[Federal Register Volume 60, Number 13 (Friday, January 20, 1995)]
[Notices]
[Pages 4156-4157]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1360]



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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, Dr. Joseph A. Leary. This Notice satisfies the requirements 
of 10 CFR Part 1706.8(e) with respect to publication in the Federal 
Register. Under the Board's Organizational and Consultant Conflicts of 
Interests Regulations, 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's mission is to provide advice and recommendations to the 
Department of Energy (DOE) regarding public health and safety matters 
related to DOE's defense nuclear facilities. This includes the review 
and evaluation of the content and implementation of health and safety 
standards including DOE orders, rules, and other safety requirements, 
relating to the design, construction, operation and decommissioning of 
DOE defense nuclear facilities.
    The Board requires the continued services of TRU Engineering 
Company, Inc. (TRUECO), specifically Dr. Joseph A. Leary, in support of 
its reviews of operations at defense nuclear facilities involved in the 
processing and handling of nuclear materials. The Board's efforts in 
these areas include, but are not entirely limited to, worker safety and 
the handling and fabrication of nuclear materials such as uranium, 
plutonium, americium, curium, and neptunium. Dr. Leary's technical 
support to the Board, which began in 1991, includes the evaluation of 
documents as a basis for future operations at various defense nuclear 
facilities. These efforts have included visits to selected facilities 
to observe the operations and nuclear technologies utilized at those 
locations.
    Dr. Leary has informed the Board of a potential conflict of 
interest situation. Specifically, Dr. Leary, as a private individual 
and not through TRUECO, has a consultant relationship with Los Alamos 
National Laboratory (LANL) to provide expertise regarding plutonium 
processing and waste management issues. He provides support to LANL's 
Nuclear Materials Technology Division (NMTD) by serving as a member of 
the NMTD External Advisory Committee (Committee). The Committee, which 
is comprised of eight scientists and engineers from academia and 
industry, provides technical assistance to LANL management in the 
chemistry and nuclear materials technology areas, to ensure excellence 
in those activities. The Committee's basic responsibilities include 
providing advice to management on the quality of the technical 
activities conducted in the NMTD and their relevance and 
appropriateness in relation to LANL's mission. Further, the Committee 
recommends modifications in the mix of research and development 
activities as appropriate including the identification of new program 
opportunities. Dr. Leary also participated in a joint Los Alamos/Rocky 
Flats technology effort and facilitated group interactions within the 
technical and management areas. Finally, he provides general technical 
and management support to NMTD managers on nuclear materials 
processing, utilization, safeguards, waste management, and share 
management skills on construction and operation of nuclear materials 
processing facilities for integrated national programs on plutonium 
applications and technology transfer. All of Dr. Leary's efforts at 
LANL are provided on a part time, intermittent basis as needs arise.
    Following a review of this potential OCI, the Board decided to 
continue its relationship with TRUECO based on the following 
circumstances. The Board's need for Dr. Leary's technical support is 
based on his extensive knowledge and direct experience with uranium, 
plutonium, americium, curium, and neptunium processing and 
applications, developed over approximately fifty years in various 
positions of responsibility. These include positions with LANL, the 
Atomic Energy Commission (AEC), Department of Energy (DOE), and as 
President of TRUECO. During this period, he was responsible for 
technical requirements and the conceptual design of facilities for 
processing radioactive materials, and radiochemical process 
engineering. Dr. Leary participated in extensive research in uranium 
and plutonium chemistry and metallurgy, developed new materials and new 
processes for all aspects of plutonium utilization, and originated and 
led the LANL pyrochemistry processing program. Additionally, he managed 
overall research, development, and demonstration programs for plutonium 
technology at LANL; directed large and complex programs at the AEC and 
DOE on nuclear materials processing, utilization, safeguards, and waste 
management; and managed an AEC program to construct and operate nuclear 
materials processing facilities for an integrated national program on 
plutonium applications. Consequently, Dr. Leary's unparalled experience 
and comprehensive knowledge of nuclear materials processing and 
handling with the DOE facilities and operations within the Board's 
oversight authority, makes him a unique source of outside expertise and 
an invaluable asset to this organization. Further, while the Board has 
chemical engineers on its staff, Dr. [[Page 4157]] Leary, with his 
extensive background and experience, augments the overall level of 
expertise available to the Board with its efforts in this highly 
sensitive and critical area of health and safety.
