ML20137M580

Ack Receipt of Re General Physics Corp.No NRC Requirements Currently Available to Address Qualifications of Instructors Providing Training to Nuclear Industry. Responses to Specific Questions Encl

ML20137M580
Person / Time
Issue date:	01/21/1986
From:	Palladino N NRC COMMISSION (OCM)
To:	Markey E HOUSE OF REP., ENERGY & COMMERCE
Shared Package
ML20137M587	List: ML20137M580
References
NUDOCS 8601280305
Download: ML20137M580 (8)

Text

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~, UNITED STATES

! , g NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20555 g, .p

%,*****/ January 21, 1986 CHAIRMAN The Honorable Edward J. Markey, Chairman Subcommittee on Energy Conservation and Power Committee on Energy and Commerce

-United States House of Representatives Washington, DC 20515

Dear Mr. Chairman:

Thank you for your November 8, 1985 letter regarding the General Physics Corporation (GPC).

We are concerned by the use of a person of Mr. 0's apparent lack of trustworthiness based on his involvement in various cheating matters. While we do not currently have requirements addressing qualifications of instructors who provide training to the ~

nuclear industry, we do intend to consider possible future agency actions in this area.

Our responses to your specific questions are enclosed. For your information, the NRC is continuing to work on the matters raised in your August 30, 1985 letter and left open in our October 10, 1985 response. .e W will respond regarding.those mat.ters when our review is complete.

Sincerely, .

L& "

f( b~{ r Nunzio J. Pal dino

Enclosures:

As Stated cc: Rep. Carlos-Moorhead i

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QUESTION (1) (a)

What, if any, character or management integrity standards, requirements or screening procedures does the Commission have for licensed personnel?

j ANSWER NRC requirements fo'r licensed personnel are identified in 10 CFR Part 55. Candidates for an operator's license are required to submit the results of a medical examination to the NRC. In addition, the NRC may refuse to issue, revoke, suspend or modify a license for any conduct-determined by the Commission to be a 4

hazard to safe operation of the facility. We would consider cheating on an operator license examination to be adequate grounds to deny, suspend, or revoke an operator's license.

However, in light of the cheating identified on NRC licensing examinations at Three Mile Island, the NRC has proposed revisions to 10 CFR Part 65 to highlight the NRC's concern with the integrity of licensed personnel. In particular, a new section is proposed to emphasize that no compromise of licensing examination, e.g. cheating, will be tolerated. A provision has also been proposed that would require all operators to notify the NRC of any criminal conviction. Moreover, a conforming amendment to 10 CFR Part 50 has been recommended to require the facility licensee / applicant to notify the NRC of such convictions. Another proposal reserves for the NRC a basis for not renewing a license if the operator's past performance has not been satisfactory to the NRC. This performance will be based primarily upon NRC inspections and investigations. This rulemaking will be addressed by the Commission in early 1986.

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I QUESTION-(1) (b)

What, if any, character or management integrity standards, requirements or screening procedures does the Commission have for licensee contractors?

ANSWER NRC requirements for licensee contractors, who instruct licensed oersonnel, deal solely with the contractor's technical

. capability. In the absence of a specific regulation, actions were taken.by licensees as a result of the Commission's statement published in 1977 that power reactor licensees should continue to use the employee screening guidance from the

' American National Standard, ANSI N18.17. " Industrial Security -

for Nuclear Power Plants" pending the development of a program i to require personnel security clearances for individuals employed in sensiti,ve work activities.

An access authorization rule to. establish the trustworthiness of individuals to be granted unescorted access to vital areas of l licensed nuclear power reactors is being forwarded in final form to the Commission for consideration. This rule would also apply

' to licensee contractor employees. In the interim, licensees have developed and implemented safeguards plans that address, among other things, conditions for unescorted access to vital areas. The Commission is also seeking legislation that would authorize nuclear power plant licensees or applicants for licenses to receive FBI criminal history . records for the purpose of deterni.ning who will be granted unescorted access to protected areas and vital areas of nuclear power plants. .The Senate passed such legislation last session (S.274), and it has been introduced in the House of Representatives (H.R. 3330).

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O QUESTION (1) (c)

What, if any, character or management integrity standards, requirements or screening procedures does the Commission have for NRC contractors?

ANSWER Considerations of character or management integrity of NRC

contractors are assessed prior to contract award through a responsibility determination in accordance with the Federal Acquisition Regulations (FAR), Part 9. To be responsible a contractor must have a satisfactory record of integrity and l business ethics in addition to meeting all_of the other standards established by the regulations such as having adequate financial resources to do the proposed work, having the ability to meet required delivery schedules and having a satisfactory-performance record, etc. Integrity and business ethics can be

determined by checking prospective contractors against the Consolidated List of. Debarred, Suspended, and Ineligible

Contractors, obtaining pre-award audits and surveys, discussing a contractor's record with other agencies, and reviewing a contractor's record on any previous contracts with NRC.

