[House Report 108-419]
[From the U.S. Government Publishing Office]
108th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 108-419
======================================================================
MALCOLM BALDRIGE AWARDS FOR NONPROFIT ORGANIZATIONS
_______
February 11, 2004.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Boehlert, from the Committee on Science, submitted the following
R E P O R T
together with
AN ADDITIONAL VIEW
[To accompany H.R. 3389]
[Including cost estimate of the Congressional Budget Office]
The Committee on Science to whom was referred the bill
(H.R. 3389) to amend the Stevenson-Wydler Technology Innovation
Act of 1980 to permit Malcolm Baldrige National Quality Awards
to be made to nonprofit organizations, having considered the
same, report favorably thereon without amendment and recommend
that the bill do pass.
CONTENTS
Page
I. Purpose of the Bill.............................................2
II. Background and Need for the Legislation.........................2
III. Summary of Hearings.............................................3
IV. Committee Actions...............................................3
V. Summary of Major Provisions of the Bill.........................3
VI. Cost Estimate...................................................3
VII. Congressional Budget Office Cost Estimate.......................4
VIII. Compliance with Public Law 104-4 (Unfunded Mandates)............4
IX. Committee Oversight Findings and Recommendations................4
X. Statement on General Performance Goals and Objectives...........4
XI. Constitutional Authority Statement..............................4
XII. Federal Advisory Committee Statement............................5
XIII. Congressional Accountability Act................................5
XIV. Statement on Preemption of State, Local, or Tribal Law..........5
XV. Changes in Existing Law Made by the Bill, As Reported...........5
XVI. Committee Recommendations.......................................5
XVII. Additional View.................................................6
XVIII.Proceedings of Full Committee Markup............................7
I. Purpose of the Bill
The purpose of the bill is to amend the Stevenson-Wydler
Technology Innovation Act of 1980 by adding a nonprofit
category to the existing categories under which Malcolm
Baldrige National Quality Awards are made. The existing
categories are manufacturing, small business, services, health
care, and education.
II. Background and Need for the Legislation
The Malcolm Baldrige National Quality Awards were
established in 1987 to promote improved quality assurance and
management in U.S. companies and organizations. The Awards
recognize those that have substantially benefited the economic
or social well-being of the United States through outstanding
improvements in the quality of their goods and services that
result from the effective practice of quality management. The
Awards were intended to raise awareness about the importance of
quality and performance to competitiveness, and establish a
process to disseminate information about successful strategies
and best practices.
The mechanism for making these awards, established in the
law, is a public-private partnership housed in the National
Bureau of Standards (now the National Institute of Standards
and Technology (NIST) within the Department of Commerce).
Authority was provided in the legislation to seek and accept
gifts from public and private sources to carry out the program.
Today, NIST is responsible for the development of the criteria
under which each award is made, the training of the examiners
who will review applicants to the award program, and the
publication of criteria and related information for
dissemination to the public. Collectively these activities are
known as the Baldrige National Quality Program. The American
Society for Quality (ASQ) assists in the administration of the
award program under a contract with NIST. The Foundation for
the Malcolm Baldrige Quality Award was created to raise funds
to permanently endow the partnership. Prominent leaders from
U.S. organizations serve as Foundation Trustees.
The awards are made on the basis of the Baldrige Criteria,
which are based on seven general categories: leadership;
strategic planning; customer and market focus; measurement,
analysis, and knowledge management; human resource focus;
process management; and business results. The Criteria
constitute a methodology companies and other organizations can
apply to themselves to improve quality and productivity.
Companies or organizations that compete for the Malcolm
Baldrige National Quality Award, participate in an application
and examination process in which the NIST trained examiners
audit the organization or company and score them according to
the Baldrige Criteria. Each applicant receives a feedback
report at the end of review process which provides an analysis
of the applicants' strengths and recommendations for
improvement. Award winners are required to share information on
their practices and strategies with other U.S. organizations,
which they do through the annual Quest for Excellence
conference, and a variety of other public sessions.
Since the passage of the law, the Baldrige Criteria have
become commonly used by companies worldwide to increase their
performance. In addition, a large number of the U.S. States
have established their own state-level Baldrige Award systems
to recognize excellence, and have begun to establish categories
in addition to those offered at the national level. One of
these categories is the nonprofit category. A nonprofit
category permits entities from the nonprofit sector not
involved in health care or education, or entities of Federal,
State, or local government not similarly employed, to compete
on the basis of the Baldrige Criteria. This category has proven
especially popular and nonprofits and States where this
category is recognized have urged Congress to establish a
nonprofit category within the Malcolm Baldrige National Quality
Award.
