ML20204H577

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Ltr Contract,Task Order 19 Entitled, Financial Assurance Amends - Decommissioning Certification Amounts for Matls Licensees (Parts 30,40 & 70) Under Contract NRC-04-95-065
ML20204H577
Person / Time
Issue date: 03/12/1999
From: Mace M
NRC OFFICE OF ADMINISTRATION (ADM)
To: Bailey P, Schossow F
ICF, INC.
References
CON-FIN-J-5236, CON-NRC-04-95-065, CON-NRC-4-95-65 NUDOCS 9903290105
Download: ML20204H577 (6)


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bh ut!v y 'k UNITED STATES g j NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20066 0001 r*g ef

          • 9,5 M ICF Incorporated  ;

ATTN: Ms. Frances Schossow Project Administrator 9300 Lee Highway.

Fairfax, Virginia 22031-1207 ,

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Dear Ms. Schossow:

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Subject:

Task Order No.19 entitled," Financial Assurance Amendments -

Decommissioning Certification Amounts for Materials Licensees (Parts 30,40 and 70)" under Contract No. NRC-04-95-065 In accordance with Section G.5(c) of the subject contract, this letter definitizes the subject tar k order. This effort shall be performed in accordance with the enclosed Statement of Work and the contractor's technical proposal dated February 15,1999, I which is hereby incorporated by reference and made a part of the subject task order.

Task Order No.19 shall be in effect 8 and % months from the date both parties have signed this document or through November 30,1999. The total estimated ceiling for this task order is $44,882.

The Accounting Data for this task order is as follows:

B & R N o.: 95015203115 Job Code No.: J5236 A P P N N o.: 31X0200 BOC No.: 252A Obligated Amt.: $44,882.00 The following individuals are considered to be essential to the successful performance of the work hereunder: Paul Bailey, John Collier, Matt Borick and Daniel Shain.

The contractor agrees that such personnel shall not be removed from the effort under this task order without compliance with Contract Clause H.2, Key Personnel.

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9903290105 990312

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D PDR CONTR '

NRC-04-95-065 PDR 9p0011

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i l Contract No. NRC-04-95-065 )

l Task Order No.19 1

Technical Matters: Carolyn Boyle/ Clark Prichard Project Officer / Technical Monitor (301)415-7818 l Contractual Matters: Amy Siller l Contract Specialist (301) 415-6747 I 1

l The contractor shall not exceed the ceiling amount under this task order unless a formal l modification is issued by the Contracting Officer. l The issuance of this task order does not amend any terms or conditions of the subject contract. l Please indicate your acceptance of this task order by having an official, authorized to bind your organization, execute three copies of this document in the space provided and return tao copies to the U.S. Nuclear Regulatory Commission, ATTN: Ms. Amy Siller, Division of Contracts and Property Management, Contract Management Branch I 1, M/S T-7-1-2, Washington, D.C. 20555. You should retain the third copy for your records.

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i Should you have any questions concerning the letter, please contact Ms. Siller on (301)  ;

415-6747. I' Sinc I, N

Mary . Mace, Co tra ting Officer

' Contract Management Branch 1 Division of Contracts and Property Management Office of Administration

Enclosure:

As stated m bf sM TITLE z/ j Gbs '

'//L/99 DATE I

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Statement of Work

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DEVELOPMENT OF INFORMATION TO SUPPORT RULEMAKING Financial Assurance Amendments - Decommissioning Certification Amounts for Materials Licensees (Parts 30,40, and 70) l BACKGROUND 1

l The final rule on general requirements for decommissioning of nuclear facilities which was published in 1988 provided two options for financial assurance. It established the certification amounts as one mechanism to allow licensees to establish the amount of financial assurance required. However, licensees are not required to use the certification amounts. A licensee also has the option of submitting a decommissioning funding plan. Most licensees choose to use the certification amount option. The certification amounts were included in the decommiss;oning regulations to provide an approach to financial assurance which minimizes the burden on the majority oflicensees and on the NRC while providing assurance of funds fordecommissioning (53 FR 24035). A licensee need not prepare a decommissioning cost estimate and NRC does not need to review such an estimate if certification is used.

