ML20008E581
| ML20008E581 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 02/10/1981 |
| From: | Mattia M, Zemper R NRC OFFICE OF ADMINISTRATION (ADM), NUCLEAR ENERGY SERVICES, INC. |
| To: | |
| Shared Package | |
| ML20008E577 | List: |
| References | |
| CON-NRC-03-81-115, CON-NRC-3-81-115 NUDOCS 8103090229 | |
| Download: ML20008E581 (12) | |
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ATTN: William fianion strafsd> to A::stS5 5Mo*N IN eLCCt l
As specified in the attachec L
Billina Instructiam
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i 2. rAyucut witt se SADe av coort U.S. fiuclear Regulatory Commission Office of the Controller Washington, DC 20555 C to U S C. 2334 (.)(
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- 13. THIS PeoCUREu2NT WAS ADvitTISED,8 NEGOTIATED, PUl' JANT To; h 4 3 U.S C. 252 (cM 0 1
If., ACCoVNT24G AND APPROPRIATION DATA 17.
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20-16 13.
QU A NTif, UNIT UNIT PalCE AmoWNT SUPPtif5/$ffVICES ITim NO.
Analysis and Testinony on Cost Estimate Reasonableness - TMI-l Restart.
Estimated Cost:
$17,455.22 Fixed Feq:
1,484.5a Cost-?lus-Fixed-Fee:
$18,949.75 Cost-Plus-Fixed-Fee Contract Fully Funded TOTAL COST-PLUS-FIXED-FEE 5TUET6 25-CONTRACl]NG OFi1CER ll'lLL CO.\\tPLETE BLOCK 22 OR 26 AS APPLICABLE 2s.
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Director of 14arketing 2-5-81 fiary Jo Mattia l '? T//
Ronald R. Zemper
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Page 2 of U2 e-i TABLE OF CONTENTS This Contract ~ Consists of:
1.
Cover Page 2.
Table of Contents 3.
Schedule ARTICLE I Statement of Work ARTICLE II Period of Performance ARTICLE III Government Furnished Material ARTICLE IV Consideration and Payment Overhead / General and Administrative Rates ARTICLE V Provisions Applicable to Direct Costs ARTICLE VI Private Use and Protection of Unclassified Government ARTICLE VII Information ARTICLE VIII Technical Direction ARTICLE IX Key Personnel ARTICLE X Project Officer ARTICLE-XI Travel Reimbursement ARTICLE XII Order of Pre'cedence ARTICLE XIII General Provisions / Alterations 4.
Attachments Appendix A -
General Provisions (Rev. 11/80)
Appendix B -
NRC Manual Chapter 3202 Appendix C -
Billing Instructions for Cost-Type Contracts v
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Page 3 of 12 ATTAC!."El47 1 s:
STATE"Et:T OF !!0RK g p, y,
2
Title:
Analysis and Testimony on Cost Estimate Reasonableness -
TMI-1 Restart i
Background:
By order dated August 9, 1979, the Commmission directed that certain j
specific issues be addressed by the parties (including the fiRC staff) in i
the TMI-l restart proceeng.
All of those. issues are to be considered by the ASLB in its recoa.endation to the Commission as to whether or not i
the TMI-l reactor should be allowed to resume commercial operation.
- 6. 3 i
issue that is to be addressed by the staff (and the other parties) is the licensee's " financial qualifications to the extent relevant to his 6
ability to operate TMI-l safely." The Commission provided further guidance on this issue by order dated March 6, 1980.
It said that the ASLB should examine "whether Metropolitan Edison possesses the financial resources necessary to safely operate Unit 1 in addition to cleaning up Unit 2."
The staff interpreted "in addition to cleaning up Unit 2,"
to mean that the staff must review the ability of the licensees to finance the Unit 2 cleanup costs as well as the Unit 1 operating costs.
Such a review must necessarily include a determination of the reasonableness of the licensee's TMI-2 cleanup cost estimate against projected sources of funds.
The Commission's desire that the staff make such a determination was positively confirmed in a discussion with the OGC author of the March 6, 1980 order.
Objective The objective of this contract is to obtain the expert technical assistance of William J.' Manion, to assist the staff in preparing financial qualifications. testimony for the TMI-l Restart Proceeding.
Mr. Manion is to arrive at a fully justified professional opinion and, to testify as to whether or not the licensee;;' estimated cost of TMI-2 cleanup i
is reasonable.
L Work Requirements Task 1.
Review the following documents:
l 1.
Summary and detailed estimate of the cost to cleanup TMI Unit 2.
2.
Board documents related to the financial qualifications of GPU.
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3.
Intervenor contentions and interrogatories related to the t
restart proceeding.
Documents related to financing the cleanup provided by the interested state governments (Pennsylvania and flew Jersey).
