ML20024B027

Submits Response to Discussions Held During 661027 & 1107 Meetings Re Terms,Conditions & Previous Correspondence Concerning Proposal Re NSSS A4-7B Contract Terms

ML20024B027
Person / Time
Site:	Crane
Issue date:	11/14/1966
From:	Favret L BABCOCK & WILCOX CO.
To:	Neidig R METROPOLITAN EDISON CO.
References
TASK-*, TASK-GB GPU-0186, GPU-186, NUDOCS 8307020052
Download: ML20024B027 (9)

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4.3 November 14, 1966 a.

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Metropolitan Idison Co=pany y-2.'

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Attention:

Mr. Ralph Neidig Re: Our Proposal Nucles.: Steam j

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.. : -. 3N Supply System A4-73 N.

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Terms of. Contract

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Dear Mr. Neidig:

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In accordance wi-h yet9 request'of October 27, 15d6'as C-.

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d November 7, 1966, we sub=it the company response.to the discussions i

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held during these meetings concerning.he Company's Ter=s and

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Conditions and previous correspondence.on.this.. subject.;.

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Attached is the Co=pany's revised Changes" clause, dated- ~---^-

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November 14, 1966, Section 15 7 of *ts General Conditions modified 7

to incorporate the following changes provisions:

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3y Purchaser

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AEC require =ents and period of financial responsibility.

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Attached are revised Design Criteria pages for the A4-73 proposal, I-4

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and the ComparJ has agreed to sub=it additional Design Criteria.

O The electrical design criteria in attached Table 6-2 give c

emergency power requirements for Cc=pany supplied equipment and.

L this includes.he margin of 1200 Kii for possible AEC requirements

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a for additional core cooling equi' ment. Thus the statement quoted

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j in our letter of September 14, 1966 regarding emergency power o

margin is superceded by criteria in Table 6-2.

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3 The Company a= ends its proposal'Ak-73, accepting in lieu of the 4

hypothetical site data sub=itted in the original specifications, i.

the site data for Three Mile Isisad Site as submitted.o the p

Company in Pickard & I,cwe's,, report and Gilbert's report on geology, l

.,,y both dated Septa =ber 7,1960 with the following understanding:

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If additional costs are incurred to reinforce the boric

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"he Cc=pany preposal is based upcn furnist.ing Diamend control red drives which must be satisfactorily tested, and accepted by he e-'

AIC Divisica of Reacter Licensing by January 1963. In the event i<h.

..j that this is not. accomplished, the Company agrees to furnish an

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alternate drive which is mutua n y acceptable and at no additional p ;

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cess to he Purchaser. If the Diamond drive is satisfactorily W.

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tested and accepted by the AIC, Met. Id. reserves the right to t,~,-

change to a mutuany acceptable drive o.her han Diamond, charing i,i.1-the differential cost- (increase or decrease) equally with the 1.__ Company between ee Diamond..ane =1 e=

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In our fabricatics bids, A4-7, dated August 15, 1966, the Co=pany M

reserves.the right to make fuel design changes necessary to meet p4.4 its warranty and licensability obligations.

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In the August 15, 1966 base bid (warranty section 15 21) a n W

other design changes shall be subject to the Purchaser's approval.

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-*i In the August 15, 1966 alternate bid (~darranty Section 15 22)

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--.. all other design changes are covered in the revised Changes m

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..f _6. _Por Core 1, BW agrees to adjust its schedule of withdrawing

. special nuclear material from the. AEC.;;o_ correspond with delays.

T4.f in plant schedules which are due to factors other than those E..%

referenced in the Company's Delay in Perfor=ance Clause. In the N'.

event that delays in the schedule are requested by Met. Ed.,

i the Company is agreeable to negotiate. such changes in the schedule if2 with an equitable adjustment in the contract price for any cost

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so incurred as referenced in Section 15.21.8, paragraph 2, and d.r.

the Company will use its best efforts to minimize such costs, p',,.-

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For reload fuel batches (fabrication bid, 2335 Nat core), 3 a 2

win guarantee the time of shipteent and period of fabrication b.-

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of fuel provided that; (1) notice is given twelve months prior

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to scheduled fuel shipment of the last assembly in the batch, g '-l (2) uranium as Uy6 is delivered to.the Company as follows:

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as.UFs Shipment c.f Last E.-

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.. 7 and, (3) time of perfor=ance is ad'usted due to factors referenced in

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the Company exceeds the fabrication period, the Company shall bear g,.

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its proposal and warrant the uranium. requirements and losses for t.E..;

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i a the 2335 Mit core (fuel cycle warranty) as it did for the 2200 b@.+

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2e company sub=its herein its reviged Warranty clause dated

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.j alternate fuel o"fering dated September 30,1 6 to 90 days - " ~ ~-~ ~~

rvJrl subsequent to award of contract or notice to ;rcceed, whichever

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first occurs.

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.. in the opinion cf.he CCEPAUT, adversely affect safety or the CCUA3Y'S warranty obliga:ic=s,. and provided tha

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prices and s.chedules are equitably adjusted to reflect any

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changes in ::s; or ti=a of perf=r=ance.

