ML18221A260
| ML18221A260 | |
| Person / Time | |
|---|---|
| Issue date: | 08/09/2018 |
| From: | Pasquale D NRC/OI |
| To: | |
| Pasquale D | |
| References | |
| Download: ML18221A260 (29) | |
Text
THE ENERGY INFRASTRUCTURE INITIATIVE DAN PASQUALESR. REACTOR SYSTEMS ENGINEER(301) 415-2498Daniel.Pasquale@nrc.govInternational Conference on Quality, Leadership and Management in the Nuclear Industry To license and regulate the nation's civilian use of byproduct, source and special nuclear materials to ensure adequate protection of public health and safety, promote the common defense and security, and protect the environment.
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- Conducts investigations of allegations of wrongdoing
- Maintains current awareness of inquiries and inspections by other NRC offices
- Makes appropriate referrals to the Department of Justice
- Liaise with other agencies and organizations, both domestic and international, to ensure the timely exchange of information of mutual interestResponsibilities outlined in Title 10 of the CFR, Part 1.36, "Office of Investigations" 3
The Office of Investigations:
- is committed to combatting the introduction of counterfeit parts into the nuclear supply chain through strategic partnerships with internal and external stakeholders
- is collaboratively working with other government agencies and industry to proactivelyidentify CFSI before it enters into the US critical infrastructure (i.e., nuclear supply chain)
- works closely with our inspectors and the technical staff whenever there is a report of CFSI 4
For those Systems, Structures, And Components (SSC) deemed "Important to Safety," the GENERAL DESIGN CRITERA provides design, fabrication, construction, testing, and performance requirements that provide the facility can be operated without undue risk to the health and safety of the public 5
1.to the best possible extentprovided given the situation's circumstances, the author is reasonably sure that his conclusions are free from material misstatement 2.acknowledgment that it is not possibleto assert absolutely and certainly that an event will (or will not) occur 6 "Reasonable" evolves consistent with the "Body Of Knowledge". What was understood to be reasonable in 1818 may not be reasonable in 2018!7 Will it fail?When will it fail?How will it fail?How will it's failure effect other components?Trend data?NoWarranties or GuaranteesNoVendor supportNoNuclear liabilitySingle Failure Criterion (SFC)Common Cause Failure (CCF)Probabilistic Risk Assessment (PRA)Core Damage Frequency (CDF) 8 Poor performance by a vendor resulting in a nonconformance, while undesirable, can be managed by effective customer oversight.Intentionally misrepresenting equipment, parts or materials is illegal and must be dealt with appropriately 9
Allegation(in-part): "A declaration, statement, or assertion of impropriety or inadequacy associated with NRC
-regulated activity, the validity of which has not been established "Contact any NRC employee (including a resident inspector), or e
-mail the NRC at ALLEGATION@nrc.gov, or call the NRC's toll
-free Safety Hotline, 1
-800-695-7403NUREG BR-0240 "Reporting Safety Concerns to the NRC" https://www.nrc.gov/docs/ML1214/ML12146A003.pdfThe NRC's Allegation Program is: designed to review anyone'sconcerns regarding safety significant issues associated with NRC regulated activities 10 "An acceptance processundertaken to provide that a commercial grade item to be used as a will perform its intended safety functionand, in this respect, is deemed equivalentto an item designed and manufactured under a 10 CFR Part 50, appendix B, quality assurance program."10 CFR 21 11 Historic increase in counterfeit electronic incidents 140% increase in DoD counterfeit electronic reports: 2006
-2009 82% of companies DO NOT report CFSIIncreased use of commercial
-grade dedications Supply chain globalization Industry-wide transition to digital technology
-Advanced microcircuit technology (including programmable logic controllers) Cyber Security for Critical Infrastructure (embedded/tainted code)Advanced Counterfeiting Technologies 12U.S. Department of Commerce, 2010 Defense Industrial Base: Counterfeit Electronics 13REACTIVEPROACTIVE NATIONAL INTELLECTUAL PROPERTY RIGHTS CENTER23 partner agencies, consisting of 19 key federal agencies, Interpol, Europol and the governments of Canada and Mexico in a task
-force setting
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- 15.
