INDEX


                                  CHAPTER V

                          NUCLEAR MATERIALS SURVEYS

1.   PURPOSE.  To assure that facilities are maintaining effective
     safeguards and security programs.  This Order requires and describes
     the conduct of surveys which provide such monitoring and evaluation.

2.   FREQUENCY.

     a.   Nuclear materials surveys of each license-exempt (as defined in 10
          CFR 50) contractor and Government-operated facility shall be
          performed annually for Category I, II, and III materials, and
          biennially for Category IV nuclear materials, unless:

          (1)  The total value of the nuclear materials inventory at any
               time does not exceed $150,000 and the value of nuclear
               material receipts for any 12-month period is less than
               $500,000;

          (2)  The total inventory consists entirely of source material,
               less than 10 tons of heavy water, less than 350 grams of SNM,
               or any combination of these; or

     b.   Surveys of contractor facilities meeting the criteria in
          paragraphs 2a(1) and (2), above, shall be conducted at the
          discretion of the DOE Field Office Manager.  Definitions of
          Categories I, II, III and IV are contained in DOE 5633.3.

3.   SURVEY REPORT CONTENT.  Initial and periodic nuclear materials survey
     reports consist of a narrative section reflecting the results of both
     the compliance and performance segments of the survey.  For those
     facilities holding Category II and larger quantities of SNM, an
     approved survey report form, as provided by Attachment III-1, shall be
     utilized.  Locally developed survey forms may be used to supplement the
     approved survey report form.

     a.   A report on the results of a survey of nuclear materials control
          and accountability should include such items as:

          (1)  A statement of the survey scope and period of coverage;

          (2)  A statement regarding the facility's function and scope of
               operations related to nuclear materials;

          (3)  An assessment of the effectiveness of management (if
               appropriate) relative to nuclear material control and DOE
               accountability (MC&A) program planning and review, and the
               safeguards control exercised by the facility;

          (4)  Corrective actions on findings, including status of prior,
               unresolved findings; and

          (5)  Discussion of major points which had, or might have, a
               significant effect on inventory procedures and safeguards
               control at the facility.

     b.   The nuclear materials survey report shall include results from:

          (1)  Assessing the ability of the safeguards system to detect and
               respond to theft and/or diversion of nuclear materials;

          (2)  Reviewing and evaluating:

               (a)  Practices and procedures for the inventory of nuclear
                    materials and the records system reconciliation;

               (b)  Measurements and statistical programs, system;

               (c)  Site's nuclear materials accounting information system;

               (d)  Nuclear material control practices and procedures;

               (e)  Internal control system; and

               (f)  Program planning and procedures;

          (3)  Reviewing the training and qualification records of material
               balance area custodians, material handlers, and
               accountability clerks responsible for nuclear material data
               generation and/or transmission; and

          (4)  Reviewing the facility's vulnerability assessment program and
               material control and accountability internal control system.

     c.   In addition to the requirements in paragraphs 3a and b, above,
          during periodic nuclear material surveys, DOE personnel shall, as
          appropriate for the type and quantity of nuclear material in the
          inventory:

          (1)  Ascertain facility compliance with written procedures and
               objectives of DOE directives on control and accountability of
               nuclear materials and the material control and accountability
               plan;

          (2)  Review and evaluate the cause, magnitude, reasonableness, and
               disposition of accidental losses, normal operational losses/
               measured discards, approved write-offs, inventory
               differences, and shipper/receiver differences;

          (3)  Audit the nuclear material records and reports to verify the
               accuracy of the facility's material status reports and
               subsidiary records; and

          (4)  Observe inventory procedures and practices and control the
               independent tests of the inventory to confirm the facility's
               statement of the quantity of material on hand.  DOE Field
               Offices may develop and use statistically based sampling
               plans appropriate for their site-specific needs to establish
               that stated nuclear material quantities are accurate.
               Inventory testing shall be based on a graded safeguards
               concept, and documentation shall be maintained to support the
               survey inventory testing criteria, sampling plans, test
               results, and conclusions.  For those populations that do not
               conform to conventional weighing and sampling methods (or
               non-destructive assay analyses), confirmation of the
               contained nuclear materials shall be consistent with accepted
               estimation techniques, whether independently performed or
               observed by survey personnel.  Inventory exemptions for
               highly radioactive materials are contained in DOE 5633.3.

     d.   A periodic survey report need not contain a complete narrative
          description of each procedure and element of the Material Control
          and Accountability program unless significant changes have
          occurred or 5 years have elapsed since the last description.  The
          phrases "no change" or "as previously reported" may be used.
          However, the new report shall identify the survey report which
          provides the latest description of the unchanged item.

     e.   Within 60 working days after completion of the survey, the
          surveying organization shall forward one copy of each survey
          report to SA-10, copies to the Secretarial Officer(s) as directed,
          and one copy to the surveyed organization as determined locally.
          When a special nuclear materials survey is a part of the basis for
          granting facility approval for a new or expanded safeguards and
          security activity involving SNM, or for continuing facility
          approval for an existing activity where SNM is present, and time
          is of the essence, the surveying organization shall comply with
          the requirements of Chapter IV, page IV-3, paragraphs 4d(1), (2),
          and (3).

4.   TRAINING AND QUALIFICATIONS.  Team personnel for nuclear materials
     surveys shall possess qualifications and training sufficient to
     accomplish effective and thorough surveys.

5.   COMPLIANCE SEGMENT.  The compliance segment of the nuclear materials
     survey shall address how well the facility meets requirements contained
     in DOE directives and the applicable facility Material Control and
     Accountability plan and/or MSSA.  Results shall be entered on an
     approved nuclear materials survey report form.

6.   PERFORMANCE SEGMENT.  Surveys of facilities shall include a performance
     evaluation to assess the capability of the safeguards and security
     system to meet performance objectives.  The performance evaluation
     shall determine system performance against scenarios for applicable
     threats/targets.