NUREG-1303, Forwards Revs to Incident Investigation manual,NUREG-1303, Deemed Necessary in Order to Effectively Implement Actions Identified in App 4 Coordination Plan

Forwards Revs to Incident Investigation manual,NUREG-1303, Deemed Necessary in Order to Effectively Implement Actions Identified in App 4 Coordination Plan

ML20247D534
Person / Time
Issue date:	03/17/1989
From:	Jordan E NRC OFFICE FOR ANALYSIS & EVALUATION OF OPERATIONAL DATA (AEOD)
To:	Beard P INSTITUTE OF NUCLEAR POWER OPERATIONS
References
RTR-NUREG-1303 NUDOCS 8903310105
Download: ML20247D534 (19)

Text

-_

Mr. Patrick M.. Beard, Jr.

. MAR 171989 Vice President for Government Relations

. Institute 'of Nuclear Power Operations-Suite 1500 1100 Circle 75 Parkway Atlanta,-Georgia 30339 3064

SUBJECT:

INDUSTRY PARTICIPATION ON NRC INCIDENT INVESTIGATION TEAMS As identified'in the Memorandum of Agreement between the Institute of Nuclear Power Operations and the U.S. Nuclear Regulatory Commission, dated October 20, 1988, a new Appendix 4 was added concerning coordination of industry participation on Incident Investigation Teams.

The purpose of this letter is to provide you with the revisions to the Incident Investigation Manual, NUREG_1303 which are deemed necessary in order'to effectively implement the actions identified in-the Appendix 4 coordination plan.

Pertinent unchanged sections are also included for convenient reference.

If I'can provide additional information, please call me at (301) 492 4848.

Sincerely, Original $;gn,g g,

y L L: Jorda Edward L. Jordan, Director Office for Analysis and Evaluation of Operational Data

Enclosure:

Extracted Parts of NUREG-1303, Incident Investigation Manual cc w/ encl:

V. Stello, NRC J. M. Taylor, NRC d[ d 'h((j /

Distribution (w/ encl) p4C5 RLSpessard, AEOD r

h(ll" PDR SDRubin, AE0D

/

JTaylor, EDO DAllison, AE0D r-DHassel, 0GC RLloyd, AE0D pfN

[

T0 Martin, ED0 RFreeman, AE0D NJensen, 0GC AE00 R/F b [" /,)

I I

KSmith, 0GC D0A R/F HRagan, 0GC DEIIB R/F ELJordan, AE0D r

CJHeltemes, AE00 V

d, lUFC

DEIIB:DOA

DEII DOA

DOA:

OD

0GC

A X

A r

59.___..

/_ _.... :. _ _ _. _ _ _ _ _ _ _

I______:.......

RLSp ssarrL :NJensenb..:.

'NAME :DPAllis n

SD

CJ ptemes Jordan

. _ _ _ _ _9). :h.. _ _...... : _h_ p

......: d. g/ /89....... : g/7..____ :.f//(c/89

//7/89

/89

0 DATE 7,/89

0

/89

92 i

0FFICIAL RECORD COPY 8903310105 890317 PDR ORQ EPSI

rr a

m

p 4

-/

o,f

- UNITED STATES

",[-

- g

. NUCLEAR REGULATORY COMMISSION

.]

j:

WASHINGTON, D. C. 20555 7-t A

/

y...

' MAR 171989 q

- Mr. Patrick M. Beard,. Jr.

E Vice President for. Government Relations

~ Institute of. Nuclear Power Operations Suite:1500'.

' 1100 Circle 75 Parkway

. Atlanta, Georgia. 30339-3064

SUBJECT:

INDUSTRY PARTICIPATION ON NRC INCIDENT' INVESTIGATION TEAMS As ~ identified.in the Memorandum of Agreement between the Institute of Nuclear Power Operations and the U.S. Nuclear Regulatory Commission, dated October 20, 1988, a new Appendix.4 was added concerning' coordination of industry.

participation on Incident Investigation-Teams. The purpose.of this letter is to provide you with the revisions-to the Incident Investigation Manual, NUREG-1303 which are. deemed necessary in, order. to effectively implement the:

actions identified in'the Appendix 4 coordination plan. Pertinent unchanged ~

.. sections'are'also included for convenient reference.

If I can provide additional information, please call me at.(301)'492-4848.

Sincerely,

/

~

ftlA: --

rd. J rdan,' Director Office f r Analysis and Evaluation of Ope tional Data

Enclosure:

Extracted Parts of NUREG-1303, Incident Investigation Manual cc w/ enc 1:

V. Stello, NRC J. M. Taylor,.NRC

-hiL__---

___m.___._a.__-,

1-6 representative should ensure that a briefing package is available to the IIT when it arrives onsite. This package should provide sufficient background information for IIT members to quickly grasp unique aspects of the plant design and relevant data related to the event. The regional representative should coordinate with the IIT team leader on the briefing package information necessary to support the IIT. For power reactors, this type of information should be readily available from the resident inspector's office, where most of the data would normally be compiled as p(art of the resident inspector's onsite followup to significant events IE Manual Chapter 93702). Exhibit 5 lists information that could be provided in the briefing package.