Effectively leverage the resources, skills, and authorities of each partner and provide a comprehensive response to IP theft. Investigation
-Identifying, analyzing, deconflicting, prosecuting and dismantling criminal organizations involved in the manufacture and distribution of counterfeit products.Interdiction
-Using collective intelligence & detective resources to perform raids, surges, focused targeting and inspections to keep counterfeit and pirated goods out of U.S. industrial supply chains.Outreach andTraining-Providing training for domestic and international law enforcement to build stronger enforcement capabilities worldwide.
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- "supply chains" includes those of public and private critical infrastructure entities regulated by OCR agencies (e.g., NRC)A comprehensive initiative targeting counterfeit items entering the supply chains
- of the Department of Defense and other U.S. government agencies.
17 Proactive Information re: CFSIHarder for the dishonest to re
-invent themselvesAccess to more Operating/Construction experienceExpedited CFSI Alerts/Advisories (contain the spill)Avenue for reporting non-power blockCFSI 18
- Regulator*Licensee*Supply Chain
- Trade Associations
- Law Enforcement
- Federal Agencies
- AcademiaThe only effective way to combat the problem is
.19 NUREG/BR-0500-ML15062A478The NRC's Safety Culture policy statement, "applies to all licensees, certificate holders, permit holders, authorization holders, holders of quality assurance program approvals, vendors and suppliers of safety
-related components, and applicants for a license, certificate, permit, authorization, or quality assurance program approval subject to NRC authority."
-NUREG/BR-0500, Rev. 3 20 Assist with high risk procurements (incl. CDAs) Data Analytics (DataNet)Supplier Vetting oAccess to U.S. Government data oCredible & trustworthiness oTransnational recordsFinancial "stresses" oBankruptcy/delinquency litigationsSupplier relationship intelligence oTime in business o"Cage Hoppers/Jackers"oSystem for Award Management (SAM, f.k.a. Excluded Parties List
-EPLS)oSubsidiary relationships oForeign ownership/global parents 21 OSHA safety gear (hard hats, goggles, gloves)Emergency response equipment (Fire/medical)Security forces (ammunition/body armor/sights)Hand & power toolsRigging equipment, hose fittings Refrigerants 22 Favorable profit margins
- high profit potentiallow capital and labor costsaccess to sub
-supplierseasily distributed via the internetno research & development costsno advertising costsminimal legal expensesFavorable market conditions:
- obsolescence (aging operating units)
- advancing technology (digital I&C)
- global supply chain (58 nuclear plants under construction worldwide)
- diminishing 10 CFR 50, Appendix B suppliers (more CGDs)
- new norms (high in-service failures)Favorable criminal environment:
- lack of reporting
- little fear of prosecution
- low fines and sentences upon conviction
- unprecedented anonymity
- may involve alternate illicit activities 23 Cyber HackersMoney launderingTerrorist activitiesTransnational organizationsOrganized crime syndicatesPolitical activistsCulture jammersNation-statesModernized, sophisticated sub
-industry used to fund other crimes including:
24 25 26"Kobe Steel Scandal Could Rattle US Nuclear Industry" _wolfstreet.com"Inspectors find safety irregularities at Creusot nuclear forge in France" _www.theguardian.com"France's nuclear giant Areva admits to 400 irregularities' in power plant parts"_ www.telegraph.co.uk"Kobe Steel Scandal Goes Nuclear: Company Faked Data For Decades, Had A "Fraud Manual"" _www.zerohedge.com"Relay manufacturer quietly changes internal parts, creates potential safety hazard"_www.nuclearelectricalengineer.com IN-16-01: "Recent Issues Related to the Commercial Grade Dedication of Allen Bradley 700
-RTC Relays" _NRC "Critical Infrastructure Security and Resilience"(2013)- advances the Community of Interest Concept Regulator (USNRC)Commercial Nuclear Licensees Key IP Rights OwnersNational IPR Center (DHS/ICE/HIS)Trade associationsAcademia PPD-21: https://obamawhitehouse.archives.gov/the
-press-office/2013/02/12/presidential
-policy-directive-critical-infrastructure
-security-and-resil 27 "In all aspects of IPR crime enforcement, there is an identified and ongoing need for enhanced cooperation and education amongst all stakeholders and intermediaries to ensure that the fight against such criminality and its effects becomes more cohesive and well informed"
-EUROPOL's 2017 Situation Report on Counterfeiting and Piracy in the European UnionThe NRC's Office of Investigations supports those recommendations for a more andapproach to CFSI 28 DAN PASQUALEU.S. NRC, Office of Investigations(301) 415-2498Daniel.Pasquale@nrc.gov 29