ML22305A627

From kanterella
Jump to navigation Jump to search
Croft Associates Limited - NRC Inspection Report No. 710939/2022201 and Notice of Violation
ML22305A627
Person / Time
Site: 07109337, 07109338, 07100939, 07109398
Issue date: 11/09/2022
From: Aida Rivera-Varona
NRC/NMSS/DFM/IOB
To: Ralls S
Croft Associates Limited
References
IR 2022201
Download: ML22305A627 (1)


See also: IR 07100939/2022201

Text

UNITED STATES

NUCLEAR REGULATORY COMMISSION

WASHINGTON, D.C. 20555-0001

November 9, 2022

Stephen Ralls

Quality Manager

Croft Associates Limited

Building F4, Culham Science Center

Culham, Abingdon

Oxfordshire, OX14 3DB, England, UK

SUBJECT: CROFT ASSOCIATES LIMITED - NRC INSPECTION REPORT

NO. 71-0939/2022-201 AND NOTICE OF VIOLATION

Dear Stephen Ralls:

This letter refers to the inspection conducted by the U.S. Nuclear Regulatory Commission

(NRC) on July 18 to 21, 2022, at the Croft Associates Limited (Croft) facility in Oxfordshire,

England in the United Kingdom. The inspection team continued the inspection activities with an

in-office review and held an exit meeting on September 26, 2022, with you and other members

of your staff.

The purpose of the inspection was to verify and assess the adequacy of Crofts activities

associated with the transportation of radioactive material and determine if they were performed

in accordance with the requirements of Title 10 of the Code of Federal Regulations (10 CFR)

Part 71, Packaging and Transportation of Radioactive Material, and Crofts NRC approved

Certificate of Compliances (CoC) and Quality Assurance Program (QAP). The inspection scope

included management, design, fabrication interaction, and maintenance controls. The enclosed

report presents the results of this inspection.

The inspection examined activities conducted under your NRC approved QAP as they relate to

public health and safety, and to confirm compliance with the Commissions rules and regulations

and with the conditions of the applicable CoCs. Within these areas, the inspection consisted of

selected examination of procedures and representative records, observations of activities, and

interviews with personnel.

Based on the results of this inspection, the NRC has determined that two Severity Level IV

violations of NRC requirements occurred. The violations were evaluated in accordance with the

NRC Enforcement Policy. The current Enforcement Policy is included on the NRCs Website at

(http://www.nrc.gov/about-nrc/regulatory/enforcement/enforce-pol.html). One of the violations is

non-cited while the second violation is cited in the enclosed Notice of Violation (Notice) and the

circumstances surrounding both violations are described in detail in the subject inspection

report. The one violation is being cited in the Notice because the violation was repetitive as a

result of inadequate corrective action and was identified by the NRC.

S. Ralls

-2-

You are required to respond to this letter and should follow the instructions specified in the

enclosed Notice when preparing your response. If you have additional information that you

believe the NRC should consider, you may provide it in your response to the Notice. The NRC

review of your response to the Notice will also determine whether further enforcement action is

necessary to ensure compliance with regulatory requirements.

In accordance with 10 CFR 2.390 of the NRCs Rules of Practice, a copy of this letter, its

enclosures, and your response, will be made available electronically for public inspection in the

NRC Public Document Room or from the NRC's Agencywide Documents Access and

Management System (ADAMS), accessible from the NRC Web site at

http://www.nrc.gov/reading-rm/adams.html. To the extent possible, your response should not

include any personal privacy or proprietary information so that it can be made available to the

public without redaction.

Sincerely,

Aida E. Rivera-

Varona

Aida E Rivera-Varona,Chief

Digitally signed by Aida E.

Rivera-Varona

Date: 2022.11.09 10:09:47 -05'00'

Inspection and Oversight Branch

Division of Fuel Management

Office of Nuclear Material Safety

and Safeguards

Docket No. 71-0939

Enclosure:

1. Inspection Report No. 71-0939/2022-201

2. Notice of Violation

ML22305A627

OFC:

NMSS/DFM

NMSS/DFM

NMSS/DFM

NAME:

JWoodfield

SFigueroa

ARivera-Varona

DATE:

10/31/2022

11/1/2022

11/9/2022

U.S. NUCLEAR REGULATORY COMMISSION

Office of Nuclear Material Safety and Safeguards

Division of Fuel Management

Inspection Report

Docket No.:

71-0939

Report No.:

71-0939/2022-201

Certificate Holder:

Croft Associates Limited

Building F4, Culham Science Center

Culham, Abingdon

Oxfordshire, OX14 3DB, England, UK

Inspection Dates:

July 18 - September 26, 2022

Inspectors:

Jon Woodfield, Transportation and Storage Safety Inspector, Team

Leader

Jeremy Tapp, Transportation and Storage Safety Inspector

Matthew Learn, Transportation and Storage Safety Inspector

Approved by:

Aida E. Rivera-Varona, Chief

Inspection and Oversight Branch

Division of Fuel Management

Office of Nuclear Material Safety

and Safeguards

Enclosure 1

2

EXECUTIVE SUMMARY

Croft Associates Limited

NRC Inspection Report 71-0939/2022-201

This routine inspection from July 18 to September 26, 2022, evaluated the on-going activities at

Croft Associates Limiteds (Croft) corporate facility in Oxfordshire, England, UK related to the

design of transportation packages for radioactive material. The purpose of the inspection was to

verify and assess the adequacy of Crofts activities associated with the transportation of

radioactive material to determine if they were performed in accordance with the requirements of

Title 10 of the Code of Federal Regulations (10 CFR) Part 71, Packaging and Transportation of

Radioactive Material, and Crofts NRC approved Certificate of Compliances (CoC) and Quality

Assurance Program (QAP). The inspection scope included management, design, fabrication

interface, and maintenance controls. The results of the inspection are as follows:

Management Controls

The team determined that the QA controls at Croft were generally adequate. Regarding the

overall QA policy, the team concluded that Croft conducts its activities associated with QA

organization independence and QA responsibilities in accordance with their NRC approved

QAP. (Section 1.1)

The team concluded that Croft has an adequate nonconformance control program in place to

ensure compliance with the applicable regulations and quality assurance program requirements.

