Information Notice 2008-04, Counterfeit Parts Supplied to Nuclear Power Plants

Counterfeit Parts Supplied to Nuclear Power Plants

ML093620098
Person / Time
Site:	Hatch, Oconee, Mcguire, Catawba, McGuire
Issue date:	04/07/2008
From:	Michael Case, Tracy G Division of Construction Inspection and Operational Programs, Office of Nuclear Reactor Regulation
To:	Office of Nuclear Reactor Regulation
dpb
References
IN-08-004
Download: ML093620098 (4)

UNITED STATES

NUCLEAR REGULATORY COMMISSION

OFFICE OF NUCLEAR REACTOR REGULATION

OFFICE OF NEW REACTORS

WASHINGTON, DC 20555-0001 April 7, 2008 NRC INFORMATION NOTICE 2008-04: COUNTERFEIT PARTS SUPPLIED TO NUCLEAR

POWER PLANTS

ADDRESSEES

All holders of operating licenses for nuclear power reactors and applicants for combined license

to construct nuclear power plants under Title 10 of the Code of Federal Regulations

(10 CFR) Part 52, Licenses, Certifications, and Approvals for Nuclear Power Plants.

PURPOSE

The U.S. Nuclear Regulatory Commission (NRC) is issuing this information notice (IN) to inform

addressees of the potential for counterfeit parts to enter their supply chains.

Addressees

should

review this information and consider actions, as appropriate, to avoid similar problems. The

suggestions contained within this IN are not NRC requirements; therefore, no specific action or

written response is required.

DESCRIPTION OF CIRCUMSTANCES

Counterfeit Valves

In November 2007, NRC became aware that Hatch Unit 2 had discovered a counterfeit valve

(5" 150# Ladish stop check valves) on the stator cooling water skid. The licensee at Hatch later

determined that it had two counterfeit valves in its facility: one in the warehouse and another one

installed in Unit 2, as the "B" stator cooling water pump discharge stop check valve. The valve

installed on Unit 2 had been in service for 8 months as of the time of discovery. Upon

discovering the counterfeit valve, the licensee began to closely monitor the performance of the

valve and plans to replace it during the next refueling outage in the spring of 2009. The valve

installed at Hatch Unit 2 is being used in a non-safety related system.

Counterfeit Circuit Breakers

NRC is aware that on December 27 and October 30, 2007, and November 16, 2006, the U.S.

Consumer Product Safety Commission (CPSC) had announced a recall of counterfeit circuit

breakers labeled as "Square D" distributed by North American Breaker Co., Inc., Connecticut

Electric and Switch Co, and Scott Electric Co. Inc. The recalled circuit breakers labeled "Square

D" were manufactured in China and distributed from March 2003 through April 2006, February

2005 through August 2006, and May 2005 through May 2006, respectively. The counterfeit

circuit breakers can fail to trip when overloaded, posing a fire hazard to consumers.

A licensee database search indicated that Catawba, McGuire, and Oconee nuclear power plants

had purchased Square D circuit breakers during the suspected time frame. After inspecting their

Square D circuit breakers, Oconee and McGuire Plants confirmed that the Square D breakers

that they had purchased during the suspected time frame were genuine. Catawba Nuclear

Plant, however, could not confirm the authenticity of four of its Square D circuit breakers that it

had purchased during the suspected time frame. Subsequently, Catawba removed these circuit

breakers from stock. The NRC is not aware that the counterfeit circuit breakers have been

installed in safety-related applications. The CPSC reports are available at

http://www.cpsc.gov/cpscpub/prerel/prhtml08/08151.html, http://www.cpsc.gov/cpscpub/prerel/prhtml08/08054.html, and

http://www.cpsc.gov/cpscpub/prerel/prhtml07/07036.html.

BACKGROUND

Over the past two decades, the NRC has issued several generic communications to inform

licensees of counterfeit or misrepresented vendor products. In March 1989, the NRC staff

issued Generic Letter (GL) 89-02, Actions to Improve the Detection of Counterfeit and

Fraudulently Marketed Products (Agencywide Documents Access and Management System

(ADAMS) Accession No. ML031140060). The GL informed licensees of program elements that

are effective in detecting counterfeit or fraudulently marketed products and in assuring the

quality of vendor supplied products. Additionally, in October 1989, the staff issued IN 89-70, and

a supplement in April 1990, Possible Indications of Misrepresented Vendor Products, to inform

licensees of misrepresented vendor products and to provide information related to the detection

of such products (ADAMS Accession No. ML031180470).

