ML20046B981
| ML20046B981 | |
| Person / Time | |
|---|---|
| Issue date: | 08/02/1993 |
| From: | Norrholm L Office of Nuclear Reactor Regulation |
| To: | Brinker R AFFILIATION NOT ASSIGNED |
| Shared Package | |
| ML20046B982 | List: |
| References | |
| REF-QA-99901103 EA-92-101, NUDOCS 9308090087 | |
| Download: ML20046B981 (5) | |
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UNITED STATES ij - !
NUCLEAR REGULATORY COMMISSION k
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August 2, 1993 Docket No.
99901103 EA 92-101 R.E.C.
Corporation ATTN:
Mr. Robert S.
Brinker President Ten Beach Street Mount Vernon, New York 10550
Dear Mr. Brinker:
SUBJECT:
NOTICE OF VIOLATION, NOTICE OF NONCONFORMANCE, AND DEMAND FOR INFORMATION (NRC INSPECTION REPORT NO. 99901103/88-01 AND INVESTIGATION REPORT NO. 4-90-004)
On October 25 and 26, 1988, Messrs. Larry B.
Parker and Gregory C. Cwalina of this office conducted an inspection at your facility in Mount Vernon, New York.
At the conclusion of the inspection, they discussed the findings with you and members of your staff.
This letter discusses actions ensuing from that inspection and forwards pertinent documents.
The inspection was conducted to evaluate R.E.C.
Corporation's (REC's) implementation of its quality program for the manufacture and distribution of bolting products to the nuclear industry.
Areas examined during the NRC inspection and the findings are discussed in the enclosed inspection report (Enclosure 1).
Within these areas, the inspection consisted of selective examination of procedures and representative records, interviews with personnel, and observation of activities in progress.
On the basis of the results of this inspection, certain of your cativities appeared to be in violation of NRC requirements, as specified in the Notice of Violation (Enclosure 2).
Specifically, REC failed to meet the requirements of Part 21 of Title 10 of the Code of Federal Reculations (10 CFR Part 21) with regard to the posting requirements and procedural implementation of 10 CFR Part 21, as imposed in purchase orders (Pos) issued to REC by Northeast Nuclear Energy Company (NNEC).
The inspection report rtatcc that REC failed to impose the requirements of 10 CFR Part 21 on its subsuppliers for a number of POs.
- However, after further review it has been determined, as specified in the Notice of Violation, that there was in fact only one such PO.
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R.E.C.
Corporation
-2 Additionally, the NRC inspection found that other REC activities, as specified in the Notice of Nonconformance (Enclosure 3), were not conducted in accordance with the requirements of Appendix B to 10 CFR Part 50 and Section III of the American Society of Mechanical Engineers (ASME) Boiler and Pressure Vessel Code imposed in Pos issued by NNEC.
The nost sinnificant nonconformance identified during the inspectiva was hic's tailure to perform the required upgrade testing for bolting material supplied to NNEC.
Because certain concerns pertaining to REC's actions were identified during the inspection, the NRC Office of Investigations (OI) investigated those actions, as described in the enclosed synopsis from OI's Report of Investigation Case No. 4-90-004 (Enclosure 4).
Based on the review of the OI investigation it appears REC provided erroneous certificates of conformance (COCs) to NNEC to be used for the purpose of ensuring regulatory compliance (e.g.,
compliance with 10 CFR Part 21, REC's quality assurance manual, and Section III of the ASME Code).
Although no instances of having supplied substandard fasteners to NRC licensees were identified and the NRC has not concluded that REC deliberately supplied erroneous COCs, this situation demonstrated an apparent lack of regard for NRC requirements.
Therefore, further information is needed to enable us to determine if there is reasonable assurance that REC will conduct any future activities under NRC jurisdiction in accordance with NRC requirements.
During a telephone conversation with Steven M.
Matthews of the NRC staff on October 5, 1992, you indicated that REC was not supplying its products to the nuclear industry and has not supplied any since 1988.
