ML20044F568

Comment on Draft Commercial Grade Dedication Insp Procedure 38703,entitled Commercial Grade Procurement Insp. Endorses NUMARC Comments

ML20044F568
Person / Time
Site:	Indian Point
Issue date:	05/20/1993
From:	Quinn S CONSOLIDATED EDISON CO. OF NEW YORK, INC.
To:	NRC OFFICE OF ADMINISTRATION (ADM)
References
FRN-58FR15167 58FR15167, NUDOCS 9305280263
Download: ML20044F568 (11)

Text

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Subject:

NRC Draft Commercial Grade Dedication Inspection l Procedure t Consolidated Edison is pleased to provide comments-in-response to the rewest for comments included in the notice [ of the Connercial Grade Procurement and Dedication Workshop I which appeared in the Federal Register dated March 19, 1993 (58 FR 15167). In that request, comments were invited on the draft inspection procedure 38703, entitled " Commercial Grade { Procurement Inspection". Comments were requested by May 21, ( 1993. ~i The Nuclear Management and Resources Council (NUMARC) has submitted comments by their letter dated May 17, 1993. We have reviewed their letter and endorse their comments. In addition, we also offer general comments on the. draft procedure, as 'well as comments directed to specific statements in the draft procedure, provided in Enclosure 1. i Overell, we are concerned that the NRC's expectations for licensee documentation and testing in order to dedicate i l commercial grade items apparently exceeds requirements imposed in the past on 10 CFR 50 Appendix B vendors who have [ supplied equivalent items. We believe that this additional effort, while adding substantially to our procurement costs and schedules, would not provide commensurate improvements in the level of assurance that commercial grade -items would j perform as expected. Under the. draft inspection' approach, we may order testing which would not ' meaningfully enhance our i knowledge about component perfcrmance, end expend effort to create volumes of unnecessarily detailed documentation. The solution to this problem would appear to be performance- .t based inspections, initiated in response to an industry or. j licensee event, focused more on'results than on precedures. l We believe.that the subject draft procedure is heavily- .( weighted toward evaluating process and procedural details, l and incorrectly emphasizes documentation over performance. ') Indeed, the subtle but~ pervasive philosophy ' of the draft inspection procedure could elicit an excessive commitment j of' f NRC staff inspection resources to commercial grade { procurement issues. i 9305280263 930520 PDR PR { MISC 58FR15167 PDR ,} 4 r

t ) a-We recognize that this procedure, and the NRC positions comumunicated at the Dallas workshop April 21 and 22, -l represent a movement toward reasonable procurement quality 'i assurance and performance-based inspection. However, we i believe that significant further efforts in the same direction are necessary before the NEC's commercial grade procurement guidance can become sufficiently workable in practical applications. Because of the breadth of our j comments, and what we presume will be other similar comments from the industry, we urge the NRC to circulate another version of the procedure in draft prior to finalization. Should there be any questions regarding these comments, i please contact Mr. Charles W. Jackson, Manager, -Nuclear Safety & Licensing, at (914) 526-5127 t s Very truly yours, J.

• )

eg:/ /. c.. /4 c,o r,u / i f cc: Document Control Desk i US Nuclear Regulatory Commission Mail Station PI-137 Washington, DC 20555 i l Mr. Thomas T. Martin f Regional Administrator - Region I f US Nuclear Regulatory Commission i 475 Allendale Road King of Prussia, PA 19406 J Mr. Francis J. Williams, Jr., Project Manager Project Directorate I-1 j Division of Reactor Projects I/II US Nuclear Regulatury Commission Mail Stop 14B-2 iq Washington, DC 20555 i r 8 Senior Resident Inspector US Nuclear Regulatory Commission' ) PO Box 38 Buchanan, NY 10511 l o f ? i i i b w.

