EVALUATION REPORT

Inspector General‘s Assessment of the

Most Serious Management and Performance

Challenges Facing NRC

OIG-13-A-01 October 1, 2012

All publicly available OIG reports (including this report) are accessible through

NRC‘s Web site at: 

http:/www.nrc.gov/reading-rm/doc-collections/insp-gen/
UNITED STATES

NUCLEAR REGULATORY COMMISSION

WASHINGTON, D.C. 20555-0001

OFFICE OF THE

INSPECTOR GENERAL

October 1, 2012

MEMORANDUM TO: Chairman Macfarlane

FROM: Hubert T. Bell /RA/

Inspector General

SUBJECT: INSPECTOR GENERAL’S ASSESSMENT OF THE MOST

SERIOUS MANAGEMENT AND PERFORMANCE

CHALLENGES FACING NRC (OIG-13-A-01)

The Reports Consolidation Act of 2000 requires the Inspector General of each Federal 

agency to annually summarize what he or she considers to be the most serious management 

and performance challenges facing the agency and to assess the agency’s progress in 

addressing those challenges. In accordance with the act, I identified seven management and 

performance challenges confronting the Nuclear Regulatory Commission that I consider to be 

the most serious. 

We appreciate the cooperation extended to us during this evaluation. If you have any 

questions, please contact Stephen D. Dingbaum, Assistant Inspector General for Audits, at 

415-5915 or me at 415-5930.

Attachment: As stated
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EXECUTIVE SUMMARY

BACKGROUND

The Reports Consolidation Act of 2000 requires Federal agency 

Inspectors General (IG) to annually summarize what they consider to be 

the most serious management and performance challenges facing their

agency and to assess the agency‘s progress in addressing those 

challenges. 

OBJECTIVE

In accordance with the act, the IG at the U.S. Nuclear Regulatory 

Commission (NRC) updated what he considers to be the most serious 

management and performance challenges facing NRC. The IG 

considered the overall work of the Office of the Inspector General (OIG), 

the OIG staff‘s general knowledge of agency operations, and other 

relevant information to develop and update his list of management and 

performance challenges and assess the agency‘s progress in addressing 

the challenges. In addition, OIG staff sought input from NRC‘s Chairman, 

Commissioners, and management to obtain their views on what 

challenges the agency is facing and what efforts the agency has taken or 

are underway or planned to address previously identified management 

and performance challenges.

RESULTS IN BRIEF

The IG identified seven challenges that he considers the most serious 

management and performance challenges facing NRC. The challenges identify

critical areas or difficult tasks that warrant high-level management attention. 

The following chart provides an overview of the seven most serious 

management and performance challenges facing NRC as of October 1, 

2012.
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Most Serious Management and Performance Challenges Facing the Nuclear 

Regulatory Commission as of October 1, 2012*

(as identified by the Inspector General)

Challenge 1 Management of regulatory processes to meet a changing 

environment in the oversight of nuclear materials.

Challenge 2 Management of internal NRC security and oversight of licensee 

security programs.

Challenge 3 Management of regulatory processes to meet a changing 

environment in the oversight of nuclear facilities.

Challenge 4 Management of issues associated with the safe storage of 

high-level radioactive waste when there is no long-term 

disposal solution.

Challenge 5 Management of information technology.

Challenge 6 Administration of all aspects of financial management and 

procurement.

Challenge 7 Management of human capital.

*The most serious management and performance challenges are not 

ranked in any order of importance.

CONCLUSION

The seven challenges contained in this report are distinct, yet 

interdependent relative to the accomplishment of NRC‘s mission. For 

example, the challenge of managing human capital affects all other 

management and performance challenges. 
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The agency‘s continued progress in taking actions to address the 

challenges presented should facilitate achieving the agency‘s mission and 

goals.
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ABBREVIATIONS AND ACRONYMS

CUI controlled unclassified information

CUIO controlled unclassified information office

FAIMIS Financial Accounting and Integrated Management Information 

System

FY fiscal year

IG Inspector General 

ISFSI independent spent fuel storage installation

IT information technology

NRC U.S. Nuclear Regulatory Commission

OIG Office of the Inspector General

OMB Office of Management and Budget

SGI safeguards information

SDP significance determination process

SUNSI sensitive unclassified non-safeguards information
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TABLE OF CONTENTS

EXECUTIVE SUMMARY....................................................................................... i

ABBREVIATIONS AND ACRONYMS ..................................................................iv

I. BACKGROUND .............................................................................................. 1

II. OBJECTIVE .................................................................................................... 1

III. EVALUATION RESULTS................................................................................ 1

Challenge 1 Management of regulatory processes to meet a changing 

environment in the oversight of nuclear materials ........................ 4

Challenge 2 Management of internal NRC security and oversight of licensee 

security programs......................................................................... 7

Challenge 3 Management of regulatory processes to meet a changing 

environment in the oversight of nuclear facilities.......................... 9

Challenge 4 Management of issues associated with the safe storage of highlevel radioactive waste when there is no long-term disposal 

solution....................................................................................... 13

Challenge 5 Management of information technology ..................................... 15

Challenge 6 Administration of all aspects of financial

management and procurement .................................................. 17

Challenge 7 Management of human capital ................................................... 19

IV. CONCLUSION .............................................................................................. 21
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APPENDIXES

A. OBJECTIVE, SCOPE, AND METHODOLOGY............................................. 22

B. CHANGES TO THE MANAGEMENT AND PERFORMANCE 

CHALLENGES IN 2012 ................................................................................ 23

C. OIG REPORTS AND AGENCY ACTIONS ADDRESSING THE 

MANAGEMENT AND PERFORMANCE CHALLENGES .............................. 24
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I. BACKGROUND

On January 24, 2000, Congress enacted the Reports Consolidation Act of 

2000, requiring Federal agencies to provide financial and performance 

management information in a more meaningful and useful format for 

Congress, the President, and the public. The act requires the Inspector 

General (IG) of each Federal agency to annually summarize what he or 

she considers to be the most serious management and performance 

challenges facing the agency and to assess the agency‘s progress in 

addressing those challenges.

II. OBJECTIVE

In accordance with the Reports Consolidation Act of 2000, the U.S. Nuclear 

Regulatory Commission (NRC) IG updated what he considers to be the 

most serious management and performance challenges facing the agency. 

The IG considered the overall work of the Office of the Inspector General 

(OIG), the OIG staff‘s general knowledge of agency operations, and other 

relevant information to develop and update his list of management and 

performance challenges and assess the agency‘s progress in addressing 

these challenges.

