ML20003D683

Interim Deficiency Rept Re Breakdown in Quality Program for Procurement Cycle of Purchased Matls & Equipment,Initially Reported on 800613.Revised Program Description & Associated Revised Implementation Schedules Encl.Next Rept by 810924

ML20003D683
Person / Time
Site:	South Texas
Issue date:	03/23/1981
From:	Oprea G HOUSTON LIGHTING & POWER CO.
To:	Seyfrit K NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION IV)
References
10CFR-050.55E, 10CFR-50.55E, ST-HL-AE-638, NUDOCS 8103300339
Download: ML20003D683 (15)

Text

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The Light company n_,,> ou,,-_ m s ,o ,,,, u_,a_ = ~m_co v

March 23, 1981 s Wi$,'

ST-HL-AE-63S - N 'l;D s SFN: V-0530 -( *

'N 2 kw%

Mr. Karl Seyfrit Director, Region IV A Nuclear Regulatory Commission 611 Ryan Drive, Suite 1000

"'f MJ' N M/

Arlington, Texas 76012

Dear Mr. Seyfrit:

South Texas Project Units 132 Docket Nos. STN 50-493, STN 50-499 Fourth Interim Report Concerning the Breakdown in the Quality Program - Procurement Cycle of Purchased Materials On June 13, 1980, Houston Lighting & Power Company notified your office, cursuant to 10CFR50.55(e), of an item concerning a breakdown in the quality program for the procurement cycle of purchased materials and equipment.

Please find attached a revised program descriptien and associated revised implementation schedules for resolving this item. Incorporated into the program description is a status of the review concerning this item. Change bars are provided in the margin to highlight material changed frcm the Third Interim Report. The next report will be submitted by September 24,1981.

If there are any questions concerning this item, please contact Mr. Michael E. Powell at (713) 676-8592.

Very truly yours, r fol1

.S

,/ ' -

f . Execut la, r

.. ve Vi e President

((

MEP/ par Attachments 8103800339

Houston Lighting & Power Compam March 23,1981 ST-HL-AE-638 cc: J. H. Goldberg SFN: V-0530 D. G. Barker Page 2 Howard Pyle R. L. Waldrop H. R. Dean D. R. Beeth J. D. Parsons L. K. English J. W. Briskin R. A. Frazar STP RMS H. S. Phillips (NRC)

J. O. Read (Read-Poland, Inc.)

M. D. Schwarz (Baker & Botts)

R. Gordon Gooch (Baker & Botts)

J. R. Newnan (Lowenstein, Newman, Peis, & Axelrad)

Director, Office of Inspection & Enforcement Nuclear Regulatory Cornission Washington, D. C. 20555 M. L. Borchelt Charles Bechhoefer, Escuire President Chairman, Atenic Safety & Licensing Board Central Power & Light Company U. S. Fuclear Regulatory Comission P. O. Box 2121 Washington, D. C. 20555 Corpus Christi, Texas -78403-R. L. Range Dr. James C. Larb, III Central Power & Light 313 Woodhaven Road P. O. Box 2121 Chapel Hill, North Carolina 27514 Corpus Christi, Texas 78403 ~

R. L. Hancock Dr. Erreth A. Luebke-Director of Electrical Utilities Atomic Safety & Licensing Board City'of Austin U. S. Nuclear Regulatory Commission P. O. Box 1088 Washington,-D. C. 20555 Austin, Texas 78767 T. H. Muehlenbeck Citizens for Equitable Utilities, Inc.

City of Austin c/o Ms. Peggy Buchorn P. O. Box 1088 Route 1, Box 1684

. Austin,_ Texas 78767 Brazoria, Texas 77422 J. B. Poston Pat Coy Assistant General Manager of Operations Citizens Concerned About Nuclear Power City Public Service Board 5106 Casa Oro P. O. Box 1771 San Antonio, Texas 78233 San Antonio, Texas 78296 A. vonRosenberg Betty Wheeler, Escuire Citi Public Service Board Hoffman, Steeg & Wheeler P. O. Box 1771 1008 S. Madison San Antonio, Texas 7P296 Amarillo, Texas 79J01 Brian E. Berwick, Esquire Bernard M. Bordenick, Esquire Assistant Attorney for the State of Texas Hearing Attorney P. O. Box 12548 Office of the Executive Legal Director

-Capitol Station. U. S. Nuclear Regulatory Comission Austin, Texas 78711 . Washington, D. C. 20555

Fourth Interim Report Concerning Breakdown in Quality Program -

Procurement Cycle of Purchased Material 1.0 PURPOSE 1.1 General The purpose of this report is to describe South Texas Project activities ~ associated with the investigative review and veri-fication of the Vendor Control Progran (VCP) for safety-related equipment and material. The completion of these act:vities will result in an unconditional release of the

- safety-related equipnent and materials.