III. Summary of Hearings
No hearings were held on H.R. 3389.
IV. Committee Actions
Congressman Brad Miller introduced H.R. 3389, To amend the
Stevenson-Wydler Technology Innovation Act of 1980 to permit
Malcolm Baldrige National Quality Awards to be made to
nonprofit organizations, on October 29, 2003, at which time the
bill was referred to the Committee on Science. On February 2,
2004, the bill was discharged from the Subcommittee on
Environment, Technology, and Standards. On February 4, 2004,
the Committee on Science considered H.R. 3389 and favorably
reported the bill without amendment, by voice vote.
V. Summary of Major Provisions of the Bill
The legislation amends the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3711a(c)(1). The Act was
amended in 1987 to establish the Malcolm Baldrige National
Quality Award, to be made in three categories: companies or
their subsidiaries, small businesses, and companies that
provide services. Education and health care were added in 1998
and the first awards in those categories were made in 1999.
H.R. 3389 adds nonprofit organizations to the list of eligible
applicants.
VI. Cost Estimate
A cost estimate and comparison prepared by the Director of
the Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974 has been timely submitted to
the Committee on Science prior to the filing of this report and
is included in Section X of this report pursuant to House Rule
XIII, clause 3(c)(3).
H.R. 3389 does not contain new budget authority, credit
authority, or changes in revenues or tax expenditures. Assuming
that the sums authorized under the bill are appropriated, H.R.
3389 does not authorize additional discretionary spending, as
described in the Congressional Budget Office report on the
bill, which is contained in Section X. of this report.
VII. Congressional Budget Office Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, February 11, 2004.
Hon. Sherwood L. Boehlert,
Chairman, Committee on Science,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3389, a bill to
amend the Stevenson-Wydler Technology Innovation Act of 1980 to
permit Malcolm Baldrige National Quality Awards to be made to
nonprofit organizations.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Melissa E.
Zimmerman.
Sincerely,
Elizabeth M. Robinson
(For Douglas Holtz-Eakin, Director).
Enclosure.
H.R. 3389--A bill to amend the Stevenson-Wydler Technology Innovation
Act of 1980 to permit Malcolm Baldrige National Quality Awards
to be made to nonprofit organizations
H.R. 3389 would allow the Malcolm Baldrige National Quality
Awards to be awarded to nonprofit organizations. Currently, the
National Institute of Standards and Technology grants the
awards to small businesses, companies, health care providers,
and education providers. CBO estimates that implementing H.R.
3389 would not have a significant effect on the budget and
would not affect direct spending or revenues.
H.R. 3389 has no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
The CBO staff contact for this estimate is Melissa E.
Zimmerman. The estimate was approved by Peter H. Fontaine,
Deputy Assistant Director for Budget Analysis.
VIII. Compliance With Public Law 104-4
H.R. 3389 contains no unfunded mandates.
IX. Committee Oversight Findings and Recommendations
The Committee on Science's oversight findings and
recommendations are reflected in the body of this report.
X. Statement on General Performance Goals and Objectives
The House Science Committee expects a large applicant pool
in the new Baldrige non-profit category. The Committee also
expects winners in the Baldrige non-profit category to
demonstrate a level of performance on par with winners in the
other categories.
XI. Constitutional Authority Statement
Article I, section 8 of the Constitution of the United
States grants Congress the authority to enact H.R. 3389.
XII. Federal Advisory Committee Statement
H.R. 3389 does not establish nor authorize the
establishment of any advisory committee.
XIII. Congressional Accountability Act
The Committee finds that H.R. 3389 does not relate to the
terms and conditions of employment or access to public services
or accommodations within the meaning of section 102(b)(3) of
the Congressional Accountability Act (Public Law 104-1).
XIV. Statement on Preemption of State, Local, or Tribal Law
This bill is not intended to preempt any state, local, or
tribal law.
XV. Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic, and existing law in which no change is
proposed is shown in roman):
SECTION 17 OF THE STEVENSON-WYDLER TECHNOLOGY INNOVATION ACT OF 1980
SEC. 17. MALCOLM BALDRIDGE NATIONAL QUALITY AWARD.
