ORAL REMARKS BY JOHN O’BRIEN
FEDERAL SCREW WORKS, INC.
BEFORE THE U. S. HOUSE OF REPRESENATIVES COMMITTEE ON SCIENCE, TECHNOLOGY
SUBCOMMITTEE
FEBRUARY 25, 1999
Madam Chairwoman and members of the Committee, my name is John O’Brien. I
am Vice President of Sales and Marketing for Federal Screw Works, a $110
million fastener manufacturer in Detroit, Michigan. I am also the current
Vice Chairman and the incoming Chairman of the Industrial Fasteners
Institute, the leading trade organization for our industry representing 105
fastener manufacturers employing approximately 45,000 workers throughout
America, and 50 suppliers of raw material and other services.
Thank you for the opportunity to address you today on behalf of IFI and the
Fastener Quality Act Reform Coalition, of which IFI is a leading member.
This Coalition consists of approximately 30 companies and associations,
representing manufacturers and distributors of fasteners as well as their
major customers in the automotive, aerospace, heavy equipment and general
industry. In fact, two of those groups—automotive and fastener distributors
are part of today’s hearing.
Thank you as well for your continued interest in this issue and for your
substantial efforts toward finding workable solutions to the problems faced
by fastener manufacturers and their customers.
The title of this hearing, Unscrewing the Fastener Quality Act, couldn’t be
more appropriate. Thirteen years ago, Congress was apprised of a situation
that caused great concern about the safety of products using fasteners.
Mismarked, substandard and fraudulently manufactured fasteners were finding
their way into American commerce and potentially placing our armed services,
our families and our citizens at risk. After an investigation, Congress
issued its own report on the subject in 1988, entitled Is America Losing its
Grip? This report was seen as an indication that the alleged instances of
fastener problems were only the proverbial tip of the iceberg, and Congress
concluded that it must act to head off a perceived rising tide of accidents.
America’s fastener industry, in an effort to assure its customers of its
commitment to quality, stood shoulder to shoulder with you and supported the
enactment of PL 101-592, the Fastener Quality Act. We genuinely believed
that the FQA would resolve the problems of mismarked, substandard and
fraudulently sold fasteners, and that it would not place an undue burden on
our industry.
If only we had known then what we know today! Despite the best intentions
of those involved, within Congress and the Department of Commerce as well as
within the fastener industry, the ensuing 9 years since the passage of the
FQA in 1990 have been extremely frustrating for us. I’m sure they have been
equally frustrating for Members of Congress who were attempting to respond
to concerns expressed to them, as well as for those who were charged with
writing regulations to implement the law.
In the eight years following the passage of the FQA, fastener manufacturers,
distributors, importers, and users attempted to provide input to NIST
regarding definitions, processes, fastener uses, and globalization. Each
time draft regulations were proposed, they proved unworkable, potentially
exposing industry hundreds of millions of dollars of increased costs for
duplicative testing procedures that did nothing to improve fastener quality
and nothing to stop the sale of mismarked, substandard or counterfeit
products. At the same time, technology and manufacturing practices outpaced
the consensus standards that were the basis of the law and implementing
regulations.
As a result, the FQA as it currently exists is fatally flawed, because it
forces reliance on testing procedures and protocols that have been eclipsed
by technology and improved practices. In addition, many of the original
reasons for the law have either been discredited or become faded memories.
We came to the realization last year that a complete reexamination of this
issue was warranted. Fortunately, you agreed and passed PL 105-234,
postponing the implementation of the FQA and requiring a full study of the
condition of today’s fastener manufacturing industry as well as
recommendations for legislative changes that may be appropriate as a result.
With the passage of PL 105-234, the Department of Commerce began a thorough
review of today’s fastener industry, and you have heard (or will hear) from
NIST today with regard to their findings. In that regard, I would commend
to you, Madam Chairwoman and to your Committee, the effort, integrity and
thoroughness brought to this discussion by Dr. James Hill of NIST.
Regrettably, however, the final report was not available to us prior to this
hearing, and we therefore cannot comment on its conclusions or
recommendations.