8.

The Director, AE0D prepares for the ED0's signature a memorandum informing the Connission of the activation of an IIT.

Exhibit 6 shows such a sample memorandum.

The Director, AEOD will also contact the Director, Office of Governmental and Public Affairs (GPA) and will assist in the preparation of the NRC press release.

1.7 Participation by Industry Organizations When an IIT is activated, industry representatives will be informed and their participation will be requested. Their participation brings both an industry perspective to the investia ; ion and expert knowledge of plant hardware and practices in numerous areas.

In addition, industry participation would facilitate in the feedback of factual information regarding the event to the industry for the self-initiation of potential preventive and/or corrective l

actions. Such participation should also help expedite the event investigation and the identification of the generic applicability of significant issues.

Industry participation is consistent with and fully supportive of the Incident Investigation Program.

Af ter the ED0 determines that an IIT response is warranted, the Director, AE0D will contact the Vice President for Government Relations, Institute of Nuclear PowerOperations(INP0)(NSAC)andtheOwners'Groupfortheaffectedplant)who will i Safety Analysis Center regarding the IIT and coordinate their participation with the IIT in the investigation. The Director, AE0D may indicate the desired technical expertise that would be desirable for the industry representative to have in order to ensure a proper range of disciplines on the IIT. The Vice President for Government Relations, INP0 has the responsibility to recommend the industry representative in accordance with the same criteria that the NRC

{

representatives are selected; i.e., (1) specific technical expertise; (2) no previous significant involvement with the affected plant or utility's activities or with other significant issues associated directly related to the cause, course or consequences of the event; and (3) full-time participation for the duration of the IIT activities.

INP0 will request each industry nominee to <

sign a statement regarding proprietary information, conflicts of interest, and waiver of compensation.

In addition, each industry nominee will be requested to comply with the procedures established for the operation of IITs which include procedures for handling differences in professional opinion and the to the NRC as part of the nomination process (gned statement will be provided release of investigation information.

This si Exhibit 7).

1 l

)

1-7 The industry representatives and the NRC members qualifications will be reviewed by the EDO or upon his direction, the Director, AE0D to ensure that all team members are suitably qualified and meet the selection criteria. The ED0 approves the IIT members on a case-by-case basis (i.e., each is reviewed and approved individually). Nete-that-the-team-may-beseme-involved-w4th p re p r 4 e t a ry - 4 n f e rma t 4 e n - a n d-t h u s,- n e n - N R G - t e a m-memb e r s -mu s t - h a v e-s 4 g n e d a-statement-ef-senf4 dent 4a44ty.

In addition, pursuant to the waiver procedures specified in Exhibit 9, the waiver regarding the policy of avoiding organizational conflicts of interest provided in Exhibit 8 should be executed J

for the purposes of allowing the participation of industry personnel on NRC IITs.

After the ED0 approves the composition of the IIT, all members will be advised of the location and time for the first IIT organizational meeting. The Vice President for Government Relations, INP0 will be requested to provide assistance in coordinating with the affected licensee in obtaining site access for the industry representatives. The IIT leader will assign and organize the various investigative activities to the team members. All representatives l

should be relieved of other duties until the investigation is completed and the l

investigation report is issued.

The EDO may relieve from the IIT any personnel who do not remain with the investigation until the completion of the report, or other personnel for reasons he/she deems appropriate.

1.8 Augmented Inspection Team (AIT) Response Events of lesser safety significance whose facts, conditions, circumstances and probable causes would contribute to the regulatory and technical understanding of a generic safety concern or another important lesson will be assessed by an AIT.

the objectives of the AIT concept are to:

(1) augment regional personnel with additional personnel from headquarters or other regions for onsite fact-finding investigations of certain events; (2) communicate the facts surrounding the events investigated to regional and headquarters management; (3) identify and communicate any generic safety concerns related to the events investigated to regional and headquarters management; and (4) document the findings and conclusions of the onsite investigation. AIT responses are addressed in an inspection procedure which is included in the Incident Investigation Manual for information.

The major differences between an AIT and IIT are that an IIT Investigates the most safety-significant operational events relative to reduced safety margins.

In addition, the IIT leader and members do not have and have not had significant involvement with licensing and inspection activities at the affected facility. An IIT Investigation will normally assess the regulatory process prior to the event to determine whether the regulatory process contributed directly to the cause or course of the event. Table 1 further illustrates the differences between IIT and AIT investigatory responses.

l l

1-26 Exhibit 7 Agreement on Waiver of Compensation, Conflicts of Interest and Release of Investigation Information for Industry Participating in Incident Investigation Team (IITs)

I agree that any services which I render to or for the benefit of the government, pursuant to the agreement between the NRC and INP0 concerning IITs, shall be gratuitous, and I waive any claim for pay or compensation from the government of any kind.

