ML20198P334
| ML20198P334 | |
| Person / Time | |
|---|---|
| Site: | 07100678 |
| Issue date: | 01/05/1999 |
| From: | Bradley Jones NRC OFFICE OF THE CONTROLLER |
| To: | Rachel Johnson PACKAGING TECHNOLOGY, INC. |
| References | |
| NUDOCS 9901070032 | |
| Download: ML20198P334 (4) | |
Text
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January 5,1999 Ptekaging Technology, Inc.
ATTN: Robert A. Johnson 4507-D Pacific Highway East Tacoma, Washington 98424-2633
Dear Mr. Johnson:
I am responding to your November 12,1998, fax conceming annual fee invoice No. AM5716-98 for Quality Assurance Program Approval No. 0678 and your status as a small entity concem for Fiscal Years (FY) 1998 and 1999. You state: (1) you are concerned with the intent and proper Interpretation of item 1.c. on NRC Form 526 Certification of Small Entity Status which states "A licensee who is a subsidiary of a large entity does not qualify as a small entity"; (2) Packaging Technology, Inc. (PacTec) was purchased by Transnuclear on November 1,1997, one month into the FY 1998 invoice period; (3) since Transnuclear pays the full $78,800 fee each year for their program you assume that PacTec is properly justified in continuing to pay the reduced annual fee amount for small entities; (4) that it would be devastating to your organization to continue to operate as a separate entity with revenue on the order of $2 million per year; (5) at the time of your license transfer to Transnuclear you had multi-year contracts supporting USDOE that are in place through FY 1999 which are not sufficient to cover the fee, nor could they have been based on your paying the $78,800 fee; and (6) should you be obligated to pay the full fee, you would have no choice but to abandon your current QA program and begin to operate under Transnuclear's.
On November 12,1998, we received your FY1998 NRC Form 526, Certification of Small Entry Suw For FY 1998, PacTec qualifies as a small business concern as certified in your duuc.ittal of NRC Form 526 as a for-profit concern that provides a service or a concem not engaged in manufacturing with average gross receipts of $350,000 to $5 million over its last three completed fiscal years. On October 1,1998, PacTec qualified as a small business
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concem and we rece!ved your FY 1998 annual fee payment of $1800; Invoice No. AM5716-98
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is paid in full. However, as discussed in our telenhone conversation of November 12, PacTec
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would not qualify for small entity status for FY 1999. A licensee who is a subsidiary of a large entity such as Transnuclear would not qualify as a small business concem for purposes of the FY 1999 annual fees.
During the purchase of PacTec by Transnuclear, both companies had not notified the NRC of their intent to terminate or consolidate their quality assurance program approval. Therefore, PacTec will be assessed an annual fee for each license, certificate, approval or registration
' PacTec holds on the date the annual fee is due. In addition, footnote 1 of 10 CFR 171.16 provides that the annual fee is waived when a license is terminated prior to October 1 of each fiscal year. The FY 1999 annual fee is waived for licensees and holder of certificates, registrations, and approval who eitner filed for termination of their licensees or approval or filsd for possession only/ storage caly licensed prior to October 1,1998, and permanently ceased 9901070032 990105 p %/ M/%
PDR ADOCK 071 68 i
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?d Mr. Robert A. Johnson January 5, 1999 licensed activities by September 30,1998. An amendment request filed after October 1 of each fiscal year to cancel a license does not cancel the annual fee invoice. Therefore, a termination request filed by PacTec for purposes of avoiding the FY 1999 annual fee would not be timely and your FY 1999 annual fee would be due and payable upon notification from the NRC.
3 As provided in 10 CFR 171.17, licenses for which termination requests are filed during the period of October 1 through March 31 of the fiscal year are assessed one-half of the annual fee. Therefore, if PacTec's termination request is filed prior to March 31, the FY 1999 annual j
fee invoice would reflect the 50 percent proration of the full fee amount.
If you have any questions concerning this matter, please contact me at 301415-6994.
Sincerely, Beve,-ly S. J License Fee Section License Fee and Accounts Receivable Branch Division of Accounting and Finance Office of the Chief Financial Officer l
L. Tremper, OCFO/DAF/LFARB/ARS j
j R. Messler, OCFO/DAF/LFARB/LFS 1
S. Kimberley, OCFO/DAF/LFARB/LFS i
G. Jackson, OCFO/DAF/LFARB/LFS M. Lesar, ADM P. Eng, NMSS Invoice File AM5716-98 w/cy inc License File (QA-0678) w/cy inc NUDOCS (ML-61) w/cy inc PDR w/cy inc OCFO/DAF/LFARB (LF-99-8) w/o cy inc OCFO/DAF/LFARB RF w/o inc OCFO/DAF RF (DAF 9-000) w/o inc OCFO/DAF SF (LF-3.2.2) w/ orig inc Document Name: G:LF99-8
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To: Maurice Messier, USNRC j
From: Robert A. Johnson
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Fax No.: 301-415-5384 Date: November 12,1998 No. of Pages (including cowy 2 Time: 9:40 AM
Subject:
Invoice AM5716 98, QA Program Cokificate Number 0678 Thank you for your call. What would we do pithout voice mell? It appears our payment was received without the Small Entity Status form attacheft Our records do indicate we sent it in with our payment i
in early October. Attached is a copy of the 6)mpleted form. Please add this to your file and make the necessary changes to our billing records. [
t I do have one remaining area of concem wWeh I will be calling to discuss with you. The basics of this concem are as follows. In light of your recyt rebilling for the full 578,800 fee, I revisited the Form 526 instructions and am now concerned with thd intent and proper interpretation of item 1.c. which states "A ficensee who is a subsidiary of a large entity does not qualify as a small entity." As background <
Packaging Technology was purchased by Transnuclear (New York) on 11/1/97, one month into the FY'98 invoice period. As such, at the start of the period we were not a subsidiary to TN, whereas at the end, we were. Since Transnuclear pays the full $78,800 fee cach year for their program, I am working on the assumption that PacTec is properly justified in continuing to pay the reduced amount.
