ML20082K381

Forwards Proprietary Audit Rept ARP 95-2, QA Audit of Sbwr Panda Test Program by Svcs & Projects Quality,950131-0202. Audit Rept ARP 95-2 Withheld (Ref 10CFR2.790)

ML20082K381
Person / Time
Site:	05200004
Issue date:	04/17/1995
From:	Quinn J GENERAL ELECTRIC CO.
To:	Borchardt R NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM), Office of Nuclear Reactor Regulation
Shared Package
ML20046D656	List: ML20082K381
References
MFN-052-95, MFN-52-95, NUDOCS 9504190260
Download: ML20082K381 (5)

Text

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GENuclearEnergy J E. Quinn. Projects Managor LMR and SBWR Programs GeneralElectnc Company 175 Curtner Avenue. MC 165 San Jose, CA 95125-1014 408 925-1005 (phone) 408 925-3991(facsimile)

April 17,1995 MFN No. 052-95 Docket STN 524)04 Document Control Desk U. S. Nuclear Regulatory Commission Washington DC 20555 Attention: Richard W. Borchardt, Director Stanthrdization Project Directorate

Subject:

GE PANbA Audit Report (Proprietary)

Transmitted herewith is a copy of GE Audit Report No. ARP 95-2 (Proprietary), Quality Assurance Audit of the SBWR PANDA Test Program by Senices & Projects Quality, dated February 2,1995, as requested by NRC stidf. This audit examined the adequacy, implementation and resulting documentation of the GE PANDA Project Quality Control Plan at the PANDA test facility of the Paul Sherrer Institute (PSI) at Wuerenlingen, Switzerland. This plan and supporting procedures were prepared and pro ided by GE Nuclear Energy (GE-NE) and accepted Quality by PSI Assurance to implement the requiraments of the SBWR Design and Certification Pian. Program examined. The readiness of the PANDA test facility to perform tests was also The applicable requirements of NQA-1 were addressed.

The Report requires appropriate PANDA. disposition of open items and recommendations prior to the initiation of testing at Please note that the information contained in the attachment is of the type which GE maintains in confidence and withholds from public disclosure.

It has been handled and classified as proprietary to GE as indicated in the attached aflidavit. We hereby request that this information be withheld from public disclosure in accordance with the provisions of 10CFR2.790.

Sincerely, SW h hianager YE Qulnn James E. Quinn, Projects k LMR and SBWR Programs

Enclosure:

Audit Report No. ARP 95-2, (Proprietary), Quality Assurance Audit of SBWR PANDA 2,1995 Test Program by Senices & Projects Quality, January 31 through February cc: P. A. Boehnert

1. Catton (NRC/ACRS) (2 paper copics plus E-Mail w/o encl.)

(ACRS) (E-Mail w/o encl.)

S. Q. Ninh (NRC) (2 paper copics w/ encl. plus E-Mail w/o att.)

J. H. Wilson (NRC) (1 paper copy w/ encl. plus E41 ail w/o att.)

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.. g GENERAL ELECTRIC COMPANY

! AFFIDAVIT I, David J. Robare, being duly sworn, depose and state as follows:

(1) I am Project Manager, General Electric Company ("GE") and have been delegated the l function of reviewing the information described in paragraph (2) which is sought to be l withheld, and have been authorized to apply for its withholding.

(2) ' lie specific information sought to be withheld is contained in the attachment entitled:

1 Audit Report No. ARP 95-2, Quality Assurance Audit of SBWR PANDA Test Program by Services & Projects Quality, January 31, 1995 Through February 2,1995. The proprietary information is delineated by bars marked in the margin adjacent to the specific material.

(3) In making this application for withholding of proprietary information of which it is an owner, GE relies upon the exemption from disclosure set forth in the Freedom of Information Act ("FOIA"), 5 USC Sec. 552(b)(4), and the Trade Secrets Act,18 USC l Sec.1905, and NRC regulations 10 CFR 9.17(a)(4), 2.790(a)(4), and 2.790(d)(1) for

