Information Notice No. 84-52: Inadequate Material Procurement Controls on the Part of Licensees and Vendors

                                                            SSINS No.: 6835 
                                                            IN 84-52       

                                UNITED STATES
                        NUCLEAR REGULATORY COMMISSION
                    OFFICE OF INSPECTION AND ENFORCEMENT
                           WASHINGTON, D.C. 20555

                                JUNE 29, 1984

Information Notice No. 84-52:   INADEQUATE MATERIAL PROCUREMENT CONTROLS 
                                   ON THE PART OF LICENSEES AND VENDORS 

Addressees: 

All nuclear power reactor facilities holding an operating license (OL) or 
construction permit (CP). 

This information notice is provided to inform licensees of deficient 
procurement controls and quality assurance (QA) practices on the part of 
suppliers of nuclear materials and to call attention to possible generic 
problems in procurement activities of licensees. No specific action is 
required in response to this information notice, but it is expected that 
recipients will review the information presented for applicability to their 
facilities. 

Discussion: 

The Vendor Program Branch (VPB) of the NRC inspects vendors, material 
manufacturers, and material suppliers of licensees. One purpose of these 
inspections is to verify that vendors and suppliers of safety-related 
materials to licensees are complying with the requirements of 10 CFR 21 and 
Appendix B to 10 CFR 50. These inspections have revealed a large number of 
quality-related deficiencies on the part of nuclear suppliers such as: 

a.   Improper certification of stock materials as being fabricated and/or 
     upgraded in accordance with ASME Code requirements. 

b.   Inadequate inspection of materials received. 

c.   Failure to ensure satisfactory performance of required mechanical 
     testing and nondestructive examination. 

d.   Inadequate and/or incomplete survey and audit records. 

e.   Breakdown of procurement controls with respect to the requirements of 
     10 CFR 21, Appendix B to 10 CFR 50, and the ASME Code. 

Table 1 lists vendors and recent VPB inspection reports where specific 
discrepancies have been identified regarding implementation of the vendors' 
quality assurance programs. These reports are published quarterly by the NRC
in the "Licensee Contractor and Vendor Inspection Status Report," 
NUREG-0040. Copies of this document (the White Book) may be obtained at a 
nominal cost 


8406280311 
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                                                              IN 84-52     
                                                              June 29, 1984 
                                                              Page 2 of 2  

from the National Technical Information Service, Springfield, VA 22161. 
Correspondence with contractors and vendors relative to the inspection data 
contained in NUREG-0040 is placed in the NRC Public Document Room, 1212 H 
St., N.W., Washington, DC 20555. 

Deficiencies also have been identified with respect to licensee procurement 
and associated QA activities. The licensee is responsible for the quality of
purchased nuclear materials and for procurement control of its vendors and 
suppliers of safety-related material. Deficiencies of this type include: 

a.   Inadequate specification of code requirements on purchase orders and 
     other documents. 

b.   Failure to develop and monitor an approved vendor list. 

c.   Inadequate inspection of materials and components when received. 

d.   Inadequate survey and auditing of vendor QA programs. 

e.   Failure to perform adequate internal audits of the procurement process.

f.   Inadequate training of personnel who procure nuclear materials under 
     the requirements of 10 CFR 21, Appendix B to 10 CFR 50, and the ASME 
     Code. 

g.   Insufficient management attention to procurement activities. 

No written response to this notice is required. If you have any questions 
regarding this matter, please contact the Regional Administrator of the 
appropriate NRC regional office or this office. 



                                   Edward L. Jordan Director 
                                   Division of Emergency Preparedness 
                                     and Engineering Response 
                                   Office of Inspection and Enforcement 

Technical Contact:  N. J. Miegel, IE
                    (301) 492-7557

                    E. W. Merschoff, IE
                    (301) 492-4572

Attachments:
1.   Table 1
2.   List of Recently Issued IE Information Notices