In addition, OIG staff sought input from NRC‘s Chairman, Commissioners, 

and management to obtain their views on what challenges the agency is 

facing and what efforts the agency has taken or are underway or planned 

to address previously identified management and performance challenges. 

Appendix A contains additional information on the evaluation scope and 

methodology.

III. EVALUATION RESULTS

The NRC‘s mission is to license and regulate the Nation‘s civilian use of 

byproduct, source, and special nuclear materials to ensure adequate 

protection of public health and safety, promote the common defense and 

security, and protect the environment. Like other Federal agencies, NRC 

faces management and performance challenges in carrying out its mission.
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Determination of Management and Performance Challenges

Congress left the determination and threshold of what constitutes a most 

serious management and performance challenge to the discretion of the 

IGs. As a result, the IG applied the following definition in identifying 

challenges:

Serious management and performance challenges are mission critical areas or programs 

that have the potential for a perennial weakness or vulnerability that, without substantial 

management attention, would seriously impact agency operations or strategic goals.

Based on this definition, in 2012, the IG assessed the most serious 

management and performance challenges facing NRC and identified seven 

challenges that he considered most serious. The challenges identify critical 

areas or difficult tasks that warrant high-level management attention. (See 

Appendix B of this report for a discussion of the changes between the 2011 list 

of challenges and the current list.) 

The following chart provides an overview of the seven most serious 

management and performance challenges as of October 1, 2012.
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Most Serious Management and Performance Challenges Facing the Nuclear 

Regulatory Commission as of October 1, 2012*

(as identified by the Inspector General)

Challenge 1 Management of regulatory processes to meet a changing 

environment in the oversight of nuclear materials.

Challenge 2 Management of internal NRC security and oversight of licensee 

security programs.

Challenge 3 Management of regulatory processes to meet a changing 

environment in the oversight of nuclear facilities.

Challenge 4 Management of issues associated with the safe storage of 

high-level radioactive waste when there is no long-term 

disposal solution.

Challenge 5 Management of information technology.

Challenge 6 Administration of all aspects of financial management and 

procurement.

Challenge 7 Management of human capital.

*The most serious management and performance challenges are not 

ranked in any order of importance.
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CHALLENGE 1

Management of regulatory processes to meet a changing environment in the 

oversight of nuclear materials.

Overview

NRC is responsible for maintaining an established regulatory framework for 

the safe and secure use of nuclear materials; medical, industrial, and 

academic applications; uranium recovery activities; and low-level 

radioactive waste sites. NRC is authorized to grant licenses for the 

possession and use of radioactive materials and establish regulations to 

govern the possession and use of those materials. Agency regulations 

require that certain material licensees have extensive material control and 

accounting programs as a condition of their licenses. Other license 

applicants (including those requesting authorization to possess small 

quantities of special nuclear materials1) must develop and implement plans 

that demonstrate a commitment to accurately control and account for 

radioactive materials. Upon a State‘s request, NRC may enter into an 

agreement to relinquish its authority to the State to regulate certain 

radioactive materials and limited quantities of special nuclear material. The 

State must demonstrate that its regulatory program is adequate to protect 

public health and safety and compatible with NRC‘s program. The States 

that enter into an agreement assuming this regulatory authority from NRC 

are called Agreement States. Currently, there are 37 Agreement States.

 

1

Special nuclear material, as defined by Title 1 of the Atomic Energy Act of 1954, is plutonium, uranium233, or uranium enriched in the isotopes uranium-233 or uranium-235.
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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Issues

Ensure appropriate oversight of radioactive material. This includes

the implementation of the National Source Tracking System, Web 

Based Licensing, and the Licensing Verification System to ensure 

the accurate tracking and control of byproduct material, especially 

those materials with the greatest potential to impact public health 

and safety.

Ensure that radioactive material is adequately protected to preclude 

its use for malicious purposes. 

Ensure appropriate oversight of nuclear materials used in medicine.

Ensure reliable accounting of special nuclear materials in the NRC 

and Department of Energy jointly managed Nuclear Materials 

Management and Safeguards System.

Ensure the appropriate oversight of uranium recovery facilities. The 

Department of Energy is responsible for cleanup and remediation of 

these sites under an NRC general license. 

Ensure the management and safe storage and disposal of low-level 

radioactive waste produced as a result of NRC-licensed activities. 

All current low-level waste disposal sites are regulated by 

Agreement States.

Ensure that Agreement State programs are adequate to protect 

public health and safety and the environment, and are compatible 

with NRC‘s program. 

Assessment

During FY 2012, OIG audited several areas dealing with NRC‘s oversight 

of nuclear materials. Regarding NRC‘s oversight of industrial radiography, 

OIG found four distinct areas where NRC could improve. OIG found that

radiography licenses do not clearly or consistently indicate what activities 

licensees are authorized to conduct or where they may conduct them, the 
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agency‘s inspection program guidance lacks needed specificity, temporary 

job site inspections are not being conducted as often as possible, and NRC 

has an inconsistent approach for inspecting NRC licensee facilities in 

Agreement States. 

OIG conducted two audits concerning general licenses. In its first audit, 

OIG identified that general licensed devices could contain dangerous 

radioactive sources even though persons with no radiation training or 

experience were allowed to operate the devices. In the second audit, OIG 

found that many general licensees are unaware of NRC‘s regulatory 

requirements for general licensed devices increasing the probability that 

accountability of such devices will decrease, placing public health and 

safety and the environment at risk.

Since FY 2003, OIG has been tracking NRC‘s progress regarding the

reliable accounting of special nuclear materials. While the agency has 

made some progress, it still needs to conduct periodic inspections to verify 

that material licensees comply with material control and accounting

requirements as well as document the basis of the approach used to risk 

inform NRC‘s oversight of material control and accountability activities for 

all types of materials licensees.

During FY 2012, OIG‘s audit on the oversight of uranium recovery facilities

disclosed two opportunities for more effective oversight. OIG found that 

the agency needs to improve its compliance with the terms of the sitespecific memoranda of understanding it has with the Environmental 

Protection Agency and NRC needs to reduce its reliance on the 

Department of Energy‘s inspection program to alert NRC to problems at 

decommissioned uranium recovery sites in Department of Energy custody.

During FY 2012, OIG reviewed and found acceptable the agency‘s 

implementation and availability of the National Enforcement Database Web 

Site, which provides a standardized data collection process that can be 

used as the basis for an information sharing tool among NRC and 

Agreement States.

