[Federal Register: February 15, 2007 (Volume 72, Number 31)][Notices] [Page 7468-7476]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15fe07-100]
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DEPARTMENT OF LABOR
Occupational Safety and Health Administration
[Docket No. OSHA-2006-0050]
Nationally Recognized Testing Laboratories; Revised Fee Schedule
AGENCY: Occupational Safety and Health Administration (OSHA), Labor.
ACTION: Notice.
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SUMMARY: This notice provides the revised schedule of fees to be
charged by the Occupational Safety and Health Administration (OSHA) to
Nationally Recognized Testing Laboratories (NRTLs). OSHA charges fees
for specific types of services it provides to NRTLs. The fees charged
to NRTLs first went into effect on October 1, 2000.
DATES: The Fee Schedule will become effective on February 15, 2007.
FOR FURTHER INFORMATION CONTACT: MaryAnn Garrahan, Director, Office of
Technical Programs and Coordination Activities, NRTL Program,
Occupational Safety and Health Administration, U.S. Department of
Labor, 200 Constitution Avenue, NW., Room N3655, Washington, DC 20210,
or phone (202) 693-2110. Our Web page includes information about the
NRTL Program (see http://www.osha.gov and select "N" in the site
index).
SUPPLEMENTARY INFORMATION:
I. Notice and Introduction
The Occupational Safety and Health Administration (OSHA) hereby
gives notice that it has revised the fees that the Agency charges for
the services it provides to Nationally Recognized Testing Laboratories
(NRTLs). OSHA is taking this action as a result of its process for
annually reviewing the fees, as provided under 29 CFR 1910.7(f). This
review showed that the costs of providing the services covered by the
fees had changed sufficiently to warrant adjustments to the fee
schedule, which had been in effect since January 2002. The notice to
propose the revised fees was published in the Federal Register on
December 20, 2006 (71 FR 76365). That notice requested submission of
comments by January 4, 2007. No comment was received. The notice also
stated that the fees would go into effect on February 5, 2007; OSHA,
however, has changed the effective date of the fee increase. As set
forth above, the new fee schedule is effective February 15, 2007.
You may obtain or review documents related to the establishment of
the fees by contacting the Docket Office, Room N2625, Occupational
Safety and Health Administration, U.S. Department of Labor, at the
above address. Docket No. OSHA-2006-0050 (formerly, NRTL95-F-1),
contains all materials in the record concerning OSHA's NRTL Program
fees.
The fee adjustments described in this notice are based on the
current approach for calculating fees, which is the same approach OSHA
used in developing the first fee schedule (effective October 1, 2000).
OSHA is also in the process of developing a new approach to calculating
fees that would more accurately recoup the total costs of the services
OSHA provides to NRTLs. The Agency will be proposing this new approach,
and seeking comments on it, in a Federal Register notice to be
published at a later date.
II. Background
Many of OSHA's safety standards require that equipment or products
used in the workplace be tested and certified to help ensure they can
be used safely. See, e.g., 29 CFR 1910, Subpart S. In general, this
testing and certification must be performed by a Nationally Recognized
Testing Laboratory (NRTL). In order to ensure that the testing and
certification is done appropriately, OSHA implemented the NRTL Program.
The NRTL Program establishes the criteria that an organization must
meet in order to be and remain recognized as an NRTL.
The NRTL Program requirements are set forth under 29 CFR 1910.7,
"Definition and requirements for a nationally recognized testing
laboratory." To be recognized by OSHA, an organization must: (1) Have
the appropriate capability to test, evaluate, and approve products to
assure their safe use in the workplace; (2) be completely independent
of the manufacturers, vendors, and major users of the products for
which OSHA requires certification; (3) have internal programs that
ensure proper control of the testing and certification process; and (4)
have effective reporting and complaint handling procedures.
OSHA requires NRTL applicants (i.e., organizations seeking initial
recognition as NRTLs) to provide detailed and comprehensive information
about their programs, processes, and procedures in writing when they
apply. OSHA reviews the written information and conducts an on-site
assessment to determine whether the organization meets the requirements
of 29 CFR 1910.7. OSHA uses a similar process when an NRTL (i.e., an
organization already recognized) applies for expansion or renewal of
its recognition. In addition, the Agency conducts annual audits to
ensure that the recognized laboratories maintain their programs and
continue to meet the recognition requirements. Currently, there are 18
NRTLs operating over 50 recognized sites in the U.S., Canada, Europe,
and the Far East.
III. Program Costs and Fee Calculation
To understand the adjustments we have made to the fee schedule,
Section A discusses the derivation of the hourly rate we used to assess
the fees. Section B discusses changes we made to the estimate of
activity times and briefly describes new chargeable activities for the
services to NRTLs. Section C details new activity costs.
A. Derivation of Hourly Rate (ECR)
In preparing the fee schedule presented in this notice, OSHA has
updated its calculation of the total resources that it has committed to
the NRTL Program overall and has then computed the costs that are
involved solely with the application approval and the periodic review
(i.e., audit) functions.
OSHA calculates the fees for these services by multiplying an
equivalent average direct staff cost per hour rate (ECR) by the time it
takes to perform the activities involved in application processing or
audit functions. Simply put,
Fee for activity = ECR x Time for activity.