(Section 1.2)

The team identified Crofts corrective action program (CAP) as an area for improvement as

evidenced by the issue identified and described in this report. The team identified one Severity

Level IV violation of 10 CFR 71.133, Corrective action for Crofts failure to take adequate

corrective actions for three issues identified during two previous NRC inspections. Also, a fourth

issue was identified during the current inspection supporting the violation in that Croft failed to

document internal audit nonconformances on corrective action reports per Croft procedures to

officially correct the nonconformances. This was an additional example of Crofts failure to take

adequate corrective action. (Section 1.2)

The team concluded that Croft was effectively implementing its document and records control

program and had adequate procedures in place to ensure compliance with the applicable

regulations and QAP requirements. (Section 1.3)

The team found that for the audits reviewed, Croft conducted the audits with qualified personnel

independent of the areas being audited and adequately evaluated the applicable functional

areas of the QAP. (Section 1.4)

Design Controls

The team identified Crofts design control program as an area for improvement as evidenced by

the issue identified and described in this report. The team identified one Severity Level IV non-

cited violation of 10 CFR 71.111, Instructions, procedures, and drawings for Croft having three

active procedures that did not correctly prescribe activities affecting quality. Specifically, CAP-

02-02, Project Quality Plan; CAP-02-04, Project Specifications; and CAP-02-05, Project Plan;

are no longer current with what Croft is actually doing to fill out Croft form QF376, Project

Quality Plan. (Section 2.)

3

Fabrication Interface

The team determined that the procurement controls were adequate, and Croft was generally

effective in implementing their procurement program to support their transportation packaging

fabricator. (Section 3.1)

Croft's implementation of fabrication controls for fabrication and assembly was assessed to be

adequate based on a sample review of fabrication final documentation packages for Crofts

transportation packages. (Section 3.2)

The team assessed that Croft had adequate controls for testing and inspection of its fabricated

transportation packages as they were being inspected per approved QA procedures and

fabrication specifications by qualified personnel. The team based its assessment on a sample

review of fabrication final documentation packages. (Section 3.3)

Maintenance Controls

The team reviewed maintenance procedures and maintenance records associated with

packaging maintenance controls for activities affecting quality and interviewed Croft personnel

involved with maintenance. The team determined that Crofts implementation in this area was

adequate. (Section 4.1)

The team assessed that overall, the measuring and test equipment (M&TE) quality procedures

being implemented at Croft provided adequate guidance for M&TE calibration and use, and

Croft adequately implemented M&TE calibration, tracking, and use requirements. (Section 4.2)

4

REPORT DETAILS

1.

Management Controls

1.1

Quality Assurance Policy

1.1.1 Scope

The NRC inspection team reviewed Croft's Quality Management System (QMS) and

associated implementing procedures to verify how Croft conducts activities in

accordance with the NRC issued CoCs for the two Safkeg radioactive material

packages, and NRC-approved QAP. The team reviewed Croft's Quality Assurance

Requirements (QAR) 144, "Quality Assurance Program Description Manual (QAPDM)

for 10 CFR Part 71, Subpart H," Issue E, implementing procedures, work instructions

(WI), and quality assurance guidelines (QAG) developed to comply with specific NRC

requirements and guidance. The team reviewed Croft Associates Procedure (CAP) 05-

14, "Graded Approach to Quality," Issue F, to verify that Croft used a graded approach

for identifying Important-to-Safety (ITS) components and applied this graded quality level

to applicable documents and processes. The team also reviewed a sample of personnel

qualifications and indoctrination training records in accordance with implementing

procedure CAP 13-01, "Training and Competence Records," Issue I.

1.1.2 Observations and Findings

The team assessed that Croft's overall program for quality had an adequate QMS and

quality implementing procedures (i.e., CAPs, WIs and QAGs) in place to ensure their

quality activities were conducted in accordance with their CoCs, NRC-approved QAP,

and Part 71 requirements. The team also verified that Croft clearly defined and

documented the quality program authorities and responsibilities and that the quality

assurance organization functioned as an independent group as described in Croft's

QAPDM.

1.1.3 Conclusions

The team determined that the QA controls at Croft were generally adequate. The team

concluded that Croft conducts its activities associated with QA organization

independence, QA responsibilities, and the graded approach in accordance with QAR-

144.

1.2

Nonconformance and Corrective Action Controls

1.2.1 Scope

The team reviewed a sample of Croft's nonconformance reports (NCRs) and interviewed

selected personnel to verify that Croft effectively implemented a nonconformance control

program. The review included an evaluation of how Croft's nonconformance control and

corrective action programs addressed identified quality deficiencies and materials, parts,

and components that do not conform to requirements. The team also reviewed

provisions for reporting defects that could cause a substantial safety hazard.