Appendix C provides a list of OIG FY 2012 reports relevant to this 

challenge and examples of agency actions addressing the challenge.
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CHALLENGE 2

Management of internal NRC security and oversight of licensee security programs.

Overview

NRC must remain vigilant of the security of its own infrastructure and that 

of nuclear facilities and nuclear material. Ensuring predictability in the 

security environment is an ongoing challenge for NRC. NRC must 

continue to use robust, proactive measures to protect its infrastructure –

the buildings, personnel, and information – from both internal and external 

threats. Moreover, as the nature of the threat continues to evolve, NRC 

faces challenges with protecting nuclear facilities and materials, the 

constant sharing of sensitive information, as well as emergency 

preparedness and incident response. 

Issues

Review and strengthen internal physical and information security 

programs to protect NRC assets (e.g., NRC headquarters and 

regional facilities, safeguards and classified information, and 

information systems).

Manage information in accordance with new Federal Government 

policies for designating, marking, safeguarding, and disseminating 

controlled unclassified information (CUI).

Review and strengthen physical and cyber security inspection 

programs to protect licensee owned assets (e.g., facility designs, 

technology descriptions, dual use material and components, 

safeguards and classified information) from compromise. 

Review nuclear power plant emergency preparedness oversight.

Assessment

During FY 2012, OIG auditors found that while NRC has made 

improvements to the safeguards information (SGI) program, NRC lacked a 

structured process for tracking SGI releases, lacked guidance on granting 
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―outsiders‖ access to SGI, and had inadequate business processes over 

the SGI designator role. OIG also found that while the information systems 

security program has improved, the agency‘s plan of action and milestones 

still needs improvement, the agency has not developed an organizationwide risk management strategy, and configuration management 

procedures are not consistently implemented. 

OIG found sensitive unclassified non-safeguards information (SUNSI)2on 

an NRC shared drive. NRC has not yet fully implemented quality 

assurance checks following network upgrades to ensure that access 

controls are preserved in shared network drives that process documents 

containing SUNSI/CUI.

OIG identified that a more systematic approach to analyzing security 

findings data beyond the regional level can help NRC staff better identify 

licensee performance trends. Further, periodic reviews of the significance 

determination process (SDP) assessment tools and systemic testing of 

new and revised SDP assessment tools can help staff apply SDP 

assessment tools in a more transparent and consistent manner. 

As part of issue area monitoring, OIG reviewed the agency‘s cyber security 

roadmap to understand the status of the staff‘s approach for evaluating 

cyber security at power reactor licensees and combined operating license 

applicants. 

An OIG investigation completed during FY 2012 concerning a contractor‘s 

mishandling of NRC employee personally identifiable information (PII) 

identified a shortcoming in NRC‘s contractual arrangement for the 

contractor to routinely provide PII to the Office of Personnel Management. 

OIG determined that the contractual arrangement did not adequately 

address the retention and destruction of NRC employee PII data.

Appendix C provides a list of OIG FY 2012 reports relevant to this 

challenge and examples of agency actions addressing the challenge.

 

2

SUNSI is any information of which the loss, misuse, modification, or unauthorized access can reasonably 

be foreseen to harm the public interest, the commercial or financial interests of the entity or individual to 

whom the information pertains, the conduct of NRC and Federal programs, or the personal privacy 

of individuals. SUNSI includes allegation information, security-related information, Privacy Act 

information, among others. SUNSI will be included under the new CUI categorization of 

Government information.
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CHALLENGE 3

Management of regulatory processes to meet a changing environment in the 

oversight of nuclear facilities.

Overview

NRC faces the challenge of maintaining its core regulatory programs while 

adapting to changes in its regulatory environment. NRC must address a 

highly variable interest in licensing and constructing new nuclear power 

plants to meet the Nation‘s increasing demands for energy production. As 

of July 2012, NRC had received 18 Combined License applications, 10 of 

which NRC was actively reviewing. Moreover, the agency is reviewing two 

standard design certifications and, for advanced reactors, expects to 

receive two design certification applications and one construction permit 

application through 2014. 

While responding to the emerging demands associated with licensing and 

regulating new reactors, NRC must maintain focus and effectively carry out 

its current regulatory responsibilities, such as inspections of the current 

fleet of operating nuclear reactors and fuel cycle facilities. NRC intends to 

increase its safety focus on licensing and oversight activities through riskinformed and performance-based regulation. 

Further, the U.S. Court of Appeals for the District of Columbia Circuit ruled 

in June 2012 that NRC‘s waste-confidence decision had not adequately 

addressed all environmental effects and thus violated the National 

Environmental Policy Act. In September 2012, the Commission directed 

the NRC staff to develop, within the next 24 months, an environmental 

impact statement, a revised waste confidence decision, and a rule on the 

temporary storage of spent nuclear fuel. While agency staff believe that 

the license application review activities and ongoing plant construction will 

not be delayed by the court ruling, the ultimate impact on final licensing 

decisions and new construction approvals is yet to be determined.
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Issues

New Facilities

Implement the new Construction Inspection Program.

 Risk-inform Construction Inspection Program activities to 

ensure the safe operation of newly constructed nuclear 

facilities.

 Ensure that the NRC staff has the necessary knowledge and 

skill to successfully implement the program.

As the public‘s demand for new energy sources continues, NRC 

must ensure that the process for reviewing applications for new 

facilities focuses on safety and effectiveness. 

As the sources of manufactured reactor components become more 

globalized, NRC must ensure that its regulations and oversight 

activities appropriately address the challenges associated with 

licensees procuring components from suppliers located outside the 

United States.

Existing Fleet

Ensure that NRC maintains the ability to effectively review licensee 

applications for license renewals and power uprates submitted by 

industry in response to the Nation‘s increasing demands for energy 

production.

Respond to a heightened public focus on license renewals resulting 

in contested hearings.

Ensure the ability to identify emerging operating and safety issues at 

all plants, including issues associated with license renewal and 

power uprates; consistently apply regulatory and review changes in 

response to these emerging issues across the existing fleet of 

reactors.
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Establish and maintain effective, stable, and predictable regulatory 

programs or policies for all programs.

Cross-Cutting Issues

Systematically identify and develop, and consistently implement 

internal controls to ensure effectiveness and efficiency of agency 

operations and resources. 

Identify and improve weak, informal, or unstructured processes to 

facilitate effective, efficient, and consistent staff activities.

