[Federal Register Volume 59, Number 38 (Friday, February 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4220]
[[Page Unknown]]
[Federal Register: February 25, 1994]
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DEFENSE NUCLEAR FACILITIES SAFETY BOARD
Resolution of Potential Conflict of Interest
The Defense Nuclear Facilities Safety Board (Board) has identified
and resolved a potential conflict of interest situation related to its
contractor, MPR Associates, Incorporated (MPR). This notice, which is a
summary of the facts related to this decision, satisfies the
requirements of 10 CFR 1706.8(e) with respect to publication in the
Federal Register. Under the Board's Organizational and Consultant
Conflicts of Interests Regulation, 10 CFR part 1706 (OCI Regulations),
an organizational or consultant conflict of interest (OCI) means that
because of other past, present or future planned activities or
relationships, a contractor or consultant is unable, or potentially
unable, to render impartial assistance or advice to the Board, or the
objectivity of such offeror or contractor in performing work for the
Board is or might be otherwise impaired, or such offeror or contractor
has or would have an unfair competitive advantage. While the OCI
Regulations provide that contracts shall generally not be awarded to an
organization where the Board has determined that an actual or potential
OCI exists and cannot be avoided, the Board may waive this requirement
in certain circumstances.
The Board was advised of a potential safety issue at the Department
of Energy's (DOE) Savannah River Site (SRS) regarding a tank containing
Curium and Americium in a nitric acid solution. Specifically, sampling
of the tank, which is 10 feet in diameter by 11 feet in height, and is
made of Type 304 L stainless steel, demonstrated a high concentration
of iron in the tank's contents, indicative of corrosion of the tank's
stainless steel structure. Based on a standard calculational method for
determining corrosion, DOE's Management and Operating contractor for
SRS reached a preliminary conclusion that corrosion of the tank's
stainless steel structure had resulted in a uniform wall thickness
reduction of 0.011 inches from an original thickness of 0.5 inches. The
Board was concerned that the corrosion might potentially be nonuniform
or localized in areas of the tank such as crevices, or welds, and under
sludge. The primary question was whether the extent of corrosion had
the potential to breach the integrity of the tank, thereby increasing
the probability of a release of radioactive material, threatening site
workers and the general public's health and safety. Consequently, the
Board determined that the accuracy of the analysis of the tank needed
to be verified through the collection and evaluation of additional data
to determine the degree of the corrosion problem and whether the tank's
integrity is intact.
As the Board did not have expertise readily available to conduct an
in-depth evaluation of these findings, the Board decided to engage
outside technical experts from MPR based on their extensive relevant
experience, expertise, and immediate availability. However, MPR advised
the Board that it had entered into a contractual relationship with a
DOE contractor to provide assistance to DOE in the analysis of
deactivation plans for the PUREX Plant, a DOE facility at the Hanford
Reservation in Richland, Washington, and provide written
recommendations and advice to DOE regarding these analyses. While MPR's
contractual work for the Board and the DOE would not necessarily create
an actual overlap of work at this time, and hence no direct OCI, a
potential OCI would exist due to MPR's concurrent relationships with
DOE and the Board, as the PUREX plant is a defense nuclear facility
under the Board's jurisdiction. Consequently, as a result of its
relationship with DOE, the ability of MPR to provide objective advice
to the Board could be questioned.
After considering these concerns, the Board concluded that the
award of the task to MPR for a review of the tank in question at SRS
was in the best interest of the Government and that a waiver of any OCI
arising from the relationship described above, and the pertinent
provisions of the OCI Regulations, was warranted. The reasons
underlying these conclusions were as follows:
1. MPR possessed extensive relevant technical expertise gained from
previous long-term work on similar problems with the commercial nuclear
industry and through performance of safety-related activities at SRS
for the Board. The Board did consider whether there was a source other
than MPR that had the caliber of qualified staff capable to responding
to the Board's needs without having potential OCI situations. However,
without exhaustive research, which would have caused unwarranted delay,
the Board was not aware of any other firm with the level of background
knowledge and experience of MPR, which is essential to the successful
accomplishment of the Board's requirement.
2. MPR advised the Board's staff that the expected revenues from
its work related to the PUREX Plant at the Hanford Reservation in
Richland, Washington, represented less than one percent of its total
revenues. In the Board's view, such a low percentage of revenues from
DOE-related projects should not make MPR financially dependent on DOE.
3. In an attempt to mitigate any potential OCI related to this
situation, MPR agreed to create an internal partition between MPR staff
working on the Board project and MPR staff working on the DOE-related
project. Further, MPR's efforts for the Board will be overseen by
experienced technical staff of the Board to ensure that all resultant
work products are impartial and contain full support for any findings
and recommendations issued thereunder.
Accordingly, on the basis of the determinations described above and
pursuant to the applicable provisions of 10 CFR part 1706, the Chariman
of the Board granted a waiver of any conflicts of interests (and the
pertinent provisions of the OCI Regulations) with the Board's contract
with MPR that might arise out of its existing contractual arrangement
with a DOE contractor.
Dated: February 18, 1994.
Kenneth M. Pusateri,
General Manager.
[FR Doc. 94-4220 Filed 2-24-94; 8:45 am]
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