OSHA derives the ECR by taking the total estimated direct and
indirect costs of the program, consisting of personnel costs (salary
and fringe) and office expenses, but excluding travel, and dividing
that total by the total available annual work hours of the direct staff
devoted to all the NRTL Program activities, i.e., the number of full-
time equivalent (FTE) personnel.\1\ Illustrated as an equation:
\1\ In discussing total hours in this notice, we often refer to
FTEs which stands for full-time equivalents and equals total hours
dividedby 2,080, the total available annual work hours for one full-
time employee.
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ECR = TPC / TAW,
where TPC is the total estimated direct and indirect program costs
(excluding travel) and TAW is the total available annual work hours of
the direct staff.
Figure 1, below, represents OSHA's TPC of providing the services
for which we charge fees and shows the calculation of the ECR. As a
result of our adjustments, our base hourly rate for calculating our
fees, i.e., the ECR, has increased approximately 17% above the previous
level, from $54.50 to $63.80. The $54.50 is the rate that was derived
using 2002 projected staff salary and fringe, and other program costs.
It is the rate contained in the prior fee schedule (effective January
1, 2002), which is now superseded by the fee schedule shown in this
notice. The 17% increase mainly reflects annual salary adjustments
provided to Federal employees that have accumulated since the revision
in 2002. The Agency believes these costs are fair and reasonable.
Figure 1.--NRTL Program Annual Cost Estimates
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Avg. cost per
FTE
Cost description FTE (including Total costs
fringe)
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Direct Staff Costs.............................................. 5.24 $110,743 $580,294
Indirect Staff & Other Costs.................................... na na *115,130
Subtotal Costs.............................................. .............. .............. 695,424
Travel Expenses................................................. na na 60,000
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Total Program Costs..................................... .............. .............. 755,424
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Avg. direct staff cost/hr. = $580,294/(5.24 FTE x 2,080 hours) = $53.20.
ECR = Equivalent avg. direct staff cost/hr. rate = $695,424/(5.24 FTE x 2,080 hours) = $63.80 (includes direct &
indirect costs but not travel).
* This amount consists of $60,150 for management and support staff and $54,980 for equipment and other costs.
In Figure 1, Direct Staff Costs are personnel costs for the staff
that perform direct activities (i.e., the services, such as the
application, on-site and legal reviews, and other activities involved
in application processing and audits) as well as activities not
directly connected to the fees. Indirect Staff and Other Costs are
expenses for support and management staff, equipment, and other costs
that are involved in the operation of the program. Support and
management staff consists of program management and secretarial staff.
Equipment and other costs are intended to cover items such as
computers, telephones, building space, utilities, and supplies, which
are necessary to perform the services covered by the fees. In general,
indirect costs, by their very nature, are not readily identified with a
specific output (in the present context, a specific activity) but are
used in producing it. They are allocated to the application processing
and audit activities based on direct staff costs. Travel Expenses shown
in the figures are estimates of the costs we incur for travel related
to the services that are covered by the fees. However, this amount is
not included in the ECR since we charge for the actual staff travel
expenses of the on-site visits performed by our program staff. In
Figure 1, the travel expenses figure is presented only to show total
program costs.
The use of an "equivalent average direct staff cost per hour
rate" (ECR) measure is a convenient method of
allocating indirect costs to each of the services for which OSHA is
charging fees. The same result is obtained if direct staff costs are
first calculated and then indirect costs are allocated based on the
value, i.e., dollar amount, of the direct staff costs, which is an
approach that is consistent with Federal accounting standards.
To illustrate this, assume that a direct staff member spends 10
hours on an activity; the direct staff costs would then be calculated
as follows: Direct staff costs = 10 hours x $53.20/hour = $532.
The $53.20/hour is the average direct staff cost/hour amount shown in
Figure 1. The indirect costs would be allocated by first calculating
the ratio of indirect costs to direct staff costs, again using the
costs shown in Figure 1. This ratio would be as follows: Indirect
costs/direct staff costs = $115,130/$580,294 = 0.1984.
Next, the indirect costs would be calculated based on the $532 estimate
of direct staff costs: Indirect costs = $532 x 0.1984 = $106.
inally, the total costs of the activity are calculated: Total costs =
direct staff costs + indirect costs = $532 + $106 = $638.
We derive the same amount using the ECR of $63.80, i.e., 10 hours x
$63.80/hour = $638.
B. Modified Activity Times and Additional Activities
In addition to updating the ECR, the Agency has updated estimates
of the average staff time that it spends on some specific activities or
functions of the services covered by the fees. The staff activity times
we updated resulted in a portion of the adjustments in the Fee Schedule
(Table A below). OSHA previously developed these times for each major
activity within the main types of services, which are application
processing and audits.
For application processing, OSHA has increased the average staff
activity time in the areas of the on-site assessment and the final
report/Federal Register notice activities. In the first case, the
increase mainly reflects the time necessary for making travel
arrangements and, in the second case, mainly reflects the separate time
necessary for the preparation of the notice. For audits, OSHA has
increased the average staff activity time in the areas of the pre-site
review and report preparation activities, each for similar reasons as
the corresponding application activities just described. In addition,
in both cases, we now charge for actual travel time (i.e., time in
travel to and from sites), which replaces the nominal 4 hours that was
included in the first day fee for assessments and audits of the prior
fee schedule.