Improve the clarity, consistency, and comprehensiveness of 

guidance for NRC staff such as the Inspection Manual and 

inter/intra-office guidance.

Assessment

During FY 2012, OIG auditors identified a variety of needs related to new 

facility construction oversight: 

Guidance and training: OIG found that the agency did not have 

formal guidelines governing the use of key documents used in 

construction inspection, and had not established procedures for 

updating the key documents and communicating the changes to 

agency stakeholders. NRC also lacked guidance for some types of 

inspection activity and needed to clarify stakeholder roles and 

responsibilities. Furthermore, NRC needs to design construction 

inspection training programs through a formalized needs 

assessment to ensure that agency staff is receiving appropriate and 

useful training.

Inspection activity tracking: OIG found that one of the agency‘s 

database tools to document new reactor construction activities 

suffered from development delays and inaccurate cost accounting. 

The agency needs to take specific steps to improve oversight of 
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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development of the database.

Manufactured reactor components: OIG found that NRC has not 

developed a formal strategy for evaluating what inspections are 

necessary at modular assembly facilities located away from the 

plant construction site. Furthermore, NRC needs to develop an

interoffice inspection coordination strategy to ensure appropriate 

inspections of modular systems, structures, and components 

assembled or manufactured offsite.

Interoffice coordination: OIG found a lack of sustained coordination 

both within headquarters and between headquarters and Region II 

for new-construction program related activities and interactions. 

These problems would have been minimized if NRC had in place 

formalized change management processes to address 

communications and coordination problems in a changing 

environment.

With regard to the existing fleet, OIG auditors concurred with agency 

proposals in response to OIG recommendations to clarify the guidance 

regarding the process the agency uses to track licensee commitments. 

OIG auditors also noted improvements the agency made to its nuclear 

component vendor oversight program, including vendor inspection 

planning, communications with vendors, and agencywide coordination in 

monitoring for and evaluating counterfeit, fraudulent, and suspect nuclear 

components. However, OIG auditors found weaknesses in NRC‘s 

guidance and compliance with the guidance for the issuance of 

confirmatory action letters, a regulatory tool for confirming a licensee's 

agreement to take certain actions to remove significant concerns about 

health and safety, safeguards, or the environment. NRC needs a 

centralized control point for agencywide oversight and implementation of a 

fully effective confirmatory action letter process. 

Appendix C provides a list of OIG FY 2012 reports relevant to this 

challenge and examples of agency actions addressing the challenge.
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CHALLENGE 4

Management of issues associated with the safe storage of high-level radioactive 

waste when there is no long-term disposal solution.

Overview

NRC regulates high-level radioactive waste generated from commercial 

nuclear power reactors. High-level radioactive waste is either spent (used)

reactor fuel when it is accepted for disposal or waste materials remaining 

after spent fuel is reprocessed. Because of its highly radioactive fission 

products, high-level radioactive waste must be handled and stored with 

care. Since the only way radioactive waste finally becomes harmless is 

through decay, which for high-level waste can take hundreds of thousands 

of years, the waste must be stored and finally disposed of in a way that 

provides adequate protection of the public for a very long time.

The United States has entered a period where the national policy for 

storing, reprocessing, and disposal of spent nuclear fuel is being 

reexamined. With the prospect of spent nuclear fuel being stored at reactor 

sites for the foreseeable future due to the uncertainty surrounding a 

permanent repository for high-level radioactive waste, NRC has been 

reviewing the issues associated with long-term storage. An independent 

spent fuel storage installation (ISFSI) is an NRC–licensed facility designed 

and constructed for the interim storage of spent nuclear fuel and other 

radioactive materials associated with the spent fuel. An ISFSI typically 

consists of a concrete storage pad, storage containers (casks), and any 

support facilities. As of August 2012, there were ISFSIs storing spent 

nuclear fuel or preparing to store spent nuclear fuel in the near term at 62 

different locations across the United States. Of these ISFSI sites, 52 were 

located at operating reactors and the remaining 10 were located away from 

an operating reactor.

In 2010, NRC updated its Waste Confidence Decision—affirming that spent 

nuclear fuel could be safely stored onsite at nuclear power plants until a 

permanent waste repository is built. However, in June 2012, the U.S. 

Court of Appeals for the District of Columbia Circuit ruled that NRC‘s 

waste-confidence decision had not adequately addressed all environmental 

effects and thus violated the National Environmental Policy 
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Act. The Commission affirmed that the agency will not issue licenses 

dependent upon the Waste Confidence Decision until the court‘s remand is 

appropriately addressed.

Issues

Ensure safe and secure interim storage for increasing quantities of 

high-level radioactive waste for the foreseeable future until a 

permanent repository for high-level radioactive waste is operational.

Address regulatory issues relative to a longer-than-anticipated time 

for interim storage of high-level waste.

Maintain flexibility to address regulatory challenges related to the 

storage and transportation of spent nuclear fuel and high-level 

waste.

Assessment

In FY 2011, OIG audited the safety aspect of NRC‘s oversight of ISFSIs 

and identified areas where the agency could improve. OIG found that there 

is no formalized agencywide training program for ISFSI safety inspectors. 

When ISFSI safety inspectors do not have a consistent understanding of 

agency inspection requirements, oversight can be compromised. 

Specifically, there is an increased potential for inadequate inspections to 

occur, which could result in an increased risk to public health and safety. 

In response to OIG‘s finding, NRC is developing training for ISFSI safety 

inspectors. OIG also found that the period between routine ISFSI 

inspections varies among regions from 1 to almost 6 years. The inspection 

frequencies vary because the frequency required to conduct routine ISFSI 

inspections is not clearly defined. Routine ISFSI safety inspections could 

be delayed indefinitely without clearly defined inspection frequency 

guidance, potentially increasing the risk to public health and safety. In 

response to OIG‘s finding, NRC staff is revising its inspection manual 

establishing a minimum frequency for conducting routine ISFSI safety 

inspections.

Appendix C provides a list of OIG FY 2012 reports relevant to this 

challenge and examples of agency actions addressing the challenge.
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CHALLENGE 5

Management of information technology.

Overview

NRC needs to continue upgrading and modernizing its information 

technology (IT) capabilities to meet its IT/information management strategic 

goals. These goals include ensuring NRC staff have quick and easy 

access to information, providing IT solutions that are easy to use and 

increase agency program performance, and delivering excellent service.

Issues

Upgrade or adopt information technology activities to improve the 

productivity, efficiency, and effectiveness of agency programs and 

operations.