I understand that I will not be an employee of the government as a result of any service which I may render under the auspices of the agreement between NRC and INP0.

I agree that I will abide by the guidelines and procedures established for the operation of IITs, including the procedures for handling differences of opinion and release of investigation information.

I understand that my input to the IIT will be subject to review by other team members and the team leader, and that differences of opinion will either be resolved or documented in an appendix to the IIT report.

I understand that the NRC IIT team leader is to decide on the release of investigation information to parties outside the team.

With respect to proprietary and potentially proprietary information that is disclosed to me in connection with my participation in any IIT, I agree:

1.

Not to make further disclosures.

2.

Not to make further copies.

3.

To return my copies to the NRC IIT team leader or otherwise dispose of them as directed by the team leader upon completion of the investigation.

4.

Not to make further disclosures of copies of investigation or other notes that contain potentially proprietary information.

5.

To report to the NRC IIT team leader any uses of information which do not comply with this agreement.

6.

To consult with the NRC IIT team leader before taking any action if I have any doubt or question as to whether it would be in accordance with this agreement.

With respect to conflicts of interest, I make the following representations:

I have ( ) do not have ( ) direct previous involvement with activities at the facility that I will be reviewing or with other significant issues believed to be directly related to the cause, course, or consequences of the event.

In addition:

_______-_-._-.m_--____.-.-_______.s_

v.

L.

~

N-

.t 41.

' 27 -

[ Exhibit 7'(Continued).

Y

?

1.-

-( )c.I have not previously been employed by the Licensee.

(!)' I have.been previously employed by the Licensee.

. (State the nature 'of.the employment.)

'2.-

(.) Neither I.nor members of my present household own or control Licensee stock in excess of $1000 in value.

,(')'-I or members of my present household own or control. Licensee.

stock'in excess.of $1000 in value.- (State the nature of the ownership).

').. Members.of my present household are not employed by. the-(

3.

Licensee.

( ), Members of my present household.are employed by the Licensee.

(State the nature of the employment.)-

4 4...

( -- ) My relatives are not' employed by the Licensee.in a management capacity.

' ( -)

My relatives are employed by the Licensee in a management

capacity.

(State the nature of the employment.)

In the above. statement, the_" Licensee" is construed to mean the licensee, the architect-engineer, and the nuclear steam supply system vendor.

.In the: event that the potential for a conflict of interest develops during the course of an incident investigation, I will immediately report all relevant

=information to the team leader.

Signature Date

1-28 Exhibit 8 WAIVER OF COMMISSION POLICY ON AVOIDANCE OF ORGANIZATIONAL CONFLICTS OF INTEREST It is the policy of the Nuclear Regulatory Commission, in accordance with i

-Section 170A of the Atomic Energy Act, to avoid organizational conflicts of interest. Consequently, the NRC normally would not enter into a relationship where one of the participants would be placed in a position where its judgment might be biased or where it might receive an unfair competitive advantage.

This policy may be waived, however, in situations where the work cannot be performed excapt by a party whose interests give rise to a question of conflict of interest and where administrative and/or technical controls can be employed by the NRC to neutralized the conflict.

The NRC has decided to solicit the participation of industry representatives from such organizations as INPO, NSAC, and utility Owners' Groups on incident investigation teams (IITs).

The objective of the IITs is to i

perform a thorough factual investigation of significant operational events at NRC licensed facilities and to collect, analyze, and document factual information and evidence sufficient to determine the probable causes of these events. The reasons for soliciting industry participation in IIT's are to obtain an independent point of view on technical' issues, to obtain expert knowledge of facility hardware and procedures, and to facilitate in the feedback of information to the industry for the self-initiation of potential preventative and/or corrective measures. The outcome of any given IIT could possibly have a direct impact on preventative of corrective measures recommended to or imposed upon the industry by the NRC.

The participation of industry personnel in IIT's would normally be precluded under the Commission's policy because of the potential self-interest of the industry in the outcome of an IIT.

The NRC believes, however, that the participation of industry representatives is essential to achieve the objectives for which the participation is solicited and to the accomplishment of the overall goals of the Incident Investigation Program.

A number of controls will be established to preclude the introduction of bias into any incident investigation and to assure protection of the government's interest.

Industry participants will be carefully screened to avoid any possibility of personal conflicts of interest resulting from such things as financial interest in the owner of the facility being investigated, previous involvement in the design or operation of the facility being investigated, and the like. Also, the technical product of the industry participants will be subject to review and criticism by other members of the team, including the team leader, as well as by NRC management.

I

1-29 L

Exhibit 8 (Continued)

The Director, AE00, has recommended that the Commission's Policy on Avoidance of Conflicts of Interest be waived for purposes of allowing participation of industry representative (s) on IITs to document the fact that NRC management has made a conscious decision in balancing the risks of i

allegations of biased input into the IIT against the benefits from industry I

participa tion.

