Malcolm Baldrige National Quality Improvement Act of 1987
PL 100-107 (H.R.812), enacted 08/20/1987

101 STAT. 724 
PUBLIC LAW 100-107—AUG. 20, 1987 
Public Law 100-107 
100th Congress 
^ 
An Act 
To amend the Stevenson-Wydler Technology Innovation Act of 1980 to establish the 
Aug. 20, 1987 
Malcolm Baldrige National Quality Award, with the objective of encouraging 
[H.R. 812] 
American business and other organizations to practice effective quality control in 
the provision of their goods and services. 
Be it enacted by the Senate and House of Representatives of the 
Malcolm 
United States of America in Congress assembled, 
Baldrige 
National Quality SECTION 1. SHORT TITLE. 
A^fofTgs?" 
This Act may be cited as the "Malcolm Baldrige National Quality 
Decorations, 
Improvement Act of 1987". 
medals, awards. 
. 
, 
15 u s e 3701 
SEC. 2. FINDINGS AND PURPOSES. 
• 
< t i 
^ 
: 
"5 use 3711a 
^^^ FINDINGS.—The Congress finds and declares that— 
note. 
(1) the leadership of the United States in product and process 
quality has been challenged strongly (and sometimes success-
' 
fully) by foreign competition, and our Nation's productivity 
growth has improved less than our competitors over the last two 
•
^ decades; 
(2) American business and industry are beginning to under-
stand that poor quality costs companies as much as 20 percent 
of sales revenues nationally, and that improved quality of goods 
and services goes hand in hand with improved productivity, 
lower costs, and increased profitability; 
(3) strategic planning for quality and quality improvement 
programs, through a commitment to excellence in manufactur-
ing and services, are becoming more and more essential to the 
well-being of our Nation's economy and our ability to compete 
effectively in the global marketplace; 
(4) improved management understanding of the factory floor, 
worker involvement in quality, and greater emphasis on statis-
tical process control can lead to dramatic improvements in the 
cost and quality of manufactured products; 
(5) the concept of quality improvement is directly applicable 
to small companies as well as large, to service industries as well 
as manufacturing, and to the public sector as well £is private 
enterprise; 
(6) in order to be successful, quality improvement programs 
must be management-led and customer-oriented and this may 
require fundamental changes in the way companies and agen-
cies do business; 
(7) several major industrial nations have successfully coupled 
rigorous private sector quality audits with national awards 
giving special recognition to those enterprises the audits iden-
tify as the very best; and 
(8) a national quality award program of this kind in the 
United States would help improve quality and productivity by— 
PUBLIC LAW 100-107—AUG. 20, 1987 
101 STAT. 725 
(A) helping to stimulate American companies to improve 
quality and productivity for the pride of recognition while 
obtaining a competitive edge through increased profits, 
(B) recognizing the achievements of those companies 
which improve the quality of their goods and services and 
providing an example to others, 
ih 
(C) establishing guidelines and criteria that can be used 
by business, industrial, governmental, and other organiza-
tions in evaluating their own quality improvement efforts, 
'1 
and 
(D) providing specific guidance for other American 
organizations that wish to learn how to manage for high 
quality by making available detailed information on how 
winning organizations were able to change their cultures 
and achieve eminence. 
0>) PURPOSE,—It is the purpose of this Act to provide for the 
establishment and conduct of a national quality improvement pro-
gram under which (1) awards are given to selected companies and 
other organizations in the United States that practice effective 
quality management and as a result make significant improvements 
in the quality of their goods and services, and (2) information is 
disseminated about the successful strategies and programs. 
SEC. 3. ESTABLISHMENT OF THE MALCOLM BALDRIGE NATIONAL 
QUALITY AWARD PROGRAM. 
(a) IN GENERAL.—The Stevenson-Wydler Technology Innovation 
Act of 1980 (15 U.S.C. 3701 et seq.) is amended by redesignating 
sections 16,17, and 18 as sections 17,18, and 19, respectively, and by 
inserting after section 15 the following new section: 
"SEC. 16. MALCOLM BALDRIGE NATIONAL QUALITY AWARD. 
"(a) ESTABLISHMENT.—There is hereby established the Malcolm 
Baldrige National Quality Award, which shall be evidenced by a 
medal bearing the inscriptions 'Malcolm Baldrige National Quality 
Award' and 'The Quest for Excellence'. The medal shall be of such 
design and materials and bear such additional inscriptions £is the 
Secretary may prescribe. 
"
O
t
>
) MAKING AND PRESENTATION OF AWARD.—(1) The President (on 
the basis of recommendations received from the Secretary), or the 
Secretary, shall periodically make the award to companies and 
other organizations which in the judgment of the President or the 
Secretary have substantially benefited the economic or social well-
being of the United States through improvements in the quality of 
their goods or services resulting from the effective practice of qual-
ity management, and which as a consequence are deserving of 
special recognition. 
"(2) The presentation of the award shall be made by the President 
or the Secretary with such ceremonies as the President or the 
Secretary may deem proper. 