OSHA also is now charging for some additional activities it
performs during application processing and audits. These activities are
for Additional Application Review, Supplemental Program Review, and
Invoice Processing. Section IV of this notice further explains these
activities and the modifications mentioned above. The revised fees
reflect the Agency's experience with the NRTL Program fees over the
four years since OSHA published the prior fee schedule.
C. Tables of Activity Costs
Figures 2, 3, 4, and 5, below, present the costs of the major
activities for which fees are charged. We include average travel costs
in the figures below to provide an overall cost for a particular
activity. However, as explained above, since we charge for actual
travel, only the non-travel costs serve as the basis for the fees later
shown in the Fee Schedule (Table A). In deriving the fee amounts shown
in Table A, OSHA has generally rounded the costs shown in Figures 2, 3,
4, and 5, up or down, to the nearest $5 or $10 amount.
Figure 2.--Initial Application Cost Estimates
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Major activity Type of cost Average hours Average cost*
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Initial Application Review................. Office and field staff time........ 80 $5,100
Additional Review Time..................... Office staff....................... 16 1,020
On-Site Assessment--first day (per site, field staff time (16 hours 30 1,914
per assessor). preparation, 6 hours travel
processing, and 8 hours at site).
Field staff travel expense ($700 \1\ 800
airfare/other + $100 per diem).
-------------------------------
Total............................. .............. 2,714
On-Site Assessment--each addnl. day** (per field staff time (at site)......... 8 510
site, per assessor).
Field staff travel expense (per \1\ 100
diem only).
-------------------------------
Total............................. .............. 610
On-Site Assessment travel time--per day field staff........................ 8 510
(per site, per assessor).
Review and Evaluation (10 test standards).. Office staff time.................. 2 128
Final Report & Federal Register notice..... field and office staff time........ 132 8,422
Fees Invoice Processing.................... Office staff time.................. 2 128
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* Average cost for staff time = average hours x equivalent average direct staff cost/hr. ($63.80).
** Note: 2 additional days estimated if there are 2 assessors and 4 additional days estimated if there is 1
assessor.
\1\ Not applicable.
Figure 3.--Expansion Application (Additional Site) Cost Estimates
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Major activity Type of cost Average hours Average cost*
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Application Review (expansion for site).... Office and field staff time........ 16 $1,021
Additional Review Time..................... Office staff....................... 8 510
On-Site Assessment--first day (per site, field staff time (12 hours 24 1,531
per assessor). preparation, 4 hours travel
processing, and 8 hours at site).
field staff travel time expense \1\ 800
($700 airfare/other + $100 per
diem).
-------------------------------
Total............................. .............. 2,331
On-Site Assessment--addnl. day** (per site, field staff time (at site)......... 8 510
per assessor).
field staff travel expense (per \1\ 100
diem only).
Total............................. .............. 610
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On-Site Assessment travel time--per day field staff........................ 8 510
(per site, per assessor).
Review and Evaluation Fee (10 test office staff time.................. 2 128
standards).
Final Report & Federal Register notice..... Field and office staff time........ 50 3,190
Fees Invoice Processing.................... Office staff time.................. 2 128
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* Average cost for staff time = average hours x equivalent average direct staff cost/hr. (63.80).
** Note: 2 additional days estimated for 1 assessor.
\1\ Not applicable.
Figure 4.--Renewal Or Expansion (Other Than Additional Site) Application
Cost Estimates
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Average Average
Major activity Type of cost hours cost*
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Application Review (renewal Office and field 2 $128
or expansion other than staff time.
additional site).
Additional Review Time...... Office staff........ 8 510
Renewal Application Office staff........ 16 1,021
Information Review.
On-Site Assessment--first field staff time (8 20 1,276
day (expansion) (per site, hours preparation,
per assessor). 4 hours travel
processing, and 8
hours at site).
field staff travel \3\ 800
expense ($700
airfare/other +
$100 per diem).
Total.............. ......... 2,076
On-Site Assessment--first field staff time (16 28 1,787
day (renewal) (per site, hours preparation,
per assessor). 4 hours travel
processing, and 8
hours at site).
field staff travel \3\ 800
expense ($700
airfare/other +
$100 per diem).
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Total.............. ......... 2,587
On-Site Assessment--addnl. Office staff time 8 510
day** (per site, per (at site).
assessor).
field staff travel \3\ 100
expense (covers per
diem only).
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Total.............. ......... 610
On-Site Assessment travel field staff......... 8 510
time--per day (per site,
per assessor).
Review and Evaluation Fee Office staff time... 2 128
(10 test standards)
(expansion).
Final Report & Federal Office and field 50 3,190
Register notice. staff time (if
there is an on-site
assessment).
Final Report & Federal Office and field 30 1,914
Register notice. staff time (if
there is NO on-site
assessment).
Supplemental Program Review. Office and field 4 255
staff time (per
program requested
incl. consultation
and assessor's
memo).
Fees Invoice Processing..... Office staff time... 2 128
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* Average cost for staff time = average hours x equivalent average
direct staff cost/hr. ($63.80).
