ML20155G077
| ML20155G077 | |
| Person / Time | |
|---|---|
| Issue date: | 06/03/1988 |
| From: | Zech L NRC COMMISSION (OCM) |
| To: | Lafalce J HOUSE OF REP. |
| Shared Package | |
| ML20155G081 | List: |
| References | |
| NUDOCS 8806170157 | |
| Download: ML20155G077 (2) | |
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,1 NUCLEAR REGULATORY COMMISSION WASHINGTON. O C. 20666 o,
/g dune 3, 1988 cHA R AN The Honorable John J. LaFalce, Chairman Committee on Small Business United States House of Representatives Washington, DC 20515
Dear Mr. Chairman:
I am responding to your May 3,1988 letter concerning NRC Bulletin No. 5101-7, "Policy for Contracting on a Noncompeti-tive Basis with Former NRC Employees," and its potential impact on NRC contracts awarded under the Small Business Administra-tion's 8(a) program and, in particular, on Viking Systems International (VSI), an NRC 8(a) program contractor.
The issuance of the Bulletin was appropriate to preserve the integrity of our contracting practices and will not adversely affect our implementation of the 8(a) program or VSI.
Bulletin No. 5101-7 was issued on March 11, 1988, and prohibits the awarding of contracts on a noncompetitive basis with individuals who were formerly employed by NRC within two years of a request for procurement action, or with firms controlled or predominantly staffed by such former employees, unless it is within the best interest of the government to do so.
The objective of the policy is to ensure that our contracting practices are conducted with complete impartiality and avoid favoritism or the appearance of impropriety.
VSI's contract with NRC began on April 20, 1987, and extends through April 19, 1990.
It is a task-type contract covering a variety of technical services, of which in-service inspection is one.
The in-service inspection service provided by VS! as j
task 3 of the contract was performed by a single individual, a former NRC employee who left the agency less than two years ago.
All of the work required uncar task 3 has been completed by the contractor, who was seeking additional in-service inspection work when our Bulletin was issued.
Although Bulletin 5101-7 would prohibit YSI from performing any addi-tional in-service inspection work under the contract, the remaining portions of VSI's contract are unaffected by the policy.
In fact, our technical staff is currently developing additional projects within the scope of YSI's contract which would raise their current funding level of $326,290 to approxi-mately $400,000.
Under these circumstances, we do not believe 8806170157 880603 COMMS NRCC PDR CORRESPONDENCE PDR
2-VS! will be placed in jeopardy by our policy change, and therefore an exemption for VSI dces not appear warranted.
We also do not believe that our 8(a) program will be adversely affected by this policy.
During FY 1987, NRC provided funding of approximately $8,000,000 under 27 separate 8(a) contracts.
This accounted for about 16% of all NRC contracting dollars.
Five former NRC employees were involved in these awards.
However, only the VSI employee worked for NRC within the past two years and was, therefore, the only one af fected by the policy.
You also expressed concern that imposition of this policy would be detrimental to the government's interest in research vital to the NRC.
Although in-service inspections are important to the NRC's mission, we can obtain the services elsewhere.
In fact, we recently decided to utilize contractors other than VSI for in-service inspection work.
This decision preserves the integrity of our contractual arrangements without impacting our technical program, our commitment to the 8(a) program, or the viability of VSI.
I hope this information resolves your concerns.
Sincerely,
& w.
Q Lando W. Z
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cc: Rep. Joseph M. McDade
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