ML20006B060
| ML20006B060 | |
| Person / Time | |
|---|---|
| Issue date: | 09/25/1989 |
| From: | Baker E, Petrosino J Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML20006B058 | List: |
| References | |
| REF-QA-99901145 99901145-89-01, 99901145-89-1, IEIN-88-097, IEIN-88-97, NUDOCS 9001310332 | |
| Download: ML20006B060 (5) | |
Text
.
l
[
dRCANIZAT10N: CAPITAL WESTWARD SYSTEMS, INCORPORATED i
SAN JAtlNTO, CALIFORNIA REPORT INSPECTION INSPECTION
]
NO.: 99901145/89-01 DATE: September 11-12, 1989 ON-SITE H0' RS: 28 J
f i
CORRESPONDENCE ADDRESS:
Capital Westward Systems, Incorporated 1290 Santa Fe San Jacinto, California 92380 ORGANIZATIONAL CONTACT: Mr. Richard Rush, President TELEPHONE NUMBER:
(714)654-7484 the authorized Masoneilan-Dresser Industries (ystems, Incorporated (CWS) is NUCLEAR INDUSTRY ACTIVITY: Capital Westward S MD) sales representative for Arizona and Nevada.
Prior to 1987, CWS was the authorized MD sales representative for Southern California.
t i
t ASSIGNED INSPECTOR:
lb
[
M f7 I
Joseph J. Petrosino, Reactive Wispection Section ae i
No. 1 (RIS-1)
OTHERINSPECTOR(S):
T. L. Tinkel, Sorialysts Incorporated.
APPROVED BY:
W lu f
E. T. Baker, Chlef, RI5-1, Venoor Inspection Branch trote INSPECTION BASES AND SCOPE:
i A.
BASES: 10 CFR Part 21 and Appendix B to 10 CFR Part 50 B.
SCOPE: This inspection was conducted as follow-up to an October 21 TUF10 CFR Part 21 report regarding non-genuine MD valve. parts that were supplied to the Consumers Power Company for the Palisades nuclear power plant, and as a follow-up to NRC concerns identified during a June 6-9, 1989 inspection at the GEM 0C0 facility in Houma, Louisiana.
PLANT SITE APPLICABILITY:
SanOnofre(50-206/361/362); Diablo Canyon (50-275/323); andPaloVerde(50-528/529/530).
9001310332 900122 01Nb kb
i l
ORGANIZATION: CAPITAL WESTWARD SYSTEMS, INCORPORATED l
SAN JACINTO, CALIFORNIA REPORT INSPECTION NO.: 99901145/89-01 RESULTS:
PAGE 2 of 5 i
I A.
VIOLATIONS:
None B.
NONCONFORMANCES:
None C.
UNRESOLVED ITEMS:
None D.
STATUS OF PREVIOUS INSPECTION FINDINGS:
None. This was the first inspection that has been performed at CWS by the NRC.
E.
INSPECTION FINDINGS AND OTHER COMMENTS:
1.
Entrance and Exit Meetings:
4 The scope of the inspection, as stated above, was discussed in part, with CWS representatives during the entrance meeting on September 12, 1989. At the conclusion of the NRC inspection on September 13, 1989 the findings and observations from the inspection were stated, as were the concerns previously identified at GEM 0C0 regarding virbro-etching of secondary source valve internal replacement parts.
===2.
Background===
4 On October 21, 1988, Consumers Power Company (CPCo) reported a problem at its Palisades nuclear power plant to the NRC in accordance with 10 CFR Part 21 regarding MD valve internal replacement parts (valve trim).
This problem is discussed in detail in NRC Information Notice 88-97. CPCo identified that it had ordered and received non-genuine MD valve trim components from S-W Controls, Incorporated (SW), even though SW is the authorized MD sales representative for the Palisades plant.
Investigations by both the NRC and CPCo revealed that the non-genuine parts were secondary source parts which came fromeitherCor-ValorControlValveSpecialists(CVS).
Therefore, the NRC scheduled inspections at some secondary source manufacturers including CVS and GEMOCO, both located in Houma, Louisiana.
I
c ORGANIZATION: CAPITAL WESTWARD SYSTEMS, INCORPORATED SAN JACINTO, CALIFORNIA REPORT INSPECTION NO.: 99901145/89-01 RESULTS:
PAGE 3 of 5 I
l On June 6-9, 1989, during an NRC inspection at the GEMOCO facility the inspectors noted that GEMOC0 has a procedure (under its 10 CFR Part 50, Appendix B program) that requires its parts 1
be vibro-etched with " GEM" or "GEMOC0" and the part number, The only exceptions to tnis GEM 0C0 requirement are:
(1) if the i
part is too small to be etched, or (2) if the GEM 000 customer specifically requests that his ordered parts not be etched.
l During the GEMOC0 inspection, the NRC inspectors also observed a unique note on several of the internal GEM 0C0 " Finish Work Order" (FWO) forms which stated "do not etch".
These notes were limited to purchase order (PO) packages from CWS and one other distributor (Process Valve and Equipment Compony).
Consequently, the NRC inspector asked the GEM 0C0 representatives why the GEMOC0 FWO forms contained this note when the CWS P0's did not specifically state this requirement. The inspector was told that both of these customers specifically requested that their ordered parts not be identified with GEM 0C0 markings.
As a result of this finding)at GEMOCO, a CWS inspection was scheduled as a follow-up to:
(1 determine whether any of the unmarked GEMOCO parts were supplied to NRC licensees, and (2) determine the reason why CWS instructed GEMOCO parts to not be identified with GEM 0C0 markings.