In a memorandum from the Commission dated March 30,1993 (COMIS-93-002), the staff was asked to recommend whether or not a re-examination of N RC's requirements for decommissioning funding was appropriate, and if so how such a re-examination should be . carried out. The staff responded with a recommendation that a re-examination was appropriate, citing among other reasus, increased decommissioning costs (Memorandum to the Commission from James M.

Taylor, May 28, 1993). The staff also informed the Commission that a re-evaluation of the certification amounts would be done. Pacific Northwest National Laboratories (PNNL) has been engaged in an effort to update decommissioning costs for materials licensees for the past several years. NRC will use the results of PNNL's work together with other information on current decommissioning costs as the basis of any adjustment to the certification amounts to be done through rulemaking.

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OBJECTIVE ' .

This task order is for information and reports to be developed by the contractor suitable for NRC to l

l use in the rulemaking, such as regulatory analysis information, information on current decommissioning costs, and responding to management questions. Specific types ofinformation which goes into development of a rulemaking is referonced in the~overall contract.

l WORK REQUIREMENTS

1. The contractor shall prepare estimates of current decommissioning costs for three types of materials licensees. The estimates shall be directed at typical decommissioning costs for:

(1) sealed source licensees that use the $75K certification amount; 1

l l (2) licensees that use the $150K certification amount; and (3) licensees that use the $750K certification amount.

l The estimates shall be based on analyses of currsnt decontamination technologies and costs, costs of current waste disposal options, and, for sealed source licensees, the current market for sources l and the potential for retuming/ reselling sources vs. having to dispose of them.

l in deriving these cost estimates, the contractor shall examine representative information on materials licensees that use each of the three certification amounts, and determine what possession l.

limits the licensees have. The contractor shall estimate bounding decommissioning costs for l

licensees with these possession limits based on an estimation of the amount of soil, concrete surface, etc., would be contaminated at the residual contamination criteria levels in 10 CFR Part 20, Subpart E, assuming total activity in contaminated material is the possession level. Unit cost factors 1 -

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l from the PNNL reports (see reference sources of information listed below) wil! be used to determine representative disposal and decontamination costs.

For sealed source licensees, the contractor shall estimate disposal costs for various individual sources (large activity as well as small activity sources). The contractor shall analyze the market for used sources and the viability of basing sealed source decomrhissioning costs on transfer to >

other licensees or to source manufacturers as a method of decommissioning. The contractor shall also assess whether or not large in adiators should be required to submit decommissioning funding i

plans as k basis for financial assurance rather than using the certification amounts. 1 l

t 2. The contractor shall conduct an analysis of the impact of the rulemaking on licensees presently requiring financial assurance, and on any additionat licensees which may require financial assurance as a result of the rulemaking. The analysis should cover how many licensees would be affected, cost impacts on licensees, and information collection impacts. The information should be sultable for use in NRC's regulatory analysis, and OMB information collection burden submission.

3. 1he contractor shall provide information as needed to assist the staff in responding to management ques'tions.

LEVEL OF EFFORT The level of effort for this task order is estimated at 4 person-months.

Pft ,. J EFORMANCE The period of performance shall commence on the effective date of this task order and continue for 8.5 months.

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_ -4 DEllVERABLES

1. Report on decommissioning cost estimates for a range of typicallicensees.

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2. Draft and final reports with regulatory analysis information.

l MEETINGS AND TRAVEL i Only local travel is anticipated. The contractor shall plan on meetings at least every two months at NRC headquarters.

REQUIRED EXPERTISE 4 Expertise is required in decommissioning costs, financial assurance, and knowledge of NRC materials licensing regulatory program.

REFERENCES The contractor can use material on decommissioning costs in two technical reports to be fumished by NRC: Technoloav. Safety. and Costs of Decommissionina a Reference Laroe Irradiator and Reference Sealed Sources, NUREG/CR-6280, PNNL, January 1996; and Revised Analyses of Decommissionina R6ference Non-Fuel-Cycle Facilities, draft NUREG/CR-6477, PNNL, July 1998; and industry and commercial sources of information on decommissioning costs, such as R.S.

Means reports, and other information a's appropriate.

NRC TECHNICAL PROGRAM MANAGER The NRC Technical Program Manager for this task order is Clark Prichard and may be contacted on 301-415-6203.

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