Expand mobile computing – ―working from anywhere‖ – options such 

as remote access from NRC-issued laptops, non-NRC computers, 

and hand-held devices including a ―bring your own devices‖ pilot 

program to allow for the distributed work locations of NRC staff.

Improve information retrieval with better categorization and 

organization, enterprise content management, and improved search 

capabilities.

Enhance ―working with anyone‖ capabilities to include virtual 

meeting and collaboration tools with internal and external

stakeholders including licensees and the public.

Assessment

As part of the OIG‘s Issue Area Monitor program,

3 OIG reviewed the 

agency‘s pilot program for Quick Response codes. Quick Response code 

is a two-dimensional code that has fast readability and large storage 

capacity compared to standard barcodes. In August 2011, Region III 

 

3 Under the Issue Area Monitor Program, OIG staff assigned to various issue areas monitor agency 

performance on these management challenges.
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began implementing a 3-month initiative to evaluate the feasibility and 

effectiveness of using Quick Response codes. Region III concluded that 

the continued use of Quick Response codes would be of benefit to the 

NRC in its efforts to conduct business in an open and transparent manner, 

while seeking innovative methods to communicate with external

stakeholders. 

OIG is reviewing NRC‘s data center consolidation initiative,4IT acquisition 

program improvements, and IT asset review process5per Office of 

Management and Budget guidance and policy. OIG is also currently 

reviewing the operational capabilities and performance of an NRC 

information support system - SLES.6

Appendix C provides a list of OIG FY 2012 reports relevant to this 

challenge and examples of agency actions addressing the challenge.

 

4 NRC is pursuing consolidation of data center assets in response to the Federal Data Center 

Consolidation Initiative (FDCCI) guidance published by the Office of Management and Budget (OMB). The 

FDCCI aims to promote the use of Green IT, reduce costs of data center hardware, increase overall IT 

security posture, and shift IT investments to more efficient computing platforms and technologies.

5 NRC is in the process of reengineering its IT governance process and IT asset review process in 

response to OMB guidance. The 25-Point Implementation Plan to Reform Federal Information Technology 

Management requires agencies to reform and strengthen IT investment review boards and to implement 

an IT review process called TechStat. TechStat sessions are face-to-face evidence-based reviews of IT 

programs. The goal of these sessions is to determine whether to turn around, halt, or terminate 

investments that do not provide value to U.S. citizens.

6

SLES - the Safeguards Information Local Area Network and Electronic Safe – is NRC‘s secure content 

management system for safeguards information. Safeguards information is defined as information the 

disclosure of which could reasonably be expected to have a significant adverse effect on the health and 

safety on the public and/or common defense and security by significantly increasing the likelihood of theft, 

diversion, or sabotage of materials or facilities subject to NRC jurisdiction.
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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CHALLENGE 6

Administration of all aspects of financial management and procurement.

NRC management is responsible for meeting the objectives of several 

statutes, including the Federal Managers‘ Financial Integrity Act. This act 

mandates that NRC establish controls that reasonably ensure that 

(1) obligations and costs comply with applicable law; (2) assets are 

safeguarded against waste, loss, unauthorized use, or misappropriation; 

and (3) revenues and expenditures are properly recorded and accounted 

for. This act encompasses program operational and administrative areas, 

as well as accounting and financial management.

NRC‘s procurement of goods and services must be made with an aim to 

achieve the best value for the agency‘s dollars in a timely manner. Agency 

policy provides that NRC‘s procurement of goods and services should 

support the agency‘s mission; be planned, awarded, and administered 

efficiently and effectively; and be consistent with sound business practices 

and contracting principles. Agency efforts are currently focused on the 

goals of achieving (1) a 21st century acquisition program that uses state-ofthe-art acquisition methodologies for acquisition planning, execution, 

management, and closeout, and (2) an acquisition program that fully 

integrates with agencywide program and financial planning and execution. 

Issues

Financial Management

Respond to the flat budget environment. 

Improve the performance and functionality of the agency‘s core 

financial system. 

Implement a new travel management system. 
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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Procurement 

Respond to Commission direction to implement a 21st century 

acquisition program that will consider broader agency programmatic 

requirements.

Implement an acquisition system that is integrated with the agency's 

core financial system.

Assessment:

Financial Management

During FY 2012, OIG audits relevant to this challenge identified that NRC 

continues to have sound financial management practices. For example, 

the Audit of the NRC’s Financial Statements for Fiscal Year 2011 resulted 

in an unqualified audit opinion. Moreover, other OIG audits with financial 

aspects demonstrated that NRC is in compliance with Federal laws and 

standards related to financial management.

OIG continues to monitor the agency‘s new core financial system, the 

Financial Accounting and Integrated Management Information System 

(FAIMIS). OIG periodically meets with the Office of the Chief Financial 

Officer to discuss ongoing issues with FAIMIS. Current audits demonstrate 

that OIG is committed to identifying areas needing improvement. OIG is 

currently conducting audits of NRC‘s budget execution process and travel 

charge card program, which require OIG auditors to review information 

generated from FAIMIS. 

Procurement

OIG continues to monitor the agency‘s procurement activities through 

quarterly meetings with the NRC Division of Contracts. During FY 2012, 

OIG issued a report on an audit of NRC‘s contract award process. 

Additionally, OIG conducted an audit of a contract related to an agency 

system.

Appendix C provides a list of OIG FY 2012 reports relevant to this 

challenge and examples of agency actions addressing the challenge.
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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CHALLENGE 7

Management of human capital.

For several years, NRC experienced significant growth resulting from an 

increased interest in nuclear power. During FY 2012, NRC‘s workforce 

was approximately 4,000 staff positions and it is unlikely that NRC will see 

any growth over the next several years. Going forward, NRC will need to 

support increasing mandates within a zero-growth or declining budget 

environment. NRC must institutionalize an approach that focuses on its 

mission of protecting the public health and safety while remaining mindful 

of staff needs. To manage human capital effectively, while continuing to 

accomplish the agency‘s mission, NRC must continue to implement 

initiatives in the following areas:

Reducing inefficiencies and overhead by centralizing and streamlining 

processes while maintaining or improving the level of customer service.

Space planning.

Issues

Respond to the flat budget environment. 

Adapt training and development programs to the changing needs of 

agency staff.

Address knowledge management in light of the high number of senior 

experts and managers who are or will be eligible to retire.

Facilitate continuation of its space planning efforts, including completion 

of the Three White Flint North building at NRC headquarters.

