INDEX
CHAPTER VII
MATERIALS MANAGEMENT REVIEWS AND APPRAISALS
1. GENERAL. Basic to any program is the need to systematically review and
evaluate the status and performance of the program. The objective is to
determine the quality and effectiveness of the program, the adequacy and
effectiveness of established policies and procedures, and identify the
actions necessary to improve the program. In planning and conducting
nuclear materials management reviews and appraisals, it should be
recognized that the success of these activities depends on the mutual
cooperation and understanding of both the appraiser and the appraised of
the purpose, objective, and scope of the appraisal.
2. HEADQUARTERS REVIEWS.
a. Applicability. Field offices responsible for nuclear materials
management programs and activities are subject to periodic
Headquarters reviews by the Office of Nuclear Weapons Management.
b. Objective. The objective of the Headquarters review of the field
office materials management program is to evaluate the
effectiveness of the office's materials management program and to
identify functions and activities that will strengthen the program.
c. Frequency. The frequency of Headquarters reviews is based on the
value of nuclear materials for which the field office has
programmatic responsibility and the importance of related materials
management activities. The minimum appraisal frequency for field
offices is as follows:
Annual Biennial
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Albuquerque Chicago
Oak Ridge Idaho
Rocky Flats Richland
Savannah River Oakland
d. Content. Field office reviews conducted by Headquarters shall
assess the effectiveness in carrying out the requirements of the
Order.
e. Review Format. The Office of Nuclear Weapons Management will
provide the field office with an agenda of presentations and
discussions during the review. The on-site review is expected to
be completed in 1 to 2 days.
f. Review Reports. The Office of Nuclear Weapons Management shall
issue a written report appraising the field office materials
management program within 8 weeks after visiting the field office.
3. FIELD OFFICE APPRAISALS.
a. Applicability. Contractors having DOE-supplied nuclear materials
are subject to materials management appraisals by the cognizant
field office, consistent with applicable contract provisions.
b. Objectives. Objectives of the contractor materials management
appraisal are to:
(1) Ensure that the contractor staff understands the objectives
and goals of the materials management program and has
implemented applicable requirements of this Order.
(2) Determine if the contractor is optimizing the use of nuclear
materials and is promptly identifying unneeded materials.
(3) Determine the effectiveness of the contractor's nuclear
materials management program.
(4) Verify that information contained in contractor-prepared
nuclear materials management reports is accurate.
c. Frequency. The frequency of field office appraisals of contractor
activities is based on the value of nuclear materials physically
held by the contractor ("I" project materials are excluded). The
Office of Nuclear Weapons Management will issue and periodically
update unit values of nuclear materials to be used for determining
contractor appraisal frequency. The following are the value
criteria for contractor appraisal frequency.
APPRAISAL FREQUENCY
Value of Materials
$ Millions Minimum Frequency
0 < 10 Field office discretion
10 < 100 2 Years
>/= 100 1 Year
d. Content. Field office appraisals of contractor materials
management activities should concentrate on the effectiveness of
contractor programs and procedures for managing nuclear materials.
Specific activities should include, but not be limited to, the
following evaluations:
(1) Material quantities in inventory and on order with respect to
minimum inventory levels required to meet program objectives
(see Chapter V for guidance).
(2) Contractor programs, procedures, and practices for managing
nuclear materials.
(3) Forecasts as to accuracy, thoroughness, completeness,
usefulness, and compatibility with program plans and budgets.
(4) Contractor use of materials in the quantities and for the
projects specifically authorized.
(5) Procedures for identifying, reporting, and managing inactive
materials and scrap.
(6) Nuclear materials allotment control system, where applicable.
(7) Adequacy of information provided by contractors responsible
for developing materials management plans.
(8) Adequacy of materials management procedures in contracts and
subcontracts issued by the contractor.
(9) Verification of the materials inventory composition/status
reported by the contractors in the annual inventory assessment
report.
(10) Contractor responsiveness to routine and special field office
requests for materials management information.
(11) Analytical studies performed by the contractor related to
materials management, if applicable.
e. Appraisal Reports.
(1) Content. The contractor performance appraisal report should
contain adequate coverage of all materials management aspects
pertinent to the contractor's operation. Statements of
findings and recommendations in the report should be
supported. The materials management appraisal may be
conducted as part of a comprehensive appraisal that includes
other functions. The report on materials management, however,
shall be a separate document or at least a separate section of
a comprehensive contractor appraisal report. The report
should logically present the findings of the appraisal in a
format such as: Scope of Review, Conclusions, Main Findings,
Recommended Actions, Follow-up Plans, and Supporting Data.
(2) Timing. Field offices shall issue a formal report appraising
contractor materials management within 8 weeks after the
appraisal is completed. The reports of contractor appraisals
generally shall be provided to the contractor, the Office of
Nuclear Weapons Management, and the applicable Headquarters
program organization.
(3) Special Situations. Appraisals related to non-management and
operating contractors and subcontractors (see Chapter VIII)
may require special treatment. Appraisals sent to those
contractors may be limited to violations of materials
management provisions in the contract. However, full
appraisal reports containing other pertinent information and
analyses should be sent to the Office of Nuclear Weapons
Management and the appropriate Headquarters programs.