§ 3711a. — Malcolm Baldrige National Quality Award.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC3711a]
TITLE 15--COMMERCE AND TRADE
CHAPTER 63--TECHNOLOGY INNOVATION
Sec. 3711a. Malcolm Baldrige National Quality Award
(a) Establishment
There is hereby established the Malcolm Baldrige National Quality
Award, which shall be evidenced by a medal bearing the inscriptions
``Malcolm Baldrige National Quality Award'' and ``The Quest for
Excellence''. The medal shall be of such design and materials and bear
such additional inscriptions as the Secretary may prescribe.
(b) Making and presentation of award
(1) The President (on the basis of recommendations received from the
Secretary), or the Secretary, shall periodically make the award to
companies and other organizations which in the judgment of the President
or the Secretary have substantially benefited the economic or social
well-being of the United States through improvements in the quality of
their goods or services resulting from the effective practice of quality
management, and which as a consequence are deserving of special
recognition.
(2) The presentation of the award shall be made by the President or
the Secretary with such ceremonies as the President or the Secretary may
deem proper.
(3) An organization to which an award is made under this section,
and which agrees to help other American organizations improve their
quality management, may publicize its receipt of such award and use the
award in its advertising, but it shall be ineligible to receive another
such award in the same category for a period of 5 years.
(c) Categories in which award may be given
(1) Subject to paragraph (2), separate awards shall be made to
qualifying organizations in each of the following categories--
(A) Small businesses.
(B) Companies or their subsidiaries.
(C) Companies which primarily provide services.
(D) Health care providers.
(E) Education providers.
(2) The Secretary may at any time expand, subdivide, or otherwise
modify the list of categories within which awards may be made as
initially in effect under paragraph (1), and may establish separate
awards for other organizations including units of government, upon a
determination that the objectives of this section would be better served
thereby; except that any such expansion, subdivision, modification, or
establishment shall not be effective unless and until the Secretary has
submitted a detailed description thereof to the Congress and a period of
30 days has elapsed since that submission.
(3) Not more than two awards may be made within any subcategory in
any year, unless the Secretary determines that a third award is merited
and can be given at no additional cost to the Federal Government (and no
award shall be made within any category or subcategory if there are no
qualifying enterprises in that category or subcategory).
(d) Criteria for qualification
(1) An organization may qualify for an award under this section only
if it--
(A) applies to the Director of the National Institute of
Standards and Technology in writing, for the award,
(B) permits a rigorous evaluation of the way in which its
business and other operations have contributed to improvements in
the quality of goods and services, and
(C) meets such requirements and specifications as the Secretary,
after receiving recommendations from the Board of Overseers
established under paragraph (2)(B) and the Director of the National
Institute of Standards and Technology, determines to be appropriate
to achieve the objectives of this section.
In applying the provisions of subparagraph (C) with respect to any
organization, the Director of the National Institute of Standards and
Technology shall rely upon an intensive evaluation by a competent board
of examiners which shall review the evidence submitted by the
organization and, through a site visit, verify the accuracy of the
quality improvements claimed. The examination should encompass all
aspects of the organization's current practice of quality management, as
well as the organization's provision for quality management in its
future goals. The award shall be given only to organizations which have
made outstanding improvements in the quality of their goods or services
(or both) and which demonstrate effective quality management through the
training and involvement of all levels of personnel in quality
improvement.
(2)(A) The Director of the National Institute of Standards and
Technology shall, under appropriate contractual arrangements, carry out
the Director's responsibilities under subparagraphs (A) and (B) of
paragraph (1) through one or more broad-based nonprofit entities which
are leaders in the field of quality management and which have a history
of service to society.
(B) The Secretary shall appoint a board of overseers for the award,
consisting of at least five persons selected for their preeminence in
the field of quality management. This board shall meet annually to
review the work of the contractor or contractors and make such
suggestions for the improvement of the award process as they deem
necessary. The board shall report the results of the award activities to
the Director of the National Institute of Standards and Technology each
year, along with its recommendations for improvement of the process.
(e) Information and technology transfer program
The Director of the National Institute of Standards and Technology
shall ensure that all program participants receive the complete results
of their audits as well as detailed explanations of all suggestions for
improvements. The Director shall also provide information about the
awards and the successful quality improvement strategies and programs of
the award-winning participants to all participants and other appropriate
groups.
