ML20058E222
| ML20058E222 | |
| Person / Time | |
|---|---|
| Site: | Shoreham File:Long Island Lighting Company icon.png |
| Issue date: | 07/23/1982 |
| From: | Avery R, Lewis S, Rawson R NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD) |
| To: | |
| References | |
| ISSUANCES-OL, NUDOCS 8207280100 | |
| Download: ML20058E222 (50) | |
Text
{{#Wiki_filter:* 07/23/82 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMIS$10N BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of LONG ISLAllD LIGHTING COMPANY Docket No. 50-322 0.L. (Shoreham Nuclear Power Station, ) Unit 1) ) NRC STAFF FINAL REPORT ON INVOLVEMENT OF SAI AllD NUS AS CONTRACTORS FOR THE STAFF The following constitutes the Staff's response to the conflict of interest questions raised by the Board during the Sioreham proceeding. The Board (Tr. 5348-52) raised the question of whether a conflict of interest exists because Applicant's contractor for its Shoreham proba-bilistic risk assessment (PRA), Science Applications, Inc. (SAI), has also served as a subcontractor for the Staff on certain aspects of the Staff's systems interaction program. The Board requested a report as to whether SAI's involvement in these matters creates a conflict of interest or a situation where there might not be complete separation between the preparation of an application and the review of that application. This report will address the general legal framework employed by the NRC for dealing with organizational conflicts of interest and will analyze some of the specific contract work being done for NRC by SAI in the context of the conflicts of interest rules. The implications of this analysis will then be considered as it relates to the issues before the Board. We will conclude with some comments relative to the relationship between NUS (another contractor to the Applicant) and the Staff and some observations 8207280100 820723 DR ADOCK 05000 E r Uf 5 ed 27, ,y gpg g 7_ 2%9 1
. regarding the applicability of these considerations to the Limerick proceeding. See Tr. 5711. The problem of organizational conflicts of interest has been a vital concern to the Government for many years.E The NRC is among several agencies required by law to promulgate fonnal rules establishing policies and procedures to insure that organizational conflicts of interestareavoided.E The NRC receives contract assistance through two different mechanisms:
- 1) by commercial contracts issued through the Division of Contracts, and
- 2) by interagency task orders to the Department of Energy (DOE) issued by theprogramoffices.E Task orders are actually performed by the contrac-tors operating the National Laboratories and by their subcontractors. The procedures utilized to avoid conflicts of interest in a commercial con-text are administered by the Division of Contracts with assistance by the Office of the Executive Legal Director (ELD) and the program offices
-1/ Early studies of the subject include H.R. Rep. No. 1121, 86th Cong., 1st Sess (1959) and S. Doc. No. 94, 87th Cong., 2d Sess. (1962) (The " Bell Report"). -2/ NRC's present rule is found at 41 C.F.R. Part 20. (Attachment 1) This rule was promulgated under Section 170A of the Atomic Energy Act of 1954, as amended. -3/ A very small portion of outside assistance is acquired by agreements with agencies other than DOE. Although these actions are not formally covered by the regulations discussed here, they are subjected to the same type of analysis for conflicts of interest as are all other transactions. When NRC issues a work order to 00E, the DOE field office issues a task to its contractor under the master contract for operation of the national laboratory which is to perform the work.
. as necessary. The procedures governing DOE work orders are part of Manual Chapter 1102 (Attachment 2, 1 1102-031(1), Exhibit 1, p. 5 and Exhibit 4, p. 4) and are administered by the program offices with assistance by ELD as needed. The policy considerations underlying both 41 C.F.R. Part 20 and Manual Chapter 1102 are identical; they differ only in the mechanics of implementaticn. The Contracting Officer solicits and evaluates the relevant information in the course of awarding and adminis-tering commercial contracts. In the case of DOE work orders, the DOE Contracting Officer does the inital review of the conflicts issue. If this review indicates a potential conflict of interest, the question is referredtotheNRCprogramofficeforresolution./ The policy embodied in these rules is that contractors ought not to be placed in conflicting roles which might bias their judgment in rela-tion to their work for NRC.E/ If the contractor is placed in a situation where it is forced to reconcile competing interests, an actual conflict of interest exists, regardless of how those interests may, in fact, be ultimately reconciled. When the business activities of a prospective 4/ The program offices are very sensitive to this issue and often indicate relevant lines of inquiry to the DOE operations office at the time a work order is issued or during the course of its execution. ~~5/ The rule also addresses avoidance of unfair competitive advantage. This issue concerns fairness to the business community rather than the reliability of contract work products and thus will not be addressed in this report. y --n.
4_ contractor indicate the potential for a conflict of interest,0I the NRC examines the relevant circumstances to see if they provide a realistic motivation for bias in performance of the contract work. If so, one of several paths may be followed: the prospective contractor may be excludedfromcompetingforthecontract;awaivermaybeprocessed;U or other appropriate steps may be taken (such as modification of the proposed scope of work). The key to making the necessary judgment concerning the existence of a conflict of interest lies in a detailed analysis of all relevant facts to see if a realistic motivation for bias can be found. Motivations for bias which are remote or speculative are not a proper basis for action in this area.8_/ Once a contract is awarded, contract clauses require the contractor to advise the NRC of any other work the contractor is considering which might present a conflict of interest. The contractor is prohibited from -6/ The term " potential conflict of interest" is used to signify those situations which merit investigation prior to contract award in order to ascertain whether award would give rise to an actual conflict or which must be reported to the contracting officer for investigation if they arise during contract performance. -7/ The conflict of interest rule recognizes that the existence of a conflict does not necessarily foreclose a contract. Provisions are made in the rule for " waiving" the conflict when such action "is in the best interest of the United States". 41 C.F.R. 20-1.5411. These provisions are statutorily authorized by Section 170A of the Atomic Energy Act of 1954, as amended. A document analogous to a waiver is processed for DOE work orders when circumstances indicate such action is appropriate. 8] Columbia Research Corp., B-185843, July 1, 1976, 76-2 CPD 5 2. (Attachment 3)
. undertaking such work until the NRC has examined the circumstances and decided either that no conflict exists or that a waiver is appropriate. The NRC may also bar the contractor from entering into other contracts if they would present a conflict of interest. The mere fact that a company may work both for the NRC and a utility is not, in itself, a conflict of interest. If a contractor provides aavice in the same technical area or on the same matter to the NRC and to an organization regulated by the NRC, the potential for conflict of interest becomes greater and the circumstances must be examined more closely. Even in this case, however, if the work being done for the regulated party does not bear any necessary technical relationship to the work requested by the NRC, a conflict of interest does not result. In such cases it is acceptable for a contractor to support a licensee or applicant in one proceeding before the NRC and to support the NRC in a different proceeding because there is no risk that the infonnation sup-plied to the NRC might be biased. The above general principles are applied in all cases where the NRC receives contract assistance. The following analysis treats the specific instance of SAI and its work relative to the issues in the Shoreham [ proceeding. Intervenors' Contention 7B alleges that neither the Applicant nor l the Staff has applied a systematic methodology in the safety classifica-l tion of structures, systems and components and in the analysis of systems interactions. Intervenors cited particular methodologies including fault tree / event tree logic and stated that, absent such a methodological approach, compliance with the Commission's regulations
. could not be shown. Pursuant to this contention there has been extended litigation on the subject of the PRA, which utilizes fault tree / event tree methodology, voluntarily undertaken for Shoreham and on its treat-ment of systems interaction issues. SAI has provided, or is in various stages of providing, contract support to the NRC on a number of matters related to systems inter-action. This support is usually in the role of a subcontractor to a national laboratory. SAI had input into NUREG/CR-1859, Systems Interaction: State-of-the-Art Review and Methods Evaluation as a sub-contractor to Lawrence Livermore Laboratories (LLL). The title of this report is self-explanatory. SAI has also been involved, again as a subcontractor to LLL, in the review of the Indian Point Unit 3 systems interaction study. This project has three phases: (1) to develop a recommended methodology for the study; (2) assist NRC with an audit and walk-through of the plant; and (3) develop a systems interaction audit plan for interconnected systems. Phase (1) has been completed. SAI recommended primary reliance be placed on PRA methods for the systems interaction study. The Staff did not adopt SAI's recommendations under thisphase.EI Phases (2) and (3) have not been performed yet. SAI is assisting in another project for the review of selected Light Water Reactors (LWR's) for systems interactions. This project consists of several tasks which include: assessment of general guidance for ~9/ See " Meeting Summary and Status Report For fleeting with PASNY/EBASCO on Proposed IP-3 Systems Interaction Program" (July 24,1981) attached to NRC Staff Testimony of Themis P. Speis, [et al.]... on Safety Classification and Analysis of Structures, Systems and Components, ff Tr. 6357. application to r"acific plants; guidance in applying the selected methods to two plants; documentation of matrix based diagraph procedures;El and demonstration of the selected method by having a contractor apply the method to a selected plant. The first phase of this project is completed, the others are yet to be done. In addition to the work done by SAI for the Staff on systems interactions, SAI has also performed services for the Staff regarding PRA's. As a subcontractor to Brookhaven National I.aboratory (BNL), SAI is helping to write the National Reliability Evaluation Program (NREP) PRA procedures guide. SAI is serving as a subcontractor to Sandia for a detailed review of the Zion and Indian Point risk studies. Sandia is also considering using SAI to review a number of PRA's with a view toward extracting any possible generalizations. To date, SAI has not been formally retained for this effort. The Staff has also been considering using SAI to study partitioning of fault trees so as to identify systems interactions. This contract has not been consummated as yet. Having examined the various undertakings by SAI, it is necessary to ask whether they give rise to a conflict of interest. In a very strict sense it could be said that SAI's PRA work for NRC licensees, such as the Applicants in Shoreham and Limerick, could place SAI in a position where it might be motivated to bias its advice to the NRC under the above '-10/ This is a formal mathematical treatment which consists of trans-forming graphs of systems into matrices and then manipulating the matrices so as to discover properties of the system.
. contracts. SAI has taken the position in Shoreham that PRA is the pre-ferred methodology for purposes of systems interaction analyses.EI Having taken this position on behalf of a licensee, SAI might be regarded as being motivated to provide the same advice to the Staff so as not to compromise the position it has taken for the licensee. In assessing how realistic these motives for bias actually are it should be noted that both within the NRC and within the industry there is a spectrum of views on the merits of PRA as a methodology for per-forming systems interactions analyses. It still seems, however, that SAI has an interest in not developing results which would adversely affect its existing PRA's. The primary question is what effect, if any, the SAI position that PRA methodology should be employed in conducting systems interactions analyses might have had on the Staff's position in the Shoreham proceeding. At the outset it should be noted that the Staff has not relied upon the Shoreham PRA as a basis for licensing. Nor has the Staff relied upon any input from SAI in formulating its position on the adequacy of the consid-eration of systems interaction in the Staff's present deterministic analyses. In fact, the Staff has specifically differed from SAI's views on the relationship of PRA's and systems interaction and has brought this totheBoard'sattention.El Thus, regardless of whether there is a --11/ See generally, " Testimony of Edward T. Burns, [et al.]... Regard-ing Suffolk County /Shoreham Opponents CoalitionToiitention 78 and Shoreham Opponents Coalition Contention 19B", ff. Tr. 4346, at 3. H/ See footnote 9, supra.
l -9 motive for bias on the part of SAI, or even if there has been bias in fact in SAI's work for the NRC, it does not appear to be material to the issues in the Shoreham proceeding. The issue in the context of a licensing hearing is to determine whether actual biased input has been presented to the Staff and, if so, whether the Staff has relied upon such input. As stated above, the Staff believes that its position in this proceeding has not been affected by any work done for it by SAI. The Staff agrees with ApplicantEl that such questions as might exist are properly a question of credibility to be resolved through examination of the SAI witnesses. In the Staff's view, there is no need for such an inquiry in the Shoreham proceeding. The Staff has also undertaken to review NUS' consultant activities for the Staff and for the Applicant in light of NUS' services to the Applicant as a peer reviewer of the Shoreham PRA. Based upon our review to date, we have identified only one contract that might be considered relevant and material to the PRA and systems interactions issues in Shoreham. That contract was for the conduct of workshops for the NRC Staff on WASH-1400, The Reactor Safety Study. El As the workshops -13/ See LILC0's Response to the Board's Request for Information Con-cerning Science Applications, Inc., July 1, 1982. 14/ JBF Associates of Knoxville, Tennessee was also involved in the conduct of these workshops. Additionally, NUS providing " Expert j Opinion on the Use of Probabilirtic Risk Assessment (PRA) and Safety l Goals" to the Office of Policy Evaluation, which serves in an advisory capacity to the Coninission. If the Staff determines as a result of its further review that there are any other consultation services being performed for it by NUS in the areas of PRA or systems interaction which may be relevant and material to the Shoreham and Limerick proceedings, we will nutify the Board and parties to those proceedings.
. were conducted for the purpose of educating the Staff on PRA methodology and were not structured in such a way as to advocate the use of one type or another of specific analysis methods, the Staff does not perceive any motive NUS would have had to give the Staff biased advice in the workshops. In any event, the Staff has not offered testimony in this proceeding on the results of the Shoreham PRA and it does not, therefore, appear that NUS' views on PRA have been reflected in the Staff's position in the proceeding. The situation with regard to the Limerick proceeding is somewhat differentthanth$texaminedabove. There, the Staff requested the Applicant, Philadelphia Electric Company (PECo), to prepare a PRA. PECo has used SAI as a principal consultant in the preparation of the PRA. Unlike Shoreham, however, the Staff is conducting a review of the Limerick PRA and does expect to present the results of its review in evidence at the Limerick hearings. The Staff has arranged with Brookhaven National Laboratory (BNL) for the conduct of this review and BNL does not have a subcontract with SAI for any aspect of that review. There does not, therefore, appehr to be an immediate conflict of interest or lack of separation between preparation of an application and the review thereof in the Limerick proceeding in the sense of SAI doing work for both the Staff and PECo on PRA or systems interaction. The same relationships, however, which Staff believes may present a motive for bias on SAI's part in the Shoreham proceeding would also be relevant to the Limerick proceeding. As with Shoreham, Staff believes that any issue will be one of witness credibility, which can be explored through voir dire'and cross examination at the Limerick hearings.
. NUS is also providing services to PEco as a peer reviewer of the Limerick PRA, but is not assisting BNL or the Staff in reviewing the Limerick PRA. We have addressed above the consulting activities which NUS has conducted for the Staff in the areas of PRA and systems inter-au. ions. At the present time, we do not perceive any organizational conflict of interest based upon these facts and do not believe the Staff's PRA testimony in that proceeding will be influenced in any significant way by the views of NUS as to the conduct of a review of a PRA. On the basis of the review it has conducted, the Staff does not believe the information as to SAI's (and NUS') consultant services for the Staff and for the Applicant is relevant and material to the position it has taken on PRA and systems interactions before the Shoreham Licensing Board. See generally Tennessee Valley Authority (Browns Ferry Nuclear Plant, Units 1, 2, and 3), ALAB-677, 15 NRC (1982); Duke Power Co. (McGuire Nuclear Station, Units 1 and 2), ALAB-143, 6 AEC 623, 625 (1973). The Staff agrees that the subtle interrelationships between the services performed by consultants for the nuclear industry and the NRC, particularly in such interdisciplinary areas as PRA and systems interactions analysis, merit scrutiny and that all parties to NRC pro-ceedings should be under an obligation to disclose to the other parties and to the presiding board those interrelationships of which they are aware which they believe to be relevant and material to the proceeding in question. With respect to the Limerick proceeding, Staff counsel was not aware of SAI's consultant activities for the Staff at the time of the January 1982 Special Prehearing Conference at which the proposed PRA contentions were extensively discussed. Although Staff counsel for
Limerick believe they had seen references to SAI services to the Staff on systems interactions prior to the time the issue was raised in Shoreham, Staff counsel did not focus upon the possible significance of that information to the independence of the Staff's review of the Limerick PRA. In any event, pursuant to the request of the Shoreham Licensing Board (two of whose members also serve on the Limerick Licensing Board), we will serve copies of this report and other relevant pleadings and transcript passages on the Licensing Board and parties in the Limerick proceeding. Respectfully submitted, b Ralp( E. Avery (/ Counsel for NRC StaM 4t h& Stephe( H. Lewis Counsel for NRC Staff 4 )hkY-Richard J. Rj6tson Counsel for NRC Staff Dated at Bethesda, Maryland this 23rd day of July, 1982
k o ~ UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of ) ) LONG ISLAND LIGHTING COMPANY ) Docket No. 50-322 ) (0L) (Shoreham Nuclear Power Station, ) Unit 1) ) CERTIFICATE OF SERVICE I hereby certify that copies of NRC STAFF FINAL REPORT ON INVOLVEMENT OF SAI AND NUS AS CONTRACTORS FOR THE STAFF in the above-captioned proceeding have been served on the following by deposit in the United States mail, first class or, as indicated by an asterisk, through deposit in the Nuclear Regulatory Commission's internal mail system, this 23rd day of July,1982. Lawrence Brenner, Esq.* Ralph Shapiro, Esq. Administrative Judge Cammer and Shapiro Atomic Safety and Licensing Board 9 East 40th Street U.S. Nuclear Regulatory Commission New York, NY 10016 Washington, D.C. 20555 Dr. James L. Carpenter
- Administrative Judge Howard L. Blau, Esq.