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2e CQUANY =ay elect to maYe changes in.he equipment to be b

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. supplied hereunder without cos: to.he P SCHA!n and a u g

such cha=ges, exclusive of changes required to meet the g

guarahteed perfc*mance and the warranty provisions of the b

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M CQUANY'S Pr:posal, shan be su Ject to review ty.he PURCHASD d

and PUR*SM disapproval provided that the proposed change *

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-7 would not have adverse affects on plant operability or avail-0 ability.or upon operating and maintenance ces:s er upon balance

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. ll:f prior to the time of acceptance as referenced in Section 13 -=--m J

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7,..1,-y ~;----of..the CCXPAK!'S proposal,;.modificati.or.s.. in*.he. equipment _..

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furnished"cr1.n~the' Design Criteria supplied by the COXPANY, are i t.-

4 req ' red as a result.cf requirements.cf the AIC to secure the -- * -

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e required AIC actions for construe:1cn of the plant and cperation

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cf the plan: in each case up to 2e time cf accep-ance,.hc i

CCEPAaY shan assume the cost of modifying the equipmen:

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supplied hereunder. Fur.her,.he COMPART shan share equany L.

wi.h.he PURCEASIR the first one million donars ($1,0cc,coc.Cy td:

N of.he cost of sodifica-'.or.s of.he talance of plan equipmen-7 and structures required as a result of any such requ're=ents Of T.*;.

.he AIC and shall assu=e.he total cost of such mod

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excess of his amount it, but only if, the CCMPm supplied the

J' Design Criteria for the talance of plant equipment and structures

.and such modifications are caused by a change in such Design

.5-Criteria.

'l'hese* Design Criteria shan he specificany designated p

in'.he COEPANT'S proposal, as supplacented or a= ended in accordance with CCEPANY'S le: er dated Nove= er 14,196o, and shan te based F

where appropriate, on the si.e data referenced in the proposal as y;.

amended by COMPANT'S letter dated November 14, 1956. In the c

-q event of changes in these site data, the Design criteria shan te F

suh'ect to revision by ne COMPANY to reflect properly such j

changes in these site data, and the COMPANY shan not be liable

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for costs of =cdifying such other equip =ent and structures i

resulting fro = such changes *n site data. If such revisi ns K

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affect equipment to be supplied ty the COMPANT, the centract prices g

shall te equitably adjusted, upward or downward, to reflec-t n.

changes in costs,due to the revisiens. -

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p, AE-73 NUCLEAR S IA'! SU??LY SYS IM 15 1.;;

r Revised for contract IC/31/66

$ babcock 86 WilCOX

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general secpe af* the work pr:tidM. hat such 'cha;:ges do no,.

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in :he opinion of the CC:GA::Y/ adversely. affect'. safety or.he l

CCy? m 's warranty cbligations,.and prorided tha: the contract i

prices and schedules are equitably adinsteda:F reflect any

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• "he CCF2A!.T nay elect to =ake changes in "th'i fueMid.hp

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. a.11 such changes, exclusive,of* changes required to mes theigtta' anteet r

y performance and the warranty provisions cf the C0FJm's Proposal,...

j shall be sut'act to review by the PURCHAS E and the PURCEAS a'S.

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disapproval if su:h changes will have an adverse effect upon 'the,

cos: of operatica or main:enance*of..he-

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If prior to.he time of acceptance as referenced in Section 13

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furnished hereunder are required as a result of requiremen s-1

... ~. - - ~ ~. of the AEC.to secur.e.,the. required AEC acticas for construe:1ca.. -.. - -

t of the plant and for the opera': ion' cf the plah: ~up to he' ime----*

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of plant acceptance, the CO22ANY shall assume the cost of a

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modi.^/ing the fuel supply furnished hereunder provided that the k

4, time of perfor=ance shall te appr:priately ad*usted.

k 15..o Delay in Performance L

E resulting from deley in performance caused by fires,

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The CCMPA!.T shall not be liable for any loss or damage floods, strikes, labor disputes, labor shortages, inability e

to secure materials, riots, thefts. accidents,, acts or failure to act of Governnent, or any other cause whatso-r-

a ever, whether similar or dissimilar to those enumerated

' i above, beyond the reasonable control of the CCMPANY which

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may delay or prevent CCMPA :Y'S performatice hereunder.

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The COMPANY shall not be called upon to make any allowances i ;

i i for material, labor, repairs, or alterations made for its it account unless authorized by it in writing.

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'urnished by the ConANY, must by opera *cle in crder to oper..a l. N i

ihe reac c; e.: warranted bass capacity. If prior.o acceptance, g{.;,g j componenks o*res or the CODANT speci*1es that any syste=ss3r

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sched'uled routine smin:snance worh in to ween scheduled refuelings i

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to carry out uhe required test and inspection withon. a riac.or

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"2he total lis.bility of the CCWANY under this provision for AEC J \\-

require =en r. shall not exceed the contract price for the nuclear

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in the Contract and will be free. fro = defects in design,

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cable warranty

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' repair or replace =en: '.:nder this warranty shall be rewar-7 ranted for a twelve =onth period from.he date of the No.warran:y, express or s

. initial repair or replacement.

f implied, not contained in either this Ar.icle or. in the "

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'"he PURCHASIR has provided, and *=ain.ains, those i

services, equipnent and material characteristics j

.,' ;1 specified by the CCMPA :T, including characteristics

• of services, e:;uipment and materials supplied by others which affect the operation or the services, 4

equipmen,t and =aterials supplied under this Contract

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