(a) * * *
* * * * * * *
(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) * * *
* * * * * * *
(F) Nonprofit organizations.
* * * * * * *
XVI. Committee Recommendations
On February 4, 2004, a quorum being present, the Committee
on Science favorably reported H.R. 3389, To Amend the
Stevenson-Wydler Technology Innovation Act of 1980 to permit
Malcolm Baldrige National Quality Awards to be made to
nonprofit organizations, by a voice vote, and recommended its
enactment.
XVII. ADDITIONAL VIEW OF HON. BRAD MILLER
The Malcolm Baldrige National Quality Award Program is one
Congressional initiative that is widely viewed as an
unqualified success. Since the late 1980s, companies have
treated the standards by which the Baldrige award applicants
are judged as the highest available standard for the
application of total quality management principles to their
operations. The Baldrige program has recruited a unique corps
of our nation's most sophisticated quality experts to serve as
its examiners who measure applicant companies against the
standards to annually determine the winners of the award. The
Baldrige program has been emulated by many states and by many
foreign countries.
To win the award, a company must optimize all aspects of
its operations including customer, employee, and supplier
relations in light of its stated goals. Reaching the level of
quality required for a site visit under this program can take
years of hard work, leading many companies to work to win a
state award before attempting to win the Baldrige award. Even
those companies who do not win the award come away much
stronger for having tried and with a much better idea of those
areas where their company needs work.
Not long after the passage of the Act setting up the
Baldrige Award, efforts began to extend the Baldrige program to
other aspects of the economy and in the late 1990s, categories
were added for education and healthcare. The winners in these
categories not only have shown unprecedented levels of
efficiency in applying quality principles to their activities;
they also have brought creative new ideas forward about how
children learn and about how healthcare is delivered.
I introduced H.R. 3389 because I believe the time is right
to bring total quality management principles to the rest of our
economy. Some state awards have already extended to non-profit
areas of our economy including charities and government. These
organizations are hugely important to the welfare of all of us
and the better they deliver their services, the better off we
all are. It, therefore, is my hope that my colleagues in the
Congress will give this legislation priority consideration.
Only then will it be clear that the Congress values well-run
government at all levels as well as well-run private sector
non-profit organizations and that we expect such entities both
to be priorities for the quality movement and to have the same
Baldrige incentives to perform at an optimum level as the
private sector does.
Brad Miller.
XVIII. PROCEEDINGS OF THE FULL COMMITTEE MARKUP ON H.R. 3389, TO AMEND
THE STEVENSON-WYDLER TECHNOLOGY INNOVATION ACT OF 1980 TO PERMIT
MALCOLM BALDRIGE NATIONAL QUALITY AWARDS TO BE MADE TO NONPROFIT
ORGANIZATIONS
----------
WEDNESDAY, FEBRUARY 4, 2004
House of Representatives,
Committee on Science,
Washington, DC.
The Committee met, pursuant to call, at 10:08 a.m., in Room
2318 of the Rayburn House Office Building, Hon. Sherwood L.
Boehlert [Chairman of the Committee] presiding.
Chairman Boehlert. Good morning. The Committee on Science
will be in order. We will begin with a few brief administrative
matters involving the Subcommittee assignments. I ask unanimous
consent to change the ratio of the Subcommittee on Energy from
ten Republican Members and eight Democrat Members to eleven
Republican Members and nine Democrats. Without objection, so
ordered.
I ask unanimous consent that the gentleman from Texas, the
Honorable Ralph Hall, be elected to the Subcommittee on Energy
and to the Subcommittee on Space and Aeronautics. Without
objection, so ordered.
Let me just say this is--you will notice some adjustments
in the chairs up here, in the line up. First of all, it is a
pleasure for me to welcome Mr. Hall to our side of the aisle.
We have come to expect wonderful things from Mr. Hall. And one
of the things that I admire most about him, in addition to his
wit, is his good judgment. So Mr. Hall, welcome.
And I also want to welcome my dear friend and colleague of
many years, Bart Gordon, to the position as Ranking Member as
leader of the Democrats. He is not leader of the opposition; he
is leader of our partners in this effort. And I want to
particularly note that he has been a most active Member of this
committee from the beginning, from his first time here in 1985
as a freshman Member. He is a thoughtful, deliberative guy. He
is a guy who pays attention to the issues and one from whom I
will expect great things in the future. I would point out that
he also has a minor Committee assignment. He is a Member of
Energy and Commerce, but this is where he devotes his--so much
time and attention to very productive results. So Mr. Gordon,
welcome. Mr. Hall, welcome. We are glad to have everyone here.