4.
Published TMI investigation reports:
Rogovin; GA0; Subcormittee on fluclear Regulation; President's Cormission.
i 5.
Staff's SER, SER Supplements, and testimony on GPU's financial qualifications.
6.
Other pertinent documents or information you are cware of that may have a bearing on this matter.
This should include any new evidence that may be introduced by other parties to the l
proceeding.
Task 2.
Relying on your personal knowledge of, and previous work in i
estimating nuclear facility decontamination and decommissioning costs, assess the reasonableness of the licensees' estimated cost.
Task 3.
Prepare draft written testimony for review by flRC staff as a result of your efforts in Task.1 and 2.
Task 4.
Revise your testimony where appropriate in accordance with !!RC staff comments and as a *esult of any revisions to the cost estimate made by the licensees.
Task 5.
Testify on behalf of the !!RC staff in the TMI-l restart proceeding.
Your testimony will be considered by the Commission in their decision on the restart.
3eportina Reouirements Submit one reproducible copy of the draft and of the final written testimony prepared under Tasks 3 and 4 to the Project Officer with a copy to the Contracting Officer.
~
Monthly 'oroaress letters shall be submitted to the Contractino. Officer (CO) and the Project Officer (PO), one co.py each,.within 10 days foilowing the end of the~ period reported on and include:
Funds committed during th'e previous month
- and cumulative a.
expenditures to date, b.
Brief description of the work accomplished in the month, and projected activity for the next month.
Preliminary or interim results, conclusions or trends or other c.
items thougiit to be of interest to the fiRC.
d.
Any problems or delays which may have been experienced or can be foreseen and specific reco.mendations for action to f acilitate
^,
the execution of the contract work.
m Meetinos and Travel The contractor, represented by William J. Manion, may be required to consult with the staff on his delibcrations in Cethesda, MD after the draft testimony is submitted and/or after the final testimony is submitted.
In addition, trips to the licensees' offices (Parsippany, NJ), to the plant site (Middletown, PA), and to the ASLB hearing (Harrisburg, PA) are anticipated.
Estimated travel costs are $1,000.
Milestone Reouirements Tasks 1 thru 4.
Complete draft testimony and submit to NRC staff by March 9,1981,-
Complete final written testimony by March 30, 1981.
Task 5.
Testify in the THI-l restart hearing approximately April 1981.
(Note: Any significant slippage in the hearing schedule may delay the
~
above milestone for submittal of testimony.
If so, you will be notified by the NRC staff.)
ARTICLE II PERIOD OF PERFORMANCE s
The period of performance shall be from the effective date of contract thru October 15, 1981 at which time all work shall be completed and all reports shall have been delivered'to the NRC as required by Article I..
above.
ARTICLE III GOVERNMENT FURNISHED MATERIAL The documents referenced in Task I will be supplied to the contractor under separate cover at the beginning of the contract.
If the above material, suitable for its intended use, is not so delivered to the contractor, the Contracting Officer shall, upon timely written request made by the contractor, and if the facts warrant such action, equitably adjust any affected provision of the contract pursuant to the procedures of the " Changes" clause of the contract.
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Page 6 of 12 ARTICLE IV - CONSIDERATION AND PAYMENT (Fully Funded CPFF)
A.
Estimated Cost, Fixed Fee and Obligation 1.
It is estimated that the total cost to the Government for full perform-ance of this contract will be S18,949.76
, of which the sum of S 17,465.22 represents the estimated reimbursable costs, and of whicn S 1,484.54 represents the fixed. fee.
I 2.
Total funds currently available for payment and allotted to this con-tract are $ 18,949.76 of which $17,465.22 represents the estimated reimbursable costs, and of which $1,484.54 represents the fixed fee.
3.
It is estimated that the amount currently allotted will cover performarce of Phase 1 which is scheduled to be completed nine (9) months from the effective date of the contract.
B.
Payment The Government shall render payment to the contractor in approximately thirty (30) days after submission of proper and correct invoices or vouchers.
Additional provisions relating to payment are contained in Clause 5.1-3 of the General Provisions hereto.
ARTICLE, V - OVERHEAD / GENERAL AND ADMINISTRATIVE RATES A.
Pending the establishment of final overhead rates which shall be negotiated based on audit of actual costs, the contractor shall be reimoursed for allcwable indirect costs hereunder at the provisional rate of 57 percent of direct labor costs for William J. Manion and 115 percent of direct labor costs for AEI and EIII categories of labor.
B.
Pendino the establishcent of final general and administrative rates which shall be negotiated based on audit of actual costs, the contractor shall be reimbursed for allowable indirect costs hereunder at the provi-sional rate of 22 percent of total direct cost and overhead.
C.
