NTS has just developed the 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 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 the design and engineering services
previously mentioned for manufacturers or vendors of the products
covered within the scope of the test standards for which OSHA has
recognized NTS. 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 testing and
certification activities, it would no longer be ``completely
independent'' with respect to those manufacturers or vendors of the
products covered within the recognized scope of NTS.
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.
Standards
NTS seeks recognition for testing and certification of products to
determine compliance with the following twelve (12) test standards, and
OSHA has determined the 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
Programs and Procedures
As previously mentioned, National Technical Systems has applied for
all nine programs and procedures, based
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upon the criteria detailed in OSHA's March 9, 1995 Federal Register
notice (60 FR 12980, 3/9/95). These programs and procedures
(collectively, programs) may be used by an NRTL to control and audit,
but not actually to generate, the data relied upon for product
certification. An applicant, when recognized as an NRTL, is
automatically accredited for 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 proposes to recognize for NTS are limited to the
following:
1. Program 4: Acceptance of witnessed testing data.
2. Program 8: Acceptance of product evaluations from organizations
that function as part of the International Electrotechnical Commission
Certification Body (IEC-CB) Scheme.
3. Program 9: Acceptance of services other than testing or
evaluation performed by subcontractors or agents.
The on-site review report indicates that NTS appears to meet the
requirements for use of the above programs and procedures. At this
time, OSHA does not intend to approve the other programs that NTS
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 approval of 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 review of NTS.
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 could not be recognized as an NRTL under 29 CFR 1910.7. 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 assessment of the process once it is in place.
Many of these procedures and practices 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.
This approach is consistent with OSHA's 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 follow-up review. If
deficiencies are not corrected, then OSHA will commence its process to
revoke the recognition of the NRTL.
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 intends to impose the following conditions in the
final notice to officially recognize NTS as an NRTL. These conditions
apply solely to its operations as an NRTL, and will be in addition to
all other conditions that OSHA normally imposes in its recognition of
an organization as an NRTL.
1. 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.
2. NTS shall not test and certify products for a client to whom it
primarily sells design or similar services.
3. NTS shall not test and certify products for a client if an owner
of NTS also owns more than two percent of that client's stock.
Preliminary Finding
National Technical Systems has addressed the criteria that must be
met for recognition as an NRTL, as summarized above. In addition, the
OSHA staff has performed an on-site review of NTS' Acton facility and
investigated the processes, procedures, practices, and general
operations used by the laboratory. Discrepancies noted by the review
team during the on-site review were addressed by NTS following the on-
site evaluation, as detailed above, and are included in the on-site
review report (see Exhibit 3).
Following a review of the application file and the on-site review
report, the NRTL Program staff has concluded that the applicant be
granted recognition as a Nationally Recognized Testing Laboratory for
the Acton, Massachusetts facility, subject to the conditions described
above. The staff therefore recommended to the Assistant Secretary that
the application be preliminarily approved.
Based upon the recommendation of the staff, the Assistant Secretary
hereby makes a preliminary finding that National Technical Systems'
Acton, Massachusetts facility can meet the recognition requirements, as
prescribed by 29 CFR 1910.7, for the 12 standards and the 3 programs
noted above with the conditions to be applied as noted.
All interested members of the public are invited to supply detailed
reasons and evidence as to whether National Technical Systems has met
the requirements of 29 CFR 1910.7 for
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recognition as a Nationally Recognized Testing Laboratory. Pertinent
written documents and exhibits must be received no later than the last
date for comments (see DATES above), and submitted to the address
provided above (see ADDRESS). Copies of the NTS application, amendments
and supplements to the application, the on-site review report, and all
submitted comments, as received, are available for inspection and
duplication (under Docket No. NRTL-1-98) at the Docket Office, Room
N2625, Occupational Safety and Health Administration, U.S. Department
of Labor, at the above address.
The Assistant Secretary's final decision on whether the applicant
(NTS) satisfies the requirements for recognition as an NRTL will be
made on the basis of the entire record including the public submissions
and any further proceedings that the Assistant Secretary may consider
appropriate in accordance with 29 CFR Section 1910.7, and Appendix A to
that section.
Signed at Washington, D.C. this 18th day of August, 1998.
Charles N. Jeffress,
Assistant Secretary.
[FR Doc. 98-23250 Filed 8-27-98; 8:45 am]
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