EVALUATION REPORT

Inspector General’s Assessment of the

Most Serious Management and Performance

Challenges Facing NRC

OIG-12-A-01 October 3, 2011

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 3, 2011

MEMORANDUM TO: Chairman Jaczko

FROM: Hubert T. Bell /RA/

Inspector General

SUBJECT: INSPECTOR GENERAL’S ASSESSMENT OF THE MOST

SERIOUS MANAGEMENT AND PERFORMANCE

CHALLENGES FACING NRC (OIG-12-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. The agency 

provided comments on this report, which have been incorporated as appropriate. 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
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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EXECUTIVE SUMMARY

BACKGROUND

The Reports Consolidation Act of 2000 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. 

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. 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 2011 list of challenges reflects two changes from the 2010 list. Prior 

Challenge 1, Protection of nuclear material used for civilian purposes, was 

reworded to Oversight of nuclear material used for civilian purposes. This 

change was made to more accurately describe NRC’s regulatory oversight role 

relative to nuclear material as NRC does not directly protect nuclear material, 

but provides oversight of licensees who are charged to protect the material. 

Prior Challenge 3, Ability to modify regulatory processes to meet a changing 

environment, to include the licensing of new nuclear facilities, was reworded to 
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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reflect changing economic conditions for new facility construction, as well as 

ongoing efforts to evaluate post-Fukushima Dai-ichi lessons learned for NRC’s 

oversight of currently operating facilities. Current Challenge now 3 reads Ability 

to modify regulatory processes to meet a changing environment in the oversight 

of nuclear facilities.

The following chart provides an overview of the seven most serious 

management and performance challenges as of October 1, 2011.

Most Serious Management and Performance Challenges Facing the Nuclear 

Regulatory Commission as of October 1, 2011*

(as identified by the Inspector General)

Challenge 1 Oversight of nuclear material used for civilian purposes.

Challenge 2 Managing information to balance security with openness and 

accountability.

Challenge 3 Ability to modify regulatory processes to meet a changing 

environment in the oversight of nuclear facilities.

Challenge 4 Oversight of radiological waste.

Challenge 5 Implementation of information technology and information 

security measures.

Challenge 6 Administration of all aspects of financial management and 

procurement.

Challenge 7 Managing human capital.

*The most serious management and performance challenges are not 

ranked in any order of importance.
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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. 

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

ADSA Associate Directorate for Strategic Acquisition 

ASLB Atomic Safety Licensing Board

CUI controlled unclassified information

DOE U.S. Department of Energy

FAIMIS Financial Accounting and Integrated Management 

Information System

GALL Generic Aging Lessons Learned

IG Inspector General

ITAAC inspections, tests, analyses, and acceptance criteria

NRC U.S. Nuclear Regulatory Commission

OIG Office of the Inspector General

3WFN Three White Flint North
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TABLE OF CONTENTS

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

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

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

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

III. EVALUATION RESULTS................................................................................ 2

Challenge 1 Oversight of nuclear material used for civilian 

purposes....................................................................................... 5

Challenge 2 Managing information to balance security with 

openness and accountability ...................................................... 10

Challenge 3 Ability to modify regulatory processes to meet a 

changing environment in the oversight of nuclear facilities ........ 13

Challenge 4 Oversight of radiological waste................................................... 19

Challenge 5 Implementation of information technology and 

information security measures.................................................... 22

Challenge 6 Administration of all aspects of financial

management and procurement .................................................. 25

Challenge 7 Managing human capital ............................................................ 31

IV. CONCLUSION .............................................................................................. 34

APPENDIX

SCOPE AND METHODOLOGY ......................................................................... 35 
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I. BACKGROUND

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

2000 (Reports Act), 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 Reports 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 Act’s provisions, 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.

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.
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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.

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 2011, 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. The 2011

list of challenges reflects two changes from the 2010 list: 

Prior Challenge 1, Protection of nuclear material used for civilian 

purposes, was reworded to Oversight of nuclear material used for civilian 

purposes. This change was made to more accurately describe NRC’s 

regulatory oversight role relative to nuclear material as NRC does not 

directly protect nuclear material, but provides oversight of licensees who 

are charged to protect the material.

Prior Challenge 3, Ability to modify regulatory processes to meet a 

changing environment, to include the licensing of new nuclear facilities, 
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was reworded to reflect changing economic conditions for new facility 

construction, as well as ongoing efforts to evaluate post-Fukushima 

Dai-ichi lessons learned for NRC’s oversight of currently operating 

facilities. Current Challenge 3 now reads Ability to modify regulatory 

processes to meet a changing environment in the oversight of nuclear 

facilities.

The following chart provides an overview of the seven challenges

identified as most serious. The sections that follow the chart provide more 

detailed descriptions of the challenges, descriptive examples related to the 

challenges, and examples of efforts that the agency has taken or are 

underway or planned to address the challenges. 
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Most Serious Management and Performance Challenges Facing the Nuclear 

Regulatory Commission as of October 1, 2011*

(as identified by the Inspector General)

Challenge 1 Oversight of nuclear material used for civilian purposes.

Challenge 2 Managing information to balance security with openness and 

accountability.

Challenge 3 Ability to modify regulatory processes to meet a changing 

environment in the oversight of nuclear facilities.

Challenge 4 Oversight of radiological waste.

Challenge 5 Implementation of information technology and information 

security measures.

Challenge 6 Administration of all aspects of financial management and 

procurement.