Notwithstanding A. and B. of this Article, said provisional overhead and G&A rates may be adjusted as aopropriate during the term of the contract upon the acceptance of such revised rates by the Contracting Officer.
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Page 7 of 12 ARTICLE VI PPOVISIONS ADPLirABLE TO DIRFCT COSTS Items Unallc. cable Unless Otherwise Provided Notwithstanding Clause No. 5 -- ALLOWABLE PAYMENT, And Clause No.10--
r i
SU3 CONTRACT, of the General Provisions of this contract, unless 1
authorized in writing by the Contracting Officer, the costs of the following items or activities shall be unallowable as direct costs:
1.
Fees for Consultants 2.
Overtime; shift or incentive payments 3.
All travel outside of Canada and the United States and its territories and possessions.
4.
Maintenance agreements, service contracts, or maintenance of Government equipment.
ARTICLE VII - PRIVATE USE AND PROTECTION OF UNCLASSIFIED GOVERN"ENT INFORMAT!S*:
A.
Except as specifically authorfied by this contract, or as otherwise approved by the Contracting Officer, records, data, information, documents and material developed or acquired by or furnished to the contractor in the performance of this contract shall be used only in connection with the work performed i-under this contract. The contractor shall, upon completion or termination of this contract, transmit to the Commission all records or other information, documents and material, and any copies thereof, furnished by the Cor, mission to the contractor in the performance of this contract.
B.
The contractor shall be responsible for safeguarding from unauthorized disclosure any information or other documents and material exempt frca public disclosure by the Commission's regulations and made available to the contractor in connection with the performance of the work under this contract.
The contractor agrees to conform to all regulations, requiraments, and direction of the Cornissicn with respect to such material.
.C.
The contractor's duties under this clause shall not be construed to limit or affect in any way the contractor's obligation to conform to all security regulations and requirements of the Commission pertaining to classified information and material.
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ARTICLE VIII TECHNICAL DIRECTION Performance of the work under this contract shall be subject to the A.
technical direction of the NRC Project Officer named in Article VIII of this contract. The term " Technical Direction" is defined
.o include the following:
1.
Technical direction to the contractor which shifts work emphasis between areas of work ur* tasks, requires pursuit of certain lines of inquiry, fills in details or otherwise serves to accomplish the contractual scope of work.
2.
Providing assistance to the Contractor in the preparation of drawings, specifications or technical portions of the work ds cription.
3.
Review and where required by the contract, approval of technical reports, drawings, specifications and technical information to be delivered by the Contractor to the Government under the contract.
B.
Technical direction must be within the general scope of work stated in the contract.
The Project Officer does not have the authority to and may not issue any technical direction which:
1.
Constitutes an assignment of additional work outside the general secpe of tha contract.
2.
Constitutes a change as defined in the clause of the General Provisions, entitled " Changes."
3.
In any way causes an increase or decrease in the total estirated contract cost, the fixed fee, if any, or the time required for contract performance.
l 4.
Changes any of the expressed terms, conditions or specificat ons of i
the contract.
ALL TECHNICAL DIRECTIONS SHALL BE ISSUED IN URITING BY THE PROJECT O C.
OR SHALL BE CONFIFMED BY SUCH PERSON IN WRITING WITHIN TEN (10) WORKI!;G DAYS AFTER VERSAL ISSUANCE. A copy of said written direction shall be submitted to the Contracting Officer.
The Contractor shall proceed prcmptly with the performance of technical directions duly issued by the Project Of.~icer in the manner prescribed by this article and within such person's authority under the provisions of this article.
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Tage 9 of 12 If, in the opinion of the Contractor, any instructica cr dircction ir.:d by the Project Officer is within one of the categories as definad in L(1) through (4) aoove, tne Contractor shall not prccc:d but shall notify the writing within five (5) working days after the Contracting Officer i.
receipt of any such instruction or direction and shall request the Contractir9 Upon receiving such notificnien Officer to modify the contract accordingly.
from the Contractor, the Contracting Officar shall issue an appropriate in the contract modification or advise the Contractor in writing that, Contracting Officer's opinion, the technical direction is within the scope of this article.and does not constitute a change'under the Changes Clause of the contract.
Any unauthorized commitment or direction issued by the Project Officer may D.
result in an unnecessary delay in the Contractor's performance, and may even result in the contractor expending funds for unallowable costs under the contract.
A failure of the parties to agree upon the nature of the instruction or E.
direction or upon the contract action to be taken with respect thereto shall be subject to the provisions of the contract clause entitled " Disputes".
ARTICLE IX ~ KEY PERSONNEL Pursuant to this ARTICLE (Key Personnel), the following individuals are considered to be essential to the successful performance of the work hereunder and shall not be replaced without the prior approval of the Contracting Officer.