Atomic Safety and Licensing Board 217 Newbridge Road r U.S. Nuclear Regulatory Commission Hicksville, NY 11801 Washington, DC 20555 Dr. Peter A. Morris
- W. Taylor Reveley III, Esq.
Administrative Judge Hunton & Williams Atomic Safety and Licensing Board P.O. Box 1535 U.S. Nuclear Regulatory Commission Richmond, VA 23212 l Washincton, DC 20555 Cherif Sedkey, Esq. Matthew J. Kelly, Esq. Kirkpatrick, Lockhart, Johnson Staff Counsel & Hutchison New York Public Service Commission 1500 Oliver Building 3 Rockefeller Plaza Pittsburgh, PA 15222 Albany, NY 12223 i
sr,. Stephen B. Latham, Esq. John F. Shea, III, Esq. Herbert H. Brown, Esq. Twomey, Latham & Shea Lawrence Coe Lanpher, Esq. Attorneys at Law Karla J. Letsche, Esq. P.O. Box 398 Kirkpatrick, Lockhart, Hill, 33 West Second Street Christopher & Phillips Riverhead, NY 11901 1900 M Street, N.W. 8th Floor Washington, D.C. 20036 Atomic Safety and Licensing Board Panel
- Docketing and Service Section*
U.S. Nuclear Regulatory Commission Office of the Secretary Washington, O.C. 20555 U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Atomic Safety and Licensing Appeal Board Panel
- U.S. Nuclear Regulatory Commission Washington, DC 20555 1
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L '~ COURTESY COPY LIST Edward M. Barrett, Esq. Mr. Jeff Smith General Ccunsel Shoreham Nuclear Power Station Long Island Lighting Company P.O. Box 518 250 Old County Road North Country Road Mineola, NY 11501 Wading River, NY 11792 Mr. Brian McCaffrey MHB Technical Associates Long Island Lighting Company 1723 Hamilton Avenue 175 East Old Country Road Suite K Hicksville, New York 11801 San Jose, CA 95125 Marc W. Goldsmith Hon. Peter Cohalan Energy Research Group, Inc. Suffolk County Executive 400-1 Totten Pond Road County Executive / Legislative Bldg Waltham, MA 02154 Veteran's Memorial Highway Hauppauge, NY 11788 David H. Gilmartin, Esq. Suffolk County Attorney Mr. Jay Dunkleberger County Executive / Legislative Bldg. New York State Energy Office Veteran's Memorial Highway Agency Building 2 Hauppauge, NY 11788 Empire State Plaza Albany, New York 12223 E
,..i.G ':s.u ..L..:.a w. -.a.- -.-~~~-~n---- e 1 .a \\ { E 07/23/82 j UNITED STATES OF AMERICA j NUCLEAR REGULATORY COMMISSION l BEFORE THE ATOMIC SAFETY AND LICENSING BOARD 0 In the Matter of ) ) LONG ISLAND LIGHTING CO. )~ Docket No'. 50-322(0L) (ShorehamNuclearPowerStation, Unit 1) ) l NOTICE OF APPEARANCE Notice is hereby given that the undersigned attorney herewith enters an appearance in the above-captioned matter. In accordance with 10 C.F.R. 6 2.713(a), the following information is provided: Name: Stephen H.. Lewis 1 Address: U.S. Nuclear Regulatory Comission Office of the Executive Legal Director Washington, DC 20555 l Telephone Number: (301)492-8655 J j Admissions: Supreme Judicial Court of Massachusetts ,1 District of Columbia Court of Appeals } United States Supreme Court 3 Name of Party: NRC Staff Respectfully submitted, 3, 1 J N. M j Stephen H. Lewis 1 Counsel for NRC Staff A ] Dated in Bethesda, Maryland 4 this 23 day of July,1982 y d i I .:l i l
me..za2:.n.:n 1 1.. .n.. c ._.a ..-u. .._-e.. .i i j i i UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD 1, l In the Matter of ) Long Island Lighting Company Docket No. 50-322 0.L. J ) i (Shoreham Nuclear Power Station, ) j Unit 1) ) a j j NOTICE OF APPEARANCE a } Notice is hereby given that the undersigned attorney herewith enters an appearance in the captioned matter. In accordance with Q2.713 l)l of the Commission's Rules of Practice, the following information is provided: 1 i Name: Ralph E. Avery 2 Address: Office of the Executive Legal Director 4 U.S. Nuclear Regulatory Commission Washington, D.C. 20555 li Telephone Number: (301)492-8656 1 R Admissions: District of Columbia Court of Appeals j U.S. Supreme Court j Name of Party: U.S. Nuclear Regulatory Comission ij Washington, D.C. 20555 s If Ralpy E. Avery (j Counsel for the NRC Ytaff IIj Dated at Bethesda, Maryland this 23rd day of July, 1982. 3 4 I?i 1 a._.. _. -. _ _. - _ _ _... _ _. ~. _ _ _. - -
U A W,, bdid / ederal Regiate / WL 44. No. 84 / Wadaf April 2.19*9 / Ruhs and Rauhtirns 19196 F PART 20-1-GENERAL. process NRC agreements with other and subcontracts in amounts of $10.000 government agencies, international or less, j Subpart 20-1.54-Contractor organizations, or state, local or foreign (i)" Prospective contractor" or ] Organizational Confilets of interest governments; separate procedures for g avoiding conflicts of mterest will be " offeror" means any person, firm. N1.5401Scope and policy. empt yed in such agnements. as unincorporated association, joint i venture partnership, corporation, or 20-1.54o2 Definitions. appropnate. 20-1.5403 CMena for recognizing contractor affiliates thereof,includmg its chief organiza tional conflicts of interest. 3 20-1.5402 Definitiona. executive, directors. key personnel 20-Woe Representabon. (a)" Organizational conflicts of (identified in the proposal), proposed 20. Cogact c! interest" means that a relationship consultants, or subcontractors. s 20 1.5405-2 S ecial ontract provisions, exists whemby a contractor or submitting a bid or proposal. solicited or i 20-1.5406 Eva uabon, f.ndings, and contract prospective contractor has present or unsolicited, to the NRC to obtain a contract. sward. planned interests related to the work to 20-1.5407 Conflicts identied after award. be perfonned under an NRC contract (j) " Potential conflict ofinterest" 20-1.5408 Reservedl 20-1.5409 Reserved} which:(1) May dummsh its capacity to means that a fa:tual situation exists that 20-1.5410 subcontractors. give impartial, technically sound, suggests (indicates) that an actual 20-1.5411 Waiver. objective assistance and advice or may conflict ofinterest may arise from otherwise result in a biased work award of a proposed contract. The term 20-1.5412 Remedies. ,i auTwoarry:Sec. 8. Pub. L 95401. adting sec. product, or (2) may result in its being " potential conflict ofinterest"is used to 5,, 1:0A to Pub. I. 83-r03, as Stat. 919, as given an unfair competitive advantagt. signify those situations which merit amended (42 U.S.C. ch.14). (b) "Research" means any scientific or Investigation prior to contract award in te al k inyolving theontical order to ascertain whether award would f 20-1.5401 Scope and policy, an ysis.explorat2on.or give rise to an actual conflict er which (a) It is the policy of the U.S. Nuclear expenmentation. must be reported to the contracting Regulatory Commission (NRC) to avoid. (c) " Evaluation activities" means any officer forinvestigation if they arise elumnate or neutralize contractor effortinvolving the appraisalof a during contract performance. i organiza tional conflicts of interest. The NRC achieves this objective by requiring technology, process. product, or policy. $ 20-1.5403 Crtteria for recognizing (d)"rechnical consultmg and contractor organizational contucts of allprospective contractors to subm.t _ management support services"means Intmst information describing relationships,if internal assistance to a component of (a) General. Two questions will be any, with organizations or persons the NRC in the formulation or asked in determining whether actual or (including those regulated by NRC) which may give rise to actual or administration ofits programs. projects, potential organizational conflicts of potential conflicts ofinterest in the or policies which normally require the interest exist:(1) Are there conflicting 4 contractor to be given access to roles which might bias a contractor's ~ event of contract award. information which has not been made judgment in relation to its work for the (b) Contractor conSict ofinterest available to the public or proprietary NRC? (2) May the contractor be given au determinations cannot be made information. Such services typically unfair competitive advantage based on automatically or routinely; the include assistance in the preparation of the performance of the contract? The application of sound judgment on program plans; and preparation of ultimate determination by NRC as to virtually a case-by. case basis is prehminary designs, speciScations, or
- whether organiza tional conflicts of necessary if the policy is to be applied statements of work.
Interest exist will be made in light of so as to satisfy the overall public (e)" Con'ract" means any contract. common rense ard good business interest. It is not possible to prescribe in agreement, or other arrangement with judgment based upon the relevant facts advance a specific method or set of the NRC except as provided in i 20-disclosed and the work to be performed. i criteria which would serve to identify 1.5401(c). prescribe in advance a speciEc method and resolve all of the contractor conflict While it is difficult to identify and to of interest situations which might arise; (f) " Contractor" means any person, however, examples are provided in Brm. unincorporated association, joint for avoiding all of the various situations these regulations to guide application of venture. co-sponsor, partnership, or relationships which might involve corporation, affiliates thereof, or their potential organizational conflicts of the policy. NRC contracting and successors in interest, including their interest. NRC personnel will pay program officials must be alert to other chief executives, directors. key particular attention to proposed - situations which may warrant application of this policy guidance. The personnel (iden*2fied in the contract), contractual requirements which call for proposed consultants or subcontractors, the rendenng of advice. consultation or ultimate test is: Might the contractor, if which is a party to a contract with the evaluation activities, or similar awarded the contract, be placed in a NRC. activities that lay direct groundwork for position where its judgment may be (g) Afnliates"means business the NRC's decisions on regulatory biased. or where it may have an unfair concerns which are affiliates of each activities; future procurements, and competitive advantage? other when either directly or indirectly research programs. (c) ne conflict of interest rule one concern or individual controls or (b) Situations or relationships which contained in this subpart appi;es to has the power to control another or may give rise to organiza tional conflicts contractors and offerors only. when a third party controls or has the of interest. (1) The offeror or contractor Individuals or firms who have other power to control both (41 CFR 1-1.006-shall disclose information concerning relationships with NRC (e.g., parties to a 1(e)). relationships whi h may give rise to licensing proceeding) are not covered by (h) " Subcontractor" means any organ.:ational co ' ts ofinterest under this regulation.This rule does not apply subcontractor of any tier which the following c.rcumstances: to the acquisition of consulting services performs work under a contract with the (i) When the offeror or contractor through the personnel appointment NRC except subcontracts for supplies, provides ad?- -'- ommendations I m l ._------m rm.-. m uas,n,__ --...m. e_---mac.,em,
Feder:t kertter / Vol. 44. N A 64 / MondIv. April 2,1979 / Ruhs cnd Perul:tions t r.99 2 to th2 NRC in a t3 nic:1 crea in which advis;s thit it is currqtly performing cf the policy may b2 w:rranted. Any h it is also providing consulting as'sistance similar analyses for the reactor such waiver shall be fully documented in the same area to any organization manufacturer. and coordinated in accordance with the regulated by the NRC. Guidance. An NRC contract for that waiver provisions of this policy with (ii) Where the offeror or contractor particular work normally would not be particular attention to the establisfunent provides advice to the NRC on the same awarded to the XYZ Corp. because it of protective mechanisms to guard or similar matter in which it is also would be placed in a position in which against bias. providing assistance to any organization its judgment could be biased in (4) Example. The ABC Co. subrnits a regulated by the NRC. relationship to its work for NRC. Since proposal for a new system for (iii) Where the offeror or contractor there are other well-qualified companies evaluating a specific reactor evaluates its own products or services, available, there would be no reason for cornponent's performance for the or the products or services of another considenng a waiver of the policy. purpose of developing standards that entity where the offerer nr contractor (2) Example. The ABC Corp., in are important to the NRC program. The has been substantially involved in their response to a RFP. proposes to perform ABC Co. has advised NRC that it development or marketing:. certain analyses c,f a reactor component intends to sell the new system to (iv) Where the award of a' contract which are unique to one type of industry once its practicability has been would otherwise result in placing the advanced reacter. As is the case with demonstrated. Other companies in this cfferor or contractor in a conflienng role other technically qualified companies business are using older systems for ~ in which its judgment may be biased in responding to the RFP. the ABC Corp. is evaluation of the specific reactor relation to its work for the NRC or may performing various projects for several component. Ctherwise result in an unfair competitive different utility c?ients. None of the ABC Guidance. A contract could be advantage for the offerer or contractorg Corp. projects have any relationship to awarded to the ABC Co.provided that (2)*Ile contracting officer may the wc ' called for in the RFP. Based on the contract stipulates that no request specific information from an the NRC evaluation. :la ABC Corp. is information produced under the contract offeror or contractor or may require considered to be the best qualified will be used in the contractor's private special contract provisions such as company to perform the work outlined activities unless such information has provided in i 20-1.5405 2 in the in the RFP. been reported to NRC. Information tollowing circumstances: Guidance. An NRC contract normally which is reported to NRC by contractors (i) Where the offeror or contrector could be awarded to the ABC Corp. will normally be disseminated by NRC prepares specifications which are to be because no conflict ofinterest exists to others so as to preclude an unfair used in competitive procurements of which would motivate bias with respect competitive advantage that might products or services covered by such to the work. An appropriate clause otherwise accrue. When NRC furnishes specifications. would be included in the contract to infor=ation to the contractor for the (ii) Where the offeror or contractor preclude the ABC Corp. from performance of contract work,it shall prepares plans for specific approaches subsequently contractmg for work not be used in the contractor's private er methodologies that are to be during the performance of the NRC activities unless such information is incorporated mto competitive contract with the private sector which generally available to others. Further. procurements using such approaches or could create a conflict. For example, the contract will stipulate that the methodologies. ABC Corp. would be precluded from the contracter willinform the NRC (iii) Where the offeror or contractor is performance of similar work for the contracting officer of all situations in granted access to information not company developing the advanced which the information developed under cvailable to the public concerning NRC reactor mentioned in the example. the contract is proposed to be used. plans. policies, or programs which could (3) Example. As a result of operating ' (5) Example. The ABC Corp., in f;rm the basis for a later procurement problems in a certain type of response to a RFP proposes to assemble cetion. commercial nuclear facility, it is a map showing certain seismological (iv) Where the offeror or contractor is imperative thst NRC secure specific features of the Appalachian fold belt.In granted access to propnetary data on various operational aspects of accordance with the representation in information of its competitors. that type of plant so as to assure the RFP and i 20-1.5403(b)(1)(i). ABC (v) Where the award of a contract adequate safety protection of the public. Corp. informs the NRC that it is might otherwise result in placing the Only one manufacturer has extensive presently doing seismological studies for cfferor or contractor in a conflicting role experience with that type of plant. several utilities in the Eastern United in which its judgment may be biased in Consequently, that con:pany is the only States but none of the sites are within relation to its work for the NRC or may one with vyhom NRC can contract which the geographic area contemplated by the l otherwise result in an unfair competitive can develop and conduct the testica NRC study. l advantage for the offeror or contractor, programs required to obtain the data in Guidance.The contracting officer (c) Policy application guidance. The reasonable time.That company has a would normally conclude that award of f;11owing examples are i!!ustrative only definite interest in any NRC decisions a contract would not place ABC Corp.nt ^ and are not intended to identify and that might result from the data produced a conflicting role where its judgment . resohe all contractor organizational because those decisions affect the might be biased.The work for others I conflict of interest situations. reactor's design and thus the company's clause of { 201.5405-1(c) wculd I (1) Example. The XYZ Corp., in costs. preclude ABC Corp.from accepting j response to a request for proposal (RFP). Guidance.This situation would place work during the term of the NRC proposes to undertake certain analyses the manufacturer in a role in which its contract which could create a conflict of i (f a reactor component as called for in judgment could be biased in relationship interest. th > RFP. The XYZ Corp. is one of to its work for NRC. Since the nature of (d) Other considerations. (1) The fact several companies considered to be the work required is vitally important in that the NRC can ident2fy and later technically well qualified. In response to terms of NRC's responsibilities and no avoid eliminate, or neutralize any the inquiry in the RFP. the XYZ Corp. reasonable alternative exists, a waiver potential organizational conflicts arising = .~ ~ O g D 8 lt m a h l ) Q 3 e
.. ~. ~ < -[ ' 'is200 redir;l Revist;r / Vol. 44. No. 64 / Menday. April 2.1979 / Eules cnd Renlitions I l from the performance of a contract is officer determines tha't organizational pa[ticipation by the contrae:or as ~ P not relevant to a determination of the conflicts exist, the following actions de'ined in 41 CFR i St.5402(f) in the 1 existence of such conflicts prior to the may be taken:(i) Impose appropriate activities covered by this clause. l award of a contract. conditions which avoid such conflicts. (c) Work for others. Notwithstanding a ' (2)It is not relevant that the (ii) disqualify the offeror, or (iii) any other protision of this contract. contractor has the professional cetermine that it is otherwise in the best during the term of this contract. the d reputation of being able to resist interest of the United States to seek contractor agrees to forgo entering into temptations which arise from award of the contract under the waiver consulting or other contractual l organizational' conflicts of interest. or provisions of I m.L5411. arrangements with any firm or that a follow-on procurement is not (2) The refusal to provide the organization. the result of w hich may ) 3 involved. or that a contract is awarded representation required by I a give rise to a conSict of interest with on a competitive or} sole source basis. 1.5404(b) or upon request of the respect to the work being performed $ N.ko4 hpMath contracting officer the facts required by under this contract.The contractor shall j ! 20-1.54Gl(c). shall result in ensure that all employees who are (a) The following proc'edures are disqualificption of the offeror for award. employed full time under this contract 3 designed to assist the NRCcontracting The nondisclosure or misrepresentation and e=ployees designated aa key ofEcer in determining whether situations of anyrelevantinterest mayalsoresult personnel. If any. under this contract 9 I - or relationships exist which may in the disqualification of the offeror for abide by the provision of this clause.lf. i constitute organizational conflicts of award; or if such nondisclosure or the contractor believes with tespect to interest with respect to a particular misrepresentation is discovered after itself or any such employee that any f offeror or contractor. award, the resulting contract may be proposed consultant or other contractual (b) Representation procedure. %e terminated.%e offeror may also be arrangement with any fidor following organizational conflicts el disqualified from subsequent related organization msy involve a potential interest representation provision shall NRC contracts and be subject to such conflict ofinterest. the contractor shall be included in all solicitations and other remedial actions provided by law obtain the written approval of the unsolicited proposals for: (1) Evaluation or the resulting contract. contracting officer pnor to execution of services or activities: (2) technical (d) De offeror may. because of actual such contractual arrangement. consulting and management support or potential organizational conflicts of (d) Ulsclosure after owcnf. (1) The services: (3) research; and (4) other interest. propose to exclude specific contractor warrants that to the best of l contractual situations where special kinds of work from the statements of its knowledge and belief and except as . organizational conflicts of interest work contained in a RFP unless the RFP otherwise set forth in this contract. it provisions are noted in the solicitation speciEcally prohibits such exclusion. does not have any organizational i and would be included in the resulting