Based on the foregoing and after consultation with the Office of General Counsel, I make the following determinations:

1.

The activities to be performed by the incident investigation team are vital to the NRC mission.

2.

The participation of industry personnel on the incident investigation team is essential to achieve the objectives for which that participation is solicited and to the success of the overall goals of the Incident Investigation Program.

3.

Technical and administrative controls will be employed to neutralize the conflict of interest posed by the participation of industry personnel or. the team.

4.

It is in the best interest of the United States to waive the Commission's Policy on Avoidance of Organizational Conflicts of Interest.

Pursuant to the waiver provision specified in Exhibit 9, the policy of avoiding organizational conflicts of interest is hereby waived for the purposes of allowing the participation of [Name(s) of industry personnel] on the

[Name of facility] NRC Incident Investigation Team.

[Name]

Executive Director for Operations Dated:

1-29 Exhibit 9 PART 20-1 -- GENERAL

• Subpart 20-1.54--Contractor' Organizational Conflicts of Interest see.

20-1,5401 Scope and policy.

20-1.5402 Definitions.

20-1.5403 Criteria for recognizing contractor organizational conflicts of interest.

20-1.5404 Representation.

20-1.5405 Contract clau'ses.

20-1.5405-1 General contract clause.

20-1.5405-2 special contract provisions.

20-1.5406 Evaluation, findings, and contract award..

20-1.5407 Conflicts identified after award.

20-1.5408 (Reserved) 20-1.5409 (Reserved) 20-1.5410 Subcontractors.

20-1.5411 Waiver.

20-1.5412 Remedies.

AUTHORITY:

Sec. 8 Pub. L.95-601, adding Sec.170A to Pub. L.83-703, 68 Stat. 919, as amended (42 U.S.C. ch.14) 120-1.5401 Scope and Policy (NRC)(a) It is the policy of the U.S. Nuclear Regulatory Comission to avoid, eliminate or neutralize contractor organizational conflicts of interest. The NRC achieves this objective by requiring all prospective contractors.to submit information describing relationships, if any, with organizations or persons (including those regulated by NRC) which may give rise to actual or potential confitets of interest in the event of contract award.

(b) Contractor conflict of interest determination's cannot be made automatically or routinely; the application of sound judgment on virtually a case-by-case basis is necessary if the policy is to be applied so as to satisfy the overall public interest.

It is not possible to prescribe in advance a specific method or set of criteria which would serve to l'

identify and resolve all of the contractor conflict of interest situations which might arise; however, examples are provided in these regulations to guide application of the policy.

NRC contracting and program officials must be alert to other situations which may warrant application of this policy guidance.

The ultimate test isi Might the contractor, if awarded the contra'ct, be placed in a position where its judgment may be biased,,

or where it may have an unfair competitive advantage?

(c) The conflict of interest rule contained in this subpart applies tor contractors and offerors only.

Individuals or firms who have other relat'ionships with NRC (e.g., parties to a licensing proceeding) are not covered by this regulation.

This rule does not apply to the acquisition of consulting services through the personnel appointment process, NRC _ _ _ _ _ - _ - - _ _ - _ _ _ _ _ _ _ _ - _ _ _ _ _ _

1-30 7590-01 fxhibit 9 (Continued) agreements with other government agencies, international o' organizations.

. or state, local or foreign governments; separate, procedures for avoiding conflicts of interest will be employed in such agreements, as appropriate.

120,1.5402 Definitions

'(a) " Organizational'confifets of interest" means that a relationship exists whereby a contractor or prospective contractor has present or planned interests related to the work to be perfonned under an NRC contract which: (1) May diminish its capacity to give impartial, technically sound, objective assistance and advice or may otherwise result in a biased work product, or (2) may result in its being given an unfair competitive advantage.

(b) "Research" means any scientific or technical work in'volving theoretica) analysis, exploration, or experimentation.

(c)

• Evaluation activities" means any effort involving the appraisal of a technology, process, product, or policy.

(d) " Technical consulting and management support services" means internal assistance to a component of the NRC in the formulation or administration of its programs, projects, or policies which normally recuire the contractor to be given access to information which has not bee'n made available to the public or proprietary information.

Such services typically include assistance in the preparation of program plans; arid preparation of preliminary designs, specifications. or statements of work.

(a) " Contract" means any contract, agreement, or other arrangement with the NRC except as provided in Section 20-1.5401(c).

(f) " Contractor" means any person, firu, unincorporated association, joint venture, co-spons,or, partnership, corporation, affiliates thereof, or their successors in interest, including their chief executives, directors, key personnel (identified in the contract), proposed consultants or subcontractors, which is a party to a contract with the NRC.