In such ev:nt, the contractor agrees to substitute persons possessing substantially equal abilitics and qualifications satisfactory to the Contracting Officer.
William J. Manion ARTICLE X c PROJECT OFFICER Jerome Saltzman is hereby designated as the Contracting Officer's authorizec representative (hereinafter called Project Officer) for technical aspects of this c:n-tract. The Project Officer is not authorized to aporove or recuest any action whicn results in or could result in an increase in contract cost; or terminate, settle any claim or discute arisino under the contract; or issue any unilateral directive wnatever.
I The Project Officer is responsible for: (1) monitoring the Contractor's technical l
progress, including surveillance and assessment of performance, and recommending to the Contracting Officer changes in requirements; (2) interpreting the scope of work; (3) l performing technical evaluation as required; (4) performing technical inspections anc l,
acceptances required by this contract; and (5) assisting the Contractor in the resolu-l tion of technical problems encountered during performance. Within the purview of this l
authority, the Project Officer is authorized to review all costs requested for reim-bursement by contractors and submit recomendations for approval, disapproval, or suspension for supplies, services required under the contract.
The Contracting Office-f is responsible for directing or negotiating any changes in terms, conditions, or amounts l
cited in the contract.
i For guidance from the Project Officer to the Contractor to be valid, it must: (') be consistent with the description of work set forth in the contract; (2) not constitbte new assignment of work or change to the expressed terms, conditions or specifications incorporated into this contract; (3) not constitute a basis for an extension to the period of perform 6nce or contract delivery schedule; "
as stated above, (4) not castitute a tusis for any incrcase in the centract cost.
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Page 10 of 12 (h) Maiver.
A request for uaiver under this cicuse shall be directed S uriting through the Contracting Officer to the Executive Director for 0,xrch:;;
(EDD) in accordance with the procedures outlined in 020-1.5411.
I ARTICLE XI. TRAVEL RElf!5URSEl'ENT The contractor will be reinbursed for the fo11cwing reasonable domestic tr: 21 costs incurred directly and specifically in the performance of this centract and accepted by the Contractinq officer:
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1.
Per die:n shall t,e reicbursed at a daily rate not to exceed $
The per diem amount is co: prised of lodging expcase plus $
2_/.
for meals and miscellaneous expense.
The cost of gavel by privately odned automobile shall be reimbursed at the 2.
rate of
(-
per mile.
3.
The cost of travel by rented' automobile shall be reimbursed on a reascnabic, actua,1 expense basis.
4.
All cordnon carrier travel reimbursable her eunder shall be via economy class rates when available.
If not available, reimbursem2nt vcuchers will 1 2 annotated that econcriy class acco modations were not available.
First-cic:s air trcvel is not authorized.
5.
Receipts are required for co.T. mon carrier transp6rtabon, lodging and miscellaneous items in excess of $15.00 83 l
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1/ Current rate is $75.00 for the District of Columbia and Montgomery County, MD; $50.00 for Parsippany, N.J., and Middletown PA; and $58.00 for Harrisburg, PA 2/ Current rate is $22.00 y Current rate is 22 1/2c
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/.RTICLE XII - Order of Precedence In the event of an inconsistency between the terms and conditions of the contract, the inconsistency shall be resolved by giving precedence in the following order:
1.
The SCHEDULE:
(f;ote: - flothing contained in the Contractor's proposal, whether or not incorporated by reference, shall constitute a waiver of any terms or conditions provided in the SCHEDULE.)
2.
The General Provisions l
3.
Other terms and conditions of the contract, whether incorporated by 1-reference or otherwise.
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j ARTICLE XIII - GENERAL PROVIS10'IS/ALTERATIO:(S_
A. This cor. tract is subject to the attached provisions of Appendix A, General i-Provisicns, entitled " Cost Type Pesearch and Develop:.ent Contracts 1.'ith Cocc.arcial Organizations," dated 11/80..__
J B. Alteratio'n_ ' The following clause is hereby added to the general provisions::
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l UTILIZATIC'i 0F WO"Eti-O',0;ED BUS!!;ESS C0!;CER!iS (0.er $10,000)
It is the policy of the United States Govcrnment that women-cwned (a) businesses shall have the taxirum practicable opportunity to participate in the performance of contracts awarded by any Federal agency.
The Contractor agrees to use his best efforts to carry out this (b) policy in the award of subcontracts to the fullest extent consistent As used in this with the efficient performance of this contract.
contract, a " woman-eined business" concern means a business that is at lease 51% owned by a woman or uccen who also control and operate
" Control" in this context ceans exercising the power to make it.
policy decisions.. " Operate" in this context means being actively
" Women" mean all women involved in the day-to-day management.
business owners.
(reference Office of Federal Procurement Policy Letter 80/4 dated 4/29/80)
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