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1 QUESTION 2

! Doe's Mr. 0 work on any NRC contracts at General Physics and, if j so, are any of them cost reimbursement. contracts? l

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i ANSWER  :

i j Mr. O does not currently work on NRC contracts at GPC. He was, r

, however, assigned to research cost reimbursement Contract No.

l NRC-04-82-005 as an analyst of operator tasks during the latter 4 part of:1982 and again in early 1983. The work under that contract was entitled " Task Analysis of Nuclear Power Plant i Control Room Crews." The approximate number of hours Mr. 0 1 worked on that contract was 180.

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QUESTION 3 Does NRC know whether Mr. O participated in or was aware at the time of leak rate falsification at TMI?

ANSWER The NRC's investigation of leak rate testing irregularities at TMI-2 concentrated on the ten currently licensed operators who either penformed or supervised reactor coolant system leak rate tests at TMI-2 during 1978/1979. Because Mr. 0 was no longer a licensed operator, his knowledge of or involvement in leak rate test manipulation was not specifically investigated.

Nevertheless, the NRC's investigation developed a great deal of information regarding leak rate testing practices on all shifts i at TMI-2. The investigation included interviews with the former control room operators and the shift foremen on Mr. O's shift.

Mr. 0 was also interviewed and questioned about leak rate testing practices at TMI-2 as part of the NRC's investigation into TMI-2 leak rate testing irregularities. During this interview, Mr. O denied knowledge of or participation in leak rate falsification at TMI-2. Based upon the results of the TMI-2 investigation, it was determined that leak rate test manipulation did occur on Mr. O's shift. While there is some

! evidence that shows Mr. O as well as other shift supervisors, condoned violations of TMI-2 Technical Specifications and plant procedures associated with leak rate surveillance testing, there is insufficient evidence to prove that Mr. 0 knowingly participated in or condoned leak rate test falsification by the operators on hi shift. The Commission has determined that there will be a hearing on pre-accident leak rate testing at TMI-2. The Notice of Hearing was issued on December 18, 1985.

During the conduct of the hearing, additional evidence may be developed regarding Mr. O's participation in or knowledge of leak rate falsification.

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OUESTION 4

'What are NRC's rules and procedures for suspension and debarment of contractors and individuals?

ANSWER The NRC is subject to the requirements of the Federal i

Acquisition Regulations (FAR), Part 9 regarding debarment.

i Those procedures provide for the exclusion of a contractor from Government contracting and Government-approved subcontracting for a reasonable, specified period for the causes set forth in Part 9. Those causes include conviction of or civil judgment for (1) commission of a criminal offense in connection with obtaining, attempting to obtain or performing a public contract 3

or subcontract, (2) violation of Federal or. State antitrust statutes relating to the submissions of offers, (3) commission of embezzlement, theft, forgery, bribery, falsification or i destruction of records, making false statements, or receiving stolen property, and (4) commission of any other offense indicating a lack of business integrity or business honesty that i seriously and.directly affects the present responsibility of a Government contractor or subcontractor. Debarment can also

result from causes which are direct violations of the terms of a contract.

l The government may suspend a contractor suspected, upon adequate i evidence,'of the same causes as outlined above for debarment.

i Agencies are allowed to issue their own acquisition regulations I where necessary to implement or supplement the Federal Acquisition Regulations. NRC is in the process of supplementing Part 9. It is anticipated that our regulation will be issued in the near future as 48 CFR, Chapter 1, Subpart 20.

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QUESTION 5 J

What is NRC's policy and practice for evaluating potential conflict of interest questions when entering into contracts with j

companies also under contract with licensees?

i j ANSWER NRC's policy regarding organizational conflicts of interest is set forth in 41 CFR, Part 20-1. This rule requires al.1 prospective contractors to submit information describing relationships, if any, with organizations or persons (including i those regulated by NRC) which may give rise to actual or j potential conflicts of interest in the event of contract award.

Determinations regarding conflicts of interest are made on a i case-by-case basis utilizing the criteria established by the rule for that purpose.

The Conflict of Interest (COI) rule is included in appropriate agency solicitations and contracts along with a representation to be completed by prospective contractors regarding COI.

Additionally, clauses such as " Work for Others" are included in-all NRC contracts. This clause requires the contractor to

forego entering into consulting or ott.er contractual l arrangements with any firm or organization, the result of which may give rise to conflict of interest with respect to the work

being performed under NRC's contract. Breach of this provision, i intentional nondisclosure or misrepresentation of any relevant i interest required to be disclosed, or such erroneous i representations as to necessarily imp y bad faith can result in

! termination of the NRC contract when 1) the work to be

! performed under the contract is vital to NRC's program; (2) the j work cannot be satisfactorily performed except by a contractor

whose interests give rise to a question of conflict of interest; ,

1 and (3) contractual and/or technical review and supervision methods can be employed by NRC to neutralize the conflict.

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