The team reviewed the following Croft quality procedures and guidelines:

5

  • CAP 05-06, Product Nonconformance Control, Issue Q
  • CAP 12-03, QMS Corrective Action, Issue O
  • QAG 006, Reporting to US Nuclear Regulatory Commission, Issue D

The team reviewed nonconformances and corrective actions from the previous five

years. The team also reviewed several corrective action notes (CAN) initiated from

NCRs. The team discussed the nonconformances and corrective actions with the Croft

staff to understand the process. The team focused the review on use-as-is and repair

type dispositions to evaluate how Croft technically justified the NCRs reviewed. In

particular, the team reviewed each technical justification provided for the use-as-is and

repair NCRs. In addition, the team requested a list of Part 21 evaluations and

notifications associated with the Croft transportation packagings and interviewed Croft

personnel to verify their familiarity and knowledge of QAG 006 and CAP 05-17. The

team also reviewed postings within the Croft office to determine if Croft complied with

the 10 CFR 21.6, "Posting requirements."

1.2.2 Observations and Findings

Overall, the team assessed that Croft completed NCRs in a technically sound manner.

The team also verified that Croft completed corrective actions for identified deficiencies

and nonconformances in a timely manner for those items identified as needing a CAN or

Corrective Action Report (CAR). The team noted that Croft could initiate a CAN or CAR

for an NCR that needed corrective actions. The team noted that Croft used both to

identify corrective actions needed to resolve issues but mostly used CANs to defer long-

term corrective actions. The long-term corrective actions were for potential CoC and

Safety Analysis Report (SAR) changes. The team noted that Croft would assess the

CAN to determine if the Quality Manager needed to assign a condition adverse to quality

(CAQ) number.

The team assessed and evaluated the implementing procedures for CAQ and corrective

actions, CAP 05-17, and CAP 12-03, respectively.

The team reviewed corrective actions generated as a result of previous inspections at

Croft in 2017 (ML17248A478) and Oxford Engineering Limited, a category A supplier to

Croft, in 2019 (ML19060A092).

The team identified that during the 2017 inspection of Croft, the previous inspection

team identified that CAP 12-01, Issue S, failed to require a periodicity for internal audits

as required by 10 CFR 71.137, Audits, to ensure all applicable quality assurance

criteria are audited on a periodic basis. The team determined this to be a violation of 10

CFR 71.111, Instructions, Procedures, and Drawings. Croft entered this issue into their

corrective action program as CAR 136, dated May 25, 2017; however, the team

determined the actions of the CAR did not directly align with the violation and the

violation was not corrected. Specifically, the team determined that procedure CAP 12-

01, Issue V did not specify a required periodicity for internal audits and that only 14 of 18

quality assurance criteria be audited. Croft subsequently documented this issue again in

CARs 175 and 176 during the 2022 inspection.

6

The team identified that during the 2017 inspection of Croft, the previous inspection

team had identified that CAP 05-17, Issue E and CAP 12-03, Issue M, did not provide

guidance to determine the cause of Significant Conditions Adverse to Quality (SCAQ),

and the corrective action necessary to preclude repetition. The procedures lacked

specific guidance that described a systematic methodology that Croft personnel could

use to 1) identify the causes of SCAQs and how to address the extent of condition and

extent of cause; 2) determine corrective actions taken to address the issue; and 3)

preclude repetition by ensuring that there is a corrective action for each root and

contributing cause. The team determined this to be a violation of 10 CFR 71.133,

Corrective Action. Specifically, the team determined that while the NCR database and

form had been revised to require a causal evaluation, CAP 12-03, Issue M, did not

require a causal evaluation to be performed for SCAQs not associated with a non-

conformance report. Croft entered this issue into their corrective action program as CAR

137; however, the team determined the actions of the CAR did not directly align with the

violation and the violation was not corrected. Croft subsequently documented this issue

again in CAR 174 during the 2022 inspection.

The team identified that during the 2019 inspection of Oxford Engineering Limited (OEL),

the previous inspection team identified that CAP 06-08, Step 2.2.1 stated, in part, that a

Quality Category A supplier shall have a current assessment and approval to an

appropriate quality system standard. Contrary to this, Croft assessed OEL to qualify

them to encompass the additional requirements of 10 CFR Part 71, but OEL's internal

auditor did not meet those requirements nor did OEL have a quality procedure or

process in place for qualifying internal auditors. The team determined that this issue was

a violation of 10 CFR 71.111, "Instructions, procedures, and drawings. Croft entered

this issue into their corrective action program as CAR 147; however, the team

determined the actions of the CAR did not directly align with the violation and the

violation was not corrected. Specifically, the team determined that no action was taken

to ensure that OEL's internal auditors met the requirements of 10 CFR Part 71 and OEL

did not have a quality procedure or process in place for qualifying internal auditors to

ensure compliance with 10 CFR Part 71, Croft subsequently documented this issue

again in CAR 173 during the 2022 inspection.

Additionally, the team sampled a number of internal audits performed by Croft since the

previous inspection (See Section 1.4 of this Inspection Report), and of the audits

sampled, the team noticed that no CARs had been generated as a result of the audits,

even when findings or observations had been identified. Specifically, as an example,

during quality audit 448, Croft identified that no calibration certifications for equipment

items CC0216 and CC0215 existed which was contrary to the requirements of CAP 07-

01, Calibration. CAP 12-01 Section 2.3 identifies that, when carrying out an internal

audit, nonconformances must be recorded in the CAR database. However, the

inspection staff identified that no CAR had been generated for the audit finding. Croft

documented this issue in CAR 180.