And now the Chair is pleased to recognize the Ranking
Member from Tennessee, Mr. Gordon.
Mr. Gordon. Mr. Chairman, I should just say amen. I don't
think I can beat your kind remarks. Thank you very much. I am
excited about having the opportunity to serve as the Ranking
Member. And I am pleased that our friend, Mr. Hall, is going to
stay and be the referee. He has set a very good example for us,
as you said, in working in a bipartisan manner. We want to
continue that example.
I think today is fitting that we have a full agenda, and so
I want to be very brief and--so that we can move forward, but I
do want to thank you for allowing Congressman Udall and
Congressman Miller to have two bills today. And I hope that you
will help us bring these to the Floor as promptly as you have
brought them to this committee.
Thank you very much.
Chairman Boehlert. Mr. Hall.
Mr. Hall. Mr. Chairman, and to the Ranking Member and to
the other Members, I thank you very much. I am honored to be
back on the Committee.
I want to thank Mr. Gordon for his good judgment and for
his kindness in keeping the team in place that we had set in
place. They are good people and good folks to work with. I want
to thank all of them from either side of the docket who have
welcomed me here. Actually, when I decided--made the decision
to switch parties, I didn't call anyone. I didn't call the
President or anyone. I didn't tell anyone, including my wife,
which was a mistake. I announced that I was making the switch
and put it on the wire and then called and spoke to the
Speaker. All I expected from him was that my seniority would be
honored, and he said it would be. You have done that. And to
both sides, I am the same guy I was when I came over here. I am
probably the Speaker's problem now. So we will just have to
wait and see how things go, but I am honored to be back with a
group of men and women that I admire, respect, and look forward
to working with.
Thank you, and I yield back my time.
Chairman Boehlert. Thank you so much.
As those who have observed the deliberations of this
committee would have testified to, it really doesn't matter
where you sit in this committee, because we have some very
important work and partisanship doesn't rear its ugly head very
often here. On occasion it does, and we are all familiar with
that. But when all is said and done, we work as a team, this
Science Committee, and I am very proud of that. And so no
matter where they are sitting, everybody is part of the team,
and I thank them for their cooperation and support and vision
as we look to the future.
Pursuant to notice, the Committee on Science meets today to
consider the following measures: H.R. 3551, the Surface
Transportation Research Act of 2004; H.R. 3752, the Commercial
Space Launch Amendments Act of 2004; H.R. 912, Charles ``Pete''
Conrad Astronomy Awards Act; H.R. 1292, Remote Sensing
Applications Act of 2003; H.R. 3389, To amend the Stevenson-
Wydler Technology Innovation Act of 1980 to permit Malcolm
Baldrige National Quality Awards to be made to nonprofit
organizations; and H.Con.Res. 189, Celebrating the 50th
anniversary of the International Geophysical Year and
supporting an International Geophysical Year-2 in 2007-08. I
ask unanimous consent for the authority to recess the
Subcommittee at any point, and without objection, it is
ordered.
We will now proceed with opening statements. I want to
welcome everyone here for this important markup. We want to get
done by 11:00 a.m., so we will need to be brief. I am not
planning to make any statements this morning other than this
one, so I will discuss each of the bills right now. But first
let me say that all of the bills, as usual, reflect long hours
of bipartisan work on important issues. The smooth markup that
we expect today is the result of countless hours of staff work
on both sides of the aisle working out the kinks.
The first that we will take up is the Transportation
Research and Development Act offered by Dr. Ehlers and the
negotiated amendments to it. The bill ensures that we will be
devoting more resources to transportation R&D and that those
resources will be better targeted. The bill authorizes an
organized R&D effort that will focus on questions related to
safety, environment, demographics, and getting the most out of
the infrastructure that is already in place. It is an eminently
sensible approach, and we will work hard to see that it becomes
part of the overall highway bill. I know many Members have
contributed ideas to the bill and to the amendments, including,
in addition to the ones I have to offer, two freshmen Members
on our side of the aisle, Mr. Neugebauer and Ms. Burgess--Dr.
Burgess. I thank them for their contributions.
