ML20133F748

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Discusses Conflict of Interest Analysis on Iea Unsolicited Proposal.Conflict Due to Role of Iea President in Activities of QA Review Panel.Unsolicited Proposal,Doe Agreement W/Bnwl & Review Group Minutes Encl.W/O Encls
ML20133F748
Person / Time
Issue date: 06/29/1984
From: Burdo A
NRC OFFICE OF INSPECTION & ENFORCEMENT (IE)
To: Ragan H
NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD)
Shared Package
ML20133F738 List:
References
FOIA-85-294 NUDOCS 8508080417
Download: ML20133F748 (5)


Text

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%,,} s  % .* f JUN 2 91984 MEMORANDUM FOR: Hudson Ragan, Director Operations and Administrative Division Office of the Executive Legal Director FROM: Alois J. Burda, III, Chief Resource Management and Analysis Branch Program Support and Analysis Staff Office of Inspection and Enforcement

SUBJECT:

CONFLICT OF INTEREST (C0I) ANALYSIS ON IEAL UNSOLICITED PROPOSAL

, Enclosed herewith is the subject unsolicited proposal which Mr. L. A. Schlosser of my staff discussed with Ralph Avery of yours. OIE is concerned that there may be an actual or apparent conflict of interest involved in an award of a contract to IEAL for the effort proposed. This conflict might arise as a result of the role of IEAL's president, Mr. John Gray, in the activities of the QA Review Panel. In addition, to the proposed, the materials identified below have been forwarded as they may bear on the COI question:

The DOE Agreement with PNL which established the scope of the QA Panel; and

  • Review group minutes which will help to establish the role, various QA Panel members played in the panel's deliberations.

I would appreciate your written views on whether there would be a conflict of interest in the award of a contract to IEAC for the effort contemplated, by C03 July 13, 1984. Mr. Schlosser will be on annual leave until July 16, 1984 but you may direct questions concerning this issue to Mr. Bill Brach (0IE/

DQASIP/QAB) at X24932 or myself at X24758.

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Alois . Burda, III, Chief Resour Management and Analysis Branch Program Support and Analysis Staff Office of Inspection and Enforcement cc: E. W. drach, IE ,

J. L. Blaha, IE R. Avery, ELD vv'/c em ie we. _

8508080417 850614 PDR FOIA HUDOINS85-294 PDR l

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will act as Management Reviewer and will be one of the princ'ipal l

investigators. Also participating in active roles will be Mr. '

John E. Young, IEAL President; Mr. Worth Bateman, IEAL Principal ,

Consultant and former Under Secretary, DOE; Mr. Marc Rowden, former Chairman, NRC; Mr. Marvin Lieberman, former Chairman of l the Illinois PUC; and Mr. Robert Laney, IEAL Associate Consultant I

and member of the advisory panel to NRC's recent Report to Congress on Improving Quality and the Assurance of Quality in the Design and Construction of Commercial Nuclear Power Plants. The back-grounds and qualifications of these individuals are attached.

V. Qualifications .

IEAL is uniquely qualified to perform the proposed study. Its senior personnel combine many years of high-level industry and government experience (including NRC experience) dealing with nuclear power and electric utility' issues and problems. In addition, IEAL as a corporate entity has extensive experience in the nuclear power area, and possesses-a unique combination of technical and institutional analysis skills that enables IEAL to undertake the kind of comprehensive, mutli-disciplinary study proposed here.

, The following illustrative list of projects demonstrates the range of IEAL's corporate experience related to the proposed project:

. For DOE, IEAL has analyzed institutional options for nuclear power generation in the U.S., identifying and assessing potential institutional changes in the utility industry and regulatory bodies needed to promote improved management in construction.and operation of nuclear power plants in the U.S. (Institutional Options for Nuclear Power Generation in the U.S., IEAL-126A).

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. IEAL's Chairman, John, Gray, and Arsociate Consultant, Robert Laney, were selected to serve on the advisory panel for the NRC's Report to Congress,,on Improving Quality and the Assurance of Quality in the Design and Construction of Commercial Nuclear Power Plants.

. IEAL is providing consulting services to the U.K.'s National Nuclear Corporation on the technical and institutional aspects of the NNC's first commercial LWR project.

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. IEAL was the integrating contracter for DOE's Electric Utility Policy Project that examined the obstacles to economically efficient operation of electric utilities and potential remedial measures, including factors in the financing, regulatory, industrial structure, and power marketing areas.

. For various private clients, IEAL provided a detailed analysis of the Three Mile Island accident, the reports of the Kemeny and Rogovin Commissions, and the institutional measures put in place to assure avoidance of similar future accidents.

. IEAL provided support to DOE's Office of Nuclear Energy in the latter's analysis of the current regulatory and licensing process, including development of a methodology for analyzing regulatory reform proposals.

. In support of DOE's regulatory reform program, IEAL prepared analyses of various issues, including the scope and nature of the hearing process; the impact of regulations on design standardization; backfitting; and early site reviews.

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. IEAL has supported Sandia National Laboratories program for DOE's LWR safety R&D program. IEAL investigated the safety R&D programs-of NRC, EPRI, and the vendors, as well as proposed activities at NRC as recommended by NRC staff and ACRS.

. For a foreign client, IEAL has examined the literature on probablistic risk assessment and the data in the U.K.'s Systems Reliability Service data bank.

For a non-U.S. utilit'y, IEAL has studied U.S. utility experience in, inter alia, periodic inspection of major systems; maintenance planning, philosophy, and mechanisms; training a'nd certification of operators; reporting requirements, relations with regulators; quality assurance programs; plant construction; and staff acquisition. ,

For Los Alanos National Laboratory, IEAL is developing generic licensing criteria for "new" reactor concepts and addressing DOE-NRC relationships and coordi' nation in this area.

VI. Schedule A draft report will be submitted covering Tasks I, II, & III (Phase I) from the above Scope of Work six (6) months from date of contract. After appropriate review with NRC and industry officials, the report will be issued three months later -

nine (9) months from date of contract.

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?o, VII. Conflict of Interest Although IEAL has done extensive contract work over the years for both the NRC and the nuclear utilities and anticipates a continuance of this situation, since the work of this proposal would not be.related to any present or potential monetary arrangements between IEAL and anyone except the NRC, there does not appear to be a potential conflict of interest in IEAL's performance of this study for'the NRC.-

VIII. Estimated Cost The estimated cost of this program would be $299,323. See

, attached Form OF60. '

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