- Any such proposed exclusion by an conflicts of interest, as defined in 41 I
contract.This representation offerer will be considered by the NRC in CFR 20-1.M02(a). l requirement shall also apply to all the evaluation of proposals. If the NRC (2) De contractor agrees that if after i modifications for additional effort under considers the proposed excluded work award i,t discovers organizational l the contract except those issued under to be an essential or integral part of the conflicts of interest with respect to this. the changes" cla use. Where. however. required work and its exclusion would contract. it shall make an immediate and a statement of the type required by the work to the detriment of the competitive full disclosure in writing to the organizational conficts clinterest posture of the other offerers. the contracting officer. This sta+ ament shall representation provision has previously proposal must be rejected as include a description of the action which been submitted with regard to the unacceptable. the contractor has taken or proposes to contract being modined. only an (e) The offeror's failure to execute the take to avoid or mitigate such conEicts. updating of such statement shall'ae representation required by paragrapa (b) The NRC may, however, terminate tlie required. of this section with respect to invitation. contract for convenience if it dee=2s ganizahnal on cts of for bids will be considered to be a minor such termination to be in the best Interest Representation informality, and the offeror will be interests of the government. permitted to correct the omission. (e) Access to and use ofinformation. Irepresent to the best of c:y knowledge and (1)If the contractorin the perfo*mance belief that i 20-1.5405 Contract clauses of this contract obtains access to em ion of an exis gcon d es ! 20-1.5405-1 General contract cieuse rma o suc as a ( ) or does not ( ) involve situations or All contracts of the types set forth in internal data protected by the Privacy relationships of the type set forth in 41 CFR I 20-L5404(b) shallinclude the Act of 1974 (Pub. L 9b579). or data i N.5403 M follcwing clauses: which has not been released to the (c) Instructions to offerors.He (a) Purpose..De primary purpose of public, the contractor agrees not to-(i) l following shall be included in all NRC this clause is to aid in ensuring that the Use such information for any private i solicitations:(1)!f the representation as contractor:(1)is not placed in a purpose until the information has been completed indicates that situations or corJ1icting role because of current or released to the public: (ii) con:pete for relationships of the type set forth in 41 planned interest (financial, contractual. werk for the Commission based on such CFR 20-1.5403(b)(1) are involved, or the organizational. or otherwise) which information for a period of six (6) contracting officer otherwise determines relate to the work under this contract. months after either the completion of that potential organizational conflicts and (2) does not obtain an unfair .this contract or the release of such exist the offeror shall provide a competitive advantage over other information to the public, whichever is statement in writing which describes in parties by virtue of.its performance of first. (iii) submit an unsolicited proposal a concise manner allrelevant facts this contract. to the government based on such bearing on his representation to the (b) Scope.%e restrictions desenbed information until one year after the contracting ofHcer. I' the contracting herein shall apply to performance or release of such irlormation to the ~ w. e I 4 M .o.. ~
1.n _.~ dde'r:1 Raist:r / Vol 44. N. f>4 / Monday. Apnl 2.19 J / Ruhs rnd Reguhtirns d 13:o1 public, or (iv) release the information nonproduction contract previously (b) Avoid or eliminate such cenDicts without prior written approval by the performed by the contractor; by appropriate measures: or contracting officer unless such (2) Software exclusion clauses: (c) Award the contract under.he information has previously been (3) Clauses which require the waiver provision of f 20-1.5411. released to the public by the NRC. contractor (and certain of his key (2)In addition, the contractor agrees personnel) to avoid certain I 20*1.5407 ConfUcts identafted after that to the e5 tent it receives or is given organizational conflicts of interest; and award. cccess to proprietap data, data (4) Clauses which provide for If potential organizational conflicts of protected by the Pnvacy Act of1974 protection of confidential data and interest are identified after award with (Pub. L 93-579), or other confidential or guard against its unauthorized use, respect to a particular contractor, the privileged kchnical, business, or (b) The fcllowing aeditional contract contracting office determines that such financialinformation under this clause may be included as section (i)in conflicts do,in fact, exist and that it contract. the contractor shall treat such the clause set forth in i 20-1.5405-1 would not be in the best interests of the t l information in accordance with when it is determined that award of a government to terminate the cor. tract as' restrictions placed on use of the fouow.on contract would constitute an provided in the clauses required by information. organizational conflict of interest. i &1.5405, the contracting officer will (3) The contractor shall have, subject (i) Follow-on effort. (1) The contractor take every reasonable action to avoid. ~ to patent and security provisions of this shall be ineligible to participate in NRC contract, the nght to use technical data contracts. subcontracts or proposals eliminate, or, after obtaining a waiverin accordance with 120-1.5411. neutralize ' 'it produces under this contract for g ' therefor (solicited or unsolicited) which private purposes provided that all stem directly from the contractor's the effects of the identified connict. requirements of this contract have been performance of work under this - l 20-1.5408 [Reservedl met. contract. Furthermore, unless so (f) Subcontracts. Except as provided - directed in writing by the contracting i20-1. M [Resed in 41 CFR :D-1.5402(h), the contractor offlcer, the contractor shall not perfomt shallinclude this clause, including this any technical consulting or management i 20-1.5410 subcontracts. ' paragraph. In subcontracts of any tier. support services work or evaluation The contractin' officer sha'll require g The temas " contract." " contractor " and activities under this contract on any of offerers and contractors to submit a " contracting officer." shall be its products or services or the products representation statement in accordance appropriately modified to preserve the or services of another firm if the with i 20-1.5404(b) from subcontractors government's rights. contractor has been substantially and consultants. The contracting officer (g) Remedies. For breach of any of the involved ii the development or shall require the contractor to include cbove proscriptions or for intentional snarketing of such products or services. contract clauses in accordance with nondisclosure or misrepresentation of (2)If the contractor under this i 20-1.5405 in consultant agreements or cny relevant interest required to be contract prepares a complete or subcontracts involving performance of disclosed concerning this contract or for essentially complete statement of work work under a prime contract covered by such erroneous representations as or speciScations, the contractor shall be this subsection. necessarily imply bad faith, the ineligible to perform er participate in the government may terminate the contract initial contractual effort which is based I 20-1.5411, waiver for default, disqualify the contractor on such statement of work or (a) In the first instance, determination from subsequent contractual efforts, and speciflcations. The contractor shall not with respect to the need to seek a pursue other remedies as may be incorporate its products or services in waiver for specinc contract award 1r - permitted by law or this contract. such statement of work or specifications shall be made by the contracting officer (b) Waiver. A request for waiver unless so directed in writing by the with the advice and concurrence of the under this clause shall be directed in contracting ofDcer,in which case the program office director and the Office of writing through the contracting officer to restriction in this subparagraph shall not the Executive Director for Operat2ons apply. Executive Legal Director. Upon the [EDO)in accordance with the (3) Nothing in th!s paragraph shall recommendation of the contracting procedures outlined in 1 00-1.5411. preclude the contractor from offering or officer, and after consultation with the 20-1'5405-2 special contract provisiona. seUing its standard commercialitems t Office of the General Counsel, the EDO may waive the policy in specific cases if h'E be determines that it is in the best l (a)Ifit is determined from the nature Ci the proposed contract that i 20-1.5406 Evaluation, ftndings, and interest of the United States to do so. crganizational conflicts ofinterest exist. contmet awart (b) Such action shall be strictly I the contracting officer may determine The contracting officer will evaluate limited to those situations in which: (1) that uch conflict can be avoided or all relevant facts submitted by an The work to be performed under l citer obtaining a waiver in accordance offeror pursuant to the representation contract is vital to the NRC program:(2) with i 20-1.5411. neutralized through the requirements of I :o-1.5404(b) and other the work cannot be satisfactonly j use of an appropriate special contract relevant information. After evaluatin8 performed except by a contractor whose t provision. If appropriate, the offeror may this information against the criteria of interests give rise to a question of j n;gotiate the terms and conditions of i 20-1.5403/a finding will be made by conflict of interest; and (3) contractual these clauses, including the extent and the contracting officer whether and/or technical review and supervision time period of any such restriction. organizational conflicts ofinterest exist These provisions include but are not with respect to a particular offeror. Ifit methods can be employed by NRC to limited to: has been determined that confhets of neutralize the conflict. For any such (1) Hardware exclusion clauses which interest exist, then the contracting waivers, the justification and approval prohibit the acceptance of product 2on offlcer shall eitherr documents shall be placed in the Public Document Room. contracts following a related ' (a) Disqualify the offeror from award. .s O % 3 p, ; ow e... g r. - -- M a
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h',. 19:02 Federal Register / Vol. 44. No. 64 / Monday. A:nl 2.1W3 / Rules and Rm12tiens [- 1 l 20-1.5412 Remedies. ' TO OPERA'TE OVER TRACKS'OF HE
- 1. Kenneth Carter. Chief. Utilization and 1
In addition to such other remedies as A TCHISON. TOPEKA AND SANTA EE Distribution Branch. Interstate may be permitted by law or contract for RA/L WA YCO3fP.4NYis amended by Commerce Commission. Washington. 7 a breach of the restrictions in this substituting the following paragraph (c) D.C. 20423. Telephone (202) 275-7840. f. subpart or for any intentional for parapaph (c) thereof: Telex 89-2742. A misrepresentation or intentional c nondisclosure of any relevant interest (c) Evirofion dote. The provisions of Decided March 27.1979. a requiredJo be provided for this section. this order shall remain in effect until Upon further consideratien of Service 1 the NRC may tiebar the contractor frnm modified or vacated by order of this Order No.1290 (42 FR 63890. 43 FR 14021 ? subsequent NRC contracts. Commission. and 45868), and good cause appeanng { Dated at, Wa shing.on. D.C. this 27th day of Effective date. This amendment shall therefon become effective at 11:59 p.m., March 31 It is ordered. that Service Order No. March 19 9. For the Nuclear Regulatory Commission. 1979. 1290 i 1033.1290 The Chesapeake and 5'"*"4 CE Ohio Railway Company Authorized To j (49 U.S.C. (10304-20305 and 11121-111:s1.) Operate Over Traeks of Consolidated l .This order shall be served upon the Rail Corporation be, and it is hereby. Association of American Railroads. Car amended by substituting the following Service Division, as agent of the paragraph (f) for parapaph (f) 1 hereof: railroads subscribing to the car service \\ lNTERSTATE COMMERCE
- and car hire agreement under the terms (f) Expiration date. He provisions of COMMISSION i
of that speement and upon the this order shall remain in effect until American Short Line Railroad modiEed or vacated by order of this art M Association. Notice of this order shall be Commission. given to the general public by depositing Egective date. This amendment shall Car Service; Missouri Pacific Railroad a copy in the OfSce of the Secretary of . become effective at 11:59 p.m., March 3L Co. Authenzed To Operate Over the Commission at Washington. D.C., 1979. Tracks of the Atchison, Topeka,and and by filing a copy with the Director. (49 U.S.C. (10304-1030s and 111:1-111:el.1 Santa Fe Co. Office of the Federal Register. AGENCY; Interstate Commerce By the Commission. Railroad Service Board. A copy of tliis amendment shall be Commission. members Joel E Burns. Robert S. Turkington served upon the Association of , and John R. Michael American Railroads. Car Service y AcTiom Emergency Order Amendment Division, as agent of all railroads do. 4 to Service Order No.1~69. a g :. Ir. subscribing to the car service and car Sa**'7 hire speement under the ter=s of that
SUMMARY
- De Missouri Pacific's line
!" * ** ^=a m y agreement, and upon the American between Winfield. Kansas, and W De See M N N am{ Short Line Railroad Association. Notice Arkansas City. Kansas, has been eus.o coes ross-ow 'j damaged by flooding and is inoperable. of this amendment shall be given to the a Service Order No.1269 authorizes the general public by depositing a copy in the Office of the Secretary of the Misscuri Pacific to operate over parallel 49 CFR Part 1033 Commission at Washington. D.C. and tracks of the Atchison. Topeka and Santa Fe between those points in order Car Service; The Chesapeake and Ohio by filing a copy with the Director. OfSce g to provide continued railroad service to Railway To Operate Over Tracks of of the Federal Register. s'aippers' served by the undamaged Consolidated Rail Corp. By the Commission. Railroad Service Board. members loel E Bums. Robert S. Turkington portions of tHs line. Service Order No. AcEwev: Interstate Commerce and J hn R. MichteL 1269 is published in full in volume 42 of Commission. the Federal Register at page 34883. E C H==u. Amendment No. 4 extends this order ^cnow: Emergency Order Amendment sam-r until modiSed or vacated by order of . No. 3 to Senice Order No.1290. g ( taas wuunas*" p, ,m m,, EWMARY: Service Order No.1290 aue*o coos mw DATts: Effective 11:59 p.m March 31. authorizes the Chesapeake and Ohio 1979. Expires when modified or vacated Railway to operate over tracks of byorderof this Commission. Consolidated Rail Corporatien between 49 CFR Part 1033 FOR FURTNER INFoRMATIoN contact Hallett. Ohio, and Walbridge. Ohio, to j J. Kenneth Carter Chief. Utilization and avoid congestion on the tracks of the Car Service; Lenawee County Railroad l Distribution Branch. Interstate Toledo Terminal Railroad Company Co., Inc., To Operate Over Tracks of s Commerce Commission. Washington. formerly used by the Chesapeake and Consolidated Rail Corporation D.C. 20423. Telephone (202) 275-f840. Oh thi S bin [ Telex 89-2742. Or er N.1 )0 s pubhs d Volume 42 of the Federal Register at Decided March :8.19:% page 63890. Amendment No. 3 to Service Action-Emergency Order A=eninent Upon further consideration of Service - Order No.1290 extends this order until No. S to Service Order No.1321. Order No.1269 (42 FR 34383. 54294: 43 modified or vacated by order of this FR 14478 and 44586), and good cause Commission. $UMMARY:The I.enawee County cppearing therefor: DATESMective,11:59 p.m March 31 Railroad operates two separate lines of Itis ordered, that Service Order No. W9. Expires when modified or vacated rai! road in the vicinity of Crosvenor. 1269, i 1033.1269 AflSSOURIPA CIFIC by order of this Commission. Michigan. Service Order No.1321. authorizes the Lenawee County Rilroad RA/I. ROAD COAfPANYAUTHORIZED roR FURTNER INFoRMATION CONTACT: Io operate over 3.6 miles of a line of the E O a e.F I e O g .w, -w 'w'~% ~' ' '
Q O j \\l%4 U h Form NRC-489 1 (1-76) j (7 U. S. NUCLEAR REGULATORY COMMISSION , j (,) NRC MANUAL 4 ~ TRANSMITTAL NOTICE 1 j CHAPTER NRC-1102 PROCEDURE FOR PLACEMENT OF WORK WITH THE DEPARTMENT OF ENERGY SUPERSEDED: TRANSMITTED: Number Date Number Date TN 1100-6 Chapter Chapter NRC-1102 10/2/79 Page Page a Appendix Appendix NRC Bulletin 1102-6 2/24/78 ] REMARKS: l The present B411etin 1102 is revised to clarify several administrative areas where questions have resulted since February 1978. This was based -l 9 on both NRC and 00E suggestions. Additionally, the format was revised to Qg standard manual chapter style. Planning and mutual notification requirements are expanded to support both long range planning and specific project or task action. This includes early notification of future year plans as well as more detailed cost and 4 schedule estimates, and adds requirement for notification when funding '] reaches the 90% level or is expected to result in any overrun or short funding situation. Cost detail reporting is expanded. i The internal coordination process within NRC is revised to insure that all j program offices concur in each project prior to submittal to a DOE j laboratory. This review will include the flRC Form 173, the statement of a work, and the proposal forwarded to the sponsoring office. l l A methoI is included for immediately starting work on urgent projects, such l as TMI t oport, prior to formal documentation of all steps. ll. An added statement clarifies the applicability of the 1102 procedure to 00E G0G0's as well as G0C0 iaboratories. Technical reporting requirements are expanded to include a requirement for preparation of an abstract and executive summary. Procedures for reports f' approval prior to publicaticn, handling, printing, and distribution are expanded, clarified, and standardized. The use of the flRC Form 426A is added. g, D/ .g w e h
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UNITED STATES NUCLEAR REGULATORY COMMISSION l NRC MANUAL la 1 BU LLETIN ..j 1 1 NO. 1102-17 DATE: November 25, 19'81
SUBJECT:
PROCEDURE FOR PLACEMENT OF WORK WITH THE DEPARTMENT OF ENERGY - a,] REVISION .T The following changes clarify administrative practices to help assure ,fn O N compliance with 31 U.S.C. 665, Section 3679 ("The Anti-Deficiency Act"). U.h 1. Section 1102-03-Responsibilities and Authorities Subsection 031-Directors of Offices: l The following subelement will be added: 'l "o) coordinate and obtain Division of Budget and Resources Analyses j certificatio'n of funding availability for EDO and Comnission offices prior to placement of work at DOE." [j 2. Section 1102-04-Basic Requirements j fj A. Subsection 043-Issuing Authority: L i.j The following sentence will be added to the current paragraph: ~l " Offices under the EDO and Commission allotments must obtain a certification of availability of funds from the Director, Division
- j of Budget and Resources Analyses,or his delegate."