** Note: 2 additional days estimated for renewal assessment; no
additional days for expansion assessment.
\3\ Not applicable.
Figure 5.--On-Site Audit Cost Estimates
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Average Average
Major activity Type of cost hours cost*
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On-Site Audit--first day Field staff time (12 24 $1,531
(per site, per auditor). hours pre-site
review preparation,
4 hours travel
processing, and 8
hours at site).
Prepare report/ 18 1,148
contact NRTL plus
office review staff
time (2 days for
field staff and 2
hours for office
staff).
Subtotal (first day) ......... 2,679
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Field staff travel \4\ 800
expense ($700
airfare/other +
$100 per diem).
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Total............... ......... 3,479
On-Site Audit--addnl. day ** field staff time (at 8 510
(per site, per auditor). site).
Travel expense \4\ 100
(covers per diem
only).
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Total............... ......... 610
On-Site Audit travel time-- Field staff......... 8 510
per day (per site, per
auditor).
Fees Invoice Processing..... Office staff time... 2 128
------------------------------------------------------------------------
*Average cost for staff time = average hours x equivalent average direct
staff cost/hr. ($63.80) **Note: 1.0 additional day estimated for 1
auditor.
\4\ Not applicable.
IV. Fee Schedule and Description of Fees
OSHA is adopting the fee schedule shown below as Table A.
Table A. FEE SCHEDULE
NATIONALLY RECOGNIZED TESTING LABORATORY PROGRAM (NRTL PROGRAM) FEE SCHEDULE (EFFECTIVE FEBRUARY 15, 2007) \12\
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Activity or category (fee charged per application
Type of service unless noted otherwise) Fee amount
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APPLICATION PROCESSING.......... Initial Application Review \1,8\..................... $5,100.
Expansion Application Review (per additional site) 1, 1,020.
8.
Renewal or Expansion (other) Application Review \1\.. 130.
Renewal Information Review Fee \7\................... 1,020.
Additional Review--Initial Application (if the 1,020.
application is substantially revised, submit one-
half Initial Application Review fee) \7\.
Additional Review--Renewal or Expansion Application 510.
\7\.
Assessment--Initial Application (per site--SUBMIT 8,890.
WITH APPLICATION) 2, 4, 8.
Assessment--Initial Application (per person, per 1,910 + actual travel
site--first day--BILLED AFTER ASSESSMENT) 2, 10. expenses.
Assessment--Renewal Application (per person, per 1,790 + actual travel
site--first day) 3, 10. expenses.
Assessment--Expansion Application (additional site) 1,530 + actual travel
(per person, per site--first day) \3\. expenses.
Assessment--Expansion Application (other) (per 1,280 + actual travel
person, per site--first day) \3\. expenses.
Assessment--each addnl. day or each day on travel 510 + actual travel
(per person, per site) 2, 3. expenses.
Review and Evaluation \5\ (13 per standard if it is 13 per standard OR 64
already recognized for NRTLs and requires minimal per standard.
review; OR else 64 per standard).
Final Report/Register Notice--Initial Application 5, 8,420.
9.
Final Report/Register Notice--Renewal or Expansion 3,190.
Application (if OSHA performs on-site assessment) 5,
9.
Final Report/Register Notice--Renewal or Expansion 1,910.
Application (if OSHA performs NO on-site assessment)
5, 9.
AUDITS.......................... On-site Audit (per person, per site, first day) \6\.. 2,680 + actual travel
expenses.
On-site Audit--each addnl. day or each day on travel 510 + actual travel
(per person, per site) \6\. expenses.
Office Audit (per person, per site) \6\.............. 510.
MISCELLANEOUS................... Supplemental Travel (per site--for sites located 1,000.
outside the 48 contiguous States or the District of
Columbia) \4\.
Supplemental Program Review (per program requested) 260.
\4\.
Fees Invoice Processing (per application or audit) 130.
\4\.
Late Payment \11\.................................... 64.
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Notes to OSHA Fee Schedule for NRTLs:
1. Who must pay the Application Review fees, and when must they be paid?
If you are applying for initial recognition as an NRTL, you must pay the Initial Application Review fee and
include this fee with your initial application. If you are an NRTL and applying for an expansion or renewal of
recognition, you must pay the Expansion Application Review fee or Renewal Application Review fee, as
appropriate, and submit this fee concurrently with your expansion or renewal application. See note 7 if you
amend or revise your initial or expansion application.
2. What assessment fees do you submit for an initial application, and when must they be paid?
If you are applying for initial recognition as an NRTL, you must pay $8,890 for each site for which you wish to
obtain recognition, and you must submit this amount concurrently with your initial application. We base this
amount on two assessors performing a three-day assessment at each site. After completing the actual
assessment, we calculate our assessment fee based on the actual staff time and travel costs incurred in
performing the assessment. We calculate this fee at the rate of $1,910 for the first day at the site, $510 for
each additional day at the site, and $510 for each day in travel, plus actual travel expenses, for each
assessor. (Note: days charged for being in travel status are those allowed under government travel rules. This
note applies to any assessment or audit.) Actual travel expenses are determined by government per diem and
other travel rules. We bill or refund the difference between the amount you pre-paid and the actual assessment
fee. We reflect this difference in the final bill that we send to you at the time we publish the preliminary
Federal Register notice announcing the application.
