96-19451. Resolution of Potential Conflict of Interest  

  • [Federal Register Volume 61, Number 148 (Wednesday, July 31, 1996)]
    [Notices]
    [Pages 39953-39955]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-19451]
    
    
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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 potential conflicts of interest situations related to its 
    proposed 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 Interest 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 is tasked with the responsibility of overseeing the safe 
    operation of the Department of Energy's (DOE's) defense nuclear 
    facilities in order to ensure that the health and safety of the workers 
    and the general public are adequately protected. One such facility is 
    the Savannah River Site, which operates an In-Tank Precipitation (ITP) 
    facility that provides highly radioactive material to the Defense Waste 
    Processing Facility for conversion into vitrified logs for long-term 
    storage.
        The Board has become aware of a potential health and safety matter 
    at the Savannah River Site involving the ITP facility. Specifically, 
    the ITP chemical process results in the generation of benzene in 
    solution in an unpredictable manner. Furthermore, the benzene, a 
    flammable substance, is released from the solution at an anomalous 
    rate. These unpredictable phenomena could be due to catalysts, 
    radioactive hydrolysis, turbulence, or other factors. Of overriding 
    concern to the Board is that the result of these phenomena, in 
    combination with oxygen intrusion, creates the potential for a 
    deflagration or explosion of the vapor within the tank
    