Challenge 7 Managing human capital.

*The most serious management and performance challenges are not 

ranked in any order of importance.
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CHALLENGE 1

Oversight of nuclear material used for civilian purposes.

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. 

NRC’s regulations require that certain material licensees have extensive 

material control and accounting programs as a condition of their licenses. 

All other license applicants (including those requesting authorization to 

possess small quantities of special nuclear materials) must develop and 

implement plans that demonstrate a commitment to accurately control and 

account for radioactive materials.

NRC may relinquish to States, upon their request, its authority to regulate 

certain radioactive materials and limited quantities of special nuclear 

material. After these States demonstrate that their regulatory programs 

are adequate to protect public health and safety and compatible with 

NRC’s program, the States enter into an agreement assuming this 

regulatory authority from NRC and are called Agreement States.

The issues related to this challenge and the agency’s actions to address 

each issue include the following:

Issue: Implement 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. 

Action: Since the National Source Tracking System became 

operational in December 2008, NRC has continued implementation 

of and improvements to the system. Version 2.0 was deployed in 

May 2011. Revisions included functionality improvements 

designed to broaden system capabilities for all users. NRC is also 

continuing development of Web-Based Licensing and the License 

Verification System. Further, NRC is working to integrate these 

NSTS logo. Source: NRC
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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systems with the National Source Tracking System to license and 

track source materials under one management mechanism.

Issue: Ensure that radioactive material is adequately protected to 

preclude its use for malicious purposes. 

Action: Although NRC initiated a rulemaking to 

expand the materials tracked in the National 

Source Tracking System, the decision and 

potential implementation of that rulemaking was 

not approved by the Commission. As a result, the 

system is available to licensees to report 

transactions involving Code of Conduct1 materials 

in only categories 1 and 2. NRC has provided 

licensees with multiple ways of reporting such 

transactions. About 60 percent of transactions are 

submitted electronically and about 40 percent are 

submitted via facsimile machine, U.S. Postal 

Service, or e-mail. NRC continues to work on getting more 

licensees to use the online system and contracted with a local 

marketing firm to help improve the online use of the 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. One 

radioactive compound used in irradiators that is of particular 

concern for malicious use is cesium-chloride. The U.S. National 

Academy of Sciences issued a report emphasizing that 

replacement technologies be considered for cesium-chloride, a 

highly dispersible chemical form of the radioactive isotope of 

Cesium, Cs-137. Cesium-chloride is very soluble in water and 

 

1

In January 2004, the International Atomic Energy Agency published the Code of Conduct on the Safety 

and Security of Radioactive Sources as the standard the international community uses to govern the 

safety and security of radioactive materials based on the categorization system. While the International 

Atomic Energy Agency classifies sources into five categories, it notes that sources in categories one 

through three are designated as varying degrees of dangerous.

Code of Conduct. 

Source: 

www.iaea.org
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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easily dispersed in the air and is highly toxic if ingested. Cesiumchloride, used in nuclear medicine, research, and industry, is 

typically double sealed and contained in a stainless steel capsule 

for safety reasons. In light of the views on alternative technologies 

as a replacement, NRC convened public workshops to seek input 

from various stakeholders. NRC also commissioned a study by its 

Advisory Committee on the Medical Uses of Isotopes. After 

carefully considering all these inputs, as well as the NRC’s own 

internal analysis, the agency concluded that near-term replacement 

of cesium-chloride devices was not practicable, and would be 

detrimental to the delivery of medical care and research. As a 

result, NRC updated its policy statement, which still allows for the 

safe and secure use of cesium chloride and further states that the 

development and use of alternative forms of the material are 

prudent but not required.

Issue: Ensure the appropriate oversight of uranium recovery facilities.

Action: NRC maintains a 

regulatory oversight program 

with respect to licensing and 

inspection of uranium 

recovery facilities to ensure 

that licensees conduct 

activities safely and in an 

environmentally protective 

manner. NRC regulates six in 

situ2recovery facilities,

3

one 

conventional mill, and 11 mill sites undergoing decommissioning in 

the Western States. 

Additionally, NRC works with the Department of Energy (DOE) 

regarding abandoned uranium mill tailing sites that are covered by 

Title I of the Uranium Mill tailings Radiation Control Act of 1978. 

 

2

In situ recovery is one of the two primary extraction methods that are currently used to obtain uranium 

from underground. These facilities recover uranium from low-grade ores where other mining and milling 

methods may be too expensive or environmentally disruptive.

3 One of the five in situ recovery facilities has been in litigation for 10 years and there has been no 

construction at that site; therefore, NRC’s regulatory oversight is minimal.

Crow Butte In Situ Recovery Facility. 

Source: NRC Web site 
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Under a general license from NRC, DOE is responsible for cleanup 

and remediation of these sites.

Issue: Ensure reliable accounting of special nuclear materials in the NRC 

and DOE jointly managed Nuclear Materials Management and Safeguards 

System.

