Outline of the Policy for AEC Participation in the Aircraft Nuclear Propulsion Program at Oak Ridge (Draft)

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OUTLIlE OF THE POLICY FOR AEC PARTICIPATION I N TEE AIRCRAFT NUCLEAR PROPULSION PROGRAM AT OAK RIDGE 1. O c ~ upmc yof Real Estate.. ........................................ 2 B. Disposition of structures NEPA occupation of t h e S-50 Area 2. Program Direction and Exchange of Personnel.. ..................... 3 Programs assigned by Program Director Long-range programs of mutual interest 3 . Manpower and Funds for Combined Facilities.. ...................... 5 4. Direct and Special Services for NEPA .............................. 6 A . By Oak Ridge CPF'F contractors B. Purchase orders and direct payment 5. Transfer of Hate rials and Equipment ............................... 7 A. Transfers between AEC Cost-Type Contractors and the (4) Costs t o be used Material excess t o f;EC contractors B. Transfers between AEC and Air Force 6. Purchase of AEC Special Materials by the NEPA Project. ............ 8 7. Oak Ridge Town Costs f o r ANPP.. ................................... 9 8. OR0 AEC Overhead Expenses f o r ANPP ................................ 10 B. Finance Division Reports

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OUTLINE OF THE POLICY FOR AEC PARTICIPATION I N THE AIRCR-FT NUCLEMI PROPULSION PROGRAM AT OAK RIDGE It has been generally agreed that the AEC, Department o f Defense, NACA, and their several respective contractors will coordinate their efforts in ai integrated Aircraft Nuclear Propulsion Program (ANPP) . The Ad Hoc Committee on Aircraft Nuclear Propulsion has been established as a means of coordinating the research and development programs of the several government agencies having an interest in this application of nuclear energy. this Committee have defined the character and extent of the AEC participation efforts to those phases of the program for which it is particularly qualified and for which special facilities have been provided. The recommendations from It has been agreed that ezch government agency will devote its The United States Air Force has designated their part of the program as Nuclear Energy for the Propulsion of Aircraft (NEPA Project). research on this project is being conducted under an Air Force prime contract with Fairchild Engine and Airplane Corporation, NEPA Division, here in after In the interest of government economy and project efficiency the Air Force located the central facilities of the NEPA Project at Oak Ridge. Commission has, i n accordance with i t s understanding of the mutual program, provided ser vie es and supplies and permitted the use o f AEC facilities as a means of assisting the Air Force and NEPA in furtherance of their phase of

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Occupancy of Real Estate I n acoordance with the mutual d.esires of the AEC and the Air Force, it appears appropriate at this time to establish a firm policy governing the occupancy, by the Air Force and its contractor, of A X property arid buildings in the S-50 Area. During the four year period, beginning October 1946, the AEC and its predecessor the Manhattan District, has, by letter, granted formal permission t o NEPA t o occupy all of the land and existing structures in the S-50 Area except the following buildings and land occupied by these Boiler House, Turbine Room, Main Switchhouse, and Auxiliary Switchhouse, mission was granted, by referenced letters to modify, rehabilitate and make additions to these facilities after receiving prior approval from the Manager, ORO, of all plans and specifications covering such work. Also included in this exception i s Building K-1095. The Commission understands that improvements, in the order of $l,!%O,OOO, have been completed by the Air Force i n the S-50 Area, strictly in accordance with the provisions outlined above. It is further understood that the Air Force now desires clarification and a firm policy outlining their tenure of occupancy prior to proceeding with Phase I11 construction inthe order of an additional $500,000. A . Occupancy of the S-50 Area by the Air Force and its contractor - shall be consistent with planned research within the ANP Program

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and, so long as there exists an approved PNP Program requiring use of the facilities now installed in the S-50 .kea, NEPA may continue t o occupy the AEC property in this area. program shall be one that is mutually agreed upon by the Commission and the Air Force. gram covering research through Fiscal Year 1951. 1952 program is presently under review. At present,there exists an approved ANP ProThe Fiscal Year A s each subsequent program i s approved, such approval will be tantamount t o an extension o f the period that NEPA may continue t o occupy the S-50 Area. B. A t such time as the Air Force finds that no further requirement exists for occupancy of this site, the Commission shall afford a reasonable period of time to the Air Force for the orderly removal of AF equipment. All structures,facilities, and land will be returned to the AEC inthe then condition without cost to the AEC. 2. Program Direction and ExchanEe of Personnel Participation in the nuclear phases i s covered by the assignment o f specific programs tothe Oak Ridge National Laboratory with the approval of the Director of the Reactor Development Division, Washington. Funds for such a program will be budgeted under Activity 4270 ANP Reactor, Research and Development, and will be provided by the Reactor Program Director. Such research and development projects will be coordinated for Oak Ridge by the Office of Research and Medicine, Oak Ridge Operations. The scheduling and determination of funds and specific programs are based on recommendations tothe Ad Hoc Committee t o be made by the

