ML20125E066

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Responds to 791107 Memo Re Vendors of commercial-grade Items.Amend to 10CFR21 Removed Suppliers of commercial-grade Items from Being Subj to 10CFR21.However,vendors Encouraged to Report Suspected Defects in Products
ML20125E066
Person / Time
Issue date: 12/05/1979
From: Minogue R
NRC OFFICE OF STANDARDS DEVELOPMENT
To: Bradford P
NRC COMMISSION (OCM)
Shared Package
ML20125E070 List:
References
TASK-OS, TASK-RS-519-1 SECY-79-448, NUDOCS 8001250435
Download: ML20125E066 (4)


Text

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  • l I l PEMCPAFOUM FCR: Ccmmissioner Pradford gg THRU: Lee V. Gossick. Executive Director for Operaticns FRCP: P. B. Finocue, Director Office of Standards Development SI'PJECT: VEP'PCRS CF CrWEPCIAL CPACE ITEMS Your memorandum of November 7,1979, recuested replies to five auestions related ,

to the amendment of 10 CFR Part 21, 43 FR a8622 October 19. 1978 which limited  !

the types of items that are within the scope of 10 CFR Part 21. Among other thirgs the amendment added a cefinition of "ccrorcial crade item". That auenc'- ,

ment bas been the subject of ccmission papers SECY 79 a48. 44FA and 44GP. 1 ce lcw are the cuestiens and the staff resperses.

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1. Are verders of ccrrerical-crade itens (as defined in 1C CFP i Part 21) cbligated to notify their purchaser cf any ocviaticns frem the purchase specification which are disccvered by the vendor subsecuent to delivery of the itcr.?

As interpreted by the staff there is no enforceable cbligaticn by "PC rule or reculetion that recuires venders of cci,mercial crade items to notify purchasers of such ceviaticns. Pert 21, provides a regulatcry oblication for vervors subject to Part :'1 to notify the purchaser of the existerce of a kncv:n or suspected detect ,

in en item that is within the scope of Part 21. The artercment , however, rer:cved suppliers of ccrrerical grade items from being subject to Part 21.

The cricinal Part 21 did not recuire any reports frcn an individual rot subject i to Part 21 but did in (21.2 (Secre) inform such individuals that Part 21 cid not preclude them frem reportino known er suspected defects. That cortion of r21.2 was amended in October 1978 to include a ' manufacturer / supplier of e ccmercial grade item". The presently effective final sentence of $21.2 states:

'3'othing in these regulations should be deemed to preclude either an individual er a manufceturer/ supplier of a comercial crace item

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I (see ,521.3_,(a,-1])"rioTIO6jicT t6~tb'e reg'UIait'ibris~in Oiislirt"ir~ chi reporting to the Comission a kocun or suspected defect or failure to crccly and. as authcrized by law. the identity of anycne so repertinc will be withheld frcm disclosure."* ,[

Cortact: u. E. Camrbell , Jr.

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2. If so, pursuant to what regulation, ccde, standard or legal  !

theory does such an obligation erise?  !

I i "bsent the regulatory reporting requirement that was cricinally in Part 21 i there remain any reporting obligations that have been contractually agreed to I by the vendor and purchaser. The staff is not aware of any other regulatory crde or standard currently beinc applied that recuires reperting in a nanner Il i !

ccmperable to 10 CFR Part 21. There are some federal rerulations that recuire il rerorting of hazardcus ccnditions. These involve autrcebile tires. autcracbiles, , ;

and other censumer products. - -

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! 3. What is the current industry practice in this regard?

In many instances the ecnufacturer of a ccmercial gr?de item will not maintain a record for a icoc period of tir.e of vic were the purchasers of all of the com- '

r;emial crace itens produced. It is the staff's epinico that a ccmercial crade rarufacturer/ supplier will tend to notify a custcmer of deviations uncer the circumstarces stated in cuestion 1 if. arong other reasons, either the purchaser is a long term-volme custccer and "Scod business" cictates the custener be intemed or the supplier is concerned regarding potential liability resulting from deviating items traceable to the supplier's organization.

4. What changes in NRC's regulations wculd be necessary to en-  :

i sure that all such infomation is passed on to a Part 21 vender l throughout the anticipated service life of the item so that i the safety significance can be properly assessed? j An approach would be to amend 10 CFR Part 21 to delete the changes that were made by the earlier acendment. Such an action would cause the reconsideration of the issue of how far down the tiers of suppliers 6206 of Public Law ,

93 43R (Energy Reorganization Act of 1974) was intended to apply.  ;

5. Are these changes [ obligation for seller to infom purchaser of devia- '

j tions discovered after delivery] necessary?

i i The staff does not consider that these changes are necessary. This conclusion  !

l 13 based in part on the following. i

! (a) The staff is net aware of any instances where the imposition of such a

, change would have resulted in ?!RC being appropriately inforced of a defect or nonccmpliance earlier than RC was infomed of such defect or norcompliance by an organization subject to Part 21.

(b) As stated in SECY 73-496 page 5 " Continued application [cf tbc original 10

, CFR Part 21 as it relates to the manufacturer / supplier of cerwercial crsce itecs]

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j Com . .cner Pradford  :

whether a new supplier who professes to ccrrply with 10 CFR Part 21 is ccmpetent to provide the item." SECY 78-496 dated September 8,197P. is the Ccmissien r: aper that resulted in the acendment cated cctober 19 1978.

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P. P. Fincetre. "f recter Office of ftandards revelement cc: Chairmen Perdrie Crcrissicrcr '.ilinsky Ccmissioncr renrecy Coenissioner Ahearne D/ ^

i L. Beckwith. G.C. jf C ' b) ' yf A. Kenneke CPE I t[0 LVGossick bec: ". P. "inocte RGSmith Peccrd Note: 11/10/7u Iriorma the cc:rimt C. A. f rietto individual ir. 'RP. T!'SS. IE. ELD of Pracfcrd U. F. Merrisen TRehm incuiry. necuested input frcn !E ", Ft.r. IE E. C. Wenzinger HShacar (Peranich) resrose receivec 11/19/7P. EL F. E. Carrr. hell , Jr. respense ceted 11/19 received 11/91/79, 11/50 V. Stello. !E "'"n Pedrafted for signature cf C:SE, t hru Frr.

4 Peranich, TE U. "ussell. "0R l'. f' enter MR G. Ertter'(ED0-07746)

  • i st ri htit icn: MLSapo f entral File SC ALP!'A 50 9D PSSD SUBJ.: 5G01
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.. v whether a new supplier who professes to comply with 10 CFR Part 21 is competent  ;

to provide the item." SECY 78-496 dated September 8,1978 is the Commission

' paper that resulted in the amendment dated October 19, 1978.

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L. V. Gossfck, fxecutive Director i l

for Operations .

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cc: Chaiman Hendrie Comissioner Gilinsky Cctnissioner Kennedy i Cocuissioner Ahearne l

L. Beckwith, G.C. - l A. Kenneke, OPE ]

1 fhlhh '[M fi Djl;9 'f inhuTI000M bec: R. B. Mino9ue LVGossick R ec o rd f.'ot e : 11/13/79 Inf orr.ed the cc0nizant G. A. Arlotto RGSmith irdividual in NRR, MPSS, IE, ELD of Eradford W. P. Morrison TARehm inauiry. Recuested input from IE & ELD. IE E. C. Wenzinger HKShapar (Perenich) respense received 11/19/79. ELD W. E. Campbell, Jr. respense dated 11/19 received 11/21/79. Re-V. Stello, IE drafted 11/26 to incorporate the connents of  :

M. Peranich, IE WN and ECW.

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