Action: NRC has been working for over 8 years to resolve issues 

of material control and accounting in response to OIG’s 2003 

report, OIG-03-A-15, Audit of NRC’s Regulatory Oversight of 

Special Nuclear Materials. On February 7, 2008, NRC approved a 

final rule that amended its regulations to improve the accuracy of 

material inventory information maintained in the Nuclear Materials 

Management and Safeguards System. The amendments, effective 

January 1, 2009, lower the threshold of reportable quantities of 

special nuclear materials and certain source materials to the 

Nuclear Materials Management and Safeguards System, modify

the types and timing of submittals to the system, and require

licensees to reconcile any material inventory discrepancies that 

NRC identifies in the system database. NRC reports that it has 

implemented the rule 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 the NRC staff to revise and consolidate current 

material control and accounting regulations into Title 10, Code of 

Federal Regulations, Part 74. The proposed rule is scheduled to 

be published for public comment in late 2011. The final rule and 

associated guidance is scheduled to be completed by August 30, 

2012.
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Issue: Ensure that Agreement State programs are adequate to protect 

public health and safety and the 

environment, and are compatible with 

NRC’s program. 

Action: NRC conducts 8 to 10 

reviews per year of Agreement 

State radioactive materials 

programs and NRC’s regional 

programs under the agency’s Integrated 

Materials Performance Evaluation Program. 

Furthermore, NRC completed a selfassessment of the program in July 2010. NRC management 

endorsed the self-assessment report and the agency initiated 

actions to address the report’s 15 recommendations. 

Issue: Ensure appropriate oversight of nuclear materials used in 

medicine. 

Action: The agency is holding a series of public workshops to 

address concerns regarding the continued disagreement in the 

medical community about the correct approach for a definition of a

medical event. During the workshops, NRC will solicit stakeholder 

input on topics associated with the medical event definition, 

including sections involving reporting and notifications of medical 

events for permanent implant brachytherapy and other medical 

issues that are currently being considered for rulemaking. 

NRC is engaged in several activities to address concerns about 

doses given to members of the public from patients who have been 

treated with radioactive isotopes. For example, the agency 

expanded its guidance requirement for doctors to include advice 

that patients are strongly discouraged from checking into hotels 

immediately following treatment. Additionally, NRC staff are 

examining whether there are gaps in the available data regarding 

doses being received by members of the public due to the release 

of patients treated with medical isotopes, as well as how the 

agency could go about collecting additional data, if needed.

Agreement and NonAgreement States. 

Source: NRC Web site
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CHALLENGE 2

Managing information to balance security with openness and accountability.

NRC employees create and work with a significant amount of sensitive 

information that needs to be protected. Such information includes 

sensitive unclassified information and classified national security 

information contained in written documents and various electronic 

databases.

Based on continuing national security threats, NRC continually 

reexamines its information management policies and procedures. NRC 

faces the challenge of attempting to balance the need to protect sensitive 

information from inappropriate disclosure with the agency’s goal of 

openness in its regulatory processes. Over the past year, NRC has made 

various efforts to improve public access to information while protecting 

sensitive information, including security-related information, from 

inappropriate disclosure.

The issues related to this challenge and the agency’s actions to address 

each issue include the following:

Issue: Respond to requests for information and provide external 

stakeholders with clear and accurate information about regulatory 

programs and facilitate public participation in the regulatory process to 

ensure openness and accountability.

Action: NRC has published datasets of regulatory information 

(e.g., inspection reports, event reports) on the Data.Gov Web site 

per the Administration’s Open Government initiative. This initiative 

is intended to increase public knowledge and promote transparency 

by providing the public with access to machine-readable 

Government information for use in research and analysis. 
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Issue: Manage information in accordance with new Federal Government 

policies for designating, marking, safeguarding, and disseminating 

controlled unclassified information (CUI).

Action: The agency participated in working groups with the 

National Archives and Records Administration’s CUI Office to 

develop a CUI Executive Order and Implementing Directive. NRC 

has submitted its catalog of proposed CUI categories, 

subcategories, and markings to the National Archives and Records 

Administration. 

Issue: Ensure that sensitive information is handled in accordance with 

agency policies and procedures for public disclosure.

Action: NRC ensured that Privacy Act compliance activities were 

completed, such as Privacy Impact Assessments, requirements of 

the Office of Management and Budget Circular A-130, and Office of 

Management and Budget requirements for personal identifiable 

information. 

Action: In response to recommendations in OIG’s Audit of the 

Shared S Drive (OIG-11-A-15), the agency will revise its Personally 

Identifiable Information and information security training, provide 

agency information technology coordinators with role-based 

training, develop CUI policies and guidance for storing and 

protecting CUI in agency shared drives, and implement procedures 

for quality assurance checks following network upgrades to ensure 

that access controls are preserved in shared network drives that 

process documents containing CUI. 

Issue: Review and strengthen programs to protect licensee, vendor, and 

Government-owned assets (e.g., facility designs, technology descriptions, 

dual use material and components, classified information) from 

compromise by foreign sources and industrial espionage and increase 

awareness of the relationship of these assets to the Nation’s economic 

and industrial base and energy infrastructure. 
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Action: NRC has recognized the need to ensure technological 

data involving licensee, vendor, and Government-owned assets is 

fully protected against potential loss to adversaries. NRC has 

promulgated orders that provide additional security measures for 

the protection of these assets. 

NRC employees and contractors are required to have a baseline 

level of security awareness upon entry on duty and a security 

clearance. Some, depending on their job and involvement in the 

creation and use of protected information, are provided various 

additional "role based" training programs, such as classifier's 

training, training for administrative personnel, declassification 

training, Secret Internet Protocol Router Network users training, 

and Sensitive Compartmented Information access training. The 

training is layered, targeted, and recurring for those with specific 

responsibilities for various types of protected information.

In addition, NRC has increased its information security awareness 

by issuing various agencywide announcements informing staff of 

methods used to target NRC information systems and the 

corresponding need for employees to heighten their computer 

security information protection posture.