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Contractor ' s Technical Directors. pursued must be agreed upon before funds are allocated to ORNL. prior planning and scheduling is essential in order that OWL may perform work foror supply services to NEPA where such work is desirable and consistent with the ORNL part of the ANPP. Specific details of the work t o be When NEPA i s charged for such services, purchase orders will be employed to effect control and maintain necessary records. tractor and the AEC contractor will cooperatively develop the require - ments including agreement on the costs involved. will be applied in accordance with the practice that would be followed i f ORNL were the initiating agency. On capital additions the standard practice involves an A.P.E. of 100% of direct labor. Upon conpletion of these negotiations a purchase order will be issued. order will be forwarded by the Air Force t o the Office of Research and Allocated Plant Expense The approved purchase To best utilize personnel available in all organizations and t o keep the Department of Defense and NLCk abreast of research and development i n the nuclear phases, personnel of other than AEC organizations may parti - ci pate in nuclear programs assigned t o O3NL. their participation (salary, travel, and special equipment) will not be budgeted under ORNL, but will be provided from funds available to the I n such casss funds for Long-range research programs of mutual interest may be undertaken i n the facilities of AEC-CPFF contractors at Ozk Ridge on an agreed basis. The ORNL cost of these program will be included inActivity 42.70 ANP

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Reactor, Research and Development as indicated above, requests for radioisotopes and/or irradiation s not associated with a mutual program, will be reimbursed by NEPB t o Carbide on a purchase 3. Manpower and Funds for Combined Facilities It appears that any program of research pertaining to f;NP which i s being o r may be conducted jointly by NEPA and ORNL i n kF;C facilities may be categorized and identified with one of four combinations of facilities, A. Staffed + by 0RNL-w personnel with all cost being budgeted by ORNL, B. Staffed by both ORNL and NEPA with costs being budgeted by ORNL, C. Staffed by NEPA with oosts being budgeted by NZPA, D. Staffed by both ORNL and NEPA with costs being shared by ORNL and NEPA. For the purpose of clarification and identification of programs presently being pursued or in the planning stage, the following breakdown i s Capital additions bu il by: OWL ORNL ORYL ORNL (Subc on tr ac t) Routine ,& special maintenancc by : ORNL ORNL OHNL ORNL Cost, capital additions borne by: ORNL ORNL NEPA ORNL/NEPA Expense, maintenance borne by: ORNL ORNL NEPA ORNL/NEPfExpense, operation borne by: ORNL ORNL NEPI: ORNL/NEPA Bldg. 9201-2 ments Little Genie,

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* "Staffed byt' means use of personnel from and programing by the indicated H- aORNL1t refers to the ANP group under the direction of the ORNL Research Director and other AEC contractor personnel who may perform essential services for ANPP. 4. ' Direct and Special Services A. Services now performed by the Carbide organization or other Oak Ridge CPFF contractors which are similar to that required in their own plants which can be more economically performed for NEPA, and where also the volume of such work or services does not warrant the employment of full-time personnel by NEPA, will continue t o be performed on a work order basis similar to that now being done. Such (1) Maintenance, Inspection and testing of sprinkler systems and. (2) Minor repairs to service equipment such as drinking fountains or electrical or mechanical shop equipment, (3) Assistance as needed on physical exaninations of new hires, examination for safety goggles prescription, infirmary, and immediate first - aid, (4) Fabrication of security passes, including photographs, (5)Electricity, water, and similar utilities, (6) Maintenance and repairs of utility systems and automotive