Assessment

OIG continues to monitor the agency‘s budget and hiring practices through 

quarterly meetings with offices in the corporate management area. 

Additionally, during our audits and evaluations, OIG considers both 

budgeting information for NRC programs and training needs for staff and 
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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makes recommendations, as appropriate, for improvements in these areas. 

For example, OIG discussed improvements needed in the training offered 

by the agency in reports concerning NRC‘s (1) contract award process; (2) 

management of import/export authorizations; (3) Inspections, Tests, 

Analyses, and Acceptance Criteria process; and (4) protection of 

Safeguards Information.

With regard to the construction efforts of Three White Flint North, OIG 

continues to meet on a quarterly basis with the Directorate for Space 

Planning and Consolidation, Office of Administration. Updates on 

construction and any scheduling changes for the transition of staff to the 

new building are communicated during these meetings. 

OIG investigations completed during FY 2012 pertained to various human 

capital issues. For example, several investigations addressed misuse of 

the Government travel card by charging non-travel related expenses, and 

one identified a contractor‘s misuse of Government resources by viewing 

inappropriate material. While some of the individuals who misused these 

resources had received counseling that such activities were prohibited, 

continued misuse in these areas suggests a need for broader and clearer 

messaging in these areas. Another investigation identified that NRC 

managers and staff can do a better job of ensuring that employee official 

travel destinations are necessary to execute NRC‘s mission and to ensure 

that traveler-claimed expenses are authorized, necessary, and related to 

the official travel purpose. In a separate matter, OIG investigations 

identified an employee who provided fraudulent material to support a 

permanent change of station move.

Appendix C provides a list of OIG FY 2012 reports relevant to this 

challenge and examples of agency actions addressing the challenge.
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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IV. CONCLUSION

The seven challenges contained in this report are distinct, yet are 

interdependent to accomplishing NRC‘s mission. For example, the 

challenge of managing human capital affects all other management and 

performance challenges. 

The agency‘s continued progress in taking actions to address the 

challenges presented should facilitate achieving the agency‘s mission and 

goals.
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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Appendix A

OBJECTIVE, SCOPE, AND METHODOLOGY

OBJECTIVE

The evaluation objective was for the IG, in accordance with the Reports

Consolidation Act of 2000, to update what he considers to be the most 

serious management and performance challenges facing the agency. 

SCOPE

This evaluation focused on the IG‘s annual assessment of the most serious 

management and performance challenges facing the NRC. The 

challenges represent critical areas or difficult tasks that warrant high level 

management attention. To accomplish this work, the OIG focused on 

determining (1) current challenges, (2) the agency‘s efforts to address the 

challenges during FY 2012, and (3) planned agency efforts to address the 

challenges.

METHODOLOGY

OIG reviewed and analyzed pertinent laws and authoritative guidance, 

agency documents, and OIG reports, and sought input from NRC officials 

concerning agency accomplishments relative to the challenge areas and 

suggestions they had for updating the challenges. Specifically, because 

challenges affect mission critical areas or programs that have the potential 

to impact agency operations or strategic goals, NRC Commission 

members, offices that report to the Commission, the Executive Director for 

Operations, and the Chief Financial Officer were afforded the opportunity to 

share any information and insights on this subject. 

OIG staff conducted this evaluation from May through August 2012 at NRC 

headquarters. 
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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Appendix B

CHANGES TO THE MANAGEMENT AND PERFORMANCE 

CHALLENGES IN 2012

The 2012 list of challenges reflects several changes from the 2011 list (see 

footnote below7for a listing of the 2011 challenges):

Challenge 1 was reworded to ―Management of regulatory processes to 

meet a changing environment in the oversight of nuclear materials‖ to be 

parallel with Challenge 3‘s emphasis on the regulator‘s need to stay in 

step with changing oversight environments. 

Challenge 2, ―Management of internal NRC security and oversight of 

licensee security programs,‖ now addresses physical security, information 

security, personnel security, and nuclear security. 

Challenge 4, ―Management of issues associated with the safe storage of 

high-level radioactive waste when there is no long-term disposal 

solution,‖ now focuses specifically on the high-level waste (with low-level 

waste issues now addressed under Challenge 1). 

Challenge 5, ―Management of information technology,‖ was revised to 

focus on NRC‘s use of information technology (with the security aspects 

of IT management now addressed under challenge 2). 

Additionally, minor editorial changes were made to challenges 3 and 7 for 

parallel grammatical structure. No changes were made to challenge 6.

 

7

The 2011 challenges were: (1) Oversight of nuclear material used for civilian purposes, (2) Managing 

information to balance security with openness and accountability, (3) Ability to modify regulatory processes 

to meet a changing environment in the oversight of nuclear facilities, (4) Oversight of radiological waste, 

(5) Implementation of information technology and information security measures, (6) Administration of all 

aspects of financial management and procurement, and (7) Managing human capital.
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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Appendix C

OIG REPORTS8 AND AGENCY ACTIONS ADDRESSING THE 

MANAGEMENT AND PERFORMANCE CHALLENGES

1. Management of regulatory processes to meet a changing 

environment in the oversight of nuclear materials.

OIG Reports Addressing Challenge 1

Audit of NRC's Oversight of Decommissioned Uranium Recovery 

Sites and Sites Undergoing Decommissioning, OIG-12-A-06

Audit of NRC’s Issuance of General Licenses, OIG-12-A-14

Audit of NRC’s Oversight of Industrial Radiography, OIG-12-A-15

Audit of NRC’s 10 CFR Part 31 General Licensing Program, OIG12-A-21

Agency Actions Addressing Challenge 1

NRC continues to work towards integrating the licensing and tracking of 

source materials under one management mechanism. While NRC has

deployed upgrades to the National Source Tracking System, it also 

continues development of Web-Based Licensing and the License 

Verification System.

In addition to collecting information in the National Source Tracking 

System, NRC launched a pilot inspection program to collect information on 

self-shielded irradiators and other irradiators. The purpose of the pilot is to 

assess the need to modify the current inspection program to determine 

if more frequent inspections would result in greater compliance with 

security requirements. 

NRC continues to work on issues regarding the continued disagreement in 

the medical community about the definition of a medical event. 

