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IN RESPONSE, PLEASE
REFER TO: M050525B

June 30, 2005

The Commission was briefed by the NRC staff on the results of the Agency Action Review Meeting (AARM). In addition to efforts described in the Reactor Oversight Process (ROP) self-assessment, the staff should consider further improvements to performance indicators to give the NRC good indicators of performance in which to focus inspection resources. Further effort should be taken to clarify the guidance on substantive cross-cutting issues. The staff should continue to emphasize the importance of effective implementation of a good corrective action program as it participates in conferences, workshops, and meetings with licensees. The staff should ensure that the Mitigating System Performance Index (MSPI) process is as transparent as possible to external and internal stakeholders.

The staff should brief the Commissioners and/or their staffs as requested, on the inspection program for large irradiators, manufacturers and distributors, and other materials licensees possessing high-risk sources. For fuel facilities, after the staff's review of the integrated safety analyses are completed, the staff should engage stakeholders and evaluate the feasibility of developing facility-specific indicators of performance that could be of use in NRC's licensing and oversight process. The indicators should be objective, transparent, risk-informed and performance-based. The staff should update the Commission on the status of this effort at the next Materials Safety Commission meeting.

For future AARM cycles, the staff should plan to conduct a separate public Commission meeting that would be held in the afternoon, after the annual AARM Commission meeting. At this meeting, the fuel cycle and large materials licensees that were discussed during the morning AARM Commission meeting should present their plans for improving performance at their facilities.

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