%4 r ~ ENCLOSURE 1 COPMENTS ON DRAFT NRC INSPECTION PROCEDURE 38703 General [ It appears that this procedure requires more detailed documentation and testing than would be provided under a Quality Assurance program.which meets j the requirements of 10 CFR 50 Appendix B. This represents a backfit., for which there has been no demonstration of necessity. To the extent the NRC's premise is that dedicated commercial grade items contribute to more and graver safety significant problems than items procured from vendors who meet Appendix B requirements, a full explanation should be afforded. l General i The draft inspection procedure is highly detailed and prescriptive. It anticipates detailed documentation of every decision and action during the procurement and acceptance process for dedicated commercial grade items. The motivation appears to be that licensees take over responsibility for j certain functions normally performed by the vendor when the vendor has an Appendix B program. However, such detailed documentation has not normally j been required under Appendix B programs. Appendix B requires only that certain activities be controlled, not that every consideration be documented in detail. It appears that the proposed inspection procedure would look for licensee documents that are more specific and detailed than would generally { 4 be found in Appendix B vendor records, and go far beyond demonstrating that l ( applicable activities are adequately controlled. This requirement would j therefore represent a backfit, for which no supporting justification has been put forth. 1 General ) Consideration should be give to amending the draft inspection procedure to [ include items purchased from vendors with Appendix B QA programs. The imposition of any requirements for the licensee (when the item is procured i I commercial grade and dedicated) that would not also have applied to a vendor who met Appendix B requiremente at the time of the original purchase should be deleted. i j General t ( 1 The flow charts shown - at the workshop did not match the draft procedure. Because these flow charts would be a helpful training tool, they should be reviewed in detail against the procedure as issued. Consideration should be given to including flow charts in the procedure. I I i General t A great deal of information and experience has been gained by the industry i and the NRC on procurement issues in recent years. In recognition of this progress and for ease of reference, a new Generic Letter is warranted to supersede Generic Letters 89-02 and 91-05, to consolidate the NRC position into one dccument. 4 I 1 i 4 i L

s. General )i I Due to the many variables in the procurement process, and the need for 'I application of judgement, it is important that inspectors receive training in this procedure. For the same reasons, there should be central oversight j of inspection results to assure consistency among Regions. The goal of i training and central oversight should be to keep the focus on the safety significance of results and to avoid overemphasis on programmatic rigidity 3 and detailed documentation. ~ 38703A-02.04 l l Guidance is needed for the NRC inspectors when the commercial grade item of interest was dedicated prior to the industry's commitment to the procurement initiative. ~ 38703A-02.04e i t "Any documentation...should be validated by a commercial grade ' survey, source verification, or methods discussed in Section 6 of Appendix A to Inspection Procedure 38703." i Should be changed to "...should have an established basis for its validity. Methods for establishing a basis for validity may include a commercial grade vendor survey. source verification, history of spot check results during i receipt inspections, history. of installed performance, or other suitable means commensurate with the safety significance and complexity of the item." f i 38703B-01 " Verify that the licensee's process for dedicating CGIs... ensures that CGIs will perform their intended safety function." Recommend changing " ensures

• to ' appropriately contributes to assurance".

The original' wording is too broad, and " ensure" 'is too absolute as a concept. Dedication is a procurement and acceptance process. The Appendix B requirements clearly do not intend procurement and initial acceptance to -bear the full burden of assuring performance ~ of the intended safety function. The other elements of the Quality Assurance program also contribute to this assurance. t 38703B-02.02 "... select approximately twenty' dedication packages for review.' Instead of a definite number of packages, alternative approaches such as' selecting a percentage or a statistical sampling, not to exceed 20, should l be acknowledged as appropriate. The sample should be balanced to' assess the program results and not be biased to focus on failures. ) P e I b i

~ i ? i 'i 38703B-02.02 I

• ...the inspector should request that the licensee compile a complete I

package of all the procurement and dedication records for each item." f i I The inspector's list should be provided to the licensee at least 2-4 weeks } before the site visits, to allow retrieval and reproduction of theLmaterial outlined in Section 03.02(b) This material is - typically maint.sined - in various files and locations,'and would have to be located, accessed, copied and brought to the site of the inspection. 38703B-02.04r 38703B-03.02. 03.03. 03.04 and 03.05r and'38703B-05 -j Replace bullets with alphanumeric characters so that these items can be more f easily referenced. i 38703B-02.04. 02.05. 03.03 and 03.04 ) When referencing ANSI standards, add a note to indicate that these standards i are applicable only to the extent of the licensee's commitment to them. 38703B-02.04 1st bullet: ... safety-related function

• Change to " safety function,* for clarity.