1.2 Background-During a review ~of the Vender Control Program of represent-ative purchase orders, several generic areas of cercern in the procurement cycle were identifiec. These were recorted to the Nuclear Regulatory Commission as follows:

1. Review of -vendors' Quality Assurance Progran prior to award of contracts was: not, in sane-cases, properly documented in accordance with project procedures.

2. Approved design change documents were being utilized by

-vendors -prior to or without issuance of a Purchase Order Change Notice making then contractually binding.

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3. Interface agreements used to define the conmunication link between the South Texas Project and vendor and to identify the processing requirements of vendor-related documents were not, in some cases, imposed or strictly followed.

4. Approved Supplier Deviation Requests were apparently utilized to make generic changes to design specifications without the issuance of required Document Change Notices to those specifications.

-5. Vendor documentation requirements for retention at their facility and submittal to the project for review and approval were not, in some cases, adequately defined and/

or implemented.

6. Trending of vender audit deficiencies and nonconformances to identify repetitive deficiencies, evaluate root causes, and . implement corrective action to prevent recurrences,

'was' not being effectively accomplished.

7. Planned' vendor surveillance inspection activities were not being performed, nor did documented evidence exist to substantiate the acceptability of deviating from these planned ' activities.

8. Verification of personnel certification for individuals performing vendor surveillance activities was not, in sone cases, adequately documented..

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9. Materials received at Site reflected shipment from vendors' facilities other than those locations which had been approved by the project.

Due to the apparent failure to develop and/or implement a totally effective quality progran durirg the procurement cycle, the quality s;atus of purchased safety-related materials an equipment must be reestablished. A controlled-release procedure was initiated at the STP site on June 16, 1980, to provide cuality control verification or required records for safety-related materials and equipment, prior to written release by Quality Engineering to Construction.

2.0 OEFINITIONS For ptrposes of uniform understanding and use throughout this report, the following terms,-activities, and responsibilities are defined:

o Quality Commitments - Any regulatory guide, code, or standard related to the quality design of the equipment or material.

o- Baseline Requirements - Requirements that are or should be in force to-assure that_ quality commitments are met.-

o Vender: Control Program (VCP) Task Force - The group assigned the responsibility of establishing the baseline requirements, reviewing and procurement cycle for conformance thereto, and assuring the implementation of final dispositions. The.VCP Task Force consists of the Reviewing Engineer-Quality (RE/Q) group, 3

the Reviewing Engineer-Tecnnical (RE/T) group, the Investigative Review Group (IRG), and other personnel required for administra-tive, clerical and management support, o Provisional Documents - Documents whicn contain or reflect the requirements still outstanding and needed to comply with quality conaitments. Since these documents are developed by the VCP Task Force, they are tentr.tive and are identified as provisional until reviewed and approved in accordance witn Project procedures.

o Baseline Procurement Package - The documentation, existing or to be developed, whicn describes exactly what is to be procured under a given set of conditions, the essential quality require-ments necessary to meet tnose conditions, and the activities necessary to complete a procurement cycle.

o. Vendor - Any firn or group (also referred to as Supplier,

. Seller, or Subcontractor) with which the Project has a contract for; supplying, fabricating, or manufacturing safety-related equipment or material, or for providing services as related thereto.

o Reviewing Engineer / Technical (RE/T) - Tne reviewing engineer responsible-for . performing the -in-depth technical review.

o Reviewing Engineer / Quality'(RE/Q) - The reviewing engineer responsible for performing the in-depth quality review.

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o Investigative Review Group - An independent third party wnicn performs a review of the procurement cycle Baseline Procurenent Package, o Task Force Manager - The person responsible for the overall coordination and management of the Vendor Control Progran Task Force.

3.0 PROGRAM 3.1 Tecnnical Reference Document Technical deference Docunent TRD 7A700GP007, " Vendor Control Progran For Safety Related Equipment and Materials", has Deen generated and is being used to control all asoects of work associated witn tnis activity: responsi3ilities, interfaces and autnorities, activities, work process logics, review requirenents, format of reports and records, etc.

3.2 Work Process Looic The work process logic for the overall Task Force activity is

-snown'in flowcnart form on Attachment "A", sheets 1 and 2.-

3.3 Engineering and Quality Assurance Engineering Reviews Engineering and Quality Assurance Engineering will concurrent- I ly perform detailed reviews of all documentation pertinent to each purchase order for safety-related engineered equipment and materials. Engineering will perform an in-depth tecnnical review to trace technical comnitments from tne Final Safety.