The second measure on the roster is Mr. Rohrabacher's bill
to amend the Commercial Space Launch Act. I want to thank
Chairman Rohrabacher for bringing this important matter to our
attention. We need to create a balanced and predictable
regulatory regime that can help jump-start a commercial human
space flight industry while protecting the public. I think that
this bill does just that. I know some have concerns about the
provision in the bill extending indemnification for just 3
years. I don't want to have a long debate in this now, but the
argument for indemnification has always been that we need to
help out an infant industry. Well, no industry can remain
infant forever. Indemnification has already been extended many
times. Infancy has lasted long enough. In industry's interest,
we need to send the signal now that the insurance regime out to
be changing in the future. It certainly would not be fair or
wise to catch industry off guard.
The third bill is also offered by Chairman Rohrabacher. It
would set up awards for amateur astronomers who discover near-
Earth asteroids. It is one of those ideas that is so obviously
good that it is amazing that it hasn't happened already.
The fourth bill is Mr. Udall's remote sensing bill. This is
also a sensible bill that we passed in the last Congress. We
ought to be doing more to ensure that the remote sensing data
we have is actually being used. Mr. Weldon will be offering a
helpful amendment on that to single out one use of the data:
locating forest fires. I support that amendment.
The fifth bill would expand the Baldrige Quality Awards to
include nonprofits. I helped craft the legislation creating the
Baldrige Award years ago. Little did I appreciate then what a
major success the award would be. I congratulate Mr. Miller on
his bill to expand the award.
The sixth bill by Mr. Udall would call for another
International Geophysical Year, 50 years after the first one
was so successful in bringing the world together to conduct
pioneering research in Antarctica, research several of us got
to see firsthand last year. This is another idea that deserves
this committee's support.
I congratulate all of my colleagues on their hard work on
these bills, and I look forward to their prompt passage here
and on the House Floor.
Let me once again restate the deep appreciation all of us
have, on both sides, for the outstanding work of the very
capable and hardworking professional staff. These are people
who are here long after we have gone home, long after we have
checked out of the airport to return to our Districts, working
day and night and weekends to provide us with the support we
need to do the good work we are doing.
I now recognize Mr. Gordon for five minutes to present his
opening remarks.
[The prepared statement of Chairman Boehlert follows:]
Prepared Statement of Chairman Sherwood Boehlert
I want to welcome everyone here for this important markup. We want
to get done by 11 a.m., so we all need to be brief. I'm not planning to
make any statements this morning other than this one, so I will discuss
each of the bills right now.
But first let me say that all the bills, as usual, reflect long
hours of bipartisan work on important issues. The smooth markup that we
expect today is a result of countless hours of staff work on both sides
of the aisle working out the kinks.
The first bill we will take up is the transportation research and
development (R&D) bill offered by Mr. Ehlers and the negotiated
amendments to it. This bill ensures that we will be devoting more
resources to transportation R&D and that those resources will be better
targeted. The bill authorizes an organized R&D effort that will focus
on questions related to safety, environment, demographics, and getting
the most out of the infrastructure that is already in place. It's an
eminently sensible approach, and we will work hard to see that it
becomes part of the overall highway bill.
I know many Members have contributed ideas to the bill and to the
amendments, including (in addition to me), two freshmen Members on our
side of the aisle, Mr. Neugebauer and Mr. Burgess. I thank them for
their contributions.
The second measure on the roster is Mr. Rohrabacher's bill to amend
the Commercial Space Launch Act.
I want to thank Chairman Rohrabacher for bringing this important
matter to our attention. We need to create a balanced and predictable
regulatory regime that can help jump-start a commercial human space
flight industry while protecting the public. I think this bill does
just that.
I know some have concerns about the provision in the bill extending
indemnification for just three years. I don't want to have a long
debate on this now, but the argument for indemnification has always
been that we need to help out an infant industry. Well, no industry can
remain an infant forever. Indemnification has already been extended
many times. Infancy has lasted long enough. In industry's interest, we
need to send the signal now that the insurance regime ought to be
changing in the future. It certainly would not be fair or wise to catch
industry off guard.
The third bill is also offered by Mr. Rohrabacher. It would set up
awards for amateur astronomers who discover near-Earth asteroids. It's
one of those ideas that is so obviously good that it's amazing that it
isn't happening already.
The fourth bill is Mr. Udall's remote sensing bill. This is also a
sensible bill that we passed in the last Congress. We ought to be doing
more to ensure that the remote sensing data we have is actually being
used. Mr. Weldon will be offering a helpful amendment on that bill to
single out one use of the data--locating forest fires. I support that
amendment.