Please be aware that to do otherwise would be devastating to our organization in that we continue to operate as a separate entity with revenues on the order of $2M/ year. In addition, at the time of our purchase, we had ongoing, multi-year contracts supporting USDOE programs. Those contracts are still in place today and include out-year (at least through 1999) billing rates which are r ot sufficient to cover and were not (and could not have been for govemment auditing reasons) based on the full
$78,800 fee. Finally, should circumstances develop where we would become obligated to pay the full fee, we would have no choice but to abandon our current QA program and begin to operate under TN's. The practicality of doing so is not clear, since our existing contracts typically have been based on submittal and acceptance of our current QA program.
I assume this is not the first time that circumstances such as these have occurred. Again, I will be calling you soon to obtain your input on this important issue.
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Nsv-12-03 00: 41A PcckoO1n3 Tcchna' logy Inc. 203-022-1443 e
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The minimal Information requested for this certfication does not conettute en information collec6cn and, therefore, does not require OMB approval.
gFORM62 U.s. NUCLEAR REGULATORY COMWastok wemm CERTIFICATION OF SMALL ENTITY STATUS FOR THE PURPOSES OF ANNUAL FEES IMPOSED UNDER 10 CFR PART 171 FY 1998 SEE IMPORTANT INSTRUCTIONS ON THE REVERSE SIDE was me aconsas or ucaness en.s
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mocs musen Packaging Technology, Inc.
AA 57 m -98 4507-D Par:ific Highway East ucensa m mes=
- Tacoma, WA 98424-2633 O v38 swennoseusma cuseecanon caos SIC SIZE STANDARDS (Check one box only)
,,", gasyg DO NOT RETURN THIS FORM IF YOU DO NOT GUAUFY UNDER ONE OF THESE SIZE STANDARDS ra n : n s.n g 1.
SMALL SUSINESS A for.prott concem that provides a service or a concern not engaged in mancfacturing with everage groes receipts of 55 mIEon or less over lis lost 3 compisted flecelyears.
3 A 8350,000 TO 85,000,000 8 1,000 t
B. LESS THAN $350,000
$ 400 2.
MANUFACTURING INDUSTRY A manufacturing concern vdth an average number of 500 or fewer employees based upon employment during each pay period for the preceding 12 calender months.
A 35 to 500 EMPLOYEES S 1,800
- 8. LESS THAN 35 EMPLOYEES 8 400 3.
SMALL ORGANIZATION A not.for.prott organize 6on thatis independenty owned and operated end has annual gross receipts of
$5 mWion or less.
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A $350,000TO $5,000,000 8 1,800 S. LESS THAN $350,000
$ 400 4.
SMALL GOVERNMENTAL JURISDICTION (INCLUDING PUSLK.* SUPPORTED EDUCATIONAL INSTITUTIONS
- A government of a city, county, town, townsNp, vsage, school detrict, or speaaf district with a population ofless than 50,000.
A 20,000 TO 50,000 POPULATION
$ 1,800 B. LESS THAN 20,000 POPULATION
$ 400
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SMALL EDUCATIONAL INSTITUTION THAT IS NOT STATE OR PUBUCLY SUPPORTED AND HAS 500 OR FEWER EMPLOYEES '
A. 35 to 500 EMPLOYEES
$ 1,800 B. LESS THAN 35 EMPLC,YEES S 400
'An educationalinsttutior referred to in the size standards is an entity whose primary function is edu ation, whose programs are accredited by a nationaly recognized accrediting agency or association, who is legally authorized to provide a program of organized instruc60n or study, who provides an educs6onal progrro for which it awards academic degrees, and whose educa6onal programs are available to the putsc.
CERTIFICATION This certincation MUST be signed by the owner of the entity named skon or an otMcial empowed to act on behalf of the enury.
I certify that the e6>ove named NRC Econsee qualines as a smal entity under the size standards established by the NRC for les Econsees in 10 CFR 2.810 (60 CFR 18344). The Scensee queirnos as a smat enety under the specine size standard ind'cated above.
WARNING: 18 U.S.C. Seebon 1001, Act of June 25,1948,62 Stat. 749, makes it a criminal offense to make a will'uly false statement or representation to any Department or Agency of the United States as to any matter within its jurisdiction. The submittal of willfulfalso statements is punishable by fine or impnsonment, or both, and for purposes of this cert 6ca6on, may result in revocaton or suspension of the Econse.
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