United States Nuclear Regulatory Commission - Protecting People and the Environment

Information Notice No. 87-33: Applicability of 10 CFR Part 21 to Nonlicensees

                                                SSINS No.:  6835 
                                                        IN 87-33

                                  UNITED STATES
                          NUCLEAR REGULATORY COMMISSION
                      OFFICE OF NUCLEAR REACTOR REGULATION
                             WASHINGTON, D.C.  20555

                                  July 24, 1987


Information Notice No. 87-33:  APPLICABILITY OF 10 CFR PART 21 
                                   TO NONLICENSEES


Addressees:

All NRC licensees.  

Purpose:

This notice is provided to inform addressees of a potential generic problem 
concerning the applicability of 10 CFR Part 21 to certain fabrication, erec-
tion, installation, modification, inspection, testing, and training services 
provided to licensees.  It is expected that recipients will review the 
information for applicability to their facilities and consider actions, if 
appropriate, to preclude similar problems.  However, suggestions contained in 
this information notice do not constitute NRC requirements; therefore, no 
specific action or written response is required.  

Description of Circumstances:

During recent NRC inspections at the Byron Station, Units 1 and 2, it was 
noted that the licensee, Commonwealth Edison Company (CECo), had failed to 
appropriately apply the requirements of 10 CFR Part 21 to onsite contractors.  
These contractors provided fabrication, erection, installation, modification, 
maintenance, inspection, and testing services for the Byron facility.  During 
interviews with senior CECo management, the NRC was informed that CECo had 
made the decision not to specify applicability of the requirements of 10 CFR 
Part 21 for any of their onsite contractors.  During a separate NRC 
inspection, it was also noted that Iowa Electric Light and Power Company 
(IELP) had failed to appropriately apply the requirements of 10 CFR Part 21 to 
a local vendor that had repaired/rewound Class 1E electrical equipment for the 
Duane Arnold Nuclear Power facility.  Information Notice No. 85-101, 
"Applicability of 10 CFR 21 to Consulting Firms Providing Training," was 
previously issued on December 31, 1985, to inform licensees and consultants of 
a potential generic problem concerning the applicability of 10 CFR Part 21 to 
certain training activities provided by consultants.  The notice was issued 
after an NRC vendor inspection of a company which provided consulting 
services, including training, to the nuclear industry disclosed that licensees 
had failed to appropriately apply the requirements of 10 CFR Part 21 to the 
consultant providing the training.  




8707200145
                                                             IN 87-33
                                                                 July 24, 1987
                                                                 Page 2 of 3


Discussion:

The Commission is taking this opportunity to emphasize the responsibilities of
licensees under the requirements of 10 CFR Part 21, "Reporting of Defects and 
Noncompliance."  10 CFR Part 21 establishes procedures and requirements for 
the implementation of Section 206 of the Energy Reorganization Act of 1974, as
amended.  Section 206 imposes reporting responsibilities on directors and 
responsible officers of firms constructing, owning, operating or supplying the 
components of any facility or activity which is licensed or otherwise 
regulated pursuant to the Atomic Energy Act of 1954, as amended, or the Energy 
Reorganization Act of 1974, as amended.  The focus of Section 206 goes beyond 
those entities licensed or regulated by the Commission to all entities that 
engage in the activities described in the regulation. 

10 CFR 21.3(c) states that the terms "constructing" or "construction" include 
the design, manufacture, fabrication, placement, erection, installation, 
modification, inspection, or testing of a facility or activity that is subject
to 10 CFR Part 21 and consulting services which are related to the facility or
activity that are important to safety.  10 CFR 21.3(1) states that the terms 
"supplying" or "supplies" means contractually responsible for a basic 
component used or to be used in a facility or activity subject to 10 CFR Part 
21.  10 CFR 21.3(a)(3) states that "in all cases 'basic component' includes 
design, inspection, testing, or consulting services important to safety that 
are associated with the component hardware, whether these services are 
performed by the component supplier or others."  Hence, onsite and offsite 
construction services are subject to the provisions of 10 CFR Part 21 whenever 
these services are associated with a basic component as defined in 10 CFR 
21.3(a)(1).  Although 10 CFR Part 21 obligations are applicable, whether or 
not the contractor has been contractually obligated to the provisions of 10 
CFR Part 21, licensee procurement of such services should nevertheless specify 
the applicability of 10 CFR Part 21 as stated in 10 CFR 21.31 unless such 
services fall under the definition of "commercial grade item" as defined in 10 
CFR 21.3(a)(4). Any deviation discovered following the suitability for 
application review performed to dedicate a commercial grade item for a 
safety-related application would be required to be evaluated by the dedicating 
or subsequent user organization and, if appropriate, reported pursuant to the 
requirements of 10 CFR Part 21. 

Further discussion and guidance on this matter is provided in NUREG-0302, 
Revision 1, "Remarks Presented (Questions/Answers Discussed) at Public 
Regional Meetings to discuss Regulations (10 CFR Part 21) for Reporting of 
Defects and Noncompliance," published in October 1977.*  This publication 
provides NRC staff remarks on 10 CFR Part 21 as well as some legislative and 
legal discussions on 10 CFR Part 21 and its impact upon reactor, material, 
fuel cycle, and export licensees and related suppliers. 
_________________________

*NUREG-0302, Rev. 1, is available through the NRC/GPO Sales Program, 
 U.S. NRC, Washington, D.C.  20555, (202) 275-2060                                                     IN 87-33
                                                                 July 24, 1987
                                                                 Page 3 of 3


No specific action or written response is required by this information notice.
If you have any questions about this matter, please contact the Regional 
Administrator of the appropriate regional office or this office. 




                              Charles E. Rossi, Director
                              Division of Operational Events Assessment
                              Office of Nuclear Reactor Regulation


Technical Contacts:  Jaime Guillen, NRR
                     (301) 492-8933

                     M. P. Phillips, RIII
                     (312) 790-5530

                     R. S. Love, RIII
                     (312) 790-5593


Attachment:  List of Recently Issued NRC Information Notices
Page Last Reviewed/Updated Tuesday, November 12, 2013