3. What assessment fees do you submit for an expansion or renewal application, and when must they be paid?
If you are an NRTL and applying solely for an expansion or renewal of recognition, you do not submit any
assessment fee with your application. If we need to perform an assessment for the expansion or renewal
request, we bill you for this fee after we perform the assessment. The fee is based on the actual staff time
and travel costs we incurred in performing the assessment. We calculate this fee at the rate of $1,790,
$1,530, or $1,280 for the first day at the site of a renewal, expansion (site), and expansion (other)
assessment, respectively. We also include $510 for each additional day at the site and $510 for each day in
travel, plus actual travel expenses, for each assessor. Actual travel expenses are determined by government
per diem and other travel rules. When more than one site of the NRTL is visited during one trip, we charge the
$510 additional day fee, plus actual travel expenses, for each day at a site.
4. When do I pay the Supplemental Travel, the Supplemental Program Review, or the Fees Invoice Processing fees?
You must include the Supplemental Travel fee when you submit an initial application for recognition and the site
you wish to be recognized is located outside the 48 contiguous U.S. states or the District of Columbia. The
current supplemental travel fee is $1,000. We factor in this prepayment when we bill for the actual costs of
the assessment, as described in our note 2, above. See note 8 for possible refund of application or assessment
fees. You must include the Supplemental Program Review fee when you apply for approval to use other qualified
parties or facilities to perform specific activities. See Chapter 2 of the NRTL Program Directive for more
information. We will include the Fees Invoice Processing fee in the total for each of our invoices to you.
5. When do I pay the Review and Evaluation and the Final Report/Register Notice fees?
We bill an applicant or an NRTL for the appropriate fees at the time we publish the preliminary Federal Register
notice to announce the application. We calculate the Review and Evaluation Fee at the rate of $13 per test
standard requested for those standards that OSHA previously recognized for any NRTL and that require minimal
review or do not represent a new area of testing for the NRTL. Otherwise, this fee is $64 per standard
requested.
6. When do I pay the Audit fee?
We bill the NRTL for this fee (on-site or office, as deemed necessary) after completion of the audit and base
the fee on actual staff time and travel costs incurred in performing the audit. We calculate our fee at the
rate of $2,680 for the first day at the site, $510 for each additional day at the site, and $510 for each day
in travel, plus actual travel expenses for each auditor. Actual travel expenses are determined by government
per diem and other travel rules.
7. When do I pay the Additional Review fee or Renewal Information Review fee?
The Additional Review fees cover the staff time in reviewing new or modified information submitted after we have
completed our preliminary review of an application. There is no charge for review of a "minor" revision,
which entails modifying or supplementing less than approximately 10% of the documentation in the application.
The Additional Review fee applies to revisions modifying or supplementing from 10% to 50% of that
documentation. For a new application, the fee represents 16 hours of additional review time and for a renewal
or expansion application, the fee represents 8 hours of additional review time. If an applicant exceeds that
50% threshold in revising its application, we will charge one-half the Initial Application Review fee and the
full Expansion Application Review fee, as applicable. The Renewal Information Review fee applies when an NRTL
submits updated information to OSHA in connection with a request for renewal of recognition.
8. When and how can I obtain a refund for the fees that I paid?
If you withdraw before we complete our preliminary review of your initial application or your expansion
application to include an additional site, we will refund half of the application fee. If you are applying for
initial recognition as an NRTL, we will refund the pre-paid assessment fees if you withdraw your application
before we have traveled to your site to perform the on-site assessment. For an initial application, we will
also credit your account for any amount of the pre-paid assessment fees collected that is greater than the
actual cost of the assessment. Other than these cases, we do not generally refund or grant credit for any
other fees that are due or collected.
9. Will I be billed even if my application is rejected?
If we reject your application, we will bill you for the fees pertaining to tasks that we have performed that are
not covered by the fees you have submitted. For example, if we perform an assessment for an expansion
application but deny the expansion, we will bill you for the assessment fee. Similarly, we will bill you for
the Final Report and Federal Register fee if we also wrote the report and published the notice. See note 11
for the consequences of non-payment.
10. What rate does OSHA use to charge for staff time?
OSHA has estimated an equivalent staff cost per hour that it uses for determining the fees that are shown in the
Fee Schedule. This hourly rate takes into account the costs for salary, fringe benefits, equipment,
supervision and support for each "direct staff" member, that is, the staff that perform the main activities
identified in the Fee Schedule. The rate is an average of these amounts for each of these direct staff
members. The current estimated equivalent staff costs per hour = $63.80.
11. What happens if I do not pay the fees that I am billed?
As explained above, if you are an applicant, we will send you a final bill (for any assessment and for the
Review and Evaluation and Final Report/Register Notice fees) at the time we publish the preliminary Federal
Register notice. If you do not pay the bill by the due date, we will assess the Late Payment fee shown in the
Fee Schedule. This late payment fee represents one hour of staff time at the equivalent staff cost per hour
(see note 10). If we do not receive payment within 60 days of the bill date, we will cancel your application.