Issue: Technologies and materials, which NRC regulates, have potential

intelligence value to foreign states and non-state actors from either an 

intelligence or a counterproliferation, counterterrorism, or economic 

espionage perspective and should be protected from potential 

compromise. Further, there is the potential that NRC employees have 

knowledge and access to information that may be of interest to foreign 

powers and non-state actors.

Action: NRC has begun the process of developing programmatic 

efforts aimed at identifying potential threats and vulnerabilities that 

exist in its programs and operations. Such efforts should continue 

and receive senior leadership support.
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CHALLENGE 3

Ability to modify regulatory processes to meet a changing environment in the 

oversight of nuclear facilities.

NRC faces the challenge of maintaining its core regulatory programs while 

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

steady interest in licensing and constructing new nuclear power plants to 

meet the Nation’s increasing demands for energy production. As of May

2011, NRC had received 18 Combined Operating License applications, 12 

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

three standard design certifications and two certification amendments, and 

expects to receive five new advanced design certification applications 

through 2013. 

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 risk-informed and performance-based regulation. 

The issues related to this challenge and the agency’s actions to address 

each issue include the following:

New Facilities 

Issue: 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.

Action: NRC has developed a Construction Inspection Program in 

accordance with Title 10, Code of Federal Regulations, Part 52. 

New inspections, tests, analyses, and acceptance criteria (ITAAC) 

have been integrated into the Part 52 licensing process to create a 

“design-specific, pre-approved set of performance standards that 
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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the licensee must meet to the NRC’s satisfaction.” While the 

agency is still developing ITAAC review processes and procedures, 

it has conducted an ITAAC demonstration project to simulate and 

test numerous aspects of the ITAAC inspection, closure, and 

verification process. The agency also created the Center for 

Construction 

Inspection in Region 

II. The Center’s 

mission is to provide 

assurance in the 

safety of future 

operations at new 

nuclear facilities by 

ensuring that 

licensees and 

applicants construct the 

facilities according to 

approved design criteria, 

using appropriate practices and quality materials.

NRC continues to make improvements to its construction inspection 

and quality assurance practices consistent with OIG 

recommendations. For example, during Fiscal Year 2011, the 

agency completed revisions to NRO-REG-112, “New Reactor 

Construction Experience Program,” to improve the screening of 

construction operating experience for the purposes of documenting 

lessons learned. 

Issue: 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.

Action: NRC’s review of Combined Operating License applications 

has been complicated because some applicants are revising the 

reactor design currently under review. The agency staff is working 

with applicants to resolve issues related to design, siting, and 

schedule modifications using a variety of interactions. These 

include pre-application audits, site visits, reviews of 

topical/technical reports, public meetings, and Design-Centered 

Working Group meetings. 

NRC Conducts Inspections.

Source: NRC Web site 
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NRC is also undertaking pre-application interactions with vendors 

of advanced and small modular reactor designs. To facilitate the 

licensing of new reactor designs that differ from the current 

generation of large light water reactor facilities, the NRC staff seeks 

to resolve key safety and licensing issues and develop a regulatory 

infrastructure to support licensing review of these unique reactor 

designs. The staff has identified several potential policy and 

technical issues associated with licensing small light water reactor

and non-light water reactor designs. 

Issue: As the sources of manufactured reactor components become 

more globalized, NRC must ensure its regulations and oversight activities 

appropriately address the challenges associated with licensees procuring 

components from suppliers located outside of the United States.

Action: NRC continues to make improvements to its vendor 

oversight activities consistent with OIG recommendations. In late 

December 2010, the NRC staff began developing an agencywide 

approach to address the threat of counterfeit and fraudulent 

components. Furthermore, in Fiscal Year 2011, NRC updated 

vendor inspection procedures to establish expectations that 

translators and interpreters will be used as necessary to ensure 

that the use of foreign-language documents or communication with 

foreign-language speakers does not degrade the quality of the 

inspection. NRC also participates in the Multinational Design 

Evaluation Program, which is a multinational initiative taken by 

national safety authorities to develop approaches to leverage the 

resources and knowledge of the national regulatory authorities who 

will be tasked with the review of new reactor power plant designs.

Existing Fleet

Issue: Ensure 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. 

Action: For planning purposes, NRC continues to work with plant 

licensees to develop a schedule of anticipated license amendment 

requests for license renewals and power uprates. The agency has 
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also implemented a number of recommendations to improve the 

license renewal review and power uprate processes to include 

closer management oversight of report-writing standards and 

technical reviewer and project manager training.

As NRC has gained experience with Inspection Procedure 71003, 

“Post-Approval Site Inspection for License Renewal,” during recent 

years, the staff provided an updated “Frequently Asked Questions” 

document on the NRC Web site in March 2011. Furthermore, the 

staff updated a major license renewal document, NUREG-1801, 

“Generic Aging Lessons Learned (GALL) Report,” in December 

2010.

Issue: Respond to a heightened public focus on license renewals 

resulting in contested hearings.

Action: NRC has open dialogs with the industry, licensees, and 

stakeholders. The public, in general, is also encouraged to 

participate in the process through public meetings, and public 

comment periods on rules, renewal guidance, and other 

documents. For example, NRC routinely requests public comment 

on supplements of NUREG-1437, "License Renewal Generic 

Environmental Impact Statement." In addition, the public has an 

opportunity to request a formal adjudicatory hearing if that party 

would be adversely affected by the renewal. 