    Additionally, the Board believes that a waiver of this potential 
OCI is proper as the possibilities of a direct conflict, or biased work 
product from Dr. Leary is remote based on the significant differences 
between his work for the Board and LANL. Specifically, Dr. Leary's 
technical efforts for the Board are related to unique problems or 
issues which exist at various facilities within DOE's nuclear weapons 
complex. He has provided technical assistance to the Board with its 
review of Savannah River Site (SRS) F-Canyon, HB-Line, and FB-Line 
chemical process startup activities and plutonium storage safety 
issues. Other examples of his work for the Board include an evaluation 
of the waste characterization program for the Hanford Waste Tanks, 
plutonium storage matters at Rocky Flats Site (RFS) and Pantex, and 
alternative decontamination processes at the Idaho Chemical Processing 
Plant, Idaho National Engineering Laboratory. Conversely, his 
consulting work at LANL includes the provision of a strategic overview 
of nuclear materials technology and management issues across a broad 
scope on an ad hoc basis, and not on specific programs or projects. 
Further, he has an association with LANL as a member of the Power 
Systems Subpanel (PSSP) which is a subpanel of the Interagency Nuclear 
Safety Review Panel. This group, which is comprised of individuals from 
the Department of Defense, DOE, and National Aeronautics and Space 
Administration, prepares the final safety evaluations for space flight 
using spacecraft powered by Radioisotope Thermoelectric Generators 
which contain significant amounts of plutonium-238. Dr. Leary serves as 
the nuclear materials expert on this panel which is funded through the 
Probabilistic Risk and Hazard Analysis Group at LANL. However, as this 
effort has no connection with the Board's work, and his other work at 
LANL does not overlap with Board projects, the changes of a OCI are 
unlikely.
    Further, the Board examined Dr. Leary's current financial 
relationship with LANL, which includes a vested pension program and the 
consulting work described above, and considered the potential effect it 
may have on his objectivity in performing the Board's work. Based on 
this review, the Board determined that these relationships should not 
interfere with his work for the Board since the pension, and any future 
increases, is calculated according to fixed formulas and prior 
contributions and his consulting work for LANL accounts for 
approximately twenty percent of his total yearly income. Therefore, as 
the pension is fixed and not subject to adjustment by LANL, and the 
value of the other work does not constitute a major portion of his 
income, the Board believes these should not have a negative impact on 
Dr. Leary's ability to be objective in his work for the Board.
    The Board has also recognized that it is unlikely that the work 
being performed by Dr. Leary could be satisfactorily performed by 
anyone else whose experience and affiliations would not give rise to a 
potential conflict of interest question. This is due to the unique 
problems and technical challenges which exist within the weapons 
complex related to the processing and handling of nuclear materials. 
Consequently, those most familiar with these operations, and 
potentially best able to assist the Board, are those that gained this 
expertise through previous or current employment or consulting 
relationships with one or more of the DOE weapons facilities within the 
Board's oversight authority. The pertinent experience of other 
qualified individuals would therefore likely raise similar questions 
and concerns.
    Finally, as the Board is required under its OCI Regulations, where 
reasonably possible, to initiate measures which attempt to mitigate an 
OCI, Dr. Leary and the Board agreed to the following during contract 
performance. The Board will not task Dr. Leary with any work which 
would conflict with his efforts at LANL. Dr. Leary has agreed to 
promptly notify the Board of and changes with his efforts at LANL which 
would give rise to a direct OCI with his work for the Board. 
Additionally, the efforts and products of Dr. Leary will be overseen by 
experienced technical staff of the Board who are able to ensure that 
all of his resultant work products are impartial and contain full 
support for any findings and recommendations issued thereunder.
    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 Board's contract 
with Dr. Joseph A. Leary that might arise out of his existing 
relationship with LANL.

    Dated: January 12, 1995.
Kenneth M. Pusateri,
General Manager.
[FR Doc. 95-1360 Filed 1-19-95; 8:45 am]
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