3.
Discussions Regarding Distribution of Secondary Source Parts The inspectors explained to the CWS President how an NRC licensee could buy conmercial grade (CG) products, even for its fossil plants, and at a later date transfer and dedicate the CG products for use in a nuclear sefety-related system, sometimes based only on a part number comparison.
Additionally, the inspectors asked the CWS president whether or not the NRC licensee procurement personnel are typically aware that they are receiving non-genuine (secondary source) parts. Mr. Rush stated that the utility personnel are aware that they are receiving secondary source parts.
However, the inspectors noted that the Southern California Edison (SCE) P0s which they reviewed did not specifically request secondary source parts. The inspectors then asked Mr. Rush how CWS notes this to their customers. Mr. Rush informed the inspectors that this is verbally provided to the utility customers.
However, this could not be verified by the inspectors during subsequent discussions with SCE personnel. The inspectors then esked Mr. Rush which CWS personnel would instruct GEMCC0 to not i
etch its parts that CWS ordered and why. Mr. Rush stated that he 1
didn't know who at CWS would have made that request. He also stated that it may have been a CWS employee who was currently out of
)
l
s
'6RGAN12AT10H:CAPITAL WESTWARD SYSTEMS, INCORPORATED SAN JACINTO, CALIFORNIA i
REPORT INSPECTION NO.: 99901145/89-01 RESUL15:
PAGE 4 of 5 the office that made the request to GEM 000.
The inspector asked Mr. Rush if he knew why someone would request GEM 0C0 to not etch their parts and he stated that he could not think of any reasons why CWS would make such a request to GEMOCO, if CWS did make such a request.
4.
Document Review CWS stated that they have only conducted business with two NRC licensees, SCE and Arizona Public Service Company (APS). The inspectors reviewed approximately 260 safety and non-safety related procurement packages regarding SCE and APS orders.
The reviewed packages also included 40-60 P0s f rom SCE fossil plants.
Also reviewed were CWS P0s to GEM 000 from 1985 to present.
The procurement packages contained documents such as:
(1)CWScustomer P0s, (2) CWS P0s to its source, (3) internal CWS documents and notes, (4) manuf acturer packing invoices to CWS, (5) Certified Material Test Reports (CMTR), (6) certificates of compliance, (7) bill of lading, and (8) other related documentatler.. The CWS P0s to GEM 000 were observed to state in the margin of the P0, the CWS custorer to whom the order of GEMOCO parts was going.
It was also noted that the majority of secondary source parts that CWS ordered from GEM 000 were for MD valve trim parts. During the review of' the CWS P0s to GEMOCO, the NRC inspector identified two orders that went to San Onofre and numerous orders that went to SCE fossil power plant facilities.
However, no GEM 0C0 secondary source parts were found to have been supplied to APS's Palo Verde power plant or the Diablo Canyon power plant.
The majority of the gen 0C0 secondary source parts were observed as going to commercial customers such as: (1)Kelso,(2)SDG&ECarlsbad,(3)
Rocketdyne (4) Witco Chemical (5) Coolwater Coal & Gas, (6)
OilfieldControls,(7)SCE-ElSequedo,(8)SCE-Mohaveand(9)
Sycamore Cogen.
No additional information was requested from CWS regarding these comercial customers.
The inspectors' review of the SCE and APS related documents indicates that CWS procured all of the ) arts / components that they supplied to Palo Verde and SONGS from tie original equipment manufacturer (OEM) or an OEM representative, except for two nonsafety-related orders for MD valve trim pt.rts that were supplied to SONGS. The two applicable SCE P0s SCE PO No.
8 HON 5020, dated 11/14/85, and SCE P0 No. 8H026026, dated 2/25/86, were subsequently verified with SCE personnel to have been used in a nonsafety-related system.
Further review of the two SCE P0s, t
l
)
i
i
'DRGANIZATION: CAPITAL WESTWARD SYSTEMS, INCORPORATED SAN JACINTO, CALIFORNIA REPORT INSPECTION NO.: 99901145/89-01 RESULTS:
PAGE 5 of 5 l
l in conjunction with a review of the associated CWS P0s to GEMOCO, f
indicates that there were only a total of three secondary source parts that were supplied to SCE under the two orders.
In conclusion, based on a review of records it appe,, that CWS has consistently supplied Palo Verde and SONGS with Otr'.
parts / components for their safety and nonsafety-related orders with the exception of the nonsaf ety-related orders discussed above.
5.
Meeting with SCE Personnel At the conclusion of the CWS inspection on September, 1989, the two inspectors met with SCE representatives and NRC Region V resident inspectors. The meeting took place at the SONGS facility i
for the purpose of:
(1) determining whether any of the secondary i
source parts received by SCE on the above discussed P0s were dedicated and used in a safety system, and (2) to share information obtained during the CWS inspection with SCE personnel. The SCE and NRC Region V personnel are listed below in Section F.
F.
PERSONS CONTACTED:
R. Rush, President Capital Westward Systems, Incorporated W. E. Hobert, Contracts Capital Westward Systems, incorporated T. Herring, Procurement Supervisor Southern California Edison SONGS)
- 5. Paranandi, QA Supervisor Southern California Edison SONGS R. Baker, QA Engineer Southern California Edison SONGS W. Barney, Engineer Southern California Edison SONGS C. W. Caldwell, SRI-SONGS NRC, Region V A. Hcn, R1, SONGS NRC, Region V
)
___