"(3) An organization to which an award is made under this 
section, and which agrees to help other American organizations 
improve their quality management, may publicize its receipt of such 
award and use the award in its advertising, but it shall be ineligible 
to receive another such award in the same category for a period of 5 
years. 
15 use 
3712-3714. 
15 u s e 3711a. 
President of U.S. 
President of U.S. 
101 STAT. 726 
PUBLIC LAW 100-107—AUG. 20, 1987 
"(c) CATEGORIES IN WHICH AWARD MAY BE GIVEN.—(1) Subject to 
paragraph (2), separate awards shall be made to qualifying organiza-
tions in each of the following categories— 
"(A) Small businesses. 
"(B) Companies or their subsidiaries. 
"(C) Companies which primarily provide services. 
"(2) The Secretary may at any time expand, subdivide, or other-
wise modify the list of categories within which awards may be made 
as initially in effect under paragraph (1), and may establish separate 
awards for other organizations including units of government, upon 
a determination that the objectives of this section would be better 
served thereby; except that any such expansion, subdivision, modi-
fication, or establishment shall not be effective unless and until the 
Secretary has submitted a detailed description thereof to the Con-
gress and a period of 30 days has elapsed since that submission. 
"(3) Not more than two awards may be made within any sub-
category in any year (and no award shall be made within any 
category or subcategory if there are no qualif3dng enterprises in that 
category or subcategory). 
"(d) CRITERIA FOR QUAUFICATION.—(1) An organization may qual-
ify for an award under this section only if it— 
"(A) applies to the Director of the National Bureau of Stand-
ards in writing, for the award, 
"(B) permits a rigorous evaluation of the way in which its 
business and other operations have contributed to improve-
• } •, 
ments in the quality of goods and services, and 
"(C) meets such requirements and specifications as the Sec-
retary, after receiving recommendations from the Board of 
Overseers established under paragraph (2)(B) and the Director 
of the National Bureau of Standards, determines to be appro-
-
• < V 
priate to achieve the objectives of this section. 
In applying the provisions of subparagraph (C) with respect to any 
organization, the Director of the National Bureau of Standards shall 
rely upon an intensive evaluation by a competent board of examin-
ers which shall review the evidence submitted by the organization 
and, through a site visit, verify the accuracy of the quality improve-
ments claimed. The examination should encompass all aspects of the 
^ organization's current practice of quality management, as well as 
' 
•' 
the organization's provision for quality management in its future 
goals. The award shall be given only to organizations which have 
made outstanding improvements in the quality of their goods or 
services (or both) and which demonstrate effective quality manage-
ment through the training and involvement of all levels of person-
nel in quality improvement. 
"(2)(A) The Director of the National Bureau of Standards shall, 
under appropriate contractual arrangements, carry out the Direc-
tor's responsibilities under subparagraphs (A) and (B) of paragraph 
a'j>tr H
R
;
r
f
« (1) through one or more broad-based nonprofit entities which are 
leaders in the field of quality management and which have a history 
of service to society. 
"(B) The Secretary shall appoint a board of overseers for the 
award, consisting of at least five persons selected for their pre-
eminence in the field of quality management. This board shall meet 
annually to review the work of the contractor or contractors and 
make such suggestions for the improvement of the award process as 
Reports. 
they deem necessary. The board shall report the results of the award 
activities to the Director of the National Bureau of Standards each 
PUBLIC LAW 100-107—AUG. 20, 1987 
101 STAT. 727 
year, along with its recommendations for improvement of the 
process. 
"(e) INFORMATION AND TECHNOLOGY TRANSFER PROGRAM.—The 
Director of the Nationsd Bureau of Standards shall ensure that all 
program participants receive the complete results of their audits as 
well as detailed explanations of all suggestions for improvements. 
The Director shall also provide information about the awards and 
the successful quality improvement strategies and programs of the 
award-winning participants to all participants and other appro-
priate groups. 
"(f) FUNDING.—The Secretary is authorized to seek and accept Gifts and 
gifts from public and private sources to carry out the program under property. 
this section. If additional sums are needed to cover the full cost of 
the program, the Secretary shall impose fees upon the organizations 
applying for the award in amounts sufficient to provide such addi-
tional sums. 
^ 
; 1 s 
"(g) REPORT.—The Secretary shall prepare and submit to the 
President and the Congress, within 3 years after the date of the 
enactment of this section, a report on the progress, findings, and 
conclusions of activities conducted pursuant to this section along 
with recommendations for possible modifications thereof.". 
(b) CONFORMING AMENDMENT.—Section 9(d) of such Act (15 U.S.C. 
3708(d)) is amended by striking "or 16" and inserting in lieu thereof 
"16, or 17". 
Approved August 20, 1987. 
LEGISLATIVE HISTORY—H.R. 812: 
HOUSE REPORTS: No. 100-96 (Comm. on Science, Space, and Technology). 
SENATE REPORTS: No. 100-143 (Ctomm. on Commerce, Science, and Transportation). 
CONGRESSIONAL RECORD, Vol. 133 (1987): 
June 8, considered and peissed House. 
Aug. 5, considered and passed Senate, amended. 
Aug. 7, House concurred in Senate amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 23 (1987): 
Aug. 22, Presidential statement.