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(7) Some specialized rig ger service for unloading and moving All the above services will be budgeted by Carbide under Activity 4270, ANP Reactor, Research and Development, and costs will be accumulated and held by Carbide i n an account identified with this B. It i s contemplated that NEPA will require special service operations, in general of a one-time nature, t h a t could be performed by lumpsum contract,or by commercial organizations, and which can only be budgeted. for by NEPA. Where, because of considerations of security, expediency and/or government sconomy, as agreed between the Air Force and ATX, it i s the desire that such work be done by AFC-CPFF contractors or in facilities operated by AEC contractors ; such work shall be done by the AEC contractors only on a reimbursable basis. NEPA will place a purchase order with the AEC-CPFF contractor, through AEC, ORM, for the service required and upon completion of the work will make payment direct to the CPFF contractor performing 5 . Transfer of Materials and Equipment A. Transfers between AEC Cost-Type Contractors and t h e Air Force Contractor (1) Transfer of materials and equipment excess tothe needs of AFC Anderson, Maxon, etc .) will be made directly. between the Air

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Force contractor and the A?IC contractor involved. This Will be accomplished by the issuance of a NEPA purchase order and cash transfer of funds. (2) Emergency requirements of NEPA may be filled from stores of integrated cost - type contractors by issuance of a covering purchase order ; this will be a cash transaction. (3) Equipment not excess tothe needs of an AEC integrated cost - type contractor but needed for a limited time by NEPA may be transfer red on a rental basis. The rental rate will be negotiatedby the Air Force and AEC contractors and the transfer documented by an appropriate purchase order or rental agreement. (4) Normally all transfers should be based on actual cost. inventory items and services are usually transferred at cost including handling and overhead charges where applicable. Fixed assets are usually transferred at book cost exclusive of transportation and installation cost less related accrued depreciation. If the aforementioned costs are not realistic in relation to present market values,a negotiated price mutually agreeable t o both parties may bs used, 6. Purchase of PiEC Special Materials by the NEPC, Project The NEPC, Project will continue t o have requirements for certain special material, procurement o f * ich is controlled by the Atomic Energy Force contractor, it is necessary to establish a system whereby the AEC may be reimbursed for these materials. Since the Commission may not accept payment from the Air

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The following system i s proposed: A. NEPA will issue a purchase order t o the appropriate AEC Operations Office through the Office of Research and Medicine. B. Upon receipt of the approved purchase order, the material will be shipped direct to NEPA. The AEC Operations Office will, however, bill the Air Force Plant Representative, NEPA Division, Fairchild Engine and Airplane Corporation, P o s t Office Box E, Oak Ridge, Tenn. C. The Air Force Plant Representative will accumulate these charges i n an account which will be cleared semi-annually o r when the amount i s $100,000 whichever is earlier. D. The fir Force Plant Representative will,at the appropriate time, arrange to de obligate the indicated amount by supplemental agreement tothe NEPA contract and after accomplishing this first step, will arrange for a transfer, by Standard Form 1080, from the Air Force 7. Oak Ridge Town Costs f o r ANPP The AEC subsidy for the town of Oak Ridge i s necessary t o provide facil - i ties for the workers under the llEC program. carrying on the NEPA program a pro rata share, based on the worker popula tion housed, should properly be considered as a charge t o the NEPA I n housing prrsonnel for Since funds for operating the town of Oak Ridge are justified t o Congress on a basis of total population, no separate items will be shown inthe budget for the NEPL Project. Periodically, however, by

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statistical analysis, determination will be rna.de of the NEPA share of the subsidy t o determine the total dollar-wise contribution made by fiEC tothe JNP Program. NEPL will not be required to reimburse AEC for OR0 AEC Overhead Expenses f o r ANPP The administrative expenses of the 2IEC a t Oak Ridge are essential to the production and research and development work being carried on a t Oak Ridge. Certain of these administrative expenses should be logically pro-rated against all production, research and dsvelopment being done in the Oak Ridge Area, and a portion of such expenses i s considered as chargeable tothe NEPA Project. the responsibility of coordinating the research and development activities, the Patents Branch inthe Office of General Counsel and the Insurance Branch inthe Organization and Personnel Division pcrform services in the irrespective fields 2s if they -wem on the staff of the Air Force Contracting Officer at Oak Ridge. costs will be made o r budgeted a grin st the ?JEPX Project. however, by statistical analysis, determinations similar to that for town In addition to those offices which are charged with No separate item for accumulating such subsidy will be made t o determine the pro - rata share of such administrative expenses as should be included i n the total dollar-wise contribution made by the AEC tothe ANPP. A semi-annual cost report will be prepared by the Fin ace Division, Office of Fiscal Affairs, ORO, reflecting all …