(g) " Affiliates" means business concerns which are affiliates of each other when either directly or indirectly one concern or individual controls or has the power to control another, or when a third part controls or has the power to control both (41 CFR I1-1.606-1(e)). y

~

.(h)' " Subcontractor" means any subcontractor of any tier which perfcrms work under a contract with the NRC except subcontracts for supplies and subcontracts in amounts of $10,000 or less.

(i) " Prospective contractor" or " offeror" means any person, firm, l

unincorporated association, joint venture, partnership, corporation, or affiliates thereof, including its chief executive, directors, key personnel (identified in the proposal), proposed consultants, or subcontractors, submitting a bid or proposal, solicited or. unsolicited, to the NRC to obtain a contract.

2

1-31 7590-01.

' Exhibit'9 (Continued)

.(j)

" Potential conflict of interest" means that a factual situation exists that suggests (indicates) that an actual conflict of interest may arise from award of a. proposed contract.

The tenn " potential conflict of interest" is used to signify those situations which. merit investigation prior to contract award in order to ascertain whether award would give rise to an actual conflict or which must be. reported to the contracting officer for investigation if they arise during contract performance.

I20-1.5403 Criteria for recognizing contractor organizational conflicts of interest (a)' General.

Two questions will be asked in determining whether actual or potential organizational conflicts of interest exist:.(1)Are there conflicting roles which might bias a contractor's fudgment in relation to its work for the NRC?

(2)Maythecontractor'begivenan unfair competitive advantage based on the performance of the contract?

The ultimate detennination by NRC as to.whether organizational conflicts of-interest exist will be made in light of conmon sense and. good business judgment based upon the relevant facts disclosed and the work to be perfonned. While it is difficult to identify and to prescribe in advance a specific method for avoiding all of the various situations or relationships which might involve potential organizational conflicts of interest, NRC' personne1'will pay particular attention to proposed contractual requirements which call for the rendering of advice, consultation or evaluation activities, or similar activities that lay direct groundwork for the NRC's decisions on regulatory activities, future procurement, and research programs.

(b) Situations or r(relationships which may give rise to organizational conflicts of interest.

1) The offeror or contractor shall disclose information concerning relationships which may give rise to organizational conflicts of interest under the following circumstances:

(1) Where the offeror or contractor provides advice and recommendations to the NRC in a technical area in which it is also providing consulting assistance in the same arec to any organization regulated by the NRC.

(11) Where the offeror or contractor provides advice to the NRC on the same or similar matter in which it is also providing assistance to any organization regulated by the NRC.

(iii) Where the offeror or contractor evaluates its own products or services, or the products or services of another entity where the offeror or contractor has been substantially involved in their development or marketing.

(iv) Where the award of a contract would otherwise result in placing the offeror or contractor in a conflicting role in which its judgment may be biased in relation to its work for the NRC or may otherwise result in an unfair competitive advantage for the offeror or contractor.

. w*

1 1-32 7590-01 Exhibit 9 (Continued)

(2) The contracting officer may. request specific information from an offeror or contrsctor or may require special contract provisions such i

as provided in s 20-1.5405-2 in the following circumstances:

(1) Where the offeror or contractor prepares specifications which are to be used in competitive procurement of products or services covered by such specifications.

(ii)Wher?theofferororcontractorpreparesplansforspecific approaches or methodologies that are to be incorporated into competitive procurement using such approaches or methodologies.

(iii) Where the offeror or contractor is granted access to informa' tion not available to the public concerning NRC plans policies, or programs which could form the basis for a later procuremen,t action.

'(iv) Where the offeror or contractor is granted access to proprietary

nformation of its conetitors.

-(v) Where the award of a contract might othenvise result in placing the offeror or contractor in a conflicting role in which its judgment.

may be biased in relation to its work for the NRC or may otherwise result in an unfair competitive advantage for the offeror or contractor.

(c) Policy application guidance.

The following examples are illustrative only and are not intended to identify and resolve all contractor organizational conflict of interest situations.

(1) Example.

The XYZ Corp., in response to a request for proposal (RFP), proposes to undertake certain analyses of a reactor component as called for in the RFP. The XYZ Corp. is one of several companies considered to be technically well qualified.

In response to the inquiry in the RFP the XYZ Corp.

advises that it is currently performing similar analyse,s for the reactor manufacturer.

Guidance. An NRC contract for that particular work normally would not be awarded to the XYZ Corp. because it would be placed in a position in which its judgment could be biased in relationship to its work for NRC. Since there are other well-qualified companies available, there would be no reason for considering a waiver of the policy.

(2) Example. The A8C ' Corp., in response to a RFP,* proposes to perform certain analyses of a reactor component which are unique to one type of advanced reactor. As is the case with other technically qualified companies. responding to the RFP, the ABC Corp. is performing various projects for several different utility clients. None of the ABC Corp.

projects have any relationship to the work called for in the RFP. Bated on the NRC evaluation. tne ABC Corp. is considered to be the best qualified company to perform the work outlined in the RFP.

k

(

~

Exhibit 9 (Continued)

Guidance. An NRC contract normally could be awarded to the'ABC i

. Corp. because no conflict of interest exists which would motivate bias with; respect to the work. An appropriate clause would be included in the contract to preclude the ABC Corp. from subsequently contracting for work during the performance of. the NRC contract with the private-sector,

which could create a conflict.