The fifth bill would expand the Baldrige Quality Award to include
non-profits. I helped craft the legislation creating the Baldrige Award
years ago; little did I understand then what a major success the Award
would be. I congratulate Mr. Miller on his bill to expand the Award.
The sixth bill, by Mr. Udall, would call for another International
Geophysical Year, 50 years after the first one was so successful in
bringing the world together to conduct pioneering research in
Antarctica--research several of us got to see firsthand last year. This
is another idea that deserves this committee's support.
I congratulate all my colleagues on their hard work on these bills,
and I look forward to their prompt passage here--and on the House
Floor.
Mr. Gordon.
Mr. Gordon. Mr. Chairman, I am pleased to report to the
Committee that the Democratic Caucus of the Science Committee
has elected the Honorable Nick Lampson of Texas as the Ranking
Democrat on the Subcommittee on Space and Aeronautics. Mr.
Lampson has been a Member of the Committee and the Subcommittee
since his election to Congress in 1996. He represents the
Johnson--we will try again here. Okay. He represents the
Johnson Space Center in Houston, and he has been out front in
his vision for human space flight. Accordingly, I ask unanimous
consent that the seniority order for the Democratic membership
of the Subcommittee on Space and Aeronautics be changed to
reflect the action of our Caucus, placing Mr. Lampson first in
the Democratic seniority.
Chairman Boehlert. Without objection.
Mr. Gordon. Mr. Chairman, I ask unanimous consent for
another request, and that is I am pleased to report to the
Committee that the Democratic Caucus of the Science Committee
has elected the Honorable John Larson of Connecticut as ranking
Democrat on the Subcommittee on Energy. John has been a Member
of the Committee since 1998, also serves as the Ranking Member
on the House Administration Committee, and was a leader in
developing many of the R&D provisions of the energy bill.
Accordingly, I ask unanimous consent that the Honorable John
Larson be elected to the Subcommittee on Energy and that rank
in seniority is first on the Democratic membership.
Chairman Boehlert. Without objection.
Mr. Gordon. Mr. Chairman, respecting your interest in
getting out by 11:00, I will reserve any remarks on the bills
as they come forth.
Chairman Boehlert. Thank you very much. Without objection,
all Members may place opening statements in the records at this
point--in the record at this point.
We will now consider the bill H.R. 3389, To amend the
Stevenson-Wydler Technology Innovation Act of 1980 to permit
Malcolm Baldrige National Quality Awards to be made to
nonprofit organizations.
I now recognize Mr. Gordon for five minutes to present his
opening remarks.
Mr. Gordon. Thank you, Mr. Chairman.
I want to congratulate Mr. Miller for extending the concept
of the quality awards into the last sector of our economy that
is not currently covered by the Baldrige Awards. Mr. Miller has
become a leader on this committee in a variety of economic
issues, including technology transfer and quality, and I hope
that the Chairman will see that the bill moves forward quickly.
I yield back the balance of my--or I yield the balance of
my time to Mr. Miller.
Chairman Boehlert. Mr. Miller.
Mr. Miller. Thank you, Mr. Chairman and Mr. Gordon. And I
want to thank Ms. Hart of Pennsylvania for her co-sponsorship
of this bill.
This is a bill of modest ambition. Since 1987, the Malcolm
Baldrige National Quality Awards have been remarkably
successful. They have established criteria for excellence. They
have disseminated nationally best practices for how to achieve
that kind of excellence. They have focused the mind of our
nation's business leaders and those businesses and other
entities that have competed for the awards have found that it
has been a remarkably good thing for them to think about their
business in terms of those criteria of excellence and how to
achieve that kind of excellence. I have seen some astounding
figures, which I can not find at this moment, that American
businesses have saved $24 billion in productivity because of
the changes they have made as the result of competing for the
Malcolm Baldrige Awards.
There are now five categories: manufacturing, service,
small business, and since 1999, health care, and education.
There is still a large, significant part of the United States
economy that can not compete for these awards, can not be
considered, and those are nonprofit organizations. Those
include, obviously, human service awards, religious--human
service organizations, religious organizations, cultural trade
and professional associations, cooperatives, mutual insurance
companies, credit unions, and et cetera. This would allow the
benefit of the Baldrige Award competition to that important
part of our economy.