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- 'a C'iAPTER 1102 PROCEDURE FOR PLACEMENT-0F WORK WITHTHEDEPARTMENT0{ ENERGY
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fj 1102-01 COVERAGE This chapter covers the responsibilities, authorities, anit procedures for plac-1 ing work with the U.S. Department of Energy (DOE) ad its contractors, and .i (a) obligating NRC funds on a reimbursable basis, R, paying for such work, { and (c) preparing and issuing reports on the work. It represents the actions necessary to implement Section III and' portior s 'cr Section VII of the DOE-NRC i ,'] memorandum.of understanding dated, February 24,11978. m 3 This chapter has been coordinated with and indicated to be acceptable to the U.S. Department of Energy. It does not cover procedures for placement of j work with other government agencies cr outside contractors. 3 3 _. 1102-02 OBJECTIVES . i ( 7, w i C;/ 021 To provide a standardized procedure for requesting and authoriz-ing work to be performed by3 DOE urier interagendy agreement on a reim-Li bursable basis. It also proOides a framework for program
- control, administration, monitoring, and closeout of approved work.
~ ~ j 022 To provide terms and conditions for work to be perfoi;med by DOE. ? l i 1102-03 RESPONSIBILITIES AND AUTHORITIES o ; !~.; 031 Directors of Offices: s . h l 3 a. cooperate with DOE in long-range planning so as to ensure H N that both agencies anticipate the magnitude of funding, alloca- ~ l .j tion of resoui*ces, and timing of events necessary to conduct l 1 interagency activities in accordance with the DOC-NRC Inter- ,. W agency Agreement on Institutional Planning System, daled August 18, 1978. T s L l b. issue requests for work proposals from DOE for research or technical assistance work'(program support) to be performed l' j at DOE facilities. r s l A ..s s evaluate the proposals; determine that the documents are_' tech-P' c. K-P nically adequate' and that budgetary authority exists. L mg LQ ?) ') l 1 l 1 Approved: October 2, 1979 Hy ~ s cq 4
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WITH THE DEPARTMENT OF ENERGY d. prepare, coordinate, authorize, sign and issue NRC Forms 173, d ^ " Standard Order for DOE Work" (SOEW), and accompanying x statements of ' work. ThE authority may be redelegated with ~ written notification provided to the Director, Division of %c,j A,ccounting. ~, v. d e. establish, with regard to each research or technical assistance d program, overall and specific plans; monitor and assess pro-j . gress; followup to ensure that' program results are properly Q
- analyzed, evaluated, and disseminated; additionally, insure that adequate feedback exists for the incorporation of results
.i i into the Commission's confirmatory assessment program and 7 other regulatory activities. Keep the DOE operations offices, j-and the Safety Engineering Division (EV/ SED) informed of - appropriate activities, including prior notification of planned ~ 4 program reviews and visits, d l f. ' coordinate and obtain the NRC Division of Security facility 3 approval prior to placement of classified work at DOE facilities and notify the Division of Security of the completion of classi-t ,fied work. g. ensure appropriate clauses are included in the Standard Order x for DOE Work regarding the private use and protection of pro ' Q@~ prietary and sensitive unclassified government information. ' s ' l \\ h. during the course of work, develop any additional listings, reports, or other information required for the completion of NRC directed programs or tasks. i. provide timely funding or guidance to permit continuance of 1, on-going programs which encompass more than one fiscal year. 1j j. formally notify DOE operations offices of any on-going pro-grams the sponsoring office intends to phase out or terminate c'- y as soon as such intent is known. ][A k. review all billings certified by DOE in accordance with the a scope of work and the SOEW, and approve for payment by 9 signature on transmittal memorandum to the Division of Accounting. This responsibility may be redelegated with the Division of Accounting advised. 2 - s l. assure that the proposed work shall be in accordance with ap-fM propriate conflict of interest policy and regulations. .e ] m. coordinate and obtain Division of Automatic Data Processing , ? Support approval prior to placement of tasks limited to computer support for NRC offices at DOE facilities. f t. n. y {l C m Approved: October 2, 1979 _ _ n-y ~. . m. ,3 7 - ~ -
m
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- 3 _ -. 3j
- i. ~..
u-.... w... ..a q ..l PROCEDURE FOR PLACEMENT OF WORK WITH THE DEPARTMENT OF ENERGY NRC-1102-032 .j gw 4 .;C maintain supporting data justifying placement of tasks with DOE 1 n. versus commercial contracting which indicates the basis of the t q placement. , c; 032 The Office of the Controller: P a. carries out implementation of the NRC-DOE Memorandum of ".} Understanding through Management Directives, publication .i of Bulletins, and guidance memoranda to NRC program offices. O b. provides consolidated long-term planning data and annual budg- !j etary information to meet both DOE and NRC planning ] requirements. .} 033 Director, Division of Budget: j a. issues allotments and approves financial plan information to 'j NRC program offices. q 1
- i b.
maintains official allotment records for EDO and Commission }! offices and certifies funding availability for these offices. ) provides FIN listing to the Divisicn of Accounting and reviews i c. lj the applicable program office financial summary data. - - 1 f. - jT 'j (' 'j) d. provides advice and guidance to other NRC offices as required j for formulation of budget estimates. h provides financial program status analyses to the Executive Di-e. rector for Operations and the Commission as required. i f. maintains and files copies of all NRC Standard Orders for DOE Work with accompanying statements of work and laboratory 1 proposals. Reviews for proper office coordination and duplica-tion of effort. q:. d 034 Director. Division of Accounting: 9 ?) a. records obligations against those SOEW's that have been } accepted by DOE and forwarded to the Division of Accounting assuring use of proper accounting citations, FIN, and Budget lj and Reporting Classifications (B&R). A b. records costs as reported by DOE through receipt of their monthly Financial Information System (FIS) tape. G c. receives all billings from DOE for work performed for NRC, ,] transmits billings to appropriate NRC program offices for re-d" view and approval signature: upon receipt thereof, certifies J, correct for payment through the U.S. Treasury. .- 4 S h;/ i d. monitors day-to-day status of not-yet-accepted or rejected SOEW's and provides information to NRC progra.n offices -ti4 -l Approved: October 2, 1975 m y
.,....w =....... -. -.. .i a .:1 PROCEDURE FOR PLACEMENT OF WORK f: NRC-1102-035 WITH THE DEPARTMENT OF ENERGY ] e. maintains records of outstanding DOE uncosted obligations and J unpaid billings and provides reports to NRC program offices. J "l f. resolves day-to-day problems associated with billings through 't direct contact with DOE operations offices (such as billings 3 that do not reflect costs as reported through the FIS, incorrect or invalid FIN, etc.). l g. transmits to the Property and Supply Branch, ADM, and the 1 program offices copies of all itemized receiving reports fur- ] nished by DOE for equipment and related material funded by ] NRC. y . M. ; 035 Director, Division of Securitv: j a. provides advice and assistance to NRC program offices on the , 6. ' placement of classified work at DOE facilities. ,1 b. obtains facility approval for classified work from the appropri-ate DOE Operations Office Security Organization and notifies j the NRC program office of such approval. c. maintains master facility register for all NRC classified j interests at DOE facilities. 1 036 Director, Division of Technical Information and Document Control: , o.; .l a. develops and issues instructions in conjunction with the NRC program offices and DOE /OTI for the preparation of reports. 1 ./;.l b. prints or duplicates reports as specified by the terms and con- ~ 1} ditions of the Standard Order for DOE Work. 'j c. makes physical distribution of all reports required by the q f SOEW that are to be made publicly available. l "d 037 Director. Division of Automatic Data Processing Support: 1 h} provides advice and assistance to NRC program offices in ob-a. taining computer services at DOE facilities. si, b. obtains DOE facility approval for computer services to NRC staff. 3, c. prepares requests for work proposals and evaluates DOE pro-posals for computer services to NRC staff.
- ,7 d.
provides cordinated hardware and consulting software support Q services to NRC offices obtaining computer services at DOE f acilities. r~l e 4 i [ '{-l1
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'd Approved: October 2, 1979 m
b i. 'tih . PROCEDURE FOR PLACEMENT OF WORK WITH THE DEPARTMENT OF ENERGY N RC-1102-04 i , (e } 1102-04 BASIC REQUIREMENTS i 041 Request for Work Proposals from DOE for New or Continuing Programs, in the formulation of their annual budget, DOE Operations Officas a{ submit work proposals to DOE Headquarters to support the funding level re-quested in their budgets for both new efforts and continuing work. These work proposals are received in May of each year for work in the next fiscal year. For efforts in support of the NRC, copies of the proposals are sent l directly to the NRC office concerned, with information copies sent to the DOE 1 Safety Engineering Division (EV/ SED). These proposals may be requested (( or submitted at any time during the year, h Some NRC offices use these proposals in formulating their budget and issue orders to DOE to perform the work contained in the work proposal. Other l NRC offices rely primarily or completely upon work proposals submitted by DOE in response to requests from the NRC. Exhibit I shows how to prepare a request for work proposed to DOE. It .j indicates th'e minimum information required for all requests (additional infor-t mation may be requested when needed). A sample transmittal letter is also j included in the Exhibit. Note: Copies must be provided to Headquarters, ) DOE, EV/ SED (2). 1]A 042 Ordering Work to be Performed by DOE. After evaluation of. an ! ?- ) appropriate work proposal from DOE, work shall be authorized by issuance of l an NRC Form 173, " Standard Order for DOE Work," as illustrated in Exhibits ] 2, 3 and 4. When the work is being initiated in response to user require-j ments, the office originating the user requirement will be consulted during 4 the preparation of the SOEW. .) j The standard transmittal letter (Exhibit 2) should be addressed to the Manager of the appropriate DOE Operations Office (and his designee when J.l notified in advance) and include the three paragraphs shown in the Exhibit. l j An information copy should be sent to the Safety Engineering Division l,;a (EV/ SED) at DOE Headquarters as well. The transmittal letter may include additional information, but it should be noted that the transmittal letter is not a part of the order. l. j To insure projects are properly reviewed and coordinated within NRC, each ] program office (RES, NRR, NMSS, IE, SD) will provide copies of standard i transmittal letters with any attachments to all other program offices (including ld International Programs and State Programs as appropriate) for all projects of q $100K or greater. It will remain the individual responsibility of the issuing office director to determine the degree of coordination needed for projects of less than $100K. This procedure will afford all program offices the opportunity ^ L y to comment or concur as they feel necessary on the higher value projects. I. 4 This concurrence may be obtained concurrently (vice sequentially) and will be indicated within one week of receipt. The absence of a response will be considered a positive response. If a problem or reservation is identified, the 1 O nonconcurring office director will provide specific rationale in writing to the f issuing office within an additional week. The issuing office is responsible to I l v Approved: October 2, 1979 ~ ~ - - - - - _.,n
3.- n.a. z a.. .. ~ - - .q M:; -) PROCEDURE FOR PLACEMENT OF WORK [.i NRC-1102-042 WITH THE DEPARTMENT OF ENERGY b take whatever action is necessary to resolve the problem before the NRC -/ g Form 17 3 is transmitted to the manager of the appropriate DOE operations 'd office. The nonconcurring or commenting office shan work expeditiously with
- j the issuing office in resolving the problem. Only after final internal review and coordination, noted above, may an NRC Form 173 be transmitted to DOE.
e This procedure will insure a completed Standard Order of DOE Work does not J unnecessarily duplicate ongoing or prior tasks. Under no circumstances will . a an issuing office break up a program to circumvent this required coordina-tion. Revisions to SOEWs which increase funding by $100K or greater will j[? also be processed by this procedure. Additionally, each SOW must have attached a documented justification for placement of new work with DOE. coordination and review procedures win be noted 9 NOTE: Specific program in a forthcoming NRC Manual Chapter 1401 and will be complied with, when issued. This may change the above stated requirements. The NRC Form 173 will be filled out by the issuing office in accordance with %] the instructions in Exhibit 3. Exnibit 4 is a set of Standard Terms and (J Conditions which normally will apply to all standard orders sent to DOE. /1 They do not have to be attached to each order. However, any modification 11 or deletions to the standard terms are to be noted on the NRC Form 173 and i provided as an attachment. Exhibit 5 provides the addresses of the DOE f Operations office managers. >] There may be instances when urgently required work does not provide suffi-(N") cient time for proposal preparation and review prior to issuance of n 3 W a work authorization. In these instances, the standard transmittal letter shall j include an additional appropriate paragraph as indicated in Exhibit 2. i] For specific policy and procedures for obtaining DOE consultant services, see 5, Chapter NRC 4139, Appendix Part III. Additional requirements of that chap-N ter must also be met by issuing NRC offices. 043 Issuing Authority. The Directors. of NRC Offices, by receipt of an allotment, have been delegated the authority to incur obligations within a spe-g cified amount. The Directors of NRC Offices as holders of an allotment may redelegate the authority to designated officials to incur obligations. The de-signated officials to whom such authority has been redelegated must have C direct financial ranagement responsibility for the execution of important seg-O ments of the Con mission program. Consequently, the Director of the appro-A priate NRC Office or his delegate, as noted above, must sign all NRC Forms 173. s 044 Changes. Any change to an existing order (i.e., funding amount, work period, statement of work, etc.) will be accomplished by the issuance of T a new NRC Form 173. . +. p -d a j ,2 ( m d J .8 Approved: October 2, 1979 .] I' t .' WT. ee -.en. ey -- - c-. y ,s. ,,,.._.n. c. m, ...nv__m.m.,,,
s m. 't H PROCEDURE FOR PLACEMENT OF WORK WITH THE DEPARTMENT OF ENERGY NRC-1102-045 lf k."*, .+ I / 045 Authorizing Financial Flexibility Reallocation ot' runds between FINS y is not authorized unless the issuing authority so indicates on the NRC .j Form 173. If an issuing office authorizes the DOE performing organization to reallocate funds between FINS, the issuing authority of the office will be noti-4 fied within five days after such an adjustment. To be recognized in the cur-rent year, the adjustments must be incorporated in a Standard Order for DOE 4 Work, signed and dated by both parties prior to October 1. This new NRC j Form 173 will change the amounts per FIN in accordance with the perfonning i organization's cost experience. y ll Issuing offices shall not authorize funds to be transferred between FINS after i the end of the fiscal year without the prior approval of the Controller, NRC. 046 Applicability. The provisions of this chapter apply to and shall be ef followed by all NRC offices. (DOE has also agreed to these provisiones, ar noted in paragraph 01. ) a 047 Exhibits. The exhibits of this chapter provide the procedures, j forms, and terms and conditions for placing work with DOE. 1. Sample Letter and Statement of Work (Request for Proposal)
- )
- [i 2.