Issue: Ensure the ability to identify emerging operating and safety issues 

at all plants, including issues associated with license renewal and power 

uprate; consistently apply regulatory and review changes in response to 

these emerging issues across the existing fleet of reactors.
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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Action: NRC continues to evaluate the need to make changes to 

its regulatory programs based on 

emerging operational and safety issues 

related to license renewal and power 

uprate. For example, after the June 

2010 Groundwater Contamination Task 

Force report was issued with 

recommendations for the agency to 

strengthen its response to groundwater 

incidents, the staff initiated, and plans to 

continue, efforts to work with consensus 

standards organizations to have certain 

provisions related to inspecting and 

maintaining buried piping incorporated 

into applicable industry standards. 

In March 2011, after an earthquake and 

tsunami struck Japan affecting several reactors at the Fukushima 

Dai-ichi site, NRC activated its 24-hour Emergency Operations 

Center to monitor and analyze events at the nuclear plants in 

Japan. Soon thereafter, NRC established the senior-level “NearTerm Task Force Review of Insights from the Fukushima Dai-ichi 

Accident” to conduct a methodical and systematic review of the 

NRC’s processes and regulations to determine whether the agency 

should make additional improvements to its regulatory system and 

to make recommendations to the Commission for its policy 

direction. In 2011, the Task Force delivered a report to the 

Commission with 12 recommendations for both short- and longterm changes to NRC’s oversight of nuclear reactors. These 

recommendations focused on issues such as loss of electrical 

power, spent fuel pools, natural disaster preparedness and 

recovery, and NRC’s overall regulatory approach to oversight. 

NRC’s next steps are to determine how best to implement the Task 

Force recommendations, continue to evaluate new information 

coming from Fukushima Dai-ichi, and identify, review, and address 

lessons learned regarding the agency’s and the Federal 

Government’s response regarding the 

Cover from NRC’s Post-Fukishima 

Accident Safety Report. 

Source: NRC Web site
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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Fukushima Dai-ichi event, and balance these emerging efforts 

against ongoing work.

Issue: Establish and maintain effective, stable, and predictable regulatory 

programs or policies for all programs.

Action: NRC continues to interface with stakeholders, develop 

regulatory policy, update rules and technical guidance, provide 

technical lead and management for the Reactor Oversight Process, 

and support the development of programmatic changes when 

needed. Additionally, the Reactor Oversight Process features an 

annual assessment process which is used to revise the program as

necessary.
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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CHALLENGE 4

Oversight of radiological waste.

NRC regulates spent nuclear fuel generated from commercial 

nuclear power reactors, referred to as high-level radioactive waste. 

NRC faces significant issues involving the uncertainty of Yucca 

Mountain as the Nation’s repository for storing high-level 

radioactive waste. Other challenges in the high-level waste area 

include the interim storage of spent nuclear fuel, certification of 

storage and transportation casks, and the oversight of 

decommissioned reactors and other nuclear sites. 

Additionally, the amount of low-level waste continues to grow; 

however, no new disposal facilities have been built since the 1980s,

and unresolved issues will increase as access to disposal facilities 

becomes more limited given facility closures and restricted 

accessibility.

The issues related to this challenge and the agency’s actions to 

address each issue include the following:

Issue: Address issues regarding DOE’s March 3, 2010, motion to 

withdraw its license application to construct a high-level radioactive waste 

repository at Yucca Mountain.

Action: NRC stopped its review of DOE’s high-level radioactive 

waste repository application despite a June 2010 determination by 

the NRC’s Atomic Safety and Licensing Board (ASLB) that denied 

DOE’s motion to withdraw the application. The ASLB grounded its 

decision in its interpretation of the Nuclear Waste Policy Act, 

reasoning that Congress directed DOE to file the application and 

NRC to consider the application and issue a decision based on its 

technical merits. On September 9, 2011, the Commission issued 

an Order to the ASLB stating that it was evenly split on whether to 

uphold or overturn the ASLB’s decision. The Order also directed 

the ASLB to “Complete all adjudicatory activities by the end of the 

fiscal year [September 30, 2011].”
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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Going forward, the agency will continue to implement oversight 

programs in regard to radiological waste at sites across the Nation. 

Issue: Maintaining flexibility to address regulatory challenges related to 

the management of spent nuclear fuel and high-level waste. 

Action: NRC developed a Plan for Integrating Spent Nuclear Fuel 

Regulatory Activities to address future regulatory challenges related 

to the management of spent nuclear fuel and high-level waste. 

This plan is intended to assist NRC in addressing ongoing revisions 

to the national strategy for ensuring public health 

and safety and the environment in managing 

spent nuclear fuel and high-level waste. By 

coordinating the approach for regulation of spent 

nuclear fuel and high-level waste storage, 

potential reprocessing, transportation, and 

disposal, NRC can improve the efficiency and 

effectiveness of NRC regulatory processes and provide stability 

and predictability for stakeholders in a dynamic environment.

Issue: Address increasing quantities of high-level radiological waste 

requiring interim storage or permanent disposal.

Action: To provide technically based 

safety reviews of license amendment 

requests to allow credit for the 

reduction of reactivity due to reactor 

exposure in spent nuclear fuel, the 

NRC is conducting a study on the 

application of burnup credit in light 

water reactors. The study will address 

storage in both spent fuel pools and 

casks, as well as transportation considerations. The results of the 

study should provide NRC with an independent methodology for the 

application of burnup credit in spent fuel criticality applications.