For example, ABC Corp. would be precluded from the performance of. similar work for the company developing the-advanced reactor mentioned in the example.

(3) Example. As a result of operating problems in a certain type of commercial nuclear facility.. it is imperative that NRC secure specific data on various. operational aspects of that type of plant so as to assure adequate safety protection of the public.

Orfly one manufacturer has extensive experience with that type of plant.

Consequently, that' company is the only one with whom NRC can contract which can develop and conduct the testing programs required to obtain the data in reaso'nable'.

time. That company has a definite interest-in any NRC decisions that-might result from the data produced because those decisions affect the

- reactor's design and thus -the company's costs.

Guidance. This situation would place the manufacturer in a role in

' which its judgment could be biased in relationship to its work for NRC.

.Since the nature of the work required is vitally important in terms of NRC's responsibilities and no reasonable alternative exists, a waiver of the policy may be warranted.

Any such waiver shall be fully documented and coordinated in accordance with the waiver provisions of this ;411cy with particular attention to the establishment of protective mechanisms to guard against bias.

(4) Example.

The ABC Co. submits a proposal for a new hystem for evaluating a specific reactor component's performance for the purpose of developing standards that are imp'ortant to the NRC program. The ABC Co.

has advised NRC that it intends to sell the new system to industry once its practicability has been demonstrated.

Other companies in this business are using older systems fer evaluation of the specific reactor compnent.

Guidance. A contract could be awarded to the ABC Co. provided that l

1.

the contract stipulates that no information produced under the contract will be used in the contractor's private activities unless such information has been reported to NRC. Information which is reported to NRC by contractors will normally be disseminated by NRC to others so as to preclude' an unfair competitive advantage that might otherwise accrue. When NRC furnishes information to the contractor for the perfonnance of contract work, it shall not be used in the contractor's private activities unless such information is generally available to others.

Further the contract will stipulate that the contractor will inform the NRC contracting 4

officer of all situations in which the information developed under the contract is proposed to be used.

i '

1-34 7590-01 Exhibit 9 (Continued)

(5). Example. The ABC Corp., in response to a RFP proposes to assemble a map showing certain seismological features of the Appalachian fold belt.

In accordance with the representation in the RFP and 120-l'.5403(b)(1)(1), ABC Corp. informs the NRC that it is presently doing seismological studies for several utilities in the Eastern United States but none of the sites are within the geographic area contemplated by the NRC study.

Guidance. The contracting officer would normally conclude that award of a contract would not place ABC Corp. in a conflicting role where its judgment might be biased.

The work for others clat.:.e of 120-1.5405-1(c) would preclude ABC Corp. from accepting work during the tenn of the NRC contract which could create a conf 1fet of interest.

(d)

Other considerations.-

(1) The fact that the NRC can identify and later avoid, eliminate, or neutralize any potential organizational conflicts arising from the performance of a contract is not relevant to a determination of the existence of such confilcts prior to the award of a contract.

(2)

It is not relevant that the contractor has the professional reputation of being able to resist temptations which arise from organizational conflicts of interest, or that a follow-on procurement is not involved, or that a contract is awarded on a competitive or a sole source basis.

520-1.5404 Representation (a) The following procedures are designed to assist'the NRC' cont'racting officer in determining whether situations or relationships exist which may constitute organizational conflicts of interest with respect to a particular offeror or contractor.

(b)

Representation procedure.

The following organizational conflicts of interest representation provision shall be included in all I

solicitations and unsolicited proposals for:

(1) Evaluation services or l

activities; (2) technical consulting and management support services; l

(3) research; and (4) other contractual situations where special organizational l

conflicts of interest provisions are noted in the solicitation and would be included in tae resulting contract.

This representation requirement sna11 also apply to all modifications for additional effort under the l

contract except those issued under the " changes" clause. Where, however, a statement of the type required by the organizational conflicts of interest representation provision has previously been submitted with l

regard to the contract being modified, only an updating of such stttement shall be required.

4 e

9 e.

2-9 2.k2* Responding to Press Inquiries 1.

A' news conference may be desirable.

If so, it should be scheduled as soon as possible after the arrival of the team leader.

The Regional Public Affairs Officer will be available onsite to arrange the news conference and be the point'of contact for the news media.

The Regional Public

- Affairs Officer, IIT leader, and the licensee should coordinate press conferences and responses to press inquiries.

2.

The IIT leader will be the lead spokesperson for IIT activities and should limit discussions during and subsequent to the news conference to the scope and purpose of the investigation, to the IIT process, and to the team's sequence of events.

