ML20203G743
| ML20203G743 | |
| Person / Time | |
|---|---|
| Issue date: | 02/10/1999 |
| From: | Shirley Ann Jackson, The Chairman NRC COMMISSION (OCM) |
| To: | Markey E HOUSE OF REP. |
| Shared Package | |
| ML20203G747 | List: |
| References | |
| NUDOCS 9902220044 | |
| Download: ML20203G743 (3) | |
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WASMNGTON, D.C. 205SN
%,.....f February 10, 1999 CHAIRMAN The Honorable Edward J. Markey United States House of Representatives Washington, D.C. 20515-2107
Dear Congressman Markey:
I am responding to your letter to me of January 6,1999, in which you request my assistance in understanding what steps have been taken by the U.S. Nuclear Regulatory Commission (NRC) to prevent Arthur Andersen's financial ties to the nuclear industry from influencing its findings or recommendations to the NRC under the Arthur Andersen contract for assistance in the area of program assessment and evaluation.
We agree that NRC, as a regulatory agency, should receive the best and most unbiased advice pcssible. To that end, Section 170A of the Atomic Energy Act, as implemented in the Nuclear Rogulatory Commission Acquisition Regulation (NRCAR), governs NRC's implementation of col flicts of interest policy and provides specific requirements to avoid conflicts. This statute ano resulting regulations are different from the requirements in the professional accounting stanc irds referenced in your letter. The Atomic Energy Act, NRC's enabling statute, prescribes that N3C contractors must be "able to render impartial, technically sound, or objective assistmce or advice in light of other activities or relationships with other persons."
There is no conflict of interest with Arthur Andersen providing assistance in the area of program assessment and evaluation because Arthur Andersen's activities for the NRC will not directly affect NRU regulation or oversight, or the finances of NRC licensees. Arthur Andersen is providing i rocess planning and assessment methodology expertise to the NRC. In both the evaluntion of the planning process and the assessment of the programs and activities in the Office of Nuclear Reactor Regulation (NRR), Arthur Andersen has provided expertise on
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process and methodology. The NRC mansgement and staff are utilizing the processes,
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developed with the assistance of Artnur Andersett, to make decisions about program goals and performance measures consistent with the chailsnges of the Government Performance and Results Act. Any resultant changes to NRC programs, which may have an effect on NRC g
regulation or oversight, or the finances of licensees are being made exclusively by the Vl Commission, NRC management, and the staff.
Regarding your three specific questions, the following responses are provided:
1.
We do not have a list of NRC licensees that have employed Arthur Andersen as an auditor or a consultant within the last 5 years; nor do we know how much revenue Arthur Andersen received from any such contracts since Arthur Andersen has not disclosed such information to NRC. NRC's contract amount with Arthur Andersen is $922,075, which is inclusive of the basic award for $422,505 and the exercise of optional Task 2 in the amount of $499,570. The NRC has the option to request additional assessments under this contract.
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9902220044 990210 PDR COMMS NRCC CORRESPONDENCE PDR
L The Honorable Edward J. Markey 2
2.
As discussed above, Arthur Andersen's activities relata to internal NRC process planning and assessment methodology and do not relate directly to regulation or oversight of NRC licensees.
3.
In awarding the contract to Arthur Andersen, NRC 6termined at the time of the award that no organizational conflicts existed with Arthur Anderscn on the basis of our review of Arthur Andersen's proposal and its " Contractor Organizational Conflict of Interest Representation" certification. A copy of Arthur Andersen's certification is enclosed. The NRC's contract with Arthur Andersen specifically includes an organizational conflict of interest clause. As a result of your letter, we confirmed with Arthur Andersen that no situations or relationships have occurred since the contract award that would constitute organizational conflicts with respect to its performance of NRC's work. We will continue to monitor the work performed for NRC to ensure that Arthur Andersen functions in an advisory capacity for process and methodology only.
I trust this reply responds to your request. Please contact me if I can be of further assistance.
Sincerely, b
Enclosure:
Arthur Andersen Certification
?CE2 209-72 C:ntractor Organizational Ccnflicts of Interes, Representatt:n 1 epresent to tne best of my (nowledge and belief that:
~*e fw&"d t0 Arthur Anaursen LLP of a contract or a nod:#ic3 tion of an existing contract Oces / / coes not AX/ involve situations or relatienships of the type set forth in 48 CFR 2009.570-3(b)
(a)
If the representation.l as completed, indicates that situations or relationships of the type set forth in 48 CFR 2009-570 3(b) are involved, de the contracting off1cer otherwise cetermines that potential organizational conflicts of interest exist.
the offerer shall provide a statement in writing which describes in a concise manner all relevant factors bearing on his representation to tre contracting officer. If the contracting officer determines tna-ceganizational conflicts exist. the following acticns may be taken:
(1) Impose apprcpriate conditions which avoid such conflicts.
(2) Disqualify the offerer. or (3) Determine that it is otherwise in the best interest of the United States to seek award of the contract under the waiver Crovisions of 48 CFR 2009-570-13.
(b) ~he refusal to prov1ce the representation required by 48 CFR 2009.570 4(b). or upon request of the contracting officer. the facts re::uired oy 48 CFR 2009.57G-3(b). must result in disqualificat'on of tre offeror for award.
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Cert 1[icati signature & date
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