Sample Transmittal Letter for NRC Form 173 (,., 3. Sample NRC Form 173 and Instructions for Preparation i 4. Terms and Conditions - Standard Order for DOE Work
- c d
5. Addresses of DOE Operations Office Managers ,M Mq i ' - ji
- n P:93
..q . I'I H Q p Q i. (::. m +< s \\q) r e q o l l j,g Approvec: Octocer 2, 1979 7 ; - n,y .n-,v-,m-n .~,-.n
... ~. w -,a: .....-.a. - ~,.. 4. o 1 Exh(bit 1 / UNITED STATES age 1 of 5 l '" h ! .l - l{ ?,c, -(i NUCLEAR REGULATORY COMMISSION .; ( x-1 WASHINoToN, o. C. 20555 S,M ,f y,.x ly 4 (date) SAMPLE
- j Mr. R. J. Hart, Manager Oak Ridge Operations Office U.S. Department of Energy 3
i P.O. Box E j Oak Ridge, Tennessee 37830 t 1
Dear Mr. Hart:
- $a This letter is a request for a proposal from the Oak Ridge National l
Laboratory to provide program support contractual assistance to the 1 Office of Nuclear Material Safety and Safeguards of the Nuclear Regulatory Commission. The enclosed statement of work details the required work d and should be used as the basis for preparing a proposal for submission 'i to this office. Standard terms and conditions for NRC work, as approved 1.j by Headquarters, 00E apply to this effort. A copy of these terms and 's conditions has been furnished your office separately. The proposal J snould contain as a minimum the information set forth)in Enclosure 2 and d should be submitted in six copies to: O:1 6 's U.S. Nuclear Regulatory Commission .,V,j Office of Nuclear Material Safety and Safeguards Attn: Program Support l Washington, D.C. 20555 j r l Work under this task (is anticipated to be unclassified.) or (will l require access to and/or the origination of classified information as El. indicated on the enclosed NRC Form 187.) L This request for proposal is not an authorization to start work. Authorization to commence work becomes effective upon the Oak Ridge a.q Operations Office acceptance of an appropriately executed NRC Form 173. If you have any questions about this request, please contact Mr. Don Loosley on FTS 427-4072. Thank you for your assistance. q Sincerely, ,1 _A r Ofj William J. Dircks, Director Office of Nuclear Material Safety and Safeguards d5 d
Enclosures:
- I 1.
Statement of Work [@] 2. Proposal Content 3. NRC Form 187 (If classified) (j cc: j H. Postma, ORNL 1 R. W. Barber, EV/ SED (2)
- 2. )
Approved: October 2, 1979 .'.-r,.-~., i 8 .~-.-.,~m.,-...m_.r-..m_.... .....,_,.,,.~_,.m._- ____.y.... m.
c a__:a a m _c' i . r; i;]J ~ Exhibit 1 "i Page 2 of 5 )
- j i
STATEMENT OF WORK FOR (FILL IN FIN TITLE, FIN, AND B&R) M <y .[
1.0 Background
Provide a brief statement to orient the reader to the requirements for the work and discuss any pertinent work previously accomplished. 7' ; 2.0 Work Required Provide a concise description of the tasks to be accomplished by i D the performing organization. Highlight changes from prior authorized statements of work (30W), if any. y m, Reporting Requirements N 3.0 Each program office shall specify its reporting requirements (types j of reports, frequency, and distribution) in the 50W. This may be j accomplished by reference to existing office procedures. i The report listing shall include, as a minimum, a monthly letter status report and a formal final report to be furnished upon '3. Consulting service contracts should be completion of the program. The programmatic distribution of 3j = reported based on activity level. these documents shall be as specified by the responsible program d office.
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'3.1 Monthly Letter Status Report + Each month the performing organization shall submit a brief letter status report which summarizes: the work performed during the g(:'6 previous month, personnel time expenditures during the previous ? The first month, and costs generated against the work effort. monthly letter status report after program authorization shall include planned monthly rate of expenditures for the fiscal year, e s if not provided with the proposal and include any changes to prior Other estimates in the proposal schedules or estimated costs. ['. will be corrected at this time to reflect authorized program for consultants the frequency should be in levels. Exception: consonance with the activity level; i.e., report only if activity If this report is to be made available routinely in the ,e ~$ NRC Public Document Room, it shall be treated as an interim occurs. (-U technical report (see 3.2 for procedure). 3.2 Interim and Final Technical Reports _ Instructions for the preparation of this portion of the statement
- v of work are provided in the Terms and Conditions of the Standard i
,N y<W N j Approved: October 2, 1979 ^ ?Wf_Y Q7} 9..r e er.s e e
- ,w- - - - -
_ ~ 7-y -g 7_.,._..._.
. w.l..x.a _ ,_L 7 .4J -y Exhibit 1 I Page 3 of 5 i ,%} x t j Order for DOE Work, Paragraph 12. List the required reports and ? specify content and due date, if known. An individual task report i may be designated to be either an interim report or final report. 4 1 3.3 Environmental Impact Statements Draft and final environmental impact statements will be published i' as NRC documents, as required by NEPA. Environmental impact state-ments will follow guidelines for NRC staff generated documents. ,; 21 (
Reference:
NRC Manual Chapter 3201.) AN 4.0 Meetings & Trave! .b -l 1 Consider any required meetings and associated travel requirements j for meetings which the performing organization will attend or host. i All foreign travel requires identification per NRC Manual Chapter 1501. i 5.0 NRC Furnished Material q ') Specify any special reports, equipment, or other items to be ip provided to the performing organization by the NRC and when the. ji) material will be.provided. If convenient, this information may be 'q\\> provided as an integral part of the task definition in Paragraph 2 above. .1 6.0 Period of Performance q 1 Specify the start and completion dates for the work described in a this statement of work. Where appropriate, this information should be specified for individual milestones, as well as for total effort.
- 7. 0 Technical Direction L..
Insert name and FTS telephone number of the individual designated as the NRC technical monitor for this effort. l " :.; s1 'l 8.0 Discosal of Property =y tj Upon completion of a program or termination of a program, a A reconciled report will be developed jointly by DOE and NRC to ,.i'd record available material purchased with NRC funds. This' report should be developed as soon as possible after program completion or , ' Jj - i termination decision has been made, but not later than sixty days after work termination date. The report should be submitted to the s Property anc Supply Branch, NRC. 'f; M \\g;
- 4. o L v;
,y m1 -q l Approved: October 2, 1979 .4 r-f 4 J s E ?
tw ~...
- =
- =
- a..
a. ..;....a ..a [j Exhibit 1 a Page 4 of 5 .a .s 4 -i e PROPOSAL CONTENT The minimum items required in all proposals are: 1. Performing Organization's Name and Location
- .t.
S 2. FIN Title (as on statement of work) ,N 3. FIN Number 4. 8&R Number (NRC's) .. s
- ,y_,
5. Performing organization's key personnel, program manager, or .[ principal investigator, and FTS chone number. -y c G Manyears of Technical Support (MTS) 9 a. b. Costs: (1) Direct Salaries (Labor) for MTS A (2) Material and Services (excluding ADP) n: ,.m (3) Total ADP Support .j (4) Subcontracts l:n Ni (5) Capital Equipment Z (6) Direct Travel Expense (Foreign travel must be shown h separately.) b (7) General and Administrative Expense (Include indirect 1 abor cost.) IN a c. Total Estimated Cost: G w t' k[ Approved: October 2, 1979 ~. .w w weme ,,_m e u l "j ? ?- . WT y.Wy. -
.uu.- ..a 1 a :., ~ ~i .-x... .. ~. ,1 i 9 Exhibit 1
- li, 3 Page 5 of 5
_1 r. :; l v,f i 9. Forecasts: ?l a. Milestone Chart for accomplishing the work. s j b. Planned monthly rate of costs for first fiscal year. This may q be provided with the first report.of an authorized program if 0-not known at time of proposal submittal. At the beginning of f! each subsequent year, reports should include the planned monthly ,_j rate of costs for the ensuing year. 1 t 10. Conflict of Interest:
- - }
In order to assist the Commission in its evaluation, the DOE { Contracting Officer shall describe any signi'icant contractual acd organizational relationships of tne DOE, its contractor, their employees, or expected subcontractors or consultants on this proposal, 11 with industries regulated by the NRC (e.g. utilities, etc.) and i suppliers thereof (e.g. architect engineers and reactor manufacturers, etc.) that might give rise to an apparent or actual conflict of interest. ] q g .1
- l '
- ,Y l
l t Lj l .i l ij i-i}s i,q ) O m, r ) b ,l ,1 Approved: October 2, 1979 il.- ry .m-
u ...w:.. x . '. i e Exhibit 2 [ 0 UNITED STATES ~ lIl [ 4, j NUCLEAR REGULATORY COMMISSION )e(, N - .g ' ; WASHINGTON, D. C. 20555 } 4,' "/ j (date) SAMPLE Mr. R. J. Hart, Manager Oak Ridge Operations Office N U.S. Department of Energy JJ P. O. Box E ] Oak Ridge, Tennessee 37830 '.)
Dear Mr. Hart:
a The enclosed NRC Form 173, Standard Order for DOE Work, for S } is hereby submitted in accordance with Section III.8.2 of the LTE/NRC .j Memorandum of Understanding of February 24, 1978. (Include as second paragraph when appropriate:) This work is urgently ] required to support (define activity) and the 50EW is forwarded without prior proposal. The work authorization provides for proposal preparation as part of the work scope. .1 Please indicate DOE acceptance by signing and returning the enclosed NRC . ], 7,g Form 173 to the NRC Office of the Controller, Division of Accounting,
- ]' t ?/
with a copy to this office. v d If you have any questions, please contact Mr. Don Loosley (FTS 427-4072). 4 Thank you for your assistance. Sincerely, l.,i '.~, William J. Dircks, Director u.'d Office of Nuclean Material Safety and Safeg*uards [ Enclosure (s):
- .1 1.
Standard Order for 00E Work 2. NRC Form 187 (if classified)
- r-cc
R. Barber, EV/ SED (2) c 4m I (w., a D.{ i - fj a Approved: October 2, 1979 A.,m x ---~ny 7 - ,~:-~--~ m - - m v =.
g aflgh q,. g^ er aw.' 44 4 - mh d 8de W*r de N -4F 8 bMh 1
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>4ese b- ~ p. p I A
- j Exhibit 3 1
Page 1 of a
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~}. i. .') 'I l. y 'I ] NRC somu 173 vs wc.tasat M argascsvv3s a s .n s. v u, l ,.j .S.19 .. 4 Cait i STANDARD ORDER FOR DOE WORK --y') .j ISSUE D 70. (OCE Off. css ISSuto Sv. sNaC 0"se' ACCOUNTING CITATION AsseopasafiCN svv806 h osa wust se PERFORMING ORGANIZAT?ON ANO LOCATION .3-j riN wust e
- k
_ ) WOR M PERIOD. THt$ 05 TOE R Pih TITLE FitEO C ESTIMA TED l i 3 FROM TO .l O8 LIGATION AVAILABILITY PROVIDED BY; '1 A TwS OROER l ,5 ~ l 3 TOTAL Cs ORDERS PL ACED PR.OR TO TMiS D A T E *' rm f >E 8EasORMiNG ORGANIZ ATION l UNDER THE SAME APPROP8PI ATION SYM80L ' AND THE FIRST FOUP OsCITS OF TH6 l5 8 3 9&R NUuSER* ctTs0 A80VE I ,9 _.' I C TOTAL CRCERS TO DATE tTOTAL A & se h5 1 A s l 0 AMOUNT INCLUCEO tN "C" APPLICABLE TO THE fin NUM8E R" CITEQ iN THIS ORDE R ji l.g f' ~ h (- FINANCI AL PLEXISILITY. " b,/ O FUNCS WILL NOT 8E REPROGRAMMEO BETWEEN FINS LINE D CONSTITUTES A uviTATION ON 08LIGAT'ONS G AU THCRIZE D. I C FUNCS MAY SE REPROGR AMMED NOT TO EXCEED : 10 4 OF fin LEV E L VP TO $50< LINE C CCNSTITUTES A LIMITATICN ON 08 LIGATIONS AUTHORIZED I STANDARO TERMS AND CONDITIONS PROviCED DOE ARE CONSIDERED PART OF THIS ORCER j UNLESS OTHERWISE NOTED. M l ATTACH ME NTS 1 THE FOLLOWING ATTACHMENTS ARE ME AE8Y SECUAITV MACE A P ART OF THIS ORCE R. C nCRK ON T=ls OADEm iS NOT MSSiFiEO C STATEMENT OF WORi( C Wom< ON T=is Om0Ea iNycL,ES CL45!FiED C ADDITICNAL TERMS AND CONotTIONS
- NFO AV ATION N AC FC AV 187 'S A T' AC"F O 2 OTHER l
- jse, REMARKS tReference the crocesst by numoer saa care. one moocate ?!the artsched statement or eore modo!.es the CCC prooossa t
ej l N i
- )
l l j! ,1 rg ISSUING AUTHORITY I ACCEPTING ORGANIZATION ise,sarose s.cNAr6st I
- y.
-~ ( ( w. h.y l NRC Foam 173 s 79t e j Approved: October 2. 1979 3].-
2.u _ w-~..-
- .. ww
., - aa . a a L.~. -...u ..:w.....: a 1 I Exhibit 3 - ] Page 2 of 4 1 't .] t INSTRUCTIONS FOR PREPARATION OF s; NRC FORM 173 =-- 1, .,'l ..] The following items will be completed by the NRC issuing office: d j Order No. The order number identifies the issuing office, fiscal year the order is l issued and the sequential number of the order. The number is XX-XX-XXX. The first two digits represent the office code, i.e., 10 for Office of Standards Development, 20 for Nuclear Reactor Regulation, etc. The . q^ 'hird and fourth digits identify the fiscal year in which the order is issued. The last three digits are sequential numbers of the order assigned by the issuing office starting with 001 for the first order placed with 00E for that fiscal year. Date 5-f] The date signed by the issuing authority. a d Issued To
- l The name of the DOE office receiving the order.
ns di Issued Bv T.i 1 The name of the NRC office issuing the oroer. yq I Performing Organization 1] The name and location of the 00E laboratory, prime contractor, or office .i which will perform the work. Provide further identification of laboratory .i complex, site, etc., if possible. Identify DOE program manager or
- }
principal investigator if known. x_ FIN Title The title should be a concise description of the work. The title on this form should be the same as that provided to the Division of Budget, ij CON, for the Financial Plan Listing. For continuing efforts, titles H In the event that the generally will not change from year to year. order covers a number of FIN tasks, insert the words "see remarks," then ,1; provide the appropriate lists and remarks. n. '1 .I Accounting Citation - Acoropriation y:j i).h Use the same appropriation number as that identified on the allotment $0 for current fiscal year funds. For adjustments to prior year FINS, use appropriate allotment citation. A 1:, G s
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'[ Approved: October 2, 1979 i >N ._.,m.m.,,._,,
/e f. l I d. [M%# J -==.iu.s".'r#-am i e,#&M.4 avd ?.ups W immie.A tw, p.