NRC also developed and implemented a decisionmaking tool for 

adopting a graded approach in terms of the depth and rigor of 

review of applications for certificates of compliance for dry cask 

waste storage systems. NRC used staff experience and risk 

Yucca Mountain Crest –

North View. Source: 

Bing Images

Commercial Spent Fuel Pool. 

Source: NRC NUREG-1925, Rev 1
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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insights resulting from a pilot probabilistic risk analysis for dry cask 

storage systems to build the decisionmaking tool.

Issue: Oversight of low-level waste storage and disposal, including lowlevel radioactive waste disposal sites. All current low-level waste disposal 

sites are regulated by Agreement States.

Action: NRC is working to improve the regulatory framework for 

low-level waste, used by both NRC and Agreements States. 

Following are examples of NRC activities: 

NRC completed the Regulatory Basis and most of the 

proposed rulemaking for requiring a site-specific 

performance assessment for low level waste disposal sites 

to demonstrate compliance with the performance objectives 

in the Code of Federal Regulations. 

NRC also held public meetings on 

issues related to low-level waste. 

NRC issued a summary of existing 

guidance to Agreement States for 

reviewing large-scale low-level radioactive 

waste blending proposals. The summary 

of current NRC policy and guidance should assist the 

Agreement States in making informed decisions until formal 

rulemaking and guidance is completed.

Issue: Oversight of nuclear waste issues associated with the 

decommissioning and cleanup of nuclear reactor sites and other facilities.

Action: NRC oversees 10 power reactors, 2 early demonstration 

reactors, and 12 research and test reactors in safe storage or 

currently undergoing decommissioning. NRC’s regional offices 

conduct periodic inspections to include reviews of decommissioning 

nuclear waste management. 

Low-Level Waste 

Containers. Source: 

Bing Images
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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CHALLENGE 5

Implementation of information technology and information security measures.

NRC needs to continue upgrading and modernizing its information 

technology and security capabilities both for employees and for public 

access to the regulatory process. Recognizing the need to modernize, the 

Office of Information Services established goals to improve the 

productivity, efficiency, and effectiveness of agency programs and 

operations, and enhance the use of information for all users inside and 

outside the agency. NRC also needs to ensure that system security 

controls are in place to protect the agency’s information systems against 

misuse.

The issues related to this challenge and the agency’s actions to address 

each issue include the following:

Issue: Upgrade and manage information technology activities to improve 

the productivity, efficiency, and effectiveness of agency programs and 

operations.

Action: NRC continued to work with its business system owners 

on analysis of legacy applications for future technology 

modernization, including development of a funding strategy. 

Action: The agency awarded a new Information Technology 

Infrastructure and Support Services contract that will replace the 

current contract and vendor. The agency expects this will provide a 

more flexible vehicle for providing information technology services. 

Action: An agencywide Virtual Meeting capability was put into 

place contractually for Fiscal Year 2012. 

Action: All users received the full version of Adobe Acrobat 

Professional. This added cost and management efficiencies by 

consolidating support and licensing of the application. 
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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Action: NRC coordinated its planning for the new Three White 

Flint North (3WFN) headquarters building to ensure efficient, costeffective, and future-thinking information technology infrastructure 

requirements are understood and included. 

Issue: Provide laptop computers with enhanced functionality, security, 

and support. 

Action: NRC completed the implementation of the base laptop 

program, which provides several enabling technologies for mobile 

users and supports the capability to “work from anywhere.” This 

included the implementation and/or enhancement of the following 

services: mobile desktops, loaner laptops, loaner broadband cards, 

and Blackberry tethering. 

Issue: Ensure that information systems and assets are protected.

Action: NRC has begun to identify and explore additional options 

(e.g., mobile devices, smart phones, and tablets) to provide agency 

staff with secure, remote access to agency resources. 

Action: NRC has continued to make improvements to the Security 

Operations Center adding tools for centralized logging and 

continuous monitoring. 

Action: Although NRC established an agencywide cyber security 

situational awareness capability to enhance visibility of and 

response to emerging threats to NRC information resources, the 

agency has yet to fully deploy purchased cyber tools that could 

strengthen its ability to identify, mitigate, and reduce threats against 

its information systems infrastructure. Effective implementation and 

coordination among cognizant NRC offices with internal and 

external response responsibilities to potential network intrusion 

attacks provide NRC with enhanced capabilities to respond to such 

threats.
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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Action: The agency has issued Homeland Security Presidential 

Directive-12 identification cards to NRC staff and contractors, and 

Homeland Security Presidential Directive-12 compliant security 

equipment has been installed in all NRC facilities. 

Issue: Ensure that plans for a cyber security inspection program are 

developed and implemented.

Action: The staff plans to develop an inspection procedure for 

conducting cyber security inspections at nuclear power plants and 

hold training for NRC cyber security inspectors. The inspections 

are planned to be conducted between calendar years 2012 and 

2016.
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 

supports 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 21stcentury acquisition program that uses stateof-the-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. 

The issues related to this challenge and the agency’s actions to address 

each issue are as follows: 

Financial Management

Issue: Improve the performance and functionality of the agency’s new 

core financial system. 

Action: The agency deployed the Financial Accounting and 

Integrated Management Information System (FAIMIS) on 

October 1, 2010. FAIMIS replaced five core financial systems with 

a single Web-based commercial-off-the-shelf software system. 