NRC has been working to resolve issues of material control and accounting 

in response to a 2003 OIG audit report. NRC has implemented a rule 

 

8

The listing of OIG reports addressing each challenge provides some of the audit and investigative reports 

issued in the challenge area during fiscal 2012, but is not intended to be all-inclusive.
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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change requiring improved reporting and reconciliation for licensees 

reporting to the Nuclear Materials Management and 

Safeguards System, and continues to verify the adequacy of material 

control and accounting of special nuclear material at NRC–licensed 

facilities. Additionally, the Commission has directed NRC staff to revise 

and consolidate current material control and accounting regulations into 

Title 10, Code of Federal Regulations, Part 74. The final rule and 

associated guidance is scheduled to be completed by December 31, 2012. 

2. Management of internal NRC security and oversight of licensee 

security programs.

OIG Reports Addressing Challenge 2

Independent Evaluation of NRC’s Implementation of the Federal 

Information Security Management Act (FISMA) for FY 2011, OIG12-A-04

Audit of NRC’s Management of the Baseline Security Inspection 

Program, OIG-12-A-10

Audit of NRC’s Protection of Safeguards Information (SGI), 

OIG-12-A-12

Mishandling of Personally Identifiable Information by an ILearn 

Contractor, OIG Case No. 11-26

Evaluation Report- Information Security Risk Evaluation of Region II, 

Atlanta, GA, OIG-12-A-17

Evaluation Report- Information Security Risk Evaluation of Region 

III, Lisle, IL, OIG-12-A-22

Agency Actions Addressing Challenge 2

NRC participated in working groups with the National Archives and 

Records Administration‘s Controlled Unclassified Information Office (CUIO) 

to develop policies for marking, safeguarding, dissemination, decontrol, 

and destruction of CUI, and submitted NRC‘s CUI Implementation Plan to 

the CUIO. The agency also ensured that Privacy Act compliance activities

were completed, such as Privacy Impact Assessments, requirements of 

Office of Management and Budget (OMB) Circular A-130, and OMB 

requirements for personally identifiable information. The agency updated 
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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online personally identifiable information roles and responsibilities annual 

training to include role based scenarios.

In FY 2012, the staff initiated plans to reintegrate the Security Cornerstone 

into the Reactor Oversight Process performance assessment program. 

The staff exhibited the NRC values of openness and integrity in its efforts 

to apprise all stakeholders of the details and timeframes associated with 

the implementation plan. Specifically, the staff issued a Regulatory Issue 

Summary and presented the implementation plan to internal and external 

stakeholders in various forums, including the 2012 Regulatory Information 

Conference and other public meetings. Reintegration of security into the 

Reactor Oversight Process assessment program also involves changes to 

the NRC‘s public Web site; these changes will be made in August 2012 to 

reflect licensee performance within the Security Cornerstone without 

disclosing sensitive, security-related information, consistent with current 

Commission policy.

The Office of Nuclear Security and Incident Response supported multiple 

industry hosted public workshops on cyber security in order to increase 

awareness of NRC actions in this area. The office has worked with the 

university system and specifically the University of Maryland to exchange 

cyber security information.

3. Management of regulatory processes to meet a changing 

environment in the oversight of nuclear facilities.

OIG Reports Addressing Challenge 3

Audit of NRC’s Use of Confirmatory Action Letters, OIG-12-A-09 

Audit of NRC’s Inspections, Tests, Analyses, and Acceptance 

Criteria (ITAAC) Process, OIG-12-A-16

Audit of NRC’s Use of Orders, OIG-12-A-19

Agency Actions Addressing Challenge 3

NRC has embarked on a number of actions in response to the Japan 

nuclear accident in March 2011. Since then, the agency issued the first 

regulatory requirements for the Nation‘s 104 operating reactors based on 

the lessons-learned at Fukushima Dai-ichi. The NRC continues to evaluate 
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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and act on the lessons learned to ensure that appropriate safety 

enhancements are implemented at U.S. nuclear power plants. NRC‘s 

activities are being led by a steering committee comprised of senior NRC 

management. Additionally, NRC established the Japan Lessons 

Learned Project Directorate, a group of more than 20 full-time employees 

focused exclusively on implementing the lessons learned.

The staff is currently conducting oversight activities at the new power 

reactor construction sites at Vogtle and V.C. Summer. NRC‘s Region II 

has established a resident inspector‘s office at each site. Each office now 

has a construction senior resident inspector and two construction resident 

inspectors. In addition, Region II sends construction inspectors from the 

regional office to inspect construction activities at the sites. Furthermore, 

the agency has undertaken an effort to enhance the assessment of plant 

performance during construction through the development of a new 

assessment process. NRC staff began a 12-month pilot of the new 

program on January 2012 at the Vogtle construction site and on March 

2012 at the Summer construction site. The staff plans to provide 

recommendations to the Commission based on results of the pilot by April 

2013.

NRC also undertook an effort to obtain feedback from rulemaking programs 

across the agency to address cumulative effects of regulation and other 

aspects of rulemaking. 

4. Management of issues associated with the safe storage of highlevel waste when there is no long-term disposal solution.

OIG Reports Addressing Challenge 4

No reports were issued in FY 2012; an audit of NRC‘s oversight of spent 

fuel pools is planned for FY 2013.

Agency Actions Addressing Challenge 4

Because the U.S. Court of Appeals for the District of Columbia Circuit 

found that the NRC violated the National Environmental Policy Act in 

issuing its 2010 update to the Waste Confidence Decision and 
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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accompanying Temporary Storage Rule, the Commission has directed 

NRC staff not to issue licenses for new reactors or to issue renewed 

licenses for existing reactors until the court‘s remand is appropriately 

addressed.

Currently, NRC does not have active safety oversight responsibilities at the 

potential Yucca Mountain repository site. When the U.S. Department of 

Energy, Office of Civilian Radioactive Waste Management, discontinued 

site activities and closed its Yucca Mountain Project Office, the NRC closed 

its Las Vegas Onsite Representatives Office.

Challenge 5. Management of information technology.

OIG Reports Addressing Challenge 5

No reports were issued in FY 2012; an audit on the Safeguards Local Area 

Network and Electronic Safe is underway and FY 2013 audits are planned 

to address NRC‘s information technology readiness for Three White Flint 

North and the Financial Accounting and Integrated Management 

Information System (FAIMIS).

Agency Actions Addressing Challenge 5

OIS published the NRC Open Government plans for FY 2013 and FY 2014. 

NRC‘s Open Government program intersects with OMB‘s Digital 

Government Strategy regarding the use of mobile technology to further 

stakeholder engagement. OMB‘s strategy provides a framework for 

moving information safely and securely to internal and external 

stakeholders and puts additional focus on making high value data more 

readily usable, irrespective of the technology used to access it. 