.i 38703B-02.04 Ist bullet: ".. consideration of credible failure modes

• l r

Delete because Appendix B does not require an explicit listing of credible l failure modes. t 38703B-02.04 i ist and 3rd bullets:

• - item equivalency / substitution evaluations
• and

' Determine whether the item is a like-for-like replacement, or a new item replacement of an obsolete item.' r Delete these statements. They pertain to the plant modification control; { process, and not to procurement or dedication. ( 38703B-02.04 k i Sth bullet: " Determine why the item is being replaced...* Corrective Action.** O This guidance should be deleted. Failure analysis is not a routine part of j the procurement process. There are other licensee programs which address j failure analysis and which have their own NRC inspection guidance, which could be' referenced by this procedure. I i ) j i i

I A 1 s. i llow is this level known? Ilow is this level measured? Where is such data available? This standard should not be imposed without identifying how the comparison can be objectively made. Since commercial grade dedication is based on verifying adequaq of critical characteristics, and Appendix B quality assurance is based on documented control of activities, the results may not be directly comparable. Aeriendix A. Id "The bases for engineering judgement for this application should be documented.* Deleted or change to "Any references used should be documented". This sentence should be deleted or changed. If bases can be provided, then selection is based on analysis, not judgement. hoendix A. 2a Expand to make clear that single sample testing may also be adequate for nonmetallic material, if the material is known to be uniform for the particu3ar application intended. Arrendix A. 5 Delete che section on *Like-For-Like Replacements". The same procurement and, ir necessary, dedication process applies regardless of whether the item is an identical replacement, an equivalent replacement, or part of a design modificetion. Areendix A. 6 This section should be generalized to address all types of certification by vendols. Acuendix B Add a definition of " failure" in terms of triggering entry to Inspection Procedure 37803. The definition should explicitly exclude normal wear-out, end-of-life and random occurrence. t Delete the terms

• Equivalency Evaluation" and "Like-For-Like Replacement",

and their definitions. The same procurement and, if necessary, dedication process applies regardless of whether the item is an identical replacement, an equivalent replacement, or part of a design modification. A nend13_B Add " technical and quality" before " requirements" in the definition of " Technical Evaluation".

i 38703B-03.04a i 4th bullet: ' Verify that the tests and inspections specified for acceptance adequately verify performance and suitability for all intended applications. l Change.to " Verify the identified critical characteristics.* I r The original wording is too broad, and puts the entire burden of aosuring 4 performance of the intended safety function on receipt and pre-service tests [ and inspections. This is not the intent of Appendix B, which outlines other i required elements of a quality assurance program. These elements are f intended to work together to provide such assurance. Compare the fourth [ bullet under Section 03.04b and the first bullet under Section 03.04c for more suitably focused wording. i 38703B-03.04a r ? r 6th bullet: Delete second

• QA*,

so that the cited activities will not be misunderstood to be necessarily a QA Department function. i 38703B-03.04a 7th bullet: Delete this item for several reasons. First, traceability does not depend solely en receipt inspection activities. Second, traceability l considerations are not limited to Method 1. Third, traceability applies to l items purchased from Appendix B vendors the same as to dedicated commercial grade items. l 38703B-03.04b t 4 i l j 1st bullet: Delete "the guidance... Specifically, that." This will delete the reference to Generic Letter 89-02 and make the inspection procedure more j self-contained. Also, a previous comment recommends a new Generic Letter to i supersede Generic Letters 89-02 and 91-05. 1, 38703B-03.04b 2nd bullet: - Processing and evaluating adverse findings..." This statement should be deleted because it implies a documented feedback program which would be redundant to the existing corrective action programs.