The team assessed that these four examples were a violation of NRC requirements.

The team determined a violation of 10 CFR 71.133, Corrective action occurred in that

Croft took inadequate corrective actions during the 2017 and 2019 NRC inspections

after writing CARs to address NRC findings. In addition, Croft failed to document

nonconformances from internal audits on CARs per its procedure so corrective action

could be taken to address the nonconformances.

7

10 CFR 71.133, "Corrective action," states, in part, that the licensee, certificate holder,

and applicant for a CoC shall establish measures to assure that conditions adverse to

quality, such as deficiencies, deviations, defective material and equipment, and

nonconformances, are promptly identified and corrected. In the case of a significant

condition adverse to quality, the measures must assure that the cause of the condition is

determined, and corrective action taken to preclude repetition.

Contrary to this, Croft took inadequate corrective action from the 2017 and 2019

inspections as documented in CARs 136, 137, 147 to preclude repetition of the NRC

findings identified. In addition, Croft has not documented internal audit nonconformances

on CARs so that adequate corrective action could be taken to preclude repetition.

The team dispositioned the violation using the traditional enforcement process in

Section 2.3 of the NRC Enforcement Policy. The team determined the violation was

more-than-minor safety significance in accordance with Inspection Manual Chapter

(IMC) 0617, Vendor and Quality Assurance Implementation Inspection Reports,

Appendix E, Minor Examples of Vendor and QA Implementation Findings. The team

utilized example 16a in its decision to make the violation more than minor since the

adverse conditions were not corrected in the first three examples and recurred and not

documented in the fourth example.

Therefore, the team characterized the violation as a Severity Level IV violation in

accordance with the NRCs Enforcement Policy, Section 6.8. The violation is being cited

since Croft took inadequate corrective action when the first three examples were put into

the Croft corrective action program and must now be readdressed. This violation is being

cited in the enclosed Notice of Violation (Notice) (71-0939/2022-201-01).

1.2.3 Conclusions

The team identified Crofts CAP as an area for improvement as evidenced by the four

examples of corrective action issues identified and described above. The team identified

one violation of NRC requirements concerning the failure by Croft to take adequate

corrective actions from findings identified during the two previous NRC inspections and

the current NRC inspection.

1.3

Documentation Controls

1.3.1 Scope

The team reviewed Crofts documentation and quality records control program and

associated quality procedures to assess the effectiveness of controls established for the

development, review, approval, issuance, use, and revision of quality documents. The

team also reviewed the tracking, verification, and storage of quality records. The team

reviewed the following QAPDM sections and quality procedure documents associated

with document control and records to verify they are being properly implemented:

  • QAR 144, Section 71.113, Document control, Issue E
  • QAR 144, Section 71.135, Quality assurance records, Issue E

8

  • CAP 01-11, Control of Records, Issue D
  • CAP 01-13, Staff Roles, Document Compilation, Checking and Approval Authorities,

Issue H

  • WI 01-01, Document Numbering System, Issue L
  • WI 01-02, Drafting Documents, Issue K
  • WI 01-03, Change Control of Documents, Issue J
  • WI 01-04, Forms, Issue H
  • WI 01-05, Document Review, Issue K
  • WI 01-06, Issuing Documents, Issue I
  • WI 01-09, Reference Document Control, Issue J
  • WI 01-10, EMS, CAPs and WIs, Issue K
  • WI 04-01, Issue of Drawing/Product Numbers Related, Issue G
  • WI 04-02, Preparation of Drawings/Related Documents, Issue M
  • WI 04-03, Master Drawing Control, Issue K
  • WI 04-04, Modification of Drawings, Issue L
  • WI 04-06, Design Job Control, Issue K
  • WI 04-07, Illustrations and Sketches, Issue E
  • WI 14-06, Creating Project Numbers, Issue J

The team also interviewed Croft personnel regarding documentation and record controls.

1.3.2 Observations and Findings

The team assessed that Croft had adequate and effective controls established by their

implementing procedures for the approval, issuance, use, storage, and revision of quality

documents and records. No issues of significance were identified.

1.3.3 Conclusions

The team concluded that Croft is effectively implementing its document and records

control program and has adequate procedures in place to ensure compliance with the

applicable regulations and QA program requirements.

1.4

Audit Program

1.4.1 Scope

The team reviewed Crofts audit program to determine if Croft scheduled, planned, and

performed internal and external audits in accordance with their approved implementing

CAPs and as described in the Croft QAPDM. The team selected a sample of internal

and external audits since the last Croft corporate inspection in 2017. The team reviewed

the audit results to determine if Croft identified deficiencies and whether Croft addressed

these deficiencies within their corrective action program, as required. The team reviewed

the following QAPDM section and CAPs:

  • QAR 144, Section 71.137, Audits, Issue E
  • CAP 06-08, Approved Supplier - NRC, Issue G
  • CAP 12-01, Audit Procedure, Issue V
  • CAP 13-01, Training and Competence Records, Issue I

9

  • CAP 13-09, NQA-1 Lead Auditor Qualification, Issue A
  • WI 12-08, Supplier Audit, Issue E

Additionally, the team selected a random sample of audit personnel records, including

lead auditor, to determine if they met the applicable requirements, including those stated

in CAP 13-01 and 13-09.