Analysis Report -.(FSAR) tnrough the existing purchase specification.

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Quality Assurance Engineering will perform an in-depth quality review to ensure that the quality assurance commitments from the Soutn Texas Project QA Program are included, if applicaole to tne purchase order being reviewed. The RE/Q will also develop tne Vendor documentation requirements and identify any support or Vendor documentation necessary to meet or substantiate identified-quality connitnents.

Tne reviews will yield the following: ,

i o Oetermination of the technical and-quality requirements necessary to support quality commitments that were initially contained in the purchase order.

o Uetermination of wnat cnanges in technical or quality require-ments nave been made during the life of the purchase order, or

as of tne initial review date.

o determination-if quality conmitments were supported by approoriate technical and quality requirements in the preser.: '

purchase-order package.

Jo ' Identification of baseline requirements necessary to support tne stated quality commitments and preparation of provisional docu-ments to reflect,tnem.

Tne documentation of the review findings will result in a daseline Procurement Package for each purchase order.

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3.4 Investicative Review Brown & Root has engaged the services of the NUS Corporation (NUS) for the purpose of performing an independent, third-party investigation and verification of the procurement cycle for all safety-related engineered materials and equipment.

The Investigative Review Group shall take the results of the i

reviews performed by Engineering and QA Engineering, and

- determine the quality acceptability of the purchased engineered equipment and services. This investigation will encompass the facilities, records, and responsible personnel necessary to effect a disposition by Brown & Rect relative to i each purchase of safety-related engineered materials and equipment.

Procedures have been generated for this task, to assure a uniform and comprehensive review of the applicable procurement activities. These procedures define the methods that will be utilized for conducting the investigative review and for documenting, reporting, and closing-out the correspondence generated by these investigations.

NUS will be consulted during the resolution of any NUS-iden-

-tified discrepancy 'uy direct interfacing with the affected organization, if required. The satisfactory closure of any

- NUS-identified discrepancy will constitute acceptance of the corrective action undertaken.

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3.5 Resciution of Discrecancies When ciscrepancies are found, they will fall into two general categories: discrepancies in requirements that were included or intended in the existing precurement documents; and discrepancies in requiremerts that were identified in the development of the Baseline Precurenent Packages or in the NUS investigation itself, both types of which were not included in the existing precurement documents.

In the case of discrepancies of the first category, the files will be searched to verify that they were not simply over-locked, then standard project expediting activities will be undertaken to acccmplish timely celd very of the nissing items.

In the case of deficiencies of the second categcry, additional negotiations with the Vendor will eventually be required, but first the existing project documents will be revised, reviewed, and approved to reflect the final requirements which will result in successful disposition of the discrepancies.

3.6 Update Purchase Orders to Final Recuirements This task will be accomplished. utilizing standard project procedures, since at this point of the activity all documents utilized will be those that.have been revised, reviewed and approved in ace;;rdance with project requirements.

3.7 -Correct' Vendors' Deficiencies

~

This task will be accomplished utilizing standard project procedures. However, there will be special;erphasis given to the receipt, identification, and review for-adecuacy of these 8

items in order to facilitate the final resolution and close-out of discrepancies, and to allow for subsequent uncondi-tional release.

3.8 Unconditional Release Following the successful canpletion of the tasks defined in 3.3 through 3.7, above, the safety-related material and equip-ment will be given an unconditional release for continuation of construction activities.

4.0 Schedule of Activities '

Attachment "B" is a bar chart which shows the tentative overall schedule for this activity. Additionally, detailed schedules have been developed which show the estimatec time durations and work flow logic for' the "eview and disposition of-discrepancies of each purchase order for safety-related equipment and material.

Attachment "B" indicates that the Uncenditional Release phase of this activity will be completed by December 1,1981. This only refers to~the disposition lof any discrepancies that are identified, and not to the full implementation thereof. Every effort will be made to . fully implement the dispositions by that time, but there may be ' hardware or documentation shortages that will be received and utilized after that date.

5.0 STATUS The . status, as of February 26, .1981,1was as follows, cni the basis of 166 total purchase ~ orders for safety-related engineered materials and equipment:

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Engineeri ng Re view St arted --------------------- 133 Engineering Review Completed ------------------- 121 QA Engineering Review Started ------------------ 126 QA Engineering Review Completed ---------------- 72 Engr./0A Engr. Concurrence Reached ------------- 38 Submitted to NUS for Investigative Review ------ 8 Returned frca NUS ------------------------------ 0 4

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