DISCUSSION

Although none of the counterfeit items described above were installed in safety-related

applications, these examples demonstrate the need for licensees to remain vigilant and maintain

effective quality assurance programs to reduce the potential for introduction of counterfeit parts

into their supply chains.

In recent years many vendors, including foreign companies, with little to no experience in the

nuclear industry have entered the market to supply parts and components for both safety and

non-safety applications to nuclear power plants. It remains the licensees responsibility to

ensure that all suppliers use standards and processes that conform to US standards. Effective

oversight of suppliers becomes increasingly more important as the nuclear industry begins

construction of new nuclear power plants in the US.

As discussed in GL 89-02, three characteristics of effective procurement and dedication

programs are (1) the involvement of engineering staff in the procurement and product

acceptance process; (2) effective source inspection, receipt inspection, and testing programs;

and (3) thorough, engineering-based programs for review, testing, and dedication of

commercial-grade products for suitability for use in safety-related applications. Licensees may

want to consider the applicability of these characteristics to their programs to reduce the

likelihood of the introduction of counterfeit or fraudulent products into their plants and to assure

the quality of procured vendor products.

CONTACT

This information notice requires no specific action or written response. Please direct any

questions about this matter to the technical contacts listed below.

/RA by TQuay for/ /RA/

Michael Case, Director Glenn Tracy, Director

Division of Policy and Rulemaking Division of Construction Inspection and

Office of Nuclear Reactor Regulation Operational Programs

Office of New Reactors

Technical Contacts: Omid Tabatabai Robert Pettis

NRO/DCIP/CCIB NRR/DE/EQVB

(301) 415-6616 (301) 415-3214 omid.tabatabai@nrc.gov robert.pettis@nrc.gov

Richard McIntyre

NRO/DCIP/CQVB

(301) 415-3215 richard.mcintyre@nrc.gov

Note: NRC generic communications may be found on the NRC public Web site, http://www.nrc.gov, under Electronic Reading Room/Document Collections

CONTACT

This information notice requires no specific action or written response. Please direct any

questions about this matter to the technical contacts listed below.

/RA by TQuay for/ /RA/

Michael Case, Director Glenn Tracy, Director

Division of Policy and Rulemaking Division of Construction Inspection and

Office of Nuclear Reactor Regulation Operational Programs

Office of New Reactors

Technical Contacts: Omid Tabatabai Robert Pettis

NRO/DCIP/CCIB NRR/DE/EQVB

(301) 415-6616 (301) 415-3214 omid.tabatabai@nrc.gov robert.pettis@nrc.gov

Richard McIntyre

NRO/DCIP/CQVB

(301) 415-3215 richard.mcintyre@nrc.gov

Note: NRC generic communications may be found on the NRC public Web site, http://www.nrc.gov, under Electronic Reading Room/Document Collections

DISTRIBUTION:

IN File

ADAMS ACCESSION: ML080790266 OFFICE CCIB:DCIP:NRO Tech Ed. TL:CCIB:DCIP:NRO BC:CCIB:DCIP:NRO BC:CQVP:DCIP:NRO

NAME OTabatabai HChang RLaura RRasmussen JPeralta

DATE 03/18/08 03/10/08 03/19/08 03/20/08 03/24/08 OFFICE BC:CQVB:DCIP:NRO BC:EQVB:DE:NRR D:DE:NRR OGC (NLO) LA:PGCB:NRR

NAME JNakoski DThatcher PHiland SBrock CHawes

DATE 03/20/08 03/24/08 03/24/08 03/26/08 03/26/08 OFFICE PM:PGCB:NRR BC:PGCB:NRR D:DCIP:NRO D:DPR:NRR

NAME DBeaulieu MMurphy GTracy TQuay for MCase

DATE 04/02/08 04/03/08 04/07/08 04/03/08 OFFICIAL RECORD COPY