1.4.2 Observations and Findings

Overall, the team assessed that for the audits sampled Croft generally conducted them

with qualified and certified personnel and identified observations and findings in most of

the audit reports reviewed. The team noted that external audits were performed on the

required 3-year periodicity for ITS Category A suppliers. In addition, the team noted that

some findings identified within the internal audit reports reviewed that were conditions

adverse to quality were not documented as a CAR, as required. The team also noted

that CAP 12-01 did not define an internal audit periodicity. These issues are discussed in

more detail in Section 1.2 above.

1.4.3 Conclusions

The team concluded that Croft had an adequate audit program in place to schedule,

develop an audit plan, evaluate applicable elements of their QAP, and document the

results. The team determined that Croft appropriately identified issues but, in some

cases, did not document conditions adverse to quality in a CAR, as required, when

auditors identified findings or observations during audits. (Reference Section 1.2)

2.

Design Controls

2.1

Design Development

2.1.1 Scope

The team reviewed the design control section of the QAPDM and applicable

implementing quality procedures to verify that Croft was properly implementing their

design control program. The team reviewed the following QAPDM section and quality

procedure documents associated with design control to verify they are being properly

implemented:

  • QAR 144, Section 71.107, Package design control, Issue E
  • CAP 02-02, Project Quality Plan, Issue L
  • CAP 02-03, Project Control, Issue M
  • CAP 02-04, Project Specifications, Issue E
  • CAP 02-05, Project Plan, Issue D
  • CAP 03-02, Design Review, Issue K
  • CAP 03-03, Design Control, Issue J
  • CAP 10-01, Competent Authority Licensing, Issue J
  • CAP 10-02, Review of Certificates and Validations, Issue J
  • CAP 10-10, Update of Foreign Competent Authority Approvals, Issue D
  • WI 03-04, Deign Calculations, Issue B

10

2.1.2 Observations and Findings

The team assessed that Croft overall had adequate and effective controls established by

their implementing procedures for project planning, development of project quality

requirements, implementing project controls, developing design specifications, design

development and design controls, performing and reviewing design calculations,

performing overall design reviews, and performing competent authority design licensing.

The team reviewed quality form QF 376, Project Quality Plan, for Crofts latest Part 71

model 3977B (Safkeg-HS) packaging which had been recently submitted to the NRC in

an application for NRC review and certification. The form QF 376 had been revised, but

procedures CAP 02-02, Project Quality Plan; CAP 02-04, Project Specifications; and

CAP 02-05, Project Plan; in which procedural guidance was to be provided on how to fill

out QF 376 were no longer current with what Croft was actually doing to fill out form QF

376.

The team assessed that these three examples of inadequate procedures were a

violation of NRC requirements. The team determined a violation of 10 CFR 71.111,

Instructions, procedures, and drawings occurred in that during the NRC inspection

Croft had three active procedures that did not correctly prescribe activities affecting

quality.

10 CFR 71.111, Instructions, procedures, and drawings, states, in part, that the

certificate holder for a CoC shall prescribe activities affecting quality by documented

instructions, procedures, or drawings of a type appropriate to the circumstances and

shall require that these instructions, procedures, and drawings be followed.

Contrary to the above, as of July 21, 2022, CAP 02-02, Project Quality Plan; CAP 02-04,

Project Specifications; and CAP 02-05, Project Plan; are no longer current with what

Croft is actually doing to fill out Croft form QF376. So, during the inspection Croft had

three active procedures that did not correctly prescribe activities affecting quality.

The team dispositioned the violation using the traditional enforcement process in Section

2.3 of the NRC Enforcement Policy. The team determined the violation was more-than-

minor safety significance in accordance with Inspection Manual Chapter 0617, Vendor

and Quality Assurance Implementation Inspection Reports, Appendix E, Minor

Examples of Vendor and QA Implementation Findings. The team utilized examples 6a

and 6b in its decision to make the violation more than minor since three procedures were

not current instead of just one.

Therefore, the team characterized the violation as a Severity Level IV violation in

accordance with the NRCs Enforcement Policy, Section 6.8. In accordance with the

policy, the violation is non-cited since Croft put the issue in its corrective action program

as CAR 177 (71-0939/2022-201-02).

2.1.3 Conclusions

The team concluded that Croft had in place an adequate design control program to meet

the requirements of the transportation regulations. However, the team identified Crofts

11

design control program as an area for improvement as evidenced by the three examples

of design control procedures not being current with Crofts actual practice for filling out

form QF 376 as identified and described above. The team identified the three examples

of inadequate procedures as a violation of 10 CFR 71.111, Instructions, procedures,

and drawings requirements.

3.

Fabrication Interface Controls

3.1

Material Procurement

3.1.1 Scope

The team reviewed Crofts procurement of ITS materials, which included the review of

procurement documents, drawings and procedures, and receipt inspection records. The

team reviewed the following sections of the QAPDM, and CAPs associated with

procurement:

  • QAR 144, Section 71.115, Control of purchased material, equipment and services,

Issue E

  • CAP 06-01, Purchasing, Issue Q

The procedures were reviewed to verify if they were being properly implemented. The

team also reviewed Crofts current Approved Suppliers List (ASL), to determine if

materials and services were being procured from qualified suppliers and the suppliers

were being acceptably qualified.

The team selected a sample of ITS Category A materials for review. Croft does not

procure materials from any suppliers designated as ITS Category A so for those

materials required to be ITS Category A, commercial grade dedication is performed.

