ML20246A504

Responds to Requesting Explanation of Amount Billed to Company by Invoice H0940 for Part 55 Operator Exams Svcs for Two Employees

ML20246A504
Person / Time
Site:	Aerotest
Issue date:	06/29/1989
From:	Holloway C NRC OFFICE OF THE CONTROLLER
To:	Simens H AEROTEST OPERATIONS, INC.
Shared Package
ML20246A509	List: ML20246A504 ML20246A531
References
NUDOCS 8907070010
Download: ML20246A504 (2)

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JUN 2 01ggg Docket No. 50-228 Aerotest Operations, Inc.

ATTN: Mr. Hugo G. Simens, President 3455 Fostoria Way San Ramon, CA 94583 Gentlemen:

Your letter dated May 9,1989, requested an explanation of the $29,592 billed to your company by Invoice No. H0940 dated April 27, 1989, for Part 55 operator examinations services for two of your employees. Your major interest was the $27,339 in contractual costs in that it was your understanding that the cost would approximate $9,000 per employee based on consultation with others operating similar research reactors.

Therefore, our response will address that and not the $2,253 for 42.5 hours5.787037e-5 days <br />0.00139 hours <br />8.267196e-6 weeks <br />1.9025e-6 months <br /> of Region III staff time.

The major cost for operator examinations is the preparation of the written examination. This cost is constant irrespective of whether one or many individuals are given the examination. Therefore, the per employee costs can vary significantly if one or two vs. several employees are examined at the same time. An example of contractual costs for a single individual to be examined is the Amed Forces Radiobiology Research Institute where one person was examined and the contractual costs alone to NRC for administration of the examination were $16,589.

Before the contract was negotiated with Idahn National Engineering Laboratory (INEL) for your employee examinations and those at other facilities, the NRC estimated the hours required for each task in the contract. Contractors are not required to provide an hourly rate for the services to be provided. The contract is set at a total amount in dollars based on the total tasks to be performed by the contractor and NRC's allotted time to perform each task. Contractual costs typically include the direct salaries; materials, services and other costs; ADP support; subcontract costs; travel; indirect labor costs; general and administrative costr , and capital equipment. While travel costs are included, a detailed breakdown of these costs are not required to be reported in the monthly reports provided the NRC by the contractor.

t For the Aerotest examinations, NRC allocated a total of 293 hours0.00339 days <br />0.0814 hours <br />4.844577e-4 weeks <br />1.114865e-4 months <br /> for {

the contracted services. The hours included in the $27,339 were 279.

The following is a breakdown of these hours for the April 1988 examination services for your employees and the activity they covered.

The costs of challenges or resolving issues by the licensee are also included in the Part 55 services cost.

h 00$ $ e N t b

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Activity Hours Written examination preparation' 185

Written review and incorporation of comments 30 i Travel 10 Written Administration 7 Operating test- 16 Operating test review'- 2 Written examination grading. 27*

Written examination review 2 Total Hours 279

• 12 hours to grade 2 exams; 3 hours3.472222e-5 days <br />8.333333e-4 hours <br />4.960317e-6 weeks <br />1.1415e-6 months <br /> reviewing failure to ensure accuracy of grading, and 12 hours1.388889e-4 days <br />0.00333 hours <br />1.984127e-5 weeks <br />4.566e-6 months <br /> verifying facility comments, formulating responses and resolution to: facility comments.

Costs for each task provided in the monthly reports by the contractor are reviewed and analyzed by the NRC to assure that the costs'are correct and that they are within the contracted amount before they are given to us for billing. While a single contract might cover' tasks for several plants, the costs for performing each task are kept and reported

by plant names and docket numbers by the contractor and are reported monthly to NRC.

We hope that the above _information is responsive to your needs. The

$29,592 costs billed to your Company have been verified as being correct. Thank you for your prompt payment of this bill.

' Sincerely, Signed by:

C. James Helloney, A. ~

C. James Holloway, Jr., Chief License fee Management Branch Division of Accounting and Finance Office of the Controller DISTRIBUTION w/5/9/89 Ltr Regulatory Docket: File 50-228 9/ofigihalr f2, om .5/8/892Ltr.~

PDR KPulsipher, NRR TMichaels, PDSNP CJHolloway, LFMB RMDiggs, LFMB LTremper, LFMB LFMB A/M for Aerotest

'LFMB R/F (2) - w/o Ltr.

OC/DAF R/F - w/o Ltr.

DW/JP/ Doc No. 50-228

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DATE :6/2 89  : 6/Sh /89 :6/nb/89  :  :  :  :

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