Also, this type of approach is not required for items purchased f rom Appendix B vendors and commercial grade items should not be treated any differently after dedication.

t 38703B-03.04b 't f a Last bullet: Delete last sentence. The list of information sources could be misconstrued as a check list. 38703B-03.04b r I 6th bullet: Delete first two lines. i l 1

e 38703B-02.04 i i 6th and 7th bullets .t Delete both these bullets. Control of items after receipt inspection and feedback of information 'are not unique to the dedication process, and [ therefore do not belong in this procedure. i 38703B-02.01 and 03.02a Since most plant documents do not identify whether items were purchased from Appendix B vendors or dedicated, it will generally be difficult to identify I which failures involved equipment or parts that had been dedicated. [ Therefore, include in the inspection procedure the alternative of selecting ~ dedication packages to be traced through to installation and performance in j the installed application. [t 38703B-03.02a, Steo 1 i Reduce selection of dedication packages from among CGI failures from 75%.to { a maximum of 50%. This will allow the inspection to determine more l accurately whether there are programmatic problems. Focusing too much on failures could give a distorted view of the nature and pervasiveness of any problems found. 38703B-03.02a. Steo 2 l t s At the end of the second bullet, explain what the *NRC morning reports" are. i s 38703B-03.02b r t h Divide the list of documents into two sets, those which pertain specifically to dedications and those which may pertain to any items with safety related { applications. Most of the information listed will fall into the latter-category. This will help the inspector differentiate between dedication specific activities and activities related to more general plant programs. 38*703B-03.02b ? ? Under sixteenth bullet, last item: - evaluation of credible failure modes ( I Delete this item. It is not a required part of the commercial grade j dedication document, or of any procurement or acceptance document. Such an i evaluation may serve as a useful aid at times, but should not be underrtood ) to be a requirement of the procurement or acceptance process. 3 .i 38703B-03.01 'i 1st bullet: Delete second

• QA*,

so that the cited review and approval will not be misunderstood to be necessarily a QA Department function. 387033-03.03 5 t k 2nd bullet: Change

• purchase requisitions and purchase orders" to

{ " procurement documents", for consistency with Appendix B. 1 1 l t f

t .=

4.

• t

~ 38703B-03.04b 7th bullet: Delete ' teams include technienl and quality'. Surveys may be j i performed by e single individual with support, as needed, from others who do i not actually visit the vendor. Also, there need be no distinction between technical and quality personnel. 38703B-03.04d i Ist bullet: Delete *the guidance...specifically". This will delete the i reference to Generic Letter 89-02 and make the inspection procedure more { self-contained. Also, a previous comment recommends a new Generic Letter to supersede Generic Letters 89-02 and 91-05. 38703D-03.04d 1st bullet: "...the manufacturer's measures for the control of design, process, and material changes". l l Change to " measures for the control of the design, material, and performance characteristics relevant to the safety function. 1 This change would make Method 4 compatible with the other methods, by focusing on the critical cl.> acteristics. Otherwise, the manufacturer could l Very carefully control the design, process and materials, yet not recognize i effects on characteristics which are significant to the nuclear safety I application. 38703B-03.05 ? t 4th bullet: Changes " purchase orders" to " procurement' documents" for l consistency with Appendix B. Ii 38703B-05 Add dates to the references. This will identify the documents more completely, and give a better sense of historical development. Annendix A P Add a section on distributors, to gather guidance in one place. In other sections (e.g., 3a and 6a), reference the new section instead of giving -{ specific guidance. Distinguish between those. distributors who-merely process orders and those who handle, repackage, or otherwise could affect i the delivered items. At,nendix A. Ic b . g "...same level performance as for a like item manufactured or purchased [ under an Appendix B program." I ti f ( .f ( t f t-i l ~. .}}