While the agency deployed the system as scheduled, there have 

been a number of performance and functionality issues. 
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

26

Specifically:

Delays in issuing license fee bills.

Frequent system outages prevent staff from entering data 

into the system in a timely manner.

Reports used by agency staff to reconcile budget and 

accounting information are untimely and difficult to interpret.

NRC anticipated initial operational challenges characteristic of new 

enterprise-wide system deployments. NRC has employed change 

management and organizational communication strategies to try to 

reduce the impact of these challenges. For example, the agency 

has created workgroups to address user concerns, monitored

issues through its help desk, and provided additional system

training to staff. 

Issue: Find a new service provider to host FAIMIS. 

Action: The Department of Interior National Business Center, the 

current host, notified the agency that after September 30, 2012, it 

would no longer host FAIMIS. The agency is working to find a new 

service provider before the beginning of Fiscal Year 2013.

Issue: Upgrade the Time and Labor system to a modern, Web-based, 

user-friendly system.

Action: The agency delayed implementation of plans to upgrade 

the Time and Labor system in July 2010 because of performance 

issues identified during production testing. In September 2010, the 

agency created an Integrated Project Team to perform a technical 

evaluation and develop a plan for launching a reliable system. The 

upgrade would provide a modern, Web-enabled version of the 

existing PeopleSoft Time and Labor software. While this is an 

upgrade in versions, there are significant differences between the 

two versions that make the effort similar to a new implementation. 

The upgraded system will provide increased security, is employee 

managed, paperless and allows for electronic workflow and 

electronic signature approval. 
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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Action: The Integrated Project Team took a three-phased 

approach to implement the new module.

Phase One: Included analyzing and testing application 

recommendations, and rebuilding the infrastructure in all 

environments. 

Phase Two: Included testing the system for functionality and 

performance in the rebuilt infrastructure. 

Phase Three: Includes user acceptance testing and employee 

training.

Instructor-led and Web-based training is scheduled to be available 

for NRC employees in September 2011. The agency developed a 

SharePoint site to provide a central location for sharing information 

with NRC employees on progress and for addressing employee 

questions or issues. The Office of the Chief Financial Officer 

provided periodic updates on the modernization progress. Present 

plans call for implementation of the new system on 

October 23, 2011, in time for processing pay period number 23.

Issue: Respond to the flat or declining budget environment. 

Action: As with many other Federal agencies, NRC has had to 

meet its mission in the face of substantial budget cuts that have 

flattened the agency’s budget. NRC reorganized its budget 

structure in an effort to improve transparency and target areas of 

inefficiencies. NRC also established a Transforming Assets into 

Business Solutions Task Force to analyze and assess NRC 

business practices and develop cost effective, and cost conscious 

solutions to manage overhead costs. The task force developed 

recommendations, which included streamlining the budget 

formulation process, centralizing human resource management 

functions, improving contract management, and standardizing 

information technology solutions.
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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Procurement 

Issue: Respond to Commission direction to implement a 21st century 

acquisition program that will consider broader agency programmatic 

requirements with a more integrated and informed acquisition planning 

approach that leverages agency resources, programmatic requirements, 

and contract dollars. 

Action: In March 2011, the agency established the Associate 

Directorate for Strategic Acquisition (ADSA) within the Office of 

Administration to develop and implement a strategic acquisition 

program for the agency to address identified process, automation, 

and workforce skill issues.

Action: ADSA is responsible for procuring and implementing an 

acquisition module that is compatible with FAIMIS. The acquisition 

module will standardize and centralize acquisition processes 

agencywide and automate lifecycle procurement activities for 

commercial contracts, DOE laboratory agreements, interagency 

agreements, financial assistance awards, and purchase card 

transactions within a single business application solution. The 

agency plans to implement the acquisition module in two phases. 

However, due to budget constraints and Commission concern over 

NRC’s recent experience with deployment of the FAIMIS Core 

Financial system, the agency has been unable to finalize an 

implementation schedule for the acquisition module. 

Action: ADSA staff completed a plan of action designed to 

economize, streamline, and standardize the NRC procurement 

process through the application of enterprise spend management 

principles.

Action: NRC recently completed its first comprehensive spendanalysis and identified 10 major portfolio categories as candidates 

for savings through enterprise sourcing efforts. An ongoing OIG

evaluation is assessing NRC’s contract award process.

Issue: Implement improvements in the agency’s procedures for awarding, 

negotiating, and managing agreements with DOE laboratories. 
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

29

Action: In response to an OIG audit,

4 NRC is in the process of 

updating Management Directive 11.7, NRC Procedures for 

Placement and Monitoring of Work with the U.S. Department of 

Energy. Staff has also issued interim guidance for enhanced 

oversight of the process for placing work with DOE. The interim 

guidance: 

1. Addresses the need for offices to consider the use of 

commercial sources through market research as part of the 

decisionmaking process in choosing to use a laboratory and 

fully document the results/conclusions in DOE laboratory

agreement files.

2. Provides clarification for offices regarding the requirement to 

fully document the rationale and basis for using a DOE 

laboratory.

3. Addresses the requirement for when offices shall submit Source 

Selection Justifications to the Division of Contracts for 

independent review to ensure that commercial sources are fully 

considered.

4. Identifies milestones for more robust market research 

requirements prior to awarding DOE laboratory agreements. 