Therefore, the team selected a sample of stainless steel round bar to review the

adequacy of the commercial grade dedication package and conformance to the

requirements in CAP 05-18. The team focused on the adequacy of the critical

characteristics identified and the traceability of the stainless steel through the

manufacturing, testing, and inspection process.

3.1.2 Observations and Findings

No issues of significance were identified.

3.1.3 Conclusions

The team determined that the procurement controls were adequate, and Croft was

generally effective in implementing their procurement program.

3.2

Fabrication and Assembly

3.2.1 Scope

12

The team reviewed records associated with fabrication and fit-up of SAFKEG-HS

packagings, specifically keg assemblies and a containment vessel for domestic use in

the United States, to verify the fabrication and assembly processes sampled were

properly controlled and implemented. Since Croft contracted the fabrication of the

SAFKEG-HS to the OEL fabrication facility, Crofts responsibility for fabrication and

assembly controls resided in part, in the review and acceptance of the final document

package for the completed SAFKEG-HS packagings. Therefore, the team reviewed

records that were part of the final document package accepted by Croft from OEL. The

records reviewed included routing sheets (shop travelers) and QA Reports to verify that

fabrication and assembly activities were accomplished and appropriately documented

according to the controlled drawings, routing sheets, and manufacturing specification,

MSP 157, Manufacturing Specification HS Safkeg Packaging Assembly Design No

3977A, Issue H.

3.2.2 Observations and Findings

The team noted that for the routing sheets reviewed, Croft signed off on each of the

customer hold points and none had been waived by Croft oversight personnel. No issues

of significance were identified.

3.2.3 Conclusions

Crofts review and acceptance of the final document package records related to

fabrication and assembly, as a part of their implementation of fabrication controls, was

assessed, overall, to be adequate and effective.

3.3

Test and Inspection

3.3.1 Scope

The team reviewed records associated with the test and inspection of the SAFKEG-HS

packaging, specifically a containment vessel for domestic use in the United States, to

verify that the test and inspection processes sampled were properly controlled and

implemented. Like section 3.2 above, the team reviewed records that were part of the

final document package accepted by Croft from OEL. The records reviewed included QA

reports that included weight and dimensional measurements, and a helium leak test

report, to verify that test and inspection activities were accomplished and appropriately

documented according to the controlled drawings, routing sheets, and manufacturing

specification, MSP 157, Issue H.

3.3.2 Observations and Findings

No issues of significance were identified.

3.3.3 Conclusions

Crofts review and acceptance of the final document package records related to

inspection and test, as a part of their implementation of fabrication controls was

assessed, overall, to be adequate.

13

4.

Maintenance Controls

4.1

Maintenance Activities

4.1.1 Scope

Since the last NRC inspection in 2017, Croft has started performing maintenance

activities at their facility in Abingdon, Oxfordshire, England. Both the SAFKEG-LS and

HS models require periodic or annual maintenance to be performed. The team reviewed

Crofts maintenance program to determine if the quality procedures were adequate to

ensure the requirements of the applicable package safety analysis report would be met.

The team reviewed the following quality documents associated with maintenance:

  • MIS 049, Periodic Maintenance and Inspection Schedule Packaging Design No.

3977A, HS Safkeg, Issue B

  • WI 08-01, Control of Packages at Maintenance, Issue I

The team reviewed a sample of maintenance records for maintenance performed at

Crofts facility for a package user in the United States. In addition, a damage

assessment and repair plan was reviewed regarding four containment vessels and two

tungsten inserts that were returned to Croft from a United States package user to

determine if the proposed repair activities met the requirements of the applicable

licensing drawings and package safety analysis report.

4.1.2 Observations and Findings

No findings of significance were identified

4.1.3 Conclusions

The team determined that, overall, Croft had an adequate maintenance program in place

to ensure proper implementation of the required maintenance activities.

4.2

Tools and Equipment

4.2.1 Scope

The team reviewed selected measuring and test equipment (M&TE) and reviewed

records and procedures to assure that equipment used in activities affecting quality were

properly controlled and calibrated. The team reviewed the following Section of the

QAPDM and CAP:

  • QAR 144, Section 71.125, Control of Measuring and Test Equipment, Issue E
  • CAP 07-01, Calibration, Issue L

4.2.2 Observations and Findings

No issues of significance were identified.

14

4.2.3 Conclusions

The team concluded that the M&TE quality procedure being implemented at Croft

provided adequate guidance for M&TE calibration and use, and Croft adequately

implemented M&TE calibration, tracking, and use requirements.

5.

Entrance and Exit Meeting

On July 18, 2022, the NRC inspection team discussed the scope of the inspection during

an entrance meeting with Croft Quality Manager Steve Ralls, Managing & Technical

Director Mark Johnson, and other members of the Croft staff. On July 21, 2022, the NRC

inspection team presented the inspection results and observations during an onsite

preliminary exit meeting. On September 26, 2022, the NRC inspection team leader

conducted a final telephone conference exit with Steve Ralls, Mark Johnson, and other

members of the Croft staff. Section 1 of the attachment to this report shows the

attendance for the entrance and exit meetings.

ATTACHMENT

1.