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    and the subsequent release of highly radioactive material to the 
    environment.
        In order to prevent the potential for a deflagration or explosion, 
    certain aspects of the ITP chemical process must be established and 
    fully understood. The first issue involves determining what caused an 
    unexpected chemical excursion to occur in Tank 48H of the ITP facility 
    where excess sodium tetraphenylborate rapidly decomposed to benzene. 
    The second issue that requires assessment occurred during the excursion 
    and revealed the fact that the benzene, by some yet to be understood 
    mechanism, was not immediately released into the tank vapor space. As 
    the fortuitous retention of the benzene was not due to a safety system 
    design feature, determining what caused the benzene to be retained must 
    be comprehended as its release could have compromised the safety system 
    and resulted in a serious threat to the safety of the workers and the 
    general public. Lastly, the adequacy of the safety system design must 
    be addressed based on the chemical excursion and benzene retention 
    determinations. It is therefore imperative that a comprehensive 
    understanding of the causes for the unresolved benzene issues be 
    acquired and appropriate safety measures be put into effect.
        Consequently, the Board informed DOE that no additional tank waste 
    or sodium tetraphenylborate should be added to Tank 48H until the 
    tetraphenylborate decomposition and benzene release mechanism are well 
    understood and adequate safety measures are instituted.
        The Board does not have the breadth of required expertise readily 
    available to conduct an in-depth safety evaluation of the ITP chemical 
    process. The Board determined that outside technical experts possessing 
    the prerequisite combination of chemical engineering expertise and 
    nuclear safety experience were essential to the expeditious and 
    proficient evaluation of the Board's concerns. To accomplish this, the 
    Board identified MPR Associates, Incorporated (MPR) as an organization 
    which could immediately provide the necessary expert technical 
    assistance needed to assess the safety implication of this situation. 
    The scope of this assistance includes such areas as identification of 
    benzene generation and release mechanisms, potential hazard prevention 
    and mitigation, and establishment of safety class systems and controls. 
    MPR's technical expertise is precisely the kind of support that is 
    critical to the successful performance of the Board's requirement. 
    Specifically, MPR will provide the expert services of Mr. Julian 
    Nichols, a chemical engineer with extensive background knowledge and 
    experience gained from his long-term efforts on similar problems within 
    the commercial nuclear industry and through performance of safety-
    related activities at the Savannah River Site under previous contract 
    to the Board.
        However, MPR brought potential conflict of interest situations to 
    the Board's attention based on their current contractual relationships 
    with DOE through six subcontracts. A brief description of each scope of 
    work follows:
        1. Westinghouse Savannah River. Under this subcontract arrangement, 
    MPR is performing an assessment of the Savannah River Site's integrated 
    High-Level Waste System against commercial nuclear safety standards.
        2. Westinghouse Hanford Company. This subcontract agreement 
    requires MPR to provide direct support to the Spent Nuclear Fuel 
    Project by participating in the K Basin Independent Technical 
    Assessment and providing management and technical assistance in other 
    projects of this nature.
        3. Sandia National Laboratories. MPR is conducting an annealing 
    demonstration of a U.S. reactor pressure vessel to determine if 
    annealing is an economically viable option that can adequately address 
    technical, engineering, and institutional issues.
        4. Sandia National Laboratories. The scope of the contract is to 
    provide on-going engineering support to the Sandia Fissile Materials 
    Disposition Technical Integration Team in specific planning and 
    technical management tasks related to DOE's decision making process in 
    the technology areas of nuclear power and materials management.
        5. Lawrence Livermore National Laboratory. Under this agreement, 
    MPR is providing technical support in the analysis and development of 
    federal facility compliance requirements, health and ecological risk 
    assessments, and review of various policy guidance documents related to 
    ``deactivation end states.''
        6. Energetics. This subcontract requires MPR to provide technical 
    assistance in the evaluation of a proposal submitted for a full-scale 
    demonstration of fossil-fuel-fired vitrification technology for the 
    vitrification of radionuclide and hazardous-material contaminated 
    soils.
        While MPR's anticipated contractual work for the Board and each 
    DOE-related project would not necessarily create an actual overlap of 
    work at this time, and hence no direct OCI, potential OCI's do exist 
    due to MPR's concurrent relationships on behalf of DOE and the Board, 
    as the Savannah River Site, for instance, is a defense nuclear facility 
    under the Board's jurisdiction. Consequently, as a result of its 
    relationships with DOE, the ability of MPR to provide objective to the 
    Board could be questioned.
        The Board reviewed each potential conflict of interest situation 
    and concluded that it is nonetheless in the best interests of the 
    Government to have MPR perform the ITP chemical process safety 
    evaluation due to their extensive experience with similar technical 
    issues gained primarily in the commercial nuclear area coupled with 
    their ability to respond immediately to this need. The determination 
    was made that even if there were conflicts of interest as a result of 
    the DOE-related work, it was outweighed by the need for an immediate 
    in-depth safety evaluation of the ITP chemical process by a known 
    expert in order to contend with the health risk that could result from 
    deflagration or explosion of the vapor within Tank 48H.
        In accordance with the OCI Regulations, the Board also considered 
    the value of MPR's subcontracts with DOE, which MPR disclosed 
    represented a small fraction of its total revenues. In the Board's 
    view, the revenues from the DOE-related projects do not make MPR 
    financially dependent on DOE.
        The Board also considered whether a source other than MPR existed 
    which has the caliber of qualified staff capable of responding to the 
    Board's needs without having potential OCI situations. Three other 
    potential contractors were considered but they did not possess the 
    necessary combination of expertise and experience to satisfy the 
    requirements of the Board's urgent needs. The Board is not aware of any 
    other firm with the level of background knowledge and experience 
    essential to the successful undertaking of the Board's requirement. In 
    the Board's opinion, MPR, a nationally-recognized, well-respected 
    expert firm in the nuclear industry, is the only source known to the 
    Board that can satisfactorily perform the evaluation required by the 
    Board. The Board's view is supported by MPR's previous involvement with 
    the U.S. Nuclear Regulatory Commission when the need for immediate 
    expert advice arose in the wake of the Three-Mile Island nuclear 
    accident, and the Board's own experience with MPR, including the expert 
    technical assistance MPR rendered in connection with the Board's 
    investigation of leaks in the heat exchangers at the K-Reactor, and the 
    evaluation of an F-Canyon tank
    
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    corrosion issue at the Savannah River Site.
        Finally, the Board is required under the OCI Regulations to 
    initiate measures which attempt to mitigate an OCI where reasonably 
    possible. The efforts of MPR will be overseen by experienced technical 
    staff members of the Board to ensure that all resultant work products 
    are impartial and reflect full support for any findings and 
    recommendations contained therein.
        Accordingly, on the basis of the determination described above and 
    pursuant to the applicable provisions of 10 CFR 1706, the Chairman of 
    the Board granted a Waiver of any conflicts of interests (and the 
    pertinent provisions of the OCI Regulations) with the effort to be 
    performed by MPR under contract to the Board that might arise out of 
    the contractual relationships with DOE.
    
        Dated: July 25, 1996.
    Kenneth M. Pusateri,
    General Manager.
    [FR Doc. 96-19451 Filed 7-30-96; 8:45 am]
    BILLING CODE 3670-01-M
    
    
    

Document Information

Published:
07/31/1996
Department:
Defense Nuclear Facilities Safety Board
Entry Type:
Notice
Document Number:
96-19451
Pages:
39953-39955 (3 pages)
PDF File:
96-19451.pdf