INDEX


                                  CHAPTER V

                   NUCLEAR MATERIALS INVENTORY MANAGEMENT

1.  GENERAL.  Nuclear materials are a highly valuable resource that must be
    considered along with dollars and work force in making decisions based
    on the total resources to accomplish program objectives at the least
    cost to the Government.  Sound materials management policies minimize
    nuclear materials stored onsite, or held in user programs, which are not
    needed for near-term mission accomplishment.  Annual assessments of
    nuclear material inventories are required to evaluate the need for the
    inventory levels and to determine if the materials are categorized
    properly.  Appropriate indicators for inventory evaluation should be
    developed and used.

2.  REQUIREMENTS AND RESPONSIBILITIES.

    a.   Field Offices.

         (1)  Establish appropriate inventory management guidelines based on
              programmatic needs, and review/evaluate contractor inventories
              on a continuing basis.

         (2)  Ensure that the nuclear materials for which the field office
              has programmatic responsibility are accurately categorized,
              e.g., project number, composition of ending inventory, and
              usage status.

         (3)  Perform formal reviews of contractor nuclear materials
              utilization and report the findings according to the
              procedures set forth in Chapter VII.

         (4)  Prepare and provide to Headquarters, by 1-15, an annual
              assessment of the nuclear material inventories held by
              contractors, as of 9-30, for which the field office has
              programmatic responsibility.

    b.   Headquarters Program Organizations.  Directors of Headquarters
         program organizations shall review the annual assessments of
         nuclear materials inventories submitted by the field offices and
         approve and/or recommend changes in project inventory levels, based
         on existing and planned program activities, to ensure that
         appropriate inventory levels and good inventory management
         practices are maintained.

3.  FIELD OFFICE ASSESSMENT OF CONTRACTOR USE OF NUCLEAR MATERIALS.  The
    following instructions are provided for preparing the annual nuclear
    materials inventory assessment report:

    a.   Inventory Date.  The assessment shall cover nuclear materials on
         inventory as of 9-30.

    b.   Reporting Responsibility.  The assessment should cover nuclear
         materials under all user and supply projects for which the field
         office has programmatic responsibility or, in the case of nuclear
         materials or weapons production operations, contract administration
         responsibility.  This responsibility is identified by the prefix in
         the alphanumeric project number used to identify all DOE program
         nuclear materials.  Onsite "M" and "E" project materials should be
         included in the assessment.  Materials with "I" project numbers are
         excluded from the assessment report.

    c.   Material to be Reported.  The following table shows the nuclear
         materials to be included in the annual inventory assessment reports
         along with project quantities below which no explanations are
         required:

                                                   Project Exempt
     Material Type         Reporting Unit            Quantities
     -------------         --------------          --------------
    Enriched Uranium         kg U-235                 2 kg
    Plutonium                kg Pu                    2 kg
    Uranium-233              kg U-233                 1 kg
    Heavy Water (D20)        kg D20 equiv.             500 kg
    Plutonium-238            gm Pu-238                100 gm
    Tritium                  gm Tritium               10 gm
    Normal Uranium           MT U                     10 MT
    Depleted Uranium         MT U                     10 MT
    Plutonium-242            gm Pu-242                100 gm
    Americium-243            gm Am-243                1 gm
    Curium                   gm Cm                    1 gm
    Americium-241            kg Am-241                1 kg
    Berkelium-249            ægm Bk-249               1 ægm
    Californium-252          ægm Cf-252               1 ægm
    Lithium-6                kg Li-6                  2 kg
    Neptunium-237            kg Np-237                1 kg
    Thorium                  kg Th                    1000 kg

    d.   Analysis Format.  Assessments submitted to Headquarters should
         summarize inventories by individual projects with explanations
         using the following categories:

         (1)  Active Material.  Material that is actively used in DOE user
              programs.

         (2)  Inactive Material - Defined Use.  Material not in active use,
              but held for probable future use in an identifiable DOE
              program within the next 2 years or being held in designated
              reserves for probable future use beyond 2 years.

         (3)  Inactive Material - No Defined Use.  Material not in active
              use or needed for an onsite DOE program now or in the next 2
              years.  Includes material that is surplus to projected needs
              but is desirable for retention, but does not include reserves
              designated for specific purposes.

         In addition, the assessments shall include composition of ending
         inventory data codes with the material quantities.

    e.   Source of Data.  The quantities of nuclear materials contained in
         the assessment reports should be consistent with that reported to
         Nuclear Materials Management and Safeguards System.  Reports are
         available from Nuclear Materials Management and Safeguards System
         that show the project inventories, inventory composition, assays,
         etc.

    f.   Assessments.  The explanations should contain sufficient
         information to allow determination as to whether inventory levels
         are reasonable relative to programmatic objectives and established
         inventory guidelines, where applicable.  Merely restating
         composition of ending inventory categories is not adequate.  A
         major consideration in assessing inventories, associated with
         processing operations, fabrication operations, reactor operations,
         and scrap processing operations, is the rate of inventory use,
         throughput, or turnover.  The circumstances related to all inactive
         usable materials should be clearly identified, as well as the
         rationale for continued storage, and the final disposition plan, if
         known.  Information, such as problems in disposing of scrap,
         irradiated fuel ("I" project material excluded) or other excess
         material should be specified.  In effect, the assessment is not
         merely a look at the inventory at a point in time but includes
         plans in terms of quantities and timeframe to make the review
         dynamic in nature.  Significant recent materials management
         activities, such as the reduction in inventory levels, should be
         reported.

    g.   Timing.  The annual field office inventory assessment report is due
         to the Office of Nuclear Weapons Management (with copies to the
         appropriate Headquarters programs) by 1-15.  Headquarters program
         comments on the field office submissions should be forwarded to the
         Office of Nuclear Weapons Management by 1-31.