As also explained above, if you are an NRTL, we will generally send you a bill for the audit fee after
completion of the audit. If you do not pay the fee by the due date, we will assess the Late Payment Fee shown
in the Fee Schedule. If we do not receive payment within 60 days of the bill date, we will publish a Federal
Register notice stating our intent to revoke recognition. However, please note that in either case, you may be
subject to collection procedures under U.S. (Federal) law.
12. How do I know whether this is the most Current Fee Schedule?
You should contact OSHA's NRTL Program (202-693-2110) or visit the program's Web site to determine the effective
date of the most current Fee Schedule. Access the site by selecting "N" in the Subject Index at
http://www.osha.gov. Any application review fees are those in effect on the date you submit your application. Other
application processing fees are those in effect when the activity covered by the fee is performed. Audit fees
are those in effect on the date we begin our audit.
The following is a description of the tasks and functions currently
covered by each type of fee category, e.g., application fees, and the
basis used to charge each fee.
Application Fees: This fee reflects the technical work performed by
office and field staff in reviewing application documents to determine
whether an applicant submitted complete and adequate information. The
application review does not include a determination on the test
standards requested, which is reflected in the Review and Evaluation
fee. Application fees are based upon average costs per type of
application. OSHA uses an average cost because the amount of time spent
on the application review does not vary greatly by type of application.
This is based on the premise that the number and type of documents
submitted will generally be the same for a given type of application.
Experience has shown that, indeed, most applicants do follow the
application guide that OSHA provides. Two new fees were added in this
area, which are explained in the Section VI, below.
Assessment Fees: This fee is different for the initial, renewal,
expansion (site) and expansion (other) applications. It is based on the
number of days for staff preparatory and on-site work and related
travel. Six types of fees are shown, and five are charged per site and
per person. The four fees for the first day reflect time for office
preparation and 8 hours at the applicant's facility. There is one fee
covering either additional days at the facility and/or days in travel.
Additional days or days in travel are assessed for either a half or a
full day. A supplemental travel amount is assessed for travel outside
the contiguous 48 states or the District of Columbia. For initial
applications, an amount to cover the assessment must be submitted "up-
front" with the application. In addition to the first day and
additional day amounts, the applicant or NRTL must pay actual travel
expenses, based on government per diem and travel rules. For initial
applications, any difference between actual travel expenses and the up-
front travel amount is reflected in the final bill or refund sent to
the applicant.
Similar to the application fee, the office preparation time
generally involves the same types of activities. Actual time at the
facility may vary, but the staff devote at least a full day to
performing the on-site work. The fee for the additional day reflects
time spent at the facility and the actual travel expenses for that day.
Review and Evaluation Fee: This fee is charged per test standard
(which is part of an applicant's proposed scope of recognition). The
fee reflects the fact that staff time spent on the office review of an
application varies based on the number of test standards requested by
the applicant. In general, the fee is based on the estimated time
necessary to review test standards to determine whether each one is
"appropriate," as defined in 29 CFR 1910.7, and covers equipment for
which OSHA mandates certification by an NRTL. The fee also covers time
to determine the current designation and status (i.e., active or
withdrawn) of a test standard by reviewing current directories of the
applicable test standard organization. Moreover, it includes time spent
discussing the results of the application review with the applicant.
The actual time spent will vary depending on whether an applicant
requests test standards that have previously been approved for other
NRTLs. When the review is minimal, these activities take approximately
2 hours for 10 standards. This translates to $13 per standard. When the
review is more substantial, the estimated average review time per
standard is one hour for each standard, which translates to $64 per
standard. Substantial review will occur when the standard has not been
previously recognized for any NRTL or when the NRTL is proposing to
conduct testing in a "new" area, i.e., for a type of product not
similar to any currently included under its scope of recognition.
Final Report/Register Notice Fees: Each of these fees are charged
per application. The fee reflects the staff time required to prepare
the report of the on-site review of an applicant's or an NRTL's
facility, which includes contacting the applicant or NRTL to discuss
issues or items in its response to our findings during our assessment.
The fee also reflects the time spent making the final evaluation of an
application, preparing the required Federal Register notices, and
responding to comments received in response to the preliminary finding
notice. These fees are based on average costs per type of application,
since the type and content of documents prepared are generally the same
for each type of applicant. There is a separate fee when OSHA performs
no on-site assessment. In these cases, the NRTL Program staff perform
an office assessment and prepare a memorandum to recommend the
expansion or renewal.
Audit (Post-Recognition Review) Fees: These fees reflect the time
for office preparation, time at the facility and travel, and time to
prepare the audit report of the on-site audit. A separate fee is shown
for an office audit conducted in lieu of an actual visit. Each fee is
per site and does not generally vary for the same reasons described for
the assessment fee and because the audit is generally limited to
between one and two days. As previously described, the audit fee
includes amounts for travel, and, similar to assessments, OSHA will
bill the NRTL for actual travel expenses.
Miscellaneous Fees: Four different fees are shown under this
category. OSHA can charge a Late Payment fee if an invoice is not paid
by the due date. This amount represents 1 hour of staff time for
contacting the NRTL and preparing a late invoice and cover letter. The
Supplemental Travel fee applies per site for an initial application if
the site to be recognized is located outside the 48 contiguous U.S.
states or the District of Columbia. The fee is $1,000. We added two new
miscellaneous fees, which are explained in Section VI, below.