We have since observed that, even though you stated REC has not supplied bolting products to the nuclear industry, REC is still listed under the headings " Products and Services - Fasteners" and
" Suppliers" in the October 1992 issue of the Nuclear Plant Journa l, Volume 10, No.
6, which prompts us to ask for confirmation of the earlier discussion.
Accordingly, pursuant to Sections 161c and 161o of the Atomic Energy Act of 1954, as amended, Section 206(d) of the Energy Reorganization Act of 1974, as amended, and 10 CFR 2.204, you are required to:
(1)
Inform the NRC whether or not REC has reentered the business of supplying basic components and services pursuant to 10 CFR Part 21 for any period of time since 1988, and if so, to gi r the ext ent md natur e of such business activity, including the dates of such activity.
P R.E.C.
Corporation
-3 (2)
If REC has not supplied basic components and services pursuant to 10 CFR Part 21 since 1988, submit a one-time, written notice at least 30 days before it resumes such activities to the U.S.
Nuclear Regulatory Commission, ATTN:
Document Control Desk, Washington, D.C.
20555 with a copy, to the Chief, Vendor Inspection Branch, Division of Reactor Inspection and Licensee Performance, Office of Nuclear Reactor Regulation, U.S.
Nuclear Regulatory Commission, Washington, D.C.
20555.
(3)
If REC does not agree to provide the notice specified in (2) above, it should so state and provide the basis for not agreeing to do so.
You are required to respond to this demand for information within 30 days of receipt of this letter by filing a written answer under oath or affirmation.
Send the response to the U.S.
Nuclear Regulatory Commission, ATTN:
Document Control Desk, Washington, D.C.
20555, and send copies, at the same address, to the Chief, Vendor Inspection Branch, Division of Reactor Inspection and Licensee Performance, Office of Nuclear Reactor Regulation; to the Director, Office of Enforcement; and to the Assistant General Counsel for Hearings and Enforcement; as well as to the Regional Administrator, NRC Region I, 475 Allendale Road, King of Prucsia, PA 19406-1415.
Although 10 CFR'2.201 would normally require you to submit a written response to the enclosed notice of violation, because of your statement that REC is no longer supplying products to the nuclear industry pursuant to 10 CFR Part 21, you are not required to respond to either the notice of violation or the notice of nonconformance at this time.
Should REC resume business with the nuclear industry pursuant to 10 CFR Part 21, you will be required to respond to the notices enclosed and to follow the instructions specified in the notices when preparing your response.
In accordance with 10 CFR 2.790(a) of the NRC " Rules of Practice," a copy of this letter and its enclosures will be placed in the NRC Public Document Room.
The responses directed by this letter and its enclosures are not subject to the clearance procedure of the Office of Management and Budget as required by the Paperwork Reduction Act of 1980, Public Law 96-511.
R.E.C.
Corporation
-4 Should you have any questions concerning this inspection, we will be pleased to discuss them with you.
Sincerely, 4
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Leif Norrholm, Chief Vendor Inspection Branch Division of Reactor Inspection and Licensee Performance Office of Nuclear Reactor Regulation
Enclosures:
1.
Inspection Report 99901103/88-01 2.
Notice of Nonconformance 4.
Report of Investigation Case No. 4-90-004 - Synopsis
~
Mr. Robert S.
Brinker
.-4 Should you hhve any questions concerning this inspection, we will be pleased to discuss them with you.
Sincerely,
{
MISifnei!Sy Leif J.
Norrholm, Chief Vendor Inspection Branch Division of Reactor Inspection and Licensee Performance Office of Nuclear Reactor Regulation
Enclosures:
1.
Inspection Report 99901103/88-01 2.
Notice of Nonconformance 4.
Report of Investigation Case No. 4-90-004 - Synopsis Distribution:
RIDS IE:09 CENTRAL FILES PUBLIC DOC RM DRIL/RF VIB/RF JSniezek, DEDR JPartlow, NRR FMiraglia, NRR TMartin, RI CERossi, NRR JLee, NRR JLieberman, OE LJNorrholm, NRR SMMatthews, NRR OE g DRIpf?
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