As part of the review conducted by Dr. Hill in preparation for writing the
report, the American Society of Mechanical Engineers (ASME) conducted a
three-day workshop in Chicago last November under contract to NIST. Every
segment of our industry was provided ample opportunity to comment on its
role in fastener specification, manufacturing, purchasing, and use. In
preparation for our comments to Dr. Hill, the IFI commissioned former NIST
director David Edgerly to conduct a separate review of the 1988 report by
Congress. Following this hearing, we will submit Mr. Edgerly’s report as
well as the proceedings of the Chicago workshop to the committee for your
review.
At the Chicago workshop, many of my colleagues were struck by several themes
that were repeated time and time again during that exhaustive three-day
event. First, the dramatic advances in manufacturing technology and the
implementation of quality assurance systems that have reduced defect rates
in this industry from the 60,000ppm allowable under the historic consensus
standards developed in previous years, to 300ppm or less today.
Second, it is clear that purchasers of fasteners in today’s marketplace have
taken on the responsibility of ensuring the quality of the products they buy
at the beginning of the transaction--before the fastener reaches the
assembly line. The 1988 report, you may recall, focused ultimately on the
purchase of mismarked fasteners by government agencies. You will find in
the ASME proceedings a presentation by a government panel. I would call
your attention to the presentations made by Messrs. Harry Frost of DISC and
Will Harkin of NASA.
Mr. Frost informed the audience that DISC now employs a Qualified Suppliers
List of Manufacturers (QSLM) and distributors (QSLD) who are pre-approved
in its purchasing process. Mr. Harkin, in his comments, said that NASA
today relies on Performance Based Contracting. That is, both agencies only
buy from proven suppliers and ensure that the product purchased meets
specifications before a lot of fasteners reaches the assembly line. This is
a significant change from the 1980s when DISC and other government agencies
bought fasteners based on Mil Specs and price alone.
Today’s global automotive, aerospace, heavy equipment, appliance, electronic
and defense industries pre-approve suppliers based on experience, a proven
track record of deliverable quality or adherence to a customer
created/designed quality assurance system. As an example of the
effectiveness of these practices, it is important to note the point made by
Mr. Tom Cooper of NHTSA, who stated that none of the 1,464 automobile safety
recalls since 1994 were attributed to fraudulent or mislabeled fasteners!
Based on these circumstances and on our own knowledge of our business, we
question why there is a need for any law regulating the sale of fasteners.
But we recognize that laws are not made for the reputable manufacturers who
follow good management and business practices, but for the few unscrupulous
operators who intentionally produce mismarked, substandard or counterfeit
parts.
More importantly, we do not sit in your chairs. We do not bear the
responsibility of representing the families in your districts who deserve to
know that their government cares about them and their wellbeing. With those
thoughts in mind, we offer a few recommendations for your consideration.
First and foremost, we suggest that the thrust of the FQA should be toward
preventing the intentional sale or offering for sale of mismarked,
substandard or counterfeit fasteners—not toward the regulation of
manufacturing and testing procedures.
Second, we agree with the proposed requirement that manufacturers register
the copyrighted insignia they imprint on fasteners. We believe that
registration of copyrighted insignia provides an important means of tracing
fasteners to their producers.
Third, every legitimate producer currently maintains adequate documentation
in his files that verifies the processes employed to produce a fastener to
the specifications intended. This documentation is available to the
customer upon request, and should the customer determine that a fastener or
lot of fasteners does not match the specifications, the insignia and the
manufacturer’s documentation provide traceability and verification. This
also provides a means for prosecution of those who willfully and knowingly
sell mismarked, substandard or counterfeit fasteners.
At the same time, we would encourage customers and commercial users to
develop or adopt systems that qualify their suppliers. Such systems need not
be legislated, but when developed voluntarily can offer assurances to both
manufacturers and end-users that the fasteners being produced are suited for
the application for which they are intended.
Finally, we would urge this Subcommittee and the full Science Committee of
the House of Representatives to work with us and other interested parties to
develop a law that will ensure the continued safety of fasteners used in
commerce, but without imposing unnecessary and costly burdens on fastener
manufacturers or their customers. The IFI and its members pledge our full
support for such an effort.
This concludes my oral comments, Madam Chair. I am prepared to attempt to
answer any questions you or the Committee may have for me. Thank you for
your time and consideration.