(f) Funding
The Secretary is authorized to seek and accept gifts from public and
private sources to carry out the program under this section. If
additional sums are needed to cover the full cost of the program, the
Secretary shall impose fees upon the organizations applying for the
award in amounts sufficient to provide such additional sums. The
Director is authorized to use appropriated funds to carry out
responsibilities under this chapter.
(g) Report
The Secretary shall prepare and submit to the President and the
Congress, within 3 years after August 20, 1987, a report on the
progress, findings, and conclusions of activities conducted pursuant to
this section along with recommendations for possible modifications
thereof.
(Pub. L. 96-480, Sec. 17, formerly Sec. 16, as added Pub. L. 100-107,
Sec. 3(a), Aug. 20, 1987, 101 Stat. 725; renumbered Sec. 17 and amended
Pub. L. 100-418, title V, Secs. 5115(b)(2)(A), 5122(a)(1), Aug. 23,
1988, 102 Stat. 1433, 1438; Pub. L. 102-245, title III, Sec. 305, Feb.
14, 1992, 106 Stat. 20; Pub. L. 105-309, Sec. 3, Oct. 30, 1998, 112
Stat. 2935.)
Amendments
1998--Subsec. (c)(1)(D), (E). Pub. L. 105-309, Sec. 3(b), added
subpars. (D) and (E).
Subsec. (c)(3). Pub. L. 105-309, Sec. 3(a), inserted ``, unless the
Secretary determines that a third award is merited and can be given at
no additional cost to the Federal Government'' after ``in any year''.
1992--Subsec. (f). Pub. L. 102-245 inserted at end ``The Director is
authorized to use appropriated funds to carry out responsibilities under
this chapter.''
1988--Subsecs. (d), (e). Pub. L. 100-418, Sec. 5115(b)(2)(A),
substituted ``National Institute of Standards and Technology'' for
``National Bureau of Standards'' wherever appearing.
Findings and Purposes
Section 2 of Pub. L. 100-107 provided that:
``(a) Findings.--The Congress finds and declares that--
``(1) the leadership of the United States in product and process
quality has been challenged strongly (and sometimes successfully) by
foreign competition, and our Nation's productivity growth has
improved less than our competitors over the last two decades;
``(2) American business and industry are beginning to understand
that poor quality costs companies as much as 20 percent of sales
revenues nationally, and that improved quality of goods and services
goes hand in hand with improved productivity, lower costs, and
increased profitability;
``(3) strategic planning for quality and quality improvement
programs, through a commitment to excellence in manufacturing and
services, are becoming more and more essential to the well-being of
our Nation's economy and our ability to compete effectively in the
global marketplace;
``(4) improved management understanding of the factory floor,
worker involvement in quality, and greater emphasis on statistical
process control can lead to dramatic improvements in the cost and
quality of manufactured products;
``(5) the concept of quality improvement is directly applicable
to small companies as well as large, to service industries as well
as manufacturing, and to the public sector as well as private
enterprise;
``(6) in order to be successful, quality improvement programs
must be management-led and customer-oriented and this may require
fundamental changes in the way companies and agencies do business;
``(7) several major industrial nations have successfully coupled
rigorous private sector quality audits with national awards giving
special recognition to those enterprises the audits identify as the
very best; and
``(8) a national quality award program of this kind in the
United States would help improve quality and productivity by--
``(A) helping to stimulate American companies to improve
quality and productivity for the pride of recognition while
obtaining a competitive edge through increased profits,
``(B) recognizing the achievements of those companies which
improve the quality of their goods and services and providing an
example to others,
``(C) establishing guidelines and criteria that can be used
by business, industrial, governmental, and other organizations
in evaluating their own quality improvement efforts, and
``(D) providing specific guidance for other American
organizations that wish to learn how to manage for high quality
by making available detailed information on how winning
organizations were able to change their cultures and achieve
eminence.
``(b) Purpose.--It is the purpose of this Act [enacting section
3711a of this title, amending section 3708 of this title, and enacting
provisions set out as a note under section 3701 of this title] to
provide for the establishment and conduct of a national quality
improvement program under which (1) awards are given to selected
companies and other organizations in the United States that practice
effective quality management and as a result make significant
improvements in the quality of their goods and services, and (2)
information is disseminated about the successful strategies and
programs.''
Section Referred to in Other Sections
This section is referred to in section 3708 of this title.