Issuance of this interim guidance provides an opportunity for offices to 

work with the Office of Administration to collaborate on updating and 

incorporating revisions to Management Directive 11.7.

 

4 OIG-10-A-12, Audit of NRC’s Management of Agreements with Department of Energy Laboratories

(April 23, 2010)
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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Issue: Manage the agency’s expanded grant program to ensure that 

grants are awarded in a timely manner and NRC personnel who award 

and administer grants are provided appropriate training. 

Action: In response to recommendations from an OIG audit 

report,

5

the staff established requirements for the content and 

organization of NRC grant files. Staff also developed a grants 

SharePoint site, developed a grants training plan, awarded a 

contract for off-the-shelf grants training for the Division of Contracts

and program office staff, and implemented an internal quality 

control process to assure regulatory compliance.

Action: The staff updated Management Directive 11.6, Financial 

Assistance Program, which was approved by the Executive Director 

for Operations on September 16, 2011. The staff is also preparing 

a Grants Specialist Desk Guide for NRC Division of Contracts and 

program office staff. The purpose of the desk guide is to ensure 

consistency in the grants process. 

 

5

“OIG-09-A-16, Audit of NRC’s Grant Management Program (September 29, 2009)
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

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CHALLENGE 7

Managing human capital.

For several years, NRC experienced significant growth resulting from an 

increased interest in nuclear power. As of July 25, 2011, NRC’s workforce 

is 3,961 staff 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. 

The issues related to this challenge and the agency’s actions to address 

each issue include the following:

Issue: NRC must respond to the flat or declining budget environment. 

Action: As NRC transitions from a period of aggressive growth to 

a nearly flat budget, it is critical that the agency has the most 

effective organizational structure possible. Despite the current 

budget pressures on the agency’s staffing levels, NRC must 

continue to look toward the future. Salaries and benefits are a 

significant driver of the budget and influence how much resources 

the agency has available for such items as fixed costs, contract 

support, and travel. To help the agency reshape the workforce, 

NRC plans to ask the Office of Personnel Management and the 

Office of Management and Budget for authority to offer some 

eligible employees in specific situations an opportunity to request 

voluntary “buy outs” and early retirements. Some of these options 
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

32

are being offered because of changes in technology and the way 

the agency does business. If approved, these options would be 

offered some time in the first quarter of Fiscal Year 2012. In 

addition, the agency has refocused its efforts to manage salaries 

and benefits costs as well as full-time equivalents. 

Issue: NRC must adapt training and development programs to the 

changing needs of agency staff.

Action: NRC is focusing on a competency-based approach to 

training to ensure a line-of-sight alignment between employees’ 

learning experiences and the agency’s mission. The agency plans 

to explore and exploit training technologies such as online and 

distance learning to deliver quality learning opportunities at best 

cost, when and where they are needed. 

Issue: NRC must address knowledge management in light of the high 

number of senior experts and managers who are or will be eligible to 

retire. 

Action: The agency has in place a variety of human capital 

strategies to maintain and bolster knowledge and skills during a 

period when a large number of experienced staff members are 

becoming eligible to retire and current and new NRC employees 

need the benefit of their knowledge. The agency continues to 

expand and enhance its Knowledge Management program by 

actively capturing lessons learned from subject matter experts, 

improving access to lessons-learned and training programs, and 

building an agencywide Knowledge Center. 

Issue: NRC needs to facilitate continuation of its space planning efforts. 

The first phase of construction of 3WFN, a 14-story building with a 4-level 

underground parking garage, continues on schedule. Completion of the 

first phase along with the second phase build out of the interior office 

space and interior design, is expected by August 2012. When completed, 

3WFN will provide office space for approximately 1,400 NRC staff 

members and allow the agency to reconsolidate headquarters staff who 

are now dispersed among four offsite locations. There is no funding in the 
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

33

budget for either above ground or underground pedestrian access 

between One White Flint North and 3WFN. To access 3WFN, agency 

employees will have to cross Marinelli Road, which is a multi-lane road. 

NRC faces two challenges related to 3WFN. The agency must ensure 

that: 

Building requirements are met and within budget.

Provisions are put in place to ensure safe pedestrian movement 

between the buildings. 

Action: NRC will (1) review and approve the Construction 

Drawings for the 3WFN building and the construction bid pricing; 

(2) complete the interior fit-out of the building; (3) develop 

specifications, procure and install workstations, and (4) relocate 

approximately 1,400 staff and contractors as well as the 

Professional Development Center, Data Center, and Headquarters 

Operations Center to the building. The target date to complete 

relocation into the 3WFN building remains December 2012. The 

goal is to provide a quality working environment for NRC 

employees within the established budget.

Action: The Montgomery County Department of Transportation 

and NRC are continuing to work together to maximize pedestrian 

safety around the White Flint complex. As part of the effort, the 

Montgomery County Department of Transportation removed a 

temporary crosswalk on Marinelli Road east of the median wall and 

constructed a new crossing area near the entrance to White Flint 

Complex. NRC installed sidewalk barriers along the south side of 

Marinelli Road to direct pedestrians to the new crossing and to 

discourage jay walking between the temporary One White Flint 

North entrance on the south side of Marinelli Road and the 

Metrorail parking garage on the north side while lobby construction 

was underway. 
Inspector General’s Assessment of the Most Serious Management and Performance Challenges Facing NRC

34

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

35

Appendix

SCOPE AND METHODOLOGY

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 Fiscal Year 2011, and (3) future 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 2011 at 

NRC headquarters.