- si
.f..dl .-g .j. i:l ,' N Exhibit 3 Page 3 of 4 p. e , [ B&R Number d d Show the NRC B&R number under which the orcer was placed. This should si be the same B&R number as that identified in the financial plan. When d an order covers a number of tasks, insert the statement "see remarks" and add as appropriate. h\\ FIN Number
- j Show the FIN number whkh identifies the task and fiscal year of the
,j funds. The basic number (first five positions) will not change for continuing efforts. (The sixth digit denotes the fiscal year of the funds.) In the case of an order covering a number of tasks, insert the j statement "see remarks" and add as appropriate. Work Period y , cU Show the period in which the work is to be performed and funded. Note 'd whether work period is fixed or estimated and check applicable box. If 'l the order is for more than one FIN, insert the words "see remarks" and 'i provide as appropriate. 11 Definitions: Fixed means that costs shall not be incurred beyond the dj.m cited work period. For the work period to be extended a .j revised NRC Form 173 must be issued. q.] pp.: s,.. 1 Estimated means that the exact period of performance is T! not known at inception of the project. In this instance 1 the period of performance may be extended without prior a] approval by the NRC. However, when the period of performance is determined, a revised NRC Form 173 will be dj issued providing a fixed work period. . ; -j ^ Oblication Availability Provided By: ' j )' a. This Order 4 Include the dollar value of the order. b. Total of Orders Placed Prior to This Date Show the total value of all prior orders this fiscal year placed by ,a the issuing office to this performing organization citing the same appropriation source and the first four digits of the NRC B&R number , 'w.3 appearing in the accounting citation. Leave blank for the initial f3 order in any fiscal year. rqi c. Total Order to Date sw T g Show the total of a. and b. above. v. \\ Approved: October 2, 1979 7.,-,-. .t._m~-,__,
._.~._...._.._a.m.....__2m_._.a_ . u.. _ ...._ :. u _ __ _ w _ _.. _ _ -f 1 , ;I Exhibit 3 Page 4 of 4 '.'). g d. Amount Included in c. ._;7 If the order is for a single FIN, this amount would represent the i . ~i cumulative year-to-date amount of funds obligated against the FIN. 4 If the order is for more than one FIN, insert "see remarks" and add as appropriate. J: 2 Financial Flexibility Check the appropriate box to denote level of flexibility the issuing ,] office wishes to grant the performing organization without prior notification. Attachments j Check the appropriate box identifying the attachments to this order. l Security Check the appropriate box. If classified, complete NRC Form 187 and ] forward to the Division of Security for approoriate concurrence, along g with a copy of the statement of work. Remarks T Use this space for any pertinent information you may want to include. 64-a If the order is for more tnan one FIN, incluoe tne following listing. (1) FIN numbers, (2) FIN titles, (3) NRC B&R numbers, (4) amount of this order by FIN, (5) cumulative amount by FIN, and (6) work periods. If additional cost reporting information is required by the NRC technical monitor, this will be coordinated with the Controller, and noted in the 4 remarks section. (The DOE operations office will accept such requests
- l only if they appear reasonable and the information requested is readily 4
available.) 3 ~ [ Issuing Authority s l The signature.of the director of the appropriate NRC office or his ,, -j designee must appear in this block. 'i ] Accepting Organization . +9 The signature of the DOE representative authorized to accept the order, title, and the date of the signature should appear here. 3 au +w, o. .d h~ 4 d ~ 0 ,] Approved: October 2, 1979 .9l %:,. n~m-mm, + -m v.- p, p.
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15 Exhibit 4 Rj Page 1 of 21 '4 Ji( j "] TERMS AND CONDITIONS STANDARD ORDER FOR DOE WORK * ] fl 1. Security - Unclassified Work Efforts a 'N Nl To the extent that performance of work under this order does not involve classified information, the following clauses are applicable: (a) It is mutually expected that the activities under this work 4 order will not involve classified information or material. If ~j in the opinion of either party this expectation changes, they shall immediately notify the other party in writing. In any a event, DOE shall handle and otherwise safeguard classified information and material in accordance with applicable law and q DOE requirements and shall promptly inform the Commission in v9 writing if and when classified information or material becomes .g involved. (b) The DOE contractor (performing crganization) shall not permit i any individual to have access to Restricted Data, or other d classified information except in accordance with the Atomic Energy Act of 1954, as amended, and DOE's regulations or u requirements. M, f!j g, (c) Except as specifically authorized by this work order or as ~l otherwise approved by the issuing authority, records or other 2) information, documents and materials furnished by the NRC in L) the performance of the order shall be used only in connection . fl with the work performed under the order. Upon completion or M. termination of this order, DOE shall transmit to the issuing authority all records or other information, documents and i materials and any copies thereof, furnished by the NRC in the
- g performance of this work order except those required by the N
00E Contracting Officer's official records. l;N -G (d) All parties conducting activities under this work order shall be responsible for the safeguarding from unauthorized disclosure + .j any information or other documents and material exempt from "M public disclosure by the NRC's regulations and made available Dl in connection with the performance of work under this order. Both parties agree to conform to all regulations, requirements, ') and directions of the NRC with respect to such material. [n 1/1 While these terms and conditions are oriented to government owned, 17p contractor operated facilities (GOCO), they apply equally to govern-ment owned, government operated facilities (GOGO). Examples of A GOGO are the New Brunswick Laboratory (NBL) and the Idaho Radiological Environmental Sciences Laboratory (RESL). 4.? k/M m Approved: October 2, 1979 q w n n <. a'
.u l 'l:i Exhibit 4 'l Page 2 of 21 q" v 2. Security - Classified Work Efforts To the extent that the performance of work under this order involves i classified information, the following clauses are applicable: 'l l' J' (a) 00E and the 00E contractor (performing organization) shall be responsible for safeguarding Restricted Data, Formerly Restricted Data, and other National Security Information and for protecting against sabotage, espionage, loss and theft in accordance with DOE's security regulations and requirements. ]: Except as otherwise expressly provided, 00E shall, upon completion or termination of the work order, transmit to the Commission all classified matter in its possession or in the possession of any person under its control in connection with performance of this work order. If retention of any classified matter is required by 00E, it must obtain the approval of the 1 Ccmmission and complete a certificate of possession specifying ,'3 d the classified matter to be retained. 11 d (b) Regulations. The Contracting Officer shall ascertain that the 00E contractors conform to all security regulations and 4) requirements of 00E. 1 (c) Definition of Restricted Data. The term " Restricted Data," as r l used in this clause, means all data concerning (1) desi @, (" j manufacture, or utilization of atomic weapons; (2) the production of special nuclear material; or (3) the use of special nuclear ,,. i material in the production of energy, but shall not include -3 j data declassified or removed from the RestrictedTa'ta category pursuant to Section 142 of the Atomic Energy Act of 1954, as 'd amended. ,y W} (d) Definition of Formerly Restricted Data. The term "Formerly 1]. Restricted Data," as used in this clause, means classified information related primarily to the military utilization of " ;,1 atomic weapons removed from the Restricted Data category under }?;( Section 142.d of the Atomic Energy Act of 1954, as amended. (e) Definition of National Security Information. Official information or material whicn requires protection against unauthorized disclosure in the interest of the national defense ^ or foreign relations of the United States. + n Security Clearance of Personnel. 00E and 00E contractors (f) snall not permit any incividual to have access to Restricted Data, Formerly Restricted Data, or other National Security "8 Information, except in accordance with the Atomic Energy Act ,~l of 1954, as amended, and the DOE regulations or requirements f:.. Approved: October 2, 1979 i 6rr-w wnm.m.,-r....,,.~ a -v 'w. ,c
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.qr] Exhibit 4 } Page 3 of 21 ,j g h. aoplicable to the particular type or category of classified information to which access is required. (g) Criminal Liability. It is understood that the unauthorized s' disciosure or the failure to properly safeguard Restricted Data, Formerly Restricted Data, National Security Information, or any other classified matter that may come to the DOE or to-any person under a 00E contract in connection with work under 5 the work order, may subject the performing organization, its '.j agents, employees, or subcontractors to criminal liability under the laws of the United States. (See the Atomic Energy ^ Act of 1954, as amended, 42 U.S.C. 2011 et seq.; 18 U.S.C. 793 and 974; and Executive Order 12065.) 7J (h) Subcontracts and Purchare Orders. Except as otherwise authorized L in writing by the Commission, DOE shall insert provisions similar to the foregoing in all subcontracts and purchase orders under this work order. 3. Classification q 1 To the extent that the performance of work under this order involves
- y]
classified information, the following clause is applicable: "In the performance of the work under this work order 00E shall assure q e,. that, the performing organization shall assign interim classification , A k 'l levels to all documents, material, and equipment originated or d h.) generated by the performing organization in accordance with classi-l fication guidance furnished by the Commission. Each subcontract j and purchase order issued hereunder involving the generation of ' 1 classified documents, material, or equipment, shall include a 4 provision to the effect that in the performance of such subcontract or purchase order the subcontractor or supplier shall assign interim classification levels to all such documents, material, and equipment .] in accordance with classification guidance furnished by the performing q organization. The performing organization shall in turn submit Q through appropriate channels all documents, material, and equipment F' generated under the work order to the office responsible for the work order for final classification determination. It is the responsibility of the office originating the work order to ensure ' ~ that pro;er classification is assigned by an Authorized Classifier. The attached NRC Form 187, Security / Classification Requirement, .m dated is a part of this order." 4. Proprietary Information In connection with the performance of work under this o'rder, the .,fj Commission may furnish for DOE review, evaluation, or other use, certain trade secrets or confidential or privileged commercial or i financial information determined by the Commission to be otherwise f exempt from public inspection or disclosure. Such information S, o Approved: October 2, 1979 s.
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[ . A --. ; -... . ua C -...:..:.. : =.... a -..-.a x.. 6 N] Exhibit 4 )}; Page 4 of 21 q / shall be submitted in writing to the DOE Contracting Officer (where .s the DOE performing organization is a DOE contractor) or the 00E ] Facility Manager (where the DOE performing organization is a DOE a facility) for approval of the acceptance of the proprietary infor- .i mation, and for reaching agreement with the Commission on the j limitations, conditions and terms under which the information may i be used by the performing organization. .)1 1-For DOE contractor employees used as NRC consultants, proprietary d or other privileged information may be provided by NRC on an .j individual basis with the understanding that it will be protected 7 from disclosure arid will be returned to NRC upon completion of the task. 5. Work for Others
- l' Notwithstanding any other provision of the work order, the DOE Contracting Officer and 00E contractor agree that placement of this work does not give rise to any actual or apparent conflict of 1
interest from either agency's viewpoint. They further agree that j during the period of performance, the contractor will forego i entering into any new contractual arrangement which could give rise i to a conflict of interest. The performing organization shall ensure that all employees designated as key personnel, if any, j under the work order abide by the provisions of this clause. The 4 .j DOE organizational conflict of interest provisions will be used as Rv i a guide in making such determinations. If in the DOE Contracting W j Officer's view, any proposed contractual arrangement creates a j possibility for conflict of interest, he shall notify the issuing NRC office and obtain their written approval prior to the execution of the associated contract. 6. Subcontracting g The DOE organization shall notify the issuing office reasonably in j advance of entering into any major or significant technical service .,j subcontract not contained in the original proposal. " Major or significant" must be used with judgement and related to the total .,d,9 value of the project and/or impact on the results. This advance d notification will include: (a) A description of services to be called for by the subcontract, 1 ff (b) Identification of the proposed subcontractor, (c) The proposed subcontract costs, and t- '] (d) A statement that the proposed subcontract will not result in a real or apparent conflict of interest situation. If the NRC program office requires additional specific subcontractor e~, [ Approved: October 2, 1979 4-, 4
~. _w. n pA. 7.l Exhibit 4 i Page 5 of 21 J f information or limitations, those requirements shall be stated on the NRC Form 173. Doe will provide any special requirements such as financial and organizational disclosures for consulting type services. a j 7. Stop-Work Order 1 ]1.) ~ (a) The issuing office may, at any time, by written order to the 00E Contracting Officer, require the contractor to stop all, or any part, of the work called for by this work order for a i period of ninety days after the order is delivered to the j contractor, and for any further period to which the parties .. g may agree. Any such order shall be specifically identified as ?!! a Stop-Work Order issued pursuant to this clause. Upon receipt .' ~1 of such an order, the contractor shall forthwith comply with i its terms and take all reasonable steps to minimize the incur-rence of cost allocable to the work covered by the order during the period of work stoppage. Within a period of ninety i days after a Stop-Work Order is delivered to DOE, or within any extension of that period to which the parties shall have agreed, the issuing office shall either: j (i) Cancel the Stop-Work Order, or jj (ii) Terminate the work covered by this work order. . I L k 'I kN (b) If a Stop-Work Order issued under this clause is cancelled or j the period of the Stop-Work Order or any extension thereof i expires, 00E shall authorize its contractor to resume work. An adjustment snall be made in the delivery schedule or cost, u or both, and the work order shall be modified in writing accordingly. m 3 (c) If a Stop-Work Order is not cancelled and the work covered by ?j such is terminated in accordance with the terms of this work order, costs resulting from the Stop-Work Order shall be .d allowed in arriving at the termination settlement. o Q 8. Patent Rights A ,.J The statutory, regulatory and procedural patent policies of DOE /4 will be applicable to the work falling under this work order, M provided however: 's, d ~3 Jh (a) Disclosures of inventions conceived or first actually reduced ch to practice under Commission funded work shall be promptly C SI furnished to the Commission together with notice of DOE's yl) intended patent action on such invention; h Approved: October 2, 1979 Y :,r-~m-m e-m.e,,,- - --,.-n~- b ,n--n - - - .. u -. s.
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1 s 4 y .] Exhibit 4 ~ Page 6 of 21 .i m.- (b) If 00E should determine not to protect such inventions, either .] domestically or abroad, the Commission shall have the right to ] protect such inventions; ] (c) If the-technology covered by any invention disclosure upon J which 00E intends to file is deemed by the Commission to fall within the Commission's mission, i.e., relates to nuclear 1 j fecilities and materials safety, safeguards, and environmental l protection, in support of the Commission's licensing and regulatory functions, the Commission may so notify 00E and a determination will be made by the parties as to which party l9 will file such patent application or applications; and (d) In view of the statutory patent policies of DOE and NRC, neither party shall grant any form of exclusive patent rights, by waiver or by licensing, without expressed approval of the other party.
- 9. # atent Clearance P
s 'l In order that public disclosure of information regarding scientific lj or technical developments arising out of this work order will not j adversely affect the patent interests of either DOE or NRC, patent ] approval for release or publication shall be secured from 00E prior p j to the release or publication of any such information. .i 10. Limitation of Funds d (a) The Commission shall not be obligateo to reimburse 00E for costs incurred by its contractors in excess of the total amount authorized by an appropriately executed NRC Form 173. j NRC will formally notify the appropriate DOE Field Office of j; any programs they intend to phase out or terminate as soon as sue.h intent is known; preferably, at least 30 days prior to j j the proposed termination date. For programs with fixed per-formance periods, the DOE Field Office should assume that the f q" program will terminate on the last day of the period specified in the Standard Order for DOE Work unless notified otherwise. 'I Yq (b) If at any time 00E has reason to believe that the costs will exceed the total amount authorized, 00E shall notify the issuing authority. In the absence of formal NRC instructions to continue or to terminate a program, the DOE Field Office j;N (contracting officer or his designee) will notify NRC,, by TWX or other suitable written means, when the accrued costs of any NRC program approaches 90% of the authorized funding level. The notification should include estimated date when the accrued costs will equal the authorized funds, and may, if appropriate, recommend or request NGC action desired. The notification G k c) .~ Approved: October 2. 197C w-- y-,
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l.. Exhibit 4 Page 7 of 21 should be addressed to the appropriate NRC office, with copy to the NRC Controller, and to 00E-EV-SED. After such notifi-j cation, the issuing office will: ? (i) Increase funding authorization, and/or (ii) Change the scope of work, and/or ,S (iii) Change the period of performance, or (iv) Terminate this work order. ] (c) If this work order permits DOE to reallocate funds authorized "j by this order between FIN's, the issuing office shall be notified of such reallocation within five days after such an q adjustment. To be recognized in the current fiscal year, the j adjustments must be incorporated in an NRC Form 173 signed and i dated prior to October 1. .. g ' 3;j (d) In cases where the work period states " estimated," prior notification that work is to extend beyond the period indicated .a 1 is not necessary to completing the assigned work. 1-] (e) If the work period under this work order is fixed, the per-formance of work should be completed within that period.