ENTRANCE/EXIT MEETING ATTENDEES AND INDIVIDUALS INTERVIEWED

Name

Title

Affiliation

Entrance

Exit

Jon Woodfield

Inspection Team Leader

NRC/DFM

X

X

Jeremy Tapp

Inspector

NRC/DFM

X

Matthew Learn

Inspector

NRC/DFM

X

Mark Johnson

Managing & Technical

Director

Croft

X

X

Steve Ralls

Quality Manager

Croft

X

X

Alex Ferguson

Licensing Director

Croft

X

X

Ian Dingwall

Head of Manufacture

Croft

X

X

Trevor Tait

Head of Projects &

Engineering

Croft

Greg Tilling

Design

Croft

2.

INSPECTION PROCEDURES AND OTHER NRC DOCUMENTS USED

IP 86001

Design, Fabrication, Testing, and Maintenance of Transportation

Packagings

NUREG/CR-6407

Classification of Transportation Packaging and Dry Spent Fuel Storage

System Components According to Importance to Safety

NUREG/CR-6314

Quality Assurance Inspections for Shipping and Storage Containers

3.

LIST OF ACRONYMS USED

ADAMS

Agencywide Documents Access and Management System

ASL

Approved Suppliers List

CAN

Corrective Action Notes

CAP

Corrective Action Program or Croft Associates Procedure

CAQ

Condition Adverse to Quality

CAR

Corrective Action Report

CFR

Code of Federal Regulations

CoC

Certificate of Compliance

DFM

Division of Fuel Management

IMC

Inspection Manual Chapter

IP

Inspection Procedure

ITS

Important-to-Safety

M&TE

Measuring and Test Equipment

NCR

Nonconformance Report

NRC

Nuclear Regulatory Commission

OEL

Qxford Engineering Limited

QA

Quality Assurance

QAG

Quality Assurance Guidelines

QAP

Quality Assurance Program

QAPDM

Quality Assurance Program Description Manual

QAR

Quality Assurance Requirements

QMS

Quality Management System

2

SAR

Safety Analysis Report

SCAQ

Significant Condition Adverse to Quality

SER

Safety Evaluation Report

WI

Work Instruction

4.

DOCUMENTS REVIEWED

Certificate holder documents reviewed during the inspection were specifically identified in the

report details above.

5.

LIST OF ITEMS OPENED, CLOSED, AND DISCUSSED

Item Number

Status

Type

Description

71-0939/2022-201-01

Opened

NOV

Inadequate corrective action to

address findings from 2017 and

2019 NRC inspections and write

CARs for internal audit

nonconformance findings.

71-0939/2022-201-02

Opened

& Closed

NCV

Croft had three active procedures

that were not current with how to fill

out form QF376.

THE FOLLOWING CARs WERE OPENED BY CROFT DURING THE INSPECTION DUE TO

DISCUSSIONS WITH THE INSPECTION TEAM

Item Number

Status

Description

CAR 170

Opened

Possible typographical error in field 36 of MIS049 issue B.

Reference to Section 8.2.3.4.3 of the SARP CTR2008/11

should read 8.2.3.6.3.

CAR 171

Opened

Field 7 of MIS 049 issue B omitted some references to the

drawings that are made in the SARP. The MIS is a record

of maintenance work carried out in accordance with the

SARP and must make the same statements as the

sections referenced.

CAR 172

Opened

Internal audit reports do not show a review of the previous

audit findings as required by CAP 12-01 paragraph 2.4.

Additionally, paragraph 2.2 should contain an instruction to

review the previous audit as part of preparation.

CAR 173

Opened

CAR 147 raised during a previous NRC audit had not been

adequately closed off in that the Oxford Engineering

Limited procedure, CP03, had not been revised to clarify

auditor training and qualification requirements or to clarify

the auditors independence.

3

CAR 174

Opened

CAR 137 raised during a previous NRC audit had not been

adequately closed off due to a misunderstanding of the

required corrective action. The NCR database and form

had been revised to require an assessment of whether a

CAQ had occurred. This requirement had not been applied

to the CAR system.

CAR 175

Opened

The first four clauses of 10CFR71 subpart H were omitted

from the internal audit schedule as they were considered

more to be policy requirements than processes.

CAR 176

Opened

CAR 136 raised during a previous NRC audit required the

internal audit program to specifically address the clauses

of 10CFR71 subpart H. The corrective action added

fourteen of the clauses to the audit schedule which was

considered inadequate by the NRC team - see CAR 175.

Additionally, the revised procedure did not state a specific

period for internal audits.

CAR 177

Opened

During inspection of the 3977B documentation it was noted

that some forms referenced in Croft procedures were not

being used. CAP 02-02 (Quality Plan), CAP 02-04 (Project

Specifications) and CAP 02-055 (Project Plan) and related

forms are no longer used due to the introduction of form

QF376 which incorporated all three activities.

CAR 178

Opened

WI 01-06 Controlled Documents requires revision to reflect

current practice which has undergone some minor

changes due to the move to electronic documentation.

e.g., negating the need to rubber stamp paper documents.

CAR 179

Opened

The 3977B HS package was manufactured ahead of the

design approval and issue of a certificate by the NRC. The

Project Quality Plan has a field in the project closure

section to address manufacture at risk but this needs to be

fully documented as to what was reviewed and confirming

that the as manufactured package complies with the

certificates as issued.

CAR 180

Opened

Internal audit findings as detailed on form QF327 do not

always result in a CAR being raised as required by CAP

12-01 and WI 13-05.

CAR 181

Opened

A document package submitted by Oxford Engineering for

the 3977A had been approved and signed off by Croft but

a number of pages were missing the sign-off by Oxford

Engineering.

