US / Vendors Must Carry Out Supply Chain Due Diligence, Says NRC Chairman

In a speech to the Nuclear Energy Institute (NEI) Nuclear Energy Assembly in Washington yesterday, Allison Macfarlane said all industries, including nuclear, are dealing with a global supply chain and while there are many associated benefits, there are also “risks that must be considered and managed” on a routine basis, not just in response to isolated incidents.

She said counterfeit, fraudulent, and suspect parts have found their way into in “a variety of products”, particularly computer-related equipment.

The US nuclear industry does not yet appear to be feeling the impact of these challenges, but several reports of counterfeit and fraudulent items have surfaced abroad, she said. The increased use of digital technology has also led to concerns about cyber security threats.

Ms Macfarlane said: “While there are no requirements compelling vendors to do this kind of due diligence about the countries that are interested in their designs, I think it’s a good practice that makes both business and ethical sense.

“I believe addressing these challenges can go a long way in further enhancing public trust.”

Ms Macfarlane said countries should be able to demonstrate to vendors that they cannot only operate a nuclear power plant, but can do so safely and with a high level of security and independent oversight.

She said the Nuclear Power Plant Exporters’ Principles of Conduct (www.nuclearprinciples.org), established in 2011, are a good example of industry collaboration in this area.

Through these voluntary principles civilian nuclear power plant vendors have committed to share best practices that reinforce and enhance existing codes, standards, and regulations, she said.

Ms Macfarlane’s speech is online:

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