- () fM
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However, when it is first anticipated by 00E that the work e ^ ~2 cannot be completed within the time period fixed by this work order, the issuing office shall be notified in writing. y i Hotification shall occur in sufficient time to allow the issuance of another NRC Form 173 authorizing an extension of .i the work period to such time as is necessary to complete the a authorized work. Work shall not be performed beyond the end of the work period j of this order unless authorized by an appropriately executed ' Tj NRC Form 173. If the period of performance is not extended, ? -^ the issuing office will issue an NRC For.1 173 to the ' l.) appropriate DOE office deobligating any excess funds. "y 's 11. Billing Reouirements S 'l (a) DOE will bill NRC monthly for costs reported through the FIS 'i system by the six pos.ition FIN number via separate bills for costs applicable for each NRC Program Office, (e.g., Standards d$j Development, Nuclear Reactor Regulation, etc.). ? <i N (b) The bills will identify the NRC FIN (6 positions) such as - 3 A10017, B20016, etc. (the last digit identifies the fiscal d year of the funding), the NRC B&R number shown on the NRC Form 173, and the DOE B&R number. ]3 i .CJ 3-ll 'i y Approved: October 2, 1979 0 .=.7.,,.-.
m. .-.._.._.m. 4 Exhibit 4 Page 8 of 21 q l l (c) The bills will be certified by the DOE field office prior to d submission to NRC. The bills, at a minimum, will indicate the month the costs.<ere incurred and the dollar amount of those . I. costs. al' (d) For bills which include aquipment and related material 'a (including sensitive items), an itemized receiving report will .j be provided to include: .l 00E Facility Identification (each page) l National Item Manufacturer Serial Acquisition Total Fin ti Stock No. Descriotion & Model No. Number Cost Ouantity Cost No. (When available) ?j (e) All bills (SF 1081) snall be issued (original and 5 copies) to: .] <1, i U.S. Nuclear Regulatory Commission Office of the Controller l Division of Accounting (L 316) 11 Washington 0.C. 20555 .m f i.] d a 3 (f) Any additional billing information to be requested must be so 4 indicated under the " Remarks" section of the NRC Form 173. 4 3 12. Technical Reporting Reouirements a (a) The statement of work will specify the technical reporting j requirements, including a concise list of reports to be pro- ) vided by 00E, frequency and distribution. The minimum reporting requirement is a formal final report to be furnished k] upon completion of the work. Annual reports may be required if the work is to take longer than 16 months. /j;4 All costs associated with report preparation of camera-ready ? copy, printing, and shipping for NRC are to be direct charges ,I to the authorized program involved, and are not to be included in 00E General and Administrative Expenses. j Each report required by the statement of work shall be iden- ~.; s tified as interim or formal in accordance with the following definitions: (i) Interim Contractor Recorts - Regulatory and technical d. cocuments preparea in accordance with contract or inter-agency agreement requirements for recording plans and ,i 2
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l Acproved: Oc ccer 2, 1979 1 1 _ m m--
=..:....x ..h. xa.. < : : w w. -. = ..;. - ~. -.... -.. Exhibit 4 Page 9 of 21 _j_ .:~ 4 results during the course of the work. Such documents '\\ may include, but are not limited to, informal progress i reports, letter reports, quick-look reports, data reports, i } technical status nports, project descriptions, pre-test '] predictions, model verifications, experiment safety analyses, experiment operating procedures, facility ..i certification reports, and test result reports.*
- .,..)
(ii) Formal Contractor Reports - Regulatory and technical documents that record the results of contractor work at y principal points in the program. Such documents may include, but are not limited to, quarterly, topical, and 7 d annual progress reports and final reports. .4d Draft and final environmental impact statements, which will be j published as NRC documents, as required by NEPA, are not i subject to paragraph 12 of these terms and conditions. DOE .1 laboratory inputs are not acknowledgable in these documents. ~j This variation from the standard terms and conditions must be .a included in the statement of work. .y a gj If the NRC program office placing the work desires to give the l principal investigator of the work the option of publication in a recognized technical journal rather than a formal report, this option will be stated in the statement of work. 51 [:,3; i tj Exercise of this option requires that the final draf t (sub- -l sequent to peer review) of the journal article be submitted by j letter to the NRC Division of Technical Information and .j Document Control (NRC/TIDC) for processing for accession by 'd the NRC Public Document Room at the time it is submitted to I the journal. When the journal article is published, the draft 1 must be replaced with a copy of the journal article by sending an author's copy, properly identified, to NRC/TIOC. y . 429 Each journal article submission must be accompanied by the ~ following statement, "The submitted manuscript has been authored by a contractor of the'U.S. Government under contract , j. number Accordingly, the U.S. Government has a nonexclusive, royalty-free license to publish or reproduce the d, published form of this contribution, or allow others to do so, for U.S. Government purposes." In addition, each article must 4i carry the statement, " Work supported by the U.S. Nuclear . [j Regulatory Commission, Office of under Interagency Agreement DOE 40-550-75 with the U.S. Department of Energy."
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~j If requested by the journal or other publisher to transfer the copyright, the author shall respond to the journal or other 2.q publisher, in writing, in accordance with the sample letter y shown in Figure 1. .. n h J, ^All these cocuments must carry the title page shown in Figure 2. ~ 1J y.f 9 u y Approved: October 2, 1979 9 4 ,m-_.._.._____
4 ,.__:..._.~. .a ..... - - ~.. 1 \\ 7 Exhibit 4 Page 10 of 21 Presentation of the results at a technical meeting may a:so be j authorized by NRC. J 31 (b) Content of Technical Recorts I , j The content of technical reports should follow generally i accepted technical writing practice with appropriate flexibility ,j to meet the author's (authors') specific needs. i Progress and final reports should include an abstract of 200 i -) words or less. The abstract shall summarize the major points y of the report results, recommendations and/or conclusions. For progress reports, the abstract should outline the status of work to date. The preferred location for the abstract is
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between the title page of the report and the table of contents. The pertinent NRC FIN numbers (s) and the official FIN title (s) 9 should be placed at the bottom of the abstract page. ] Progress and final reports for all NRC offices except the ] Office of Standards Development (50) should also include a 500 1 to 1000 word executive summary (one or two pages) of the major j findings, conclusions, and recommendations (if any) of the d report. The executive summary, labeled as such, should appear sj as the first section of the main report on page one, and should precede the introduction, if any. T @l 1 Interim reports for all NRC offices except 50 should also j include a one page executive summary of the subject matter i covered in the body of the report. The summary should also be included in the letter transmitting the report to the NRC ' ]s technical monitor. N j Scientific 'and technical reports should not include administra-1 tive, managerial or fiscal information unsuitable for wide -j dissemination. They should also not include proposals for ' ni; further support which are to be submitted separately to protect j their privacy.
- 1'j (c) Interim Reoorts Precaration and Handling r
1 The number of copies specified in the statement of work for [,. 1 each interim report are to be sent to the NRC technical monitor . I on the schedule indicated in the statement of work. Two ',?! copies and an NRC Form 426A, Publications Release, are to be d sent to the NRC Division of Technical Information and Document Control with a title page of the type shown in Figure 2, h] unless the NRC technical monitor specifies that all copies be 'I sent through him. In that case the Technical Monitor will 41 forward two copies of the report with an NRC Form 426A to NRC ? 71 TIDC for processing into the NRC Public Document Room (POR). -O (If an official of the performing organization is authorized to ^ ic sign the NRC Form 426A, he will be designated by name in the \\li) (( statement of work). l*s%. 9 Approved: October 2, 1979 m .w. .,-,-.,w,,.,..c .-,~----w.v.-..--w- - - w 9., %.n -.. q _ . ~..
. nma 1 d,..,.._.. . a. _ _. ~ c._ m Exhibit 4 Page 11 of 21 i Two copies ano a signed 00E Form 426 are to be sent to DOE ~ Technical Information Center (00E TIC) by the performing d organization. l (d) Formal Reports Preparation and Handling ~j .j Formal. reports may be printed for NRC distribution by those j 00E facilities that have Joint Committee on Printing (JCP), 7,i U.S. Congress, authorized printing plants if the work is being done for either of the following NRC offices: 9 ,4 Office of Nuclear Regulatory Research Office of Standards Development 1 Formal reports will not be printed for NRC if the, work is i being done for any of the following NRC offices: 1 'd Office of N0 clear Reactor Regulation ~ ~ j.; Office of Nuclear Material Safety and Safeguards 1 Office of Inspection and Enforcement Office of State Programs N,I. [6%., d. The principal DOE facilities that perform NRC work and which .'q have JCP authorized printing plants are: q 4 Ames Laboratory l: - Argonne National Laboratory d Brookhaven National Laboratory I Grand Junction Office ,.i Hanford Atomic Products Operation j Idaho National Engineering Laboratory Knolls Atomic Power Laboratory Lawrence Berkeley Laboratory Lawrence Livermore Laboratory .Z Los Alamos Scientific Laboratory "O) Mound Laboratory q Gak Ridge National Laboratory (through K-25 plant) 4 Sandia/ Albuquerque Savannah River Plant [! 'M Printed copies or reproducible masters will oe supplied in d accordance with the following procedures:
- i (i) Formal Reoorts Printed at DOE Facilities - The distribution quantity indicated in the statement of work plus reproducible a.
[ master will be supplied to the NRC Division of Technical q? .'P e s Approved: October 2, 1979 'W' r,e*"* M **4at-o w wwwepouse- ,,,,,,o g e,mpge ,v
..._.A.__ .c _t,,. c.l3. _, n 3. ,. _ v.._. . u._.. .m.m ..I l, ~ s t' " ' Exhibit 4 Page 12 of 21
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,3 1 ,j Information and Document Control. When a report ii. printed for NRC, DOE procedures prevail; however Ztne data elements, shown -in Figures 3, 4,"and 5 wil1~ be N incorporated in the printed ver,sio'n'.' See 12(h) for ~ copies to be reta'ined by the performing crganization. (ii) Formal Reports Pr ited at NRC - Reproducible masters x (camera-reacy copy) for printing and dfstribution are to, T. be sent to the NRC-Oivision of Technical Information and Document Control. The originator may retain up to 1 25 duplicated copies "for. internal use only" prjor to receiving printed copies from NRC. 'See'12(h) for copies to be supplied the performing organization. <1 1 s If publication is to be delayed by NRC to coordinate with s program office issuance, this is ti be noted both on the Q y NRC Form 426A and the DOE Ferm 426." If_the document is 1 nottobereviewedprior,tolprinting,~stateontheNRC i Term 426A that accompanies the camera-ready copy when it is sent to NRC Division of Technical ~Information and Document Control tdat the? document is not to be reviewed ,3;j prior to puolication. (iii) NRC Form 426A and 00E Form 426 - In all cased a completed d RE Form 426A musts accompany.the f'crmal report. Two copies of all paragraph (i)-and (ii) reports and a signed 77)' 00E Form 426 are.to-be sent to 00E TIC:by the performing ~ ) organization. s q l N The reproducible masters must be accompanied by NRC Form 426A..If,an official of the performing organization 9 is authorized to ' sign the NRC Form 426A, that official j will be designated by name in the statement of work. ~ (e) Programmatic Review of Reports + The statement of work' must indicate those technical reports that will be reviewed in draft form for NRC policy, management, regulatory and legal issues.s After such review the final form of the report will be n'rdpared by the performing organization s and submitted to NRC/TIDC as reproducible masters or printed =s copies. A, (f) Administrative Rev;ew of Reoorts Patent and security classification review of all reports will be accomplished by the cocnizant 00E Operations Office. _g ..: /; pg lg -m [h y s y 1 i Approved: October 2, 1979 q[. '~ w ,n
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. a.- -... e e Exhibit 4 Page 13 of 21 s - s (g) Reports Containing Commercial Proorietary Information Proprietary information used in reporting to NRC will be noted on the title page of any report submitted to NRC.
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(h) Printing and Distribution of Reports All interim and formal reports to be made publicly available will be prepared in accordance with 00E standards for style j ~ and format utilizing the performing organization's standard cover, if any, with the data elements shown on Figure 3, and a i title page with the data elements shown on Figure 2 for interim j reports and on Figure 5 for formal reports. These reports are to be submitted to the NRC Division of Technical Information 8, and Document Control with a completed NRC Form 426A. y Up to 50 copies of all publicly available reports may be . J. retained by or will be bulk shipped to the performing organi- _q zation by NRC for internal use of the performing organization. If the performing organization requires more than 50 copies for internal use, a written justification must be sent to the NRC Technical Monitor, with a copy to the Director, Division ?.; of Technical Information and Occument Control. The Director, j NRC/TIDC, will formally consider the request and inform the technical monitor of the results. This procedure requires a O Im,. minimum of six weeks. .) "4 s _/ Sirgle copies for specific individuals in organizations other than the performing organization who are not included in the distribution list stated in the 50W may be requested on a - 1' program basis or on a report-by-report basis. The request, with written justification, shall be addressed to the NRC Technical Monitor with a copy to NRC/TIDC. If the additional 1 distribution is approved by the Technical Monitor, the performing organization shall send these copies (if printing is done by { the performing organization) and address labels for the indivi-i duals to NRC/TIDC, where the distribution will be made along l with the standard distribution, q '] (i) Announcement of Formal Reports ] Formal reports will be announced by the Government Printing ,j Office and the National Technical Information Service (NTIS) { and will be placed on sale by NTIS. d.y a ir ) %.s s Approved: October 2, 1979 xj ,f .i:ki-e _,7
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Exhibit 4 Page 14 of 21
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'. l i ] (j) Document Identification .i All unclassified technical reports will be made publicly J available and will carry an NRC identification number and a 7' 00E identification number, with the NRC identification as the prime number, as shown in Figures 3 and 5. For interim reports (see Figure 2), this number will be the computer accession number and will be added by NRC at the time the document is sent to the Public Document Room (NRC/PDR). For formal reports, I the identification number will be assigned by NRC/TIOC.
- l Advance information regarding number is needed and it may be obtained by the performing organization's publication group by calling NRC/TIDC.
Commercial: (301) 492-7566, FTS: Access '[ Code + 492-7566. The NRC identification number for formal reports will have the 4:.E form NUREG/CR-xxxx. g (k) Transmittal of Technical Reoorts to NRC and DOE The transmittal of all technical reports and reproducible masters of interim and formal reports will be accomplished under an NRC Form 426A and a 00E Form 426. Actual shipment of 1 i reproducible masters to NRC shall be by first class mail to D 9 the Division of Technical Information and Document Control at [d the following address: q United States Nuclear Regulatory Commission Attn: Division of Technical Information and Document Control 1 Washington, DC 20555 - l)' s Printed reports for NRC distribution shall be sent to NRC by ,] express carrier to the following address: m Division of Technical Information and Document Control .2 United States Nuclear Regulatory Commission 7920 Norfolk Avenue f Bethesda, MD 20014 yJ 'l lv
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l '(t u2 9 I I Approved: Octv.. 2, 1979 se r-
~ - ~ '. l. 'hij Exhibit 4 o Page 15 of 21 4 ?,, - n, 1 y o i.j The address for transmittal to 00E TIC is: .',4 Technical Information Center United States Department of Energy P. O. Box 62 n ;.1 Oak Ridge, TN 37830 (1) Summary Check List - P 4 The check list presented in Table 1 gives guidance on the actions and requirements for technical reporting.
