ML18057A339
| ML18057A339 | |
| Person / Time | |
|---|---|
| Site: | Palisades  |
| Issue date: | 07/12/1990 |
| From: | Beverly Clayton NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION III) |
| To: | Hoffman D CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.) |
| References | |
| NUDOCS 9007190373 | |
| Download: ML18057A339 (2) | |
Text
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UNITED STATES e*
(:;;.
NUCL~AR REGULATORY COMMISSION REGION 111 799 ROOSEVELT ROAD GLEN ELLYN, ILLINOIS 60137 JUL 1 2 1990 Docket No. 50-255 Consumers Power Company ATTN:
David P. Hoffman Vice President Nuclear Operations 1945 West Parnall Road Jackson, MI 49201 Gentlemen:
This letter is being issued to publicly relea$e the Office of Investig~tion synopsis for OI Case Number 4-88-028 (enclosed) regarding procurement and receipt of commercial grade replacement parts and as a follow-up to information received in your 10 CFR 21 report of October 21, 1988.
This completes all NRC actions regarding this issue (AMS No. RIII-90-A-0036).
We will gladly discuss any questions you have regarding this issue.
~;k-~tf!t J..Jf\\
Brent Clayton, Chief
Enclosure:
Synopsis from OI Case No. 4-88-028 c;c w/enclosure:
Mr. Kenneth VJ. Berry, Director Nuclear Licensing
~~ '-- Reactor Projects Branch 2 Gerald B. Slade, General Manager 1Q C Q.i':.D.CJ3.:f RtltS:)..:.:~.
Licensing Fee Management Branch Resident Inspector, RIII James R. Padgett,. Michigan Public Service Commission Michigan Department of Public Health
- ADOCK 05000255 P
' PDC JI
. (j SYNOPSIS.
In November 1988, the Nuclear Regulatory Conunission (NRC) requested an investigation of S-W Controls, Inc. (S-W), Livonia, Michigan, to determine if company officials knqwingly and intentionally provided substandard and/or counterfeit parts to the nuclear industry.
A 10 CFR, Part 21 report was filed by Consumers Power Company (CP), Palisades Nuclear Plant (Palisades), which alleged that parts found in internal Masoneilan-Dresser (M-D) valves had not been manufactured by M-D facilities but had been manufactured by Control Valve Specialists, Inc. (CVS) and Cor-Val.
The nongenuine M-D parts were purchased through S-W, an authorized M-D representative.
The Office of Investigations (OI) investigation determined that S-W knowingly sold secondary source replacement valve parts to Palisades.
However, these parts were all for corranercial grade items only and none were purchased by CP for use in safety related systems.
The parts were subsequently dedicated for use in safety related systems by CP without adequate assurance that the parts would perform a*s required in these systems.
The secondary source industry was found to be a widespread one but one which does not constitute an illegal activity.
OI determined that, since secondary sourcing is conunon, the utilities must accept responsibility for the adequacy of the parts which they purchase both from secondary sources and original equipment manufacturer representatives.
No infonnation was uncovered during the investigation to indicate that S-W intentionally attempted to mislead Palisades into believing secondary source parts were genuine M-0 parts. Neither the parts nor the manila tags attached to them were 1abe11 ed with the M-0 name, 1 ogo, or trademark.
The references on S-W's invoices to a M-D part number i.e., ~02460-000-163, Masoneilan Seat Ring, was an inadvertent error on the part of 'the cl~rk who input the orders to the computer.
The investigation detennined that two distributors were purchasing secondary source parts with unusual requests on their purchase orders.
The requests included a "do not etch" request and a request to sandblast the edges of seat rings to ~imulate investment casting~ Although these parts were not sold to nuclear power pl~nts, the requests appear to have been made in an effort to mislead the end user as to the source of the valve replacement parts.
- Consequently, this practice is being referred to the Federal Trade ColTVTlission for whatever action it deems warranted.
Case No~ 4-88-028 1