ML20202E232

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Informs That NRC Reviewed Siemens Ltr of 990105 Expressing Concern About NRC Observations Re Serious Programmatic Problems with QA at Spc. Licensee May Have Misunderstood Intent of Statement & Clarification Provided
ML20202E232
Person / Time
Issue date: 01/25/1999
From: Collins S
NRC (Affiliation Not Assigned)
To: Nordahl J
SIEMENS POWER CORP. (FORMERLY SIEMENS NUCLEAR POWER
References
REF-QA-99900081 99900081-97-01, 99900081-97-1, NUDOCS 9902020351
Download: ML20202E232 (2)


Text

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January 25, 1999 Mr. James H. Nordahl Senior Vice President and General Manager Siemens Power Corporation - Nuclear Headquarters 2101 Horn Rapids Road P.O. Box 130 Richland, WA 99352-0130 1

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Dear Mr. Nordhal:

The NRC staff has reviewed your letter of January 5,1999. In that letter you expressed a concern about the NRC's observations regarding " serious programmatic problems with QA

[ quality assurance] at SPC [Siemens Power Corporation]," and interpreted this observation as indicating an " apparent renewed lev 61 of concern by the NRC." We believe that you may have misunderstood the intent of the statement cited above and are providing this letter to clarify its meaning.

In its 1997 inspection (Report 99900081/97-01), the NRC identified numerous shortcomings in QA implementation in SPC's fuel design and manufacturing activities. These findings led to the issuance of the Demand for Information (DFI) that accompanied the inspection report. SPC responded to the DFl and inspection report findings with an extensive program of corrective i

actions which are designed to restore our confidence in SPC's performance. During the review of SPC's corrective action program, the Office of Nuclear Material Safety and Safeguards (NMSS) Spent Fuel Projects Office (SFPO) issued an inspection report (Report 71-0003/98-203, issued on June 2,1998) and Confirmatory Action Letter (CAL) which also cited numerous QA

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deficiencies at SPC. The staff concluded that some of the NMSS identified deficiencies were O,

very similar in nature to those identified in inspection report 99900081/97-01. The NRC acknowledges that SPC's activities inspected in 1997 and those reviewed during the 1998

. SFPO inspection were performed under separate QA programs. However, the similarity in the findings of the two inspections appeared to indicate that the problems with QA implementation ap g

SPC were more broad and programmatic in nature than originally determined, and required an ji appropriately broad, programmatic effort for remediation. We felt that this point required emphasis, leading to its inclusion in the December 21,1998, letter.

Based upon our review of your previous submittals, we have concluded that SPC's corrective action program, when fully implemented, should address all of the deficiencies identified in inspection report 99900081/97-01, and our concerns as expressed in the DFl. We believe that SPC understands the nature of the problems and how to correct them, and is taking the proper steps in that regard. We have consulted with the SFPO regarding the closure of the CAL, and were told that the basis for closing the CAL was that the corrective actions taken, and SPC's commitments to implement further corrective actions based on a root cause analysis, should lead to the correction of the identified deficiencies. This conclusion is consistent with our own.

Further, we acknowledge and commend the efforts of SPC's customers in providing additional oversight and in working diligently to assist SPC in its efforts to regain the NRC's confidence in its performance.

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f Mr. James H. Nordahl i The NRC has not identified any additional concerns that SPC's planned corrective action program does not address. Accordingly, the December 21,1998, letter should not be j

interpreted as expressing a " renewed level of concern." However, given the breadth and depth of QA deficiencies identified by the NRC in 1997 and 1998, it is considered prudent for the NRC to continue to monitor the progress of SPC's corrective action program, to ensure its complete and effective implementation.

I trust this letter clarifies our conclusions as stated in the December 21,1998 letter.

In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice," a copy of this letter will be placed in the NRC's Public Document Room.

j Sincerely, i

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Office of Nuclear Reactor Regulation Docket No.: 99900081 cc: Mr. James F. Mallay, Director Regulatory Affairs Siemens Power Corporation - Nuclear Division P.O. Box 130 Richland, WA 99352-0130 lecce-Q\\oceLulto Vonan nc :

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