VI. Major Changes to the Fee Schedule
The following table shows the major adjustments (i.e., increases or
decreases of $100 or more) that we made to the fee schedule in Table A
as compared to the prior fee schedule, which had been in effect since
January 1, 2002. Following the table, we explain each of the major
adjustments.
Table of Major Adjustments to Fee Schedule
----------------------------------------------------------------------------------------------------------------
Prior fee Present fee
Description of activity or category amount amount Comment on change in fee amount
----------------------------------------------------------------------------------------------------------------
Initial Application Review.......................... $4,400 $5,100 none
Expansion Application Review........................ 850 1,020 none
Additional Review--Initial Application.............. \1\ 1,020 new fee
Renewal Application Information Review.............. \1\ 1,020 new fee
Additional Review--Renewal or Expansion Application. \1\ 510 new fee
Assessment--Initial Application (SUBMIT WITH 6,500 8,890 none
APPLICATION).
Assessment--Initial Application (per person, per 1,500 1,910 none
site--first day--BILLED AFTER ASSESSMENT).
Assessment--Renewal Application (per person, per 1,100 1,790 currently combined with
site--first day). expansion assessment fee
Assessment--Expansion (additional site) (per person, 1,100 1,530 currently combined with renewal
per site--first day). assessment fee
Assessment--Expansion (other) (per person, per site-- 1,100 1,280 currently combined with renewal
first day). assessment fee
Assessment--each addnl. day OR travel time--each day 440 510 only 4 hours of travel time
(per person, per site). currently charged through the
first day fee for assessments
Review & Evaluation................................. \2\ 10 \3\ 13 correction of undercharge per
ten standards: $130 x $10 =
$120
Final Report/Register Notice--Initial Application... 6,550 8,420 none
Final Report/Register Notice--Renewal or Expansion 2,600 3,190 none
Application (if OSHA performs on-site assessment).
Final Report/Register Notice--Renewal or Expansion 1,500 1,910 none
Application (if OSHA performs NO on-site
assessment).
On-site Audit (first day)........................... 1,950 2,680 none
Supplemental Program Review......................... \1\ 260 new fee
Fees Invoice Processing............................. \1\ 130 new fee
----------------------------------------------------------------------------------------------------------------
\1\ None.
\2\ Per ten standards.
\3\ Per standard.
Application and Assessment. The increase in the application review
fees, the assessment-related fees, and the final report/register notice
fees resulted primarily from the increase in the hourly cost charged
for the direct staff time. The audit-related fees also increased in
part for the same reason but also because we added 4 hours for the pre-
site review of each audit and 14 hours for the preparation of the audit
report. These extra audit-related hours are reflected in Figure 5. In
our prior fee schedule, we had a fee for Assessment--Expansion or
Renewal Application (first day). Under the new schedule, we replace
this with a separate assessment fee for renewals and a separate fee for
each type of expansion.
Travel. We changed our treatment of "travel time," which is time
in travel to and from a site, as opposed to audit or assessment time at
a site. Travel time is determined following government travel
regulations. The prior fee schedule included only 4 hours of travel
time for an entire trip, which was reflected in the first day fee for
assessments and audits. As explained in the notes to the fee schedule,
we have now removed the 4-hour travel time from these first day fees
and charge for actual travel time at the rate for an additional day,
which under the new schedule would be $510. This rate would be charged
based on either a half-day or a full day. We are charging this fee
separately, as opposed to including it in the first day flat fee, in
order to more accurately recoup our travel costs. For example, if a
trip for an audit lasts a total of three days, with two of those days
spent at the site, we previously charged the lab for 2.5 workdays (20
hours). Under the new schedule, we are charging for 3 workdays (24
hours). This charge is most important in the case of foreign travel
where travel time may be 2 or 3 days in total. Of course, the removal
of the 4 hours of travel time from the first day of an assessment or of
an audit reduces those fees.
Additional Application Review. The new Additional Review fees cover
the staff time in reviewing new or modified information submitted for
an application. For example, an applicant may need to revise or amend
an initial or expansion application if we find that there are "major"
deficiencies with it. There is no charge for review of a "minor"
revision, which as Note 7 to the Fee Schedule describes, entails
modifying or supplementing less than approximately 10% of the
documentation in the application. The Additional Review fee applies to
revisions modifying or supplementing from 10% to 50% of that
documentation. For a new application, the fee represents 16 hours of
additional review time and for a renewal or expansion application, the
fee represents 8 hours of additional review time. If an applicant
exceeds that 50% threshold in revising its application, we will charge
one-half the Initial Application Review fee and the full Expansion
Application Review fee, as applicable. The Renewal Information Review
fee applies when an NRTL submits updated information to OSHA in
connection with a request for renewal of recognition. For example, such
information may include revised procedures and manuals for various
parts of its testing and certification activities.