Information provided to the press about the event ~ should be identified as preliminary and subject to confirmation.

3.

If ~ determined necessary, in consultation with the Office of Governmental and Public Affairs, a headquarters or a regional representative will be available to participate in the news conference.

2.13 IIT Coordination Meetings Periodic progress meetings are an important coordinating technique for the IIT leader and a way of keeping each team member up-to-date of the progress of the team's activities. The team should meet at the end of each day to review results obtained by all team members and to plan the team's activities for the following day.

2.14 Identifying Additional Expertise and Outside Assistance 1.

The team leader should assess the need for additional expertise, particu-larly during the initial phase of the investigation.

2.

Obtaining additional NRC or contractor personnel should be considered if certain aspects of the event are unique (e.g., security, water hammer, radiological, physics) and beyond the expertise of existing team members, or if the complexity of the event is sufficient to warrant additional staff.

3.

NRC personnel are available to conduct nondestructive examinations (NDE) activities on a wide variety of equipment and components.

Mobile NDT vans can be sent to the site if appropriate.

NRC personnel are also available to conduct radiation surveys and analyses.

See Exhibit 1 to Guideline 1 for description of NDE capabilities.

4.

The team leader should discuss requests for additional assistance with the Director of the Office for Analysis and Evaluation of Operational Data (AE0D) who will make the necessary arrangements.

2.15 Industry Participation in the Investigation NO_cNAN(E.

Industry representatives may participate as full-time members of the IIT.

In these cases, they will have responsibilities and privileges equal to other team members.

i i

2-10 Note:

It is essential that security, proprietary and other sensitive information be available to only suitably cleared individuals with a need to know.

For non-NRC-team members, the team leader should assure that a statement of confidentiality has been signed.

2.16 Parallel Investigations yo cyp /ag Normally, the IIT will provide NRC's primary investigation of an event.

Conse-quently,-it is expected that other investigations, by the licensee or by industry will be conducted in ways that do not interfere with the IIT.

Should the team's activities be impeded, delayed or limited because of parallel investigations, the team leader should try to resolve the problem with the licensee and/or appropriate organization.

If attempts fail or the situation is not resolved to the satisfaction of the team leader, the team leader should bring the situation immediately to the attention of the Director of AE00, who will coordinate the agency response to the situation with the EDO, Office of the General Counsel (0GC), Regional Administrator, and other NRC offices.

In rare instances where a parallel investigation is being conducted by another NRC office, such as the Office of Investigation (01) or the Office of Inspector and Auditor (01A), coordination between the two investigative bodies, and between AE0D and the respective NRC office should be established to avoid hindering the efforts of either investigation.

If the Institute of Nuclear Power Operations (INPO) is developing a Significant Event Report (SER) on the event, they will attempt to assure that the SER is not inconsistent with the facts of the event as understood by the IIT.

This will be accomplished by INP0 providing a draft of the SER to the licensee prior to issuance.

The licensee will coordinate review of the SER with the IIT, and will assure any inconsistencies are made known to INP0 so they can be resolved prior to issuance of the SER by INPO.

2.17 Status Reports 1.

The IIT should issue a Preliminary Notification (PN) Report at the end cf the first day of the investigation.

The PN will be prepared by the IIT on-site and transmitted to the appropriate Region for distribution.

The PN should provide a brief description of the event, current plant status, current licensee and IIT activities, and the names and phone numbers of IIT contacts.

In general, the IIT 1eader and assistant team leader

• will serve as IIT contacts during the investigation.

A sample PN is included in Exhibit 3.

The PN number is PNO-IIT-(year)-(number of this IIT this year)(letter identifying series of PNs).

2.

The IIT should issue subsequent PNs periodically (every 2 to 4 days while on-site) to update IIT activities for the regional and headquarter offices.

• The IIT will normally have an assistant team leader from the Diagnostic Evaluation and Incident Investigation Branch in AE00.

l

r 2-11 3.

'When the sequence of events is well understood, the IIT leader should suggest a conference call with the EDO, the Office of Nuclear Reactor Regula:. ion (NRR) or the Office of Nuclear Material Safety and Safeguards (NMSS), AE0D, and the Region to inform them of the team's information and to respond to their questions.

If in the course of the investigation significant new information is identified, the IIT leader should promptly inform the EDO by telephone.

2.18 IIT Recordkeeping Activities 1.

During an IIT event investigation, all interviews and some meetings will be recorded by stenographers who will prepare typed transcripts.

The interviews and meetings are transcribed to assist the team in gathering information to minimize note taking and to reduce inconsistencies and inaccuracies.

a.

All investigative interviews should follow IIT Guideline 3,

" Guidelines for Conducting Interviews."

b.

In general, a record will not be made of discussions between the team and licensee personnel about routine administrative matters.

c.

All transcripts of interviews should be handled in accordance with the guidelines for review and availability of transcripts (see IIT Guideline 3, Exhibit 1), and the procedures for the handling of transcripts (see IIT Guideline 3, Exhibit 2).