" trade secrets and commercial or financial information obtained from a person and privileged or confidential" (Exemption 4). The material for which exemption from l disclosure is here sought is all " confidential commercial information", and some portions  :

also qualify under the narrower defm' ition of " trade secret", within the meanings [

assigned to those terms for purposes of FOIA Exemption 4 in, respectively, Critical Mass Energy Project v. Nuclear Regulatory Commission, 975F2d871 (DC Cir.1992),

and Public Citizen Health Research Group v. FDA,704F2d1280 (DC Cir.1983). ,

l (4) Some examples of categories of information which fit into the definition of proprietary information are:

l l a. Information that discloses a process, method, or apparatus, including supporting l data and analyses, where prevention of its use by General Electric's competitors l without license from General Electric constitutes a competitive economic advantage i

over other companies;

b. Information which, if used by a competitor, would reduce his expenditure of resources or improve his competitive position in the design, manufacture, shipment, installation, assurance of quality, or licensing of a similar product;

c. Information which reveals cost or price information, production capacities, budget levels, or commercial strategies of General Electric, its customers, or its suppliers;

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d. Information which reveals aspects of past, present, or future General Electric i customer-funded development plans and programs, of potential commercial value to j General Electric;

e. Information which discloses patentable subject matter for which it may be desirable  :

to obtain patent protection. l l

I The information sought to be withheld is considered to be proprietary for 'the reasons set forth in both paragraphs 4.b and 4.d, above.

(5) The information sought to be withheld is being submitted to NRC in confidence. The information is of a sort customarily held in confidence by GE, and is in fact so held.

The information sought to be withheld has, to the best of my knowledge and belief, )

consistently been held in confidence by GE, no public disclosure has been made, and it is  ;

not available in public sources. All disclosures to third parties including any required  ;

transmittals to NRC, have been made, or must be made, pursuant to regulatory - l provisions or proprietary agreements which provide for maintenance of the information  ;

in confidence. Its initial designation as proprietary information, and the subsequent steps  ;

taken to prevent its unauthorized disclosure, are. as set forth in paragraphs (6) and (7) following.

(6) Initial approval of proprietary treatment of a document is made by the manager'of the  !

originating component, the person most likely to be acquainted with the value and i sensitivity of the information in relation to industry knowledge. Access to such  !

documents within GE is limited on a "need to know" basis. l (7) The procedure for approval of external release of such a document typically requires i review by the staff manager, project manager, principal scientist or other equivalent '

authority, by the manager of the cognizant marketing function (or his delegate), and by the legal Operation, for technical content, competitive effect, and determination of the ,

accuracy of the proprietary designation. Disclosures outside GE are limited to regulatory i bodies, customers, and potential customers, and their agents, suppliers, and licensees,  !

and others with a legitimate need for the information, and then only in accordance with appropriate regulatory provisions or proprietary agreements.

(8) The informatien identified in paragraph (2), above, is classified as proprietary because it would provide other parties, including competitors, with information related to validation of General Electric proprietary design and analysis computer code which were developed at a considerable expense to General Electric.

(9) Public disclosure of the information sought to be withheld is likely to cause substantial harm to GE's competitive position and foreclose or reduce the availability of profit-making opportunities. The information is part of GE's comprehensive BWR technology base, and its commercial value extends beyond the original development cost. The value of the technology base goes beyond the extensive physical database and analytical l l l

t _ __ ___ . - _ . _ - _ , _ . _ _ - - _ _ _ _ _ _ . - -_

l methodology and includes development of the expertise to determine and apply the l l

appropriate evaluation process. )

l The research, development, engineering, and analytical costs comprise a substantial l investment of time and money by GE.

The precise value of the expertise to devise an evaluation process and apply the correct analytical methodology is difficult to quantify, but it clearly is substantial. .

GE's competitive advantage will be lost if its competitors are able to use the results of the GE experience to normalize or verify their own process or if they are able to claim an equivalent understanding by demonstrating that they can arrive at the same or similar conclusions.

i The value of this information to GE would be lost if the information were disclosed to the public. Making such information available to competitors without their having been required to undertake a similar expenditure of resources would unfairly provide  !

competitors with a windfall, and deprive GE of the opportunity to exercise its competitive advantage to seek an adequate return on its large investment in developing  ;

these very valuable designs.

STATE OF CALIFORNIA )SS:

COUNTY OF SANTA CLARA )

l David J. Robare, being duly sworn, deposes and says:

That he has read the foregoing affidavit and the matters stated therein are true and correct to the best of his knowledge, l i TH l Executed at San Jose, California, this O day of WI4L , 19.2 5 l

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bd David J. Robare General Electric Company T4 '

Subscribed and sworn before me this /7 day of M ,19f,5~

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MARY L KENDALL I fkap1 couw a 9e7a" h Notory Pubfic - CoMornia p

F_.otary u6iic, State of Caiirornia i 7 SANTA CLARA COUNTY F ,

My Comm. Expwes MAR 26.1997 ) i m . . ./MA -n I

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