Chairman Boehlert. Thank you very much. The Baldrige Awards
are near and dear to my heart. I claim partial parentage with
my colleague--former colleague, Congressman Doug Walgren of
Pennsylvania. And I remember vividly the day we were at the
White House and President Reagan waxed as eloquently as he
could about this and about the promise for the future that it
offered, and it has exceeded our most optimistic projections.
It is a wonderful program working exceptionally well, and that
is why I am so pleased that you and Ms. Hart have teamed up to
advance this.
Ms. Hart.
Ms. Hart. Thank you, Mr. Chairman. I will be brief.
I am pleased that you worked together with Congressman
Walgren, because I represent a significant number of what used
to be his constituents. And I am also very pleased that two
businesses in my District, actually, have been recipients of
the Malcolm Baldrige Award since its inception. This year's
manufacturing recipient is Medrad, Inc. of Indianola,
Pennsylvania. They are a leading provider of medical devices
that enhance medical imaging procedures of the human body and
also of injector systems. So the medical device industry,
obviously, around the country is moving forward. Medrad is one
of the, I think, most forward thinking of those companies.
And one of the other recipients was--their first
manufacturing recipient in 1988, Westinghouse Electric
Corporation's nuclear fuels division, which is also located in
my District, was a recipient of the Baldrige Award.
In the interest of time, I will submit the rest of my
statement for the record, but I thank you, Mr. Chairman, for
bringing this bill up.
[The prepared statement of Ms. Hart follows:]
Prepared Statement of Representative Melissa Hart
Amendment to the Stevenson-Wydler Technology Innovation Act of 1980 to
permit Malcolm Baldrige National Quality Awards to be made to nonprofit
organizations
Mr. Chairman, thank you for quickly moving this legislation through
the Committee and allowing me this opportunity to speak. I would also
like to thank my colleague from North Carolina, Mr. Miller for
introducing this simple, but necessary amendment.
Since the inception of the Baldrige Award two businesses in my
region have been recipients. The first Baldrige manufacturing recipient
in 1988 was Westinghouse Electric Corporation Commercial Nuclear Fuel
Division. The 2003 manufacturing recipient was Medrad Inc. based in
Indianola, PA. They are a leading provider of medical devices that
enhance medical imaging procedures of the human body and injector
systems. When I visited Medrad two months ago, they had just received
notice that they had been given the award. They will be coming to
Washington in one month to receive the award from the President.
This amendment makes one simple change, adding the words
``nonprofit organization'' to the list of companies eligible to receive
the Baldrige Award. Currently, only manufacturers, service businesses,
small businesses, education organizations, and health care
organizations may compete for this honor. However, Baldrige-based state
award programs have additional categories that include non-profits and
government agencies.
In 1999, it was recognized that the Baldrige Award's performance
standards could help stimulate improvement efforts in other sectors
vital to the United States economy and the areas of education and
health care were added to the criteria. Since then, a total of 66
applications have been submitted in the education category and 61 in
the health care category. Just as it has for businesses currently
eligible for the Baldrige Award, the expansion of this program can help
nonprofit organizations improve their performance, foster
communication, share ``best practice'' information and enhance
partnerships among schools, health care organizations, and businesses.
I am pleased to be a part of this effort to expand the Malcolm
Baldrige Award criteria.
Chairman Boehlert. Thank you very much. And thank you for
all of your hard work on this. And it makes a lot of sense.
Dr. Ehlers.
Mr. Ehlers. Thank you, Mr. Chairman.
As Chairman of the Subcommittee with jurisdiction on this,
I am pleased to support Mr. Miller's proposed change to the
Malcolm Baldrige National Quality Awards to include nonprofits.
I might also mention, I appreciate having a bill which only
adds two words to existing law. That is--the minimalist
approach is always good. This proposal will open the
competition to Federal, State, and local governments as well as
private, nonprofit organizations. These groups have also
pressed--expressed strong support for the opportunity to be
recognized for their efforts at the national level. Malcolm
Baldrige was an enthusiastic advocate for quality assurance in
both the private and public sector, and this expansion of the
award that bears his name is consistent with his vision for
quality in America. And we hope that this bill will result in
the same types of quality improvements in the nonprofits and
government as has occurred for the--in the public sector, the
profit sector with the previous awards.
Thank you.