Supplemental Program Review and Fees Invoice Processing. There are
two more new fees, which will recoup costs for tasks we now perform in
application processing and/or audits, but for which we had not been
charging. The first fee, Supplemental Program Review, covers the time
to review requests by NRTLs to use a supplemental program, under which
NRTLs can use other qualified parties to perform tasks necessary for
product testing and certification. Currently, there are eight of these
programs, and NRTLs may apply to use one or more of them. The use of
the term "program" in this context may be a bit misleading. It is not
separate from, but just a segment within, the NRTL Program and defines
the category or type of activity or service that the NRTL can accept
from other parties or facilities. To be approved to use a program, the
NRTL must meet certain criteria and the fee covers the time for us to
make the office review and determination. If an on-site assessment were
needed as part of granting the approval, this would be covered
separately in the fee for the on-site assessment or audit during which
we review documentation or other operational aspects related to a
proposed use of the applicable program(s). The second fee is Fees
Invoice Processing, which also involves tasks directly related to the
application processing or audit activities and for which we have not
been recouping costs. We follow essentially the same process to prepare
each invoice for either an application or an audit and would thus
charge per invoice prepared.
Review and Evaluation Fee. The increase in the Review and
Evaluation Fee is primarily a correction to the basis we used in the
current fee schedule. In both cases, we base the fee on performing two
separate reviews of 10 standards in 2 hours. However, the current fee
schedule incorrectly reflects a $10 cost for those 2 hours. Since the
prior hourly rate had been $54.50, this means the prior fee was
understated by about $100 per ten standards (i.e., it should have been
$109 per 10 standards, but we only charged $10 per 10 standards). At the
new hourly rate, those 2 hours would result in a cost of $130 for the
10 standards or $13 per standard.
Notes to the Fee Schedule. We have also changed a few of the notes
to the fee schedule. In the table below, we show the notes that we have
modified or added and explain why. Adjustments that merely updated a
fee amount mentioned in a note are not explained or described in the
table below.
Table of Modified or New Notes to the Fee Schedule
----------------------------------------------------------------------------------------------------------------
Note to fee dchedule Fee or area covered by note Reason(s) for modifying or adding note
----------------------------------------------------------------------------------------------------------------
2...................... Initial application This note now also describes the separate charge for
assessment. staff travel time.
3...................... Expansion or renewal This note now also describes the separate charge for
assessment. staff travel time and shows the different first day fees
for renewal and expansion assessments.
4...................... Supplemental travel......... This note mentions possible refund of application fees.
It also describes the new Supplemental Program Review
and Fees Invoice Processing fees.
5...................... Review and evaluation....... We corrected the basis for charging this fee, as
explained in the section above.
6...................... Audit....................... This note now also describes the separate charge for
staff travel time.
7...................... Additional review........... Note 7 previously covered refund of fees and now would
cover the fee for additional reviews of applications.
8...................... Refunds..................... This note would permit refunds of half the application
fee if an applicant withdraws its initial or expansion
(additional site) application before we complete our
preliminary review. Note 8 previously covered the hourly
rate for staff time, which is now under Note 10.
9...................... Application rejection....... Note 9 previously covered non-payment of fees and now
would cover the new area of fees due if we were to
reject an application.
11..................... Non-payment................. Note 11 is new. This area was previously covered under
Note 9 and now would include a statement about
collection procedures under U.S. (Federal) law.
12..................... Fees in effect.............. Note 12 is new. This area was previously covered under
Note 10 and now would include a note primarily to change
the "in-effect" criterion for certain application
processing fees.
----------------------------------------------------------------------------------------------------------------
Finally, we are explaining again a matter dealing with the fee for
Review and Evaluation, which was addressed when revising our fees in
2002. We revisit it here to clarify one aspect of our work involved in
this activity. NRTLs submit requests to expand their scope to include
additional test standards, i.e., testing of additional types of
products. Generally, this request has consisted of a listing of the
test standards. If we determine that the products requested are similar
to products already in the particular NRTL's scope, the testing falls
within its current capabilities, and no additional documentation needs
to be reviewed. In that case, the NRTL is charged the new fee of $13
per standard requested. However, if the NRTL requests a standard that
represents a new area of testing outside its scope, then it must submit
information on the testing equipment and procedures it will use as well
as the qualifications of personnel that will perform the testing. In
that case, the charge will be $64 per standard, representing an average
of 1 hour to review the information that must be submitted. Similarly,
if OSHA has not previously recognized a particular standard for any
NRTL, even though it may cover types of products under test standards
that we have recognized, we will charge $64 per standard, representing
an average of 1 hour to review the testing and other provisions of the
standard and to determine if the NRTL has the necessary capability.
Final Decision
OSHA has performed its annual review of the fees it currently
charges to Nationally Recognized Testing Laboratories, as provided
under 29 CFR 1910.7(f). Based on this review, OSHA has determined that
its prior fee schedule warranted adjustment, as detailed in this
notice. As a result, OSHA now establishes the revised fees by adopting
the Nationally Recognized Testing Laboratory Program Fees Schedule
shown as Table A above, effective February 15, 2007. This fee schedule
will remain in effect until superseded by a later fee schedule. OSHA
will provide the public an opportunity to comment on any future changes
to the fees.
Signed at Washington, DC this 12th day of February, 2007.
Edwin G. Foulke, Jr.,
Assistant Secretary of Labor.
[FR Doc. E7-2661 Filed 2-14-07; 8:45 am]
BILLING CODE 4510-26-P