CAR 182

Opened

10CFR21.6 Posting Requirements state that Section 206

of the Energy Reorganization Act 1974 and 10CFR71.9

Employee protection state that NRC form 3 shall be posted

4

in a conspicuous position for all staff to see. The

documents had not been posted.

CAR 183

Opened

The SARP CTR2008/11 calls out Hydrostatic testing in

section 8.2.3.1 but this is not called out in MIS049 field 7

which simply states: Pressure Test. The MIS is a record of

maintenance work carried out in accordance with the

SARP and must make the same statements as the

sections referenced.

NOTICE OF VIOLATION

Croft Associates Limited

Docket No. 07100939

Oxfordshire, England, UK

During an NRC inspection conducted July 18 to September 26, 2022, a violation of NRC

requirements was identified. In accordance with the NRC Enforcement Policy, the violation

is listed below:

Title 10 of the Code of Federal Regulations (10 CFR), Section 71.133, Corrective

action requires, in part, that the certificate holder shall establish measures to

assure that conditions adverse to quality, such as deficiencies, deviations, defective

material and equipment, and nonconformances, are promptly identified and

corrected. In the case of a significant condition adverse to quality, the measures

must assure that the cause of the condition is determined and corrective action

taken to preclude repetition.

Contrary to the above, Croft took inadequate corrective action from the NRC 2017

inspection of Croft and the NRC 2019 inspection of Croft fabricator Oxford

Engineering Limited.

Specifically, in 2017, Croft wrote Corrective Action Report (CAR) 136 to address that

Croft Associates Procedure (CAP) 12-01, Issue S, Audit Procedure, failed to require

a periodicity for internal audits as required by 10 CFR, Section 71.137, Audits to

ensure all applicable quality assurance criteria are audited on a periodic basis.

However, the actions taken by the CAR did not directly align with the issue and the

issue was not corrected.

In 2017, Croft wrote CAR 137 to address that CAP 05-17, Issue E, Conditions

Adverse to Quality, and CAP 12-03, Issue M, QMS Corrective Action, did not provide

guidance to determine the cause of Significant Conditions Adverse to Quality and the

corrective action necessary to preclude repetition. However, the actions taken by the

CAR did not directly align with the issue and the issue was not corrected.

In 2019, Croft wrote CAR 147 to address that CAP 06-08, Approved Supplier, Step

2.2.1 required that a Quality Category A supplier shall have a current assessment

and approval to an appropriate quality system standard. Croft assessed Oxford

Engineering Limited to qualify them to encompass the additional requirements of 10

CFR Part 71, but Oxford Engineerings internal auditor did not meet those

requirements, nor did Oxford Engineering have a quality procedure or process in

place for qualifying internal auditors. However, the actions taken by the CAR did not

directly align with the issue and the issue was not corrected.

In addition, during the 2022 inspection, several Croft internal audits were sampled,

and it was determined that no CARs had been written when findings had been

identified as a result of the audits. CAP 12-01, Audit Procedure, Section 2.3 states

that when carrying out an internal audit, nonconformances must be recorded on the

CAR database.

Enclosure 2

2

This is a Severity Level IV violation (Section 6.8).

Pursuant to the provisions of 10 CFR 2.201, Croft Associates Limited, is hereby required to

submit a written statement or explanation to the U.S. Nuclear Regulatory Commission,

ATTN: Document Control Desk, Washington, DC 20555-0001, with a copy to Aida Rivera-

Varona, Chief, Inspection and Oversight Branch, Division of Fuel Management, Office of

Nuclear Material Safety and Safeguards, within 30 days of the date of the letter transmitting

this Notice of Violation (Notice). This reply should be clearly marked as a Reply to a Notice

of Violation and should include for each violation: (1) the reason for the violation, or, if

contested, the basis for disputing the violation or severity level; (2) the corrective steps that

have been taken and the results achieved; (3) the corrective steps that will be taken; and (4)

the date when full compliance will be achieved. Your response may reference or include

previously docketed correspondence, if the correspondence adequately addresses the

required response. If an adequate reply is not received within the time specified in this

Notice, an order or a Demand for Information may be issued requiring information as to why

the license should not be modified, suspended, or revoked, or why such other action as may

be proper should not be taken. Where good cause is shown, consideration will be given to

extending the response time.

If you contest this enforcement action, you should also provide a copy of your response,

with the basis for your denial, to the Director, Office of Enforcement, United States Nuclear

Regulatory Commission, Washington, DC 20555-0001.

Because your response will be made available electronically for public inspection in the

NRC Public Document Room or in the NRCs Agencywide Documents Access and

Management System (ADAMS), accessible from the NRC Website at

http://www.nrc.gov/reading-rm/adams.html. To the extent possible, your response should not

include any personal privacy, proprietary, or safeguards information so that it can be made

available to the public without redaction. If personal privacy or proprietary information is

necessary to provide an acceptable response, then please provide a bracketed copy of your

response that deletes such information. If you request withholding of such material, you must

specifically identify the portions of your response that you seek to have withheld and provide

in detail the bases for your claim of withholding (e.g., explain why the disclosure of

information will create an unwarranted invasion of personal privacy or provide the information

required by 10 CFR 2.390(b) to support a request for withholding confidential commercial or

financial information). If safeguards information is necessary to provide an acceptable

response, please provide the level of protection described in 10 CFR 73.21.

In accordance with 10 CFR 19.11, you may be required to post this Notice within two

working days of receipt.

Dated this 9th day of November 2022.