[The prepared statement of Mr. Ehlers follows:]
Prepared Statement of Representative Vernon J. Ehlers
I am please to support Mr. Miller's change to the Malcolm Baldrige
National Quality Award to include nonprofits. This will open the
competition to Federal, State, and local governments, as well as
private nonprofit organizations. These groups have expressed strong
support for the opportunity to be recognized for their efforts at the
national level. Malcolm Baldrige was an enthusiastic advocate for
quality assurance in both the private and public sector, and this
expansion of the award that bears his name is consistent with his
vision for quality in America.
Chairman Boehlert. Thank you very much.
Mr. Smith.
Mr. Smith of Michigan. A question, Mr. Chairman, to the
sponsor or to staff. The Malcolm Baldrige National Quality
Awards have been very successful, and I am--has there been an
investigation done in terms of reducing the effect of this
award by spreading it out to an expanded community? That would
be my only concern is whether it should be an expansion of this
award or another award system. I would hate to dissipate and
reduce the private sector contribution to establish this award.
Chairman Boehlert. Counsel, anything you care to say?
Mr. Webster. To our knowledge, the Baldrige Foundation said
it is committed to working with NIST if there is any additional
cost that this will bring, but there has been widespread
support by all organizations and participants that this is a
good thing to do.
Mr. Smith of Michigan. And the Baldrige Foundation, also,
is the----
Chairman Boehlert. Or as Martha Stewart would say, it is a
good thing.
Mr. Goldston. And Mr. Chairman, the other aspect, it is a
separate category of the award, so it doesn't dilute any of the
existing categories. Each of these categories is evaluated
independently.
Mr. Smith of Michigan. Would these two awards bring it
under a separate category?
Mr. Goldston. I am--this is to add a separate category for
nonprofits, so it would, thus, be nonprofits competing against
each other. The manufacturers will still be in their own
category and so forth.
Mr. Smith of Michigan. But it won't take the financial.
Roughly, we are looking at a half a million on these awards.
Will it take the award money? And I guess I will close with
that, Mr. Chairman.
Mr. Goldston. No.
Mr. Smith of Michigan. It will be a separate award effort
for financing this sector?
Mr. Goldston. Right.
Mr. Smith of Michigan. Thank you, Mr. Chairman.
Chairman Boehlert. Thank you very much.
Without objection, all Members may place opening statements
in the record at this point.
I ask unanimous consent that the bill be considered as
read. Without objection, so ordered.
Are there any amendments? Hearing none, the question is now
on the bill H.R. 3389, To amend the Stevenson-Wydler Technology
Innovation Act of 1980 to permit Malcolm Baldrige National
Quality Awards to be made to nonprofit organizations. All of
those in favor will say aye. Opposed will say no. In the
opinion of the Chair, the ayes have it.
I now recognize Mr. Gordon for a motion.
Mr. Gordon. Mr. Chairman, I move the Committee favorably
report H.R. 3389 to the House with the recommendation that the
bill do pass. Furthermore, I move that staff be instructed to
prepare the legislative report and make necessary technical and
conforming changes, that the Chairman take all necessary steps
to bring the bill before the House for consideration.
Chairman Boehlert. The question is on the motion to report
the bill favorably. Those in favor of the motion will signify
by saying aye. Opposed, no. The ayes have it. And the
resolution is favorably reported.
Without objection, the motion to reconsider is laid upon
the table. I move that Members have two subsequent calendar
days in which to submit supplemental, minority, or additional
views on the measure. I move pursuant to Clause 1 of Rule 22 of
the Rules of the House of Representatives that the Committee
authorize the Chairman to offer such motions as may be
necessary in the House to adopt and pass H.R. 3389 and go to
conference with the Senate on H.R. 3389 or a similar bill.
Without objection, so ordered.
We will now----
Mr. Miller. Mr. Chairman.
Chairman Boehlert. Yes, I am sorry.
Mr. Miller. Mr. Chairman, if you would like and you give me
the chance, I am sure I can find two words to take out of
existing law.
Chairman Boehlert. Thank you very much.
This concludes our Committee markup, and I thank my
colleagues for their enthusiastic participation. We are now
adjourned.
[Whereupon, at 1:33 p.m., the Committee was adjourned.]
Appendix:
----------
H.R. 3389, To amend the Stevenson-Wydler Technology Innovation Act of
1980 to permit Malcolm Baldrige National Quality Awards to be made to
nonprofit organizations