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.. - ~ p...-..-.~.._;a-.-.-.. t h i . J Exhibit 4 Page 16 of 21 \\ Table 1 ~. j Technical Recorting Actions and Raouirements" ..l Interim (informal) j Actions and Reouirements Reports Formal Reoorts NRC Form 426A yes yes DOE Form 426 yes yes Copies to NRC Program Office See statement of work 4 preliminary Copies to NRC/TIOC 2 with NRC Form 426A Sufficient printed reports for NRC 1 distribution and 1 reproducible masters 3 or only reproducible ~i masters (camera-ready copy) with NRC Form 426A j (see Statement of Work) I Copies to DOE / TIC 2 with 00E Form 426 2 Available NRC Public ) Document Roon yes yes .ij Available DOE / TIC yes no .l Available NTIS no yes } .i Oraft Review Specified in Statement Specified in -{ of Work Statement of Work Patent Review yes yes j -} Classification Review yes yes Proprietary Material Review yes yes I l ) "inis taole ooes not apply to draft and final environmental impact o statements. .I-j .m. 'l d 1 q 1 1 3 Approved: October 2, 1979 ~] _,7,.y.
. - -. ~... l l Exhibit 4 Page 17 of 21 j j ,O, ~ a V. 'fl FIGURE 1 j l Sample Letter on Copyright Agreement
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,j Oear h We recently received a document for signature assigning copyright and l republication rights in the submitted article (title) to (name of publication). This letter is offered in lieu of the document as a means a { ll of completing the transfer of ownership. Accordingly, we hereby expressly transfer and assign our rights of ownership in the above cited work to (name af publisher). Ij You are advised, however, that the above assignment and any publication 4 or republication of the above cited work is subject to the following ,.] Government rights: . } The submitted manuscript has been authored by a contractor (grantee) ,.j of the U.S. Government under contract (grant) No. i Accordingly, the U.S. Government has a nonexclusive, royalty-free j license to publish or reproduce the published form of this 1 contribution, or allow others to do so, for U.S. Government purposes. 1 In addition, each article which results from the placement of NRC work . Q g]., with 00E must state " Work supported by the U.S. Nuclear Regulatory i e
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the U.S. Department of Energy." Sincerely, j i
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-. ~. . a. = -. . =. -.-...- -.... Exnibit 4 4 Se 18 cf 21 ) .J PlGURE 2 .i GAMPLE TITLE PACE PCR INTERIM CONTRACTOR DCCUMENTS j TO 03 MACE.'UBLICLY AVAILABLE i .t INTERIM REPORT 1 .l Accession No. Accession No. 3 (Will be added by NRC) 'l Qn.tr. actor's Report No.. 4 T.de of Program for Contract Program or Proiect Titte. i t Which Contract Written ) -ti Limited Subject of Swoiect of tnis occument: 8 This Document i Type of Document: Tvos of Document: Status Report, Quick. Look Report, etc. , d Individual Autnortsh 'l Oate of Document. Responsible NRC Inamawas and NRC Office or Division: s i 1 A T j This document was prepared primariiv for orehmina y or internal use. It has not 1 received fwas review and acoroval. Since tnere may be swbstantive enanges. this document snould not be consioered finat. i .'l i Centractor and Oak Ridge National Laboratory Oak Ridge. Tennessee 37830 J 'Jg.a operated by Union Caroide Corooratnan [._ for tne U.S Decartment of Er ergy 3 Prepared for U.S. Nuciesr Regulatory Commission g 7,. Wasnington. D.C. 20555 Unoer Interagency Agreement DCE 40 550 75 NRC ciN No. A12347 NRC FIN Number ? INTERIM REPCRT 3 /~ e ?, g s ,. s,. 1.9 . q .3 OC:ocer 2. 1979 .,-fpproved: ..,,.w.y.c%,,,. w _m ~
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i e G 1 Exhibit 4 Pace 19 of 21 j .s f FIGURE 3 SAMPLE COVER FOR UNCLASSIFIED FORMAL REPORTS PREPARED ? 2 UNDER OR PURSUANT TO INTERAGENCY AGREEMENTS i
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NRC Report No. NUREG/CRG50 Contractor Report No. j i Vol., Part, Rev., etc. - 4 1 A Review of I The Application of Strategic Analysis 1me i to Material Accounting i A Consensus Report 3 by the Peer Review Group i, .) Type of Report H C' or Subtitle IIi .. _. -. -_ -..--- - _- - _.. -. ~ --...-- -.. - ~. --- - Argonne NamtW umrapy
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. -... -. -...- ~. ExMbit 4 Page 20 of 21 'N PIGURE 4 DISCLAIMER AND AVAILABILITY STATEMENTS (SACK 0P COVER) i4 J NCT:CE This repcrt was prepared as an ac: cunt of werk spensered by an agency of the United States Government. Neither the United States Governrnent ner any agency thereof, or any of g their ernployees, makes any warranty, expressed er implied, er ..} assumes any le;alliabdity or respcestbdity for any third party's use, er the results of such use, of any information, ap;aratus product er precess disclosed in this re;crt cr represents that sts use by such third party would not infnn;e privately owned j d n; hts. i
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Ed.ibi; 4 Page 21 of 21 FIGURE 5 SAMPLE TITLE PAGE FOR UNCLASSIFIED FORMAL j REPORTS TO BE PRINTED BY NRC .I f 1 1
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. 1 t t i a } NRC Report No. Contractor's Report No. j Vol., Part, Rev., etc. NUREG CAG50 .J Distribution RS Category A Review of 1 The Application of Strategic Analysis to Material Accounting ,,.j j Subtitle A Consenem Recott '] by the Peer Pwww Group
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' Contractor's s7E*[.'.T M "" j Name and Add.ess i Prepared for NRC Sponsorship olvision of safegueras Office of Nuclear Meterials Safety and Safeguards 'J.S. Nucteer Regulatory Commtesion Washington. O.C. 20066 j NRC FIN No. NRC FIN No. A2156
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.~.: -..:. ,o .I i Exhibit 5 Page 1 of 1 i ^ If 3 SAN t ~ j Manager Manager j Albucuerque Operations Office San Francisco Operations Office U.S. Cecartment of Energy U.S. Department of Energy . :] P. O. Box 5400 1333 Broadway, Wells Fargo Bldg. i Albuquerque, New Mexico 87115 Oakland, California 94612 1, CH ~SR .) j Manager Manager 1 Chicago Operations Office Savannah River Operations Office U.S. Department of Energy U.S. Department of Energy al 9800 South Cass Avenue P.O. Box A 4 Argonne, Illinois 60439 Aiken, South Carolina 29810 10 NV tj J Manager Manager Idaho Operations Office Nevada Operations Office i 3 U.S. Department of Energy U.S. Department of Energy 1 550 2nd Street P.O. Box 14100 1 Idaho Falls, Idaho 83401 Las Vegas, Nevada 89114 ,.q g OR GJ Manager Manager Oak Ridge Operations Office Grand Junction Office l U.S. Department of Energy U.S. Department of Energy ) Post Offica Box E P.O. Box 2567 .,.i Oak Ridge, Tennessee 37830 Grand Junction, Colorado 81501 2 -] Manager Richland Operations Office U.S. Department of Energy ]- P.O. Box 550 Richland, Wasnington 99352 b'
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U ,h. ( (Ah h433 ~ - [... [,hT,1 THE COMPTROLLER GENERA,L DiECISION !. ?544. aCF THE U N ITE D STATES t . aix WASH 8NGTON. D.C. 20548 g ' thrT19 r i j li FILg: B-185843 DATE: July 1,1976 ] MATTER OF: Columbia R'esearch Corporation
- I DIGEST:
g ,'/ . Where offeror's proposed project rnanager and principal 1. O,i investigator would be in position of evaluating adequacy and applicability of reUWUty st~'-d which he originated under [ prior contract, agency's rejection of such proposal as not within the competitive range pursuant to unweighted evalua-tion criterion dealing with conflicts of interest is sustained. i Since major proposal alteration would have been required to 1 clirninate conflict, it was not unreasonable to reject proposal without negotiation. l 2 Contractor's cost estimate should not be considered controning in sc1ceting centractor for cost-reimbursement type contract. ] l 3. Even if protester's anegation regarding change in agency's l requirements during negotiations with other offeror is ' correct, j rejection of protester's proposal without negotiation is not j objectionable since rejected offer was outside competitive range for reasons which remain basic to procurement. 4 p
- 4. Although awardee performed literature search in support of
] another firm's prior contract to develop reliability standard b and such standard was to be evaluated under awardee's sub- ' sequent contract with agency, no objectionable conflict of j interest is perceived in award of subsequent centract. In addi-1 tion, conflict of interest is not apparent from fact that l! awardee's board of directors includes individuals involved in j regulated industry generally affected by centract and fact that ] awardee has had prior dealings with firms in such industry.
- 5. Anegation, filed after contract award, that consideration should have been given to issuance of requirement as sman business set-aside is untimely filed and therefore dismissed.
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~. [' (~ l ~ i .j j 1 ~ B-185843 N ps is a protest filed by Columbia Research Corporation ? (Columbia) under request for proposals No. RS-76-12, issued ].. by the.U.S Nuclear Regulatory Commission (Commission). The procurement stems from the Commission's review of. an application for a permit to construct the Clinch River Breeder 4 Reactor, a Demonstration Liquid Metal Fast Breeder Reactor. 1 i The applicarit has submitted a Prelimbry Safety Analysis Report j which contains technical information related to the design and - construction of the facility and which serves as a primary source of information in assessing the radiological health and safety. and environmental aspects of the proposed facility. The instant negotiated procurement was initiated to satisfy'the Commis-j sion's need for technical assistance by an independent contractor in reviewing the Clinch River applicant's Reliability Program. = ~ The procurement was negotiated and contemplated award'of a cost-plus-fixed-fee contract. Proposals were to be evaluated by numerical and narrative scoring techniques against certain evaluation factors listed in their relative order of importance. On the basis of the numerical scoring of the weighted evaluation factors, the evaluation panel determined that three firms, includ-li2g the protester,. could be considered to be within the competitive .t range. However, the solicitation also contained certain unweighted additional criteria which were to be considered in the selection process, including the contractual and organizational relationships ' which might give rise to an apparent or actual conflict of interest. (The Commission believes it is not possible to weight this factor to properly account for the infinite range of conflict of interest 1 4 situations which may exist.) The panel ultimately decided to elimi-i nate Columbia from the competitive range because of an organiza- ~ tional conflict of interest. It determined that Columbia would be placed in a conflicting role of evaluating a reliability standard j included in the Clinch River Preliminary Safety Analysis Report which Columbia's principal investigator had developed. It was 1 concluded that such a situation could affect the firm's ability to ] render independent, unbiased judgment and advice to the Commis- ] lon. The panel believed that this conflicting role could not be eliminated without a major revision of Columbia's proposal. ] Essentially, the protester believes that the solicitation's i evaluation criterion concerning conflicts of interest may have j been misapplied in excluding the protester and that this criterion was erroneously applied in selecting NUS Corporation (NUS) for j, award. Columbia alleges that it was improperly denied the 1 opportunity to negotiate and to submit a best and final offer, as 4 j q d w-; _ _... - -- x
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j ~ j E-185843 j cohtemplated in Federal Procurement Regulations (FPR) i 51-3.805-1. The protester believes that negotiations would j have been beneficial to the Government and that an award to i Columbia would have resulted in a $14,974 savings, the i differen'ce between its offer and the award price. } I-Regarding the rejection of its proposal, Columbia argues 4 that there is no conflict of interest when an individual who has-j participated in,the preparation of a Government standard assists ] the Government,in judging the degree to which an applicant had j conformed to that standard. The firm contends that such individualis highly qunlified to ascertain the degree of compli- ?- ance of third parties by virtue of the individual's exposure. However, the Commission was unwilling to permit the originator ) of a reliability standard to evaluate for the Commission the 1 adequacy and applicability (among other aspects) of that stand- { ard. In this connection, the solicitation's statement of work pro-vided in part: " TASK 2. * * *The contractor shall perform independent reliability analyses for these critical areas, taking into account the scope of this con-tract. The analyses will be based on, but not limited to, the data in the [ reliability standard, among other documents]." i Contrary to the protester's understanding, the conflict as explained j bythe Commission did not concern the originator's evaluation of compliance with the proposed reliability standard. Rather, the l Commission reports that although this reliability standard has been-l adopted by the Energy Research and Development Administration, l it has not yet been accepted by the Commission and its acceptability for purposes of compliance with its licensing regulations must still i be determined through this review process. In our opinion, it was not unreasonable to perceive a conflict in Columbia's proposal since analysis of the reliability standard would have been performed by the originator of that standard. In addition, we find no basis for objecting to the Commission's conclusion that the conflict could not be cured without replacing the individual involved and to its unwillingness to permit the major pro-posal alteration required to correct the situation. Since this. indivi-dual was proposed as project manager and as principal investigator, it was not unreasonable for the Commission to reach this conclusion. i As to the significance attributed by Columbia to its lower i estimated cost of contract performance, generally that fact should l not be considered controlling in selecting the contractor for a cost-I reimbursement type contract. FPR S 1-3. 805. 2 In this connection, . ~
v--- ..z. r i ,.er .. ~ " (. ( L. 3 4 j B-185843 ? .T we also note that in rebuttal to the agency report, Columbia questioned whether the Government's specification was revised during'this procurement because of the cost increase negotiated with NUS. Although the record does not indicate the basis for y the negotiated increase in cost, we would not in any event l-object to th'e rejection of a proposal without negotiation even if J requirements were changed where, as here, the rejected offeror 1 is considered to be outside the competitive range for reasons i which remain bpsic to the procurement. Iroquois Research Institute, 55 Comp. Gen. Q976), 76-1 CPD 123. For tne ) reasons stated, it does noHppear that negotiations with Columbia would have served any useful purpose. j 1. j Columbia also argues that the contract should not have been awarded to NUS because of a conflict of interest with that firm. The contractor, it is alleged, has obtained substantial revenues. - through its participation with applicants in the preparation of reliability or safety programs for submission to the Commission. ~ It is further argued that NUS has had long standing identification 4 and business dealings with the utility industry, of which the license applicant is a member. Columbia also questions the objectivity of NUS since the contractor's board of directors in-cludes two retired chairmen of utility companies and the Execu-t tive Vice President of a construction firm with a substantial ] interest in the construction of nuclear power plants. i j The Commission recognized that NUS has had numerous ' relationships with various organizations in the nuclear industry. It reports that NUS was under contract for less than $10,000 with General Electric Company to conduct a generalliterature j . search pertaining to reliability failure rate data to be used by General Electric in support of its role as contractor to the ~ j applicant for the Clinch River Plant..During negotiations the ?, firm advised the Commission that it would not enter into any s additional contracts with General Electric, or with any other j organizations, for work on the Clinch River Plant which would R result in a conflict of interest. The Commission reports that l It examined and evaluated the contractual relationship between NUS and General Electric. It considers its contractual relation-l' ship with General Electric as being remote from the substance of the work to be performed under the proposed contract and has concluded that this appearance of conflict is insignificant and too theoretical to warrant exclusion from the competitive range. It is aware of no current relationship, contractual or organiza-tional, which would place NUS in a conflicting role and might result in biased judgment or advice under the instant contract or give it an unfair competitive advantage. i I 4 I
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G ..c L. y J B-185843 .N ( l We ind the Commission's positica to be persuasive since it appea{r.s that NUS's involvement with General Electric in the Clinch River project was in the nature of a literature search and support function and that NUS was not ultimately responsible for the reliability standard included in the Clinch River Pre-liminary Safety Analysis Report. As to the firm's prior busi-i ness dealings with firms included in the utilities and nuclear power industries and the composition of its board of directors, 1 we are not persuaded that such general considerations would. l call into question the objectivity of the firm's management in the absence of some more direct conflicting connection with the i j instant contract. ~ f 1 Finally, Columbia has objected to the Commission's alleged i failure to determine the availability of the required services from small business concerns. The record, however, shows i' that a number of small business concerns submitted proposals - for this procurement and each, including the protester, was evaluated by the Commission. To the extent that Columbia pro-tests the Commission's refusal to permit a small business set-aside, the protest is dismissed as untimely raised since our Bid Protest Procedures require that any protest based upon an alleged impropriety apparent from the solicitation prior to the closing date for receipt of initial proposals mnst be filed prior to such date. 4 C.F.R. 20.2(b)G976). In this case, the protest was filed after Columbia's proposal was rejected and this allegation is therefore dismissed as untimely filed.. ~ Accordingly, the protest is denied. ks[k 1 Deputy Comptroller General P of the United States 1 3 ] 1 m-..-,-.,_-m, ...-.,7..~...~. 7..-.7..,-,.7~.m.o.,;..-..-~---. -.--,,~%.-7 -..}}