NRC continued to implement the National Source Tracking System with a 

focus on ensuring data integrity and increasing online usage of the system. 

The agency also leveraged information technology, including established 

listservs, to notify States regarding relevant NRC regulatory actions, and 

build an infrastructure to support more effective communication and 

outreach to Tribal governments.
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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The agency streamlined the NRC IT/Information Management governance 

process in keeping with current best practices and Office of Management 

and Budget requirements (e.g., using PortfolioStat and TechStat tools such 

as a training deck, guidance documents, briefing deck, and other various 

templates, and process). In addition, improvements were made to the 

Agencywide Documents Access and Management System to provide new 

features and capabilities to make the user experience more efficient and 

effective.

The agency also continued to participate in planning and building the new 

headquarters building and datacenter to ensure efficient, cost-effective, 

and future-thinking IT infrastructure requirements are understood and 

included. 

NRC enhanced the base laptop program which provides several enabling 

technologies for mobile users and supports the capability to  ̳Work from 

Anywhere.‘ Enhancements included the addition of WiFi capability on 

Mobile Desktops and agency loaner laptops.

An effort is underway to offer the Bring your Own Device service to provide

agency staff with secure, remote access to agency e-mail, calendar, and 

contact data on personally owned mobile devices (e.g., tablets and 

smartphones).

Challenge 6. Administration of all aspects of financial management 

and procurement.

OIG Reports Addressing Challenge 6

Independent Evaluation of NRC’s Contract Award Process, OIG-12-

A-02

Results of the Audit of the United States Nuclear Regulatory 

Commission’s Financial Statements for Fiscal Year 2011, OIG-12-A03

Independent Auditor's Report on the U.S. Nuclear Regulatory 

Commission's Special-Purpose Financial Statements as of 

September 30, 2011, and for the Year Then Ended, OIG-12-A-05
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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Audit of NRC's Implementation of the Federal Managers' Financial 

Integrity Act for Fiscal Year 2011, OIG-12-A-07

Independent Auditor's Report on the Condensed Financial 

Statements, OIG-12-A-08

Audit of NRC’s FY 2011 Compliance With the Improper Payment 

Elimination and Recovery Act of 2010, OIG-12-A-11

Audit of NRC's Management of Import/Export Authorizations, 

OIG-12-A-13

Audit of NRC‘s Contract Administration of the EPM contract, OIG12-A-18

Audit of NRC‘s Oversight of the Agency‘s Federally Funded 

Research and Development Center, OIG-12-A-20

Agency Actions Addressing Challenge 6

Financial Management

As with many other Federal agencies, NRC has had to meet its mission in 

the face of budget cuts that have flattened the agency‘s budget. NRC has 

worked to reorganize its budget process in an effort to target areas of 

inefficiencies. NRC also established a Transforming Assets into Business 

Solutions Task Force to analyze and assess NRC‘s business practices and 

develop a plan to reduce the duplication of efforts in corporate and office 

support areas. The agency is continuing to implement the 

recommendations of the task force.

At the beginning of FY 2011, NRC deployed its new core financial 

management system, FAIMIS. During FY 2012, the agency transferred the 

hosting responsibilities for FAIMIS to a new service provider. While 

FAIMIS has been operational for nearly two fiscal years, there are still a 

number of functionalities that need improvement including: (1) the reports 

used by agency staff to reconcile budget and accounting information, and 

(2) the cost accounting module. To address operational challenges of 

FAIMIS, the agency has continued to employ several change management 

and organizational communication strategies. 

Regarding NRC‘s travel management system, the current contract for the 

governmentwide eTravel system expires at the beginning of FY 2014. The 
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

31

General Services Administration announced a new vendor in June 2012; 

however, procurement activities have been suspended pending resolution 

of a protest from an unsuccessful bidder.

Procurement

NRC executed its first enterprise-wide contract in the area of education and 

training through its strategic acquisition effort. This resulted in the 

reduction from 13 vendors to 3 and significant cost savings. Further 

initiatives are underway in the areas of information technology, meetings

and conferences, and technical assistance/research.

Additionally, on May 31, 2012, NRC entered into an interagency agreement 

with Department of Transportation for the implementation of a 

new acquisition system. This system will be integrated with FAIMIS. The 

agency expects the system to be fully implemented by early FY 2014.

Challenge 7. Management of human capital.

OIG Reports Addressing Challenge 7

Independent Evaluation of NRC’s Contract Award Process, 

OIG-12-A-02

Audit of NRC’s Protection of Safeguards Information, OIG-12-A-12 

Audit of NRC’s Management of Import/Export Authorizations, 

OIG-12-A-13

Audit of NRC’s Inspections, Tests, Analyses, and Acceptance 

Criteria, OIG-12-A-16

Questionable Travel Claims by Office of Nuclear Materials Safety 

and Safeguards Employees, Case No. 08-51

Misuse of Government Travel Card, Case Nos. 11-34, 11-36, 

and 11-39

Misuse of Government Computer by an Office of Information 

Services Contractor Employee, Case No. 11-62

Misuse of NRC Citibank Travel Credit Card and Change of Station 

Fraud by an Office of New Reactors Employee, Case No. 11-01
Inspector General‘s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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Agency Actions Addressing Challenge 7

As NRC continues to transition from a period of aggressive growth to a flat 

budget, it is critical that the agency has the most effective organizational 

structure possible. Agency staffing levels have stabilized and it is unlikely 

that the agency will see any growth over the next several years. As a 

result, the agency is currently working to institutionalize a workforce 

planning process that will ensure the agency has the appropriate number of 

staff with the right skills and experience to ensure successful job 

performance and realization of organizational objectives. 

The agency has also implemented three enterprise wide knowledge 

management initiatives: (1) identifying high-value/high-risk (of loss) 

knowledge and skills the Agency currently possesses; (2) capturing and 

sharing that high-value/high-risk knowledge with other agency staff before 

it is lost; and (3) identifying high-value opportunities for creation of 

communities of practice that enable the sharing of knowledge and skills 

among those employees who perform the same job function. 

Additionally, the relocation of headquarters staff to Three White Flint North

is scheduled to be completed by March 2013. Currently, to access Three 

White Flint North, agency employees will have to cross Marinelli Road, a 

multi-lane road. There is no funding in the budget for either above ground 

or underground pedestrian access between One White Flint North and 

Three White Flint North. The Montgomery County Department of 

Transportation and NRC are continuing to work together to maximize 

pedestrian safety around the White Flint complex.