2.

The AE0D staff member or other NRC staff assigned to the IIT investigation, will be responsible for document control.

a.

The team members should ensure that all documents are provided to the Administrative Assistant for proper control and disposition.

b.

All documents received and reviewed during an IIT investigation will be handled in accordance with the AEOD administrative procedure entitled " Records and Documentation Control" (Exhibit 4).

c.

Documents containing sensitive information (e.g., proprietary, safeguards) will be appropriately identified by licensee, properly marked on the outside cover, and stored in a safe or locking file cabinet.

d.

At the conclusion of the onsite investigation, the boxes of documents should be shipped express mail to NRC headquarters.

After the IIT departs the site, correspondence and requested documents should also be express mailed to NRC headquarters.

2.19 Collection of Information No cN/fyss All information obtained by team members will be brought to the attention of the IIT ieader.

Representatives may orally discuss verified factual event-related information to nuclear industry organizations with the approval of the j

team leader.

This information should be transmitted only for purposes of prevention, remedial action, or other similar reasons to ensure public health 1

m -

L.

2

• and' safety.

The representatives will keep the IIT leader apprised of all information pertinent to the event. Common sense and good judgment must I

predominate in this matter.

Contacts with news media will be made in accordance with established IIT guidelines as described in Section 2.12.

(See item 2 in Section 2.12).

j The team will collect relevant information and documentation upon which to base findings and conclusions.

The types of.information that are generally available and should be considered for use by the team are listed in Exhibit 5.

2.20 Referral of Investigation Information to NRC Offices During an IIT investigation, the team may learn directly of allegations, potential wrongdoing or information that should be referred to other organi-zations for followup and disposition. The team leader has the responsibility to identify situations warranting referral and to make the appropriate noti-I fications when referral is appropriate. Guidelines regarding referral of information to the Office of Investigations (01), the Office of Inspector and Auditor (01A), NMSS, and NRR are contained in Exhibit S.

2.21 Confidentiality The NRC's inspection and investigatory programs rely primarily on individuals voluntarily providing accurate information.

Some individuals, however, may provide needed information only if they believe their identities will be protected from public disclosure, i.e., only if they are given confidentiality.

In cases where the IIT leader believes that needed information will only be obtained by providing assurance that the NRC will not identify the individual (i.e., source of the information) the team leader should contact the Director of AE00, who will coordinate the situation with the EDO, the Office of the General Counsel (0GC), and the Regional Administrator in order to decide whether confidentiality can be granted by the team leader.

Procedures Chapter 0517, granting and revoking of confidentiality (taken from NRC M regarding the Management of Allegations") are contained in Exhibit 7.

2.22 Subpoena Power and Power to Administer Oath and Affirmation Subpoena power is available to the NRC to assist it in gathering information which is related to the agency's public health and safety mission. Most investigations conducted by the NRC are accomplished without the need for a compulsory process because most interviews and information are given volun-tarily.

Consequently, whenever information is considered to be vital to the investigation, and the individual or entity refuses to either be interviewed or provide documentary information, the team leader should immediately bring the situation to the attention of the Director of AE0D, who will coordinate the agency response to the situation with the EDO, 0GC, and the Regional Administrator.

In general, oaths are administered to ensure that individuals interviewed properly recognize the gravity of the situation.

The point at which an oath is administered depends upon the circumstances surrounding the interview.

During an IIT investigation, should the situation occur where the administering

1

q. <.

~

2-14:

to the outcome of the investigation, the report should so indicate and' idetail.-the attempts made to resolve it.

L 2.24 Return Site Visit Typically about-4 wvisit (as needed) eeks after the event, the team should schedule a re to review any significant findings from the licensee's-investigation, particular1," from the. troubleshooting activitics conducted on-quarantined equipment.

l 2.25 Report Preparation and Presentation 4

Na cN4NSE_

m Each team member will participate in a complete review of. the team's. investi-gative report for technical accurar;y and adequacy of the scope of the investi-gation in his/her particular area.of technical expertise.. The IIT leader.will obtain each team member's concurrence on the report signifying that the team' member has reviewed the report and that any differences of professional opinion; have either been resolved or documented in an appendix to the report. Courtesy copies of.the IIT final. report will be provided to the participating team--

members.

An outline of the report should be developed before the conclusion of the-onsite. investigation and assignments made of specific sections to team members.

This phase of the investigation is addressed by an IIT guideline on reportpreparation(IITGuideline5),whichincludesadetailedschedule.-The team leader will be expected to orally brief the EDO about the report within

about 40 days, with the advance copy of the report sent to the EDO.and the Commission within about 45 days. - Following issuance of the advance copy, the team will brief the Consnission in an open meeting and subsequently the Advisory Committee on Reactor Safeguards (ACRS) on IIT findings and -

conclusions. The team's report is also issued in final form as a NUREG document..

__-_- - - -