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ARTICLE XLIX, DISPUTES

(a) Except as otherwise provided in this contract, any dispute concerning a question of fact arising under this contract which is not disposed of by agreement shall be decided by the Contracting Officer, who shall reduce his decision to writing and mail or otherwise furnish a copy thereof to the Contractor. The decision of the Contracting Officer shall be final and conclusive unless within 30 days from the date of receipt of such copy, the Contractor mails or otherwise furnishes to the Contracting Officer a written appeal addressed to the Commission. The decision of the Commission or its duly authorized representative for the determination of such appeals shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any appeal proceeding under this clause, the Contractor shall be afforded an opportunity to be heard and to offer evidence in support of its appeal. Pending final decision of a dispute hereunder, the Contractor shall proceed diligently with the performance of the contract and in accordance with the Contracting Officer's decision.

(b) This "Disputes" clause does not preclude consideration of law questions in connection with decisions provided for in paragraph (a) above: Provided, That nothing in this contract shall be construed as making final the decision of any administrative official, representative, or board on a question of law.

ARTICLE L. UTILIZATION OF CONCERNS IN LABOR SURPLUS AREAS

It is the policy of the Government to place contracts with concerns which will perform such contracts substantially in areas of persistent or substantial labor surplus, where this can be done consistent with the efficient performance of the contract and at prices no higher than are obtainable elsewhere. The Contractor agrees to use his best efforts to place his subcontracts in accordance with this policy. In complying with the foregoing and with paragraph (b) of the clause of this contract entitled “Utilization of Small Business Concerns," the Contractor in placing his subcontracts shall observe the following order of preference: (a) persistent labor surplus area concerns which are also small business concerns; (b) other persistent labor surplus area concerns; (c) substantial labor surplus area concerns which are also small business concerns; (d) other substantial labor surplus area concerns; and (e) small business concerns which are not labor surplus area concerns.

ARTICLE LI. PRIORITIES, ALLOCATIONS, AND ALLOTMENTS

The Contractor shall follow the provisions of DMS Regulation 1 and all other applicable regulations and orders of the Business and Defense Service Administration in obtaining controlled materials and other products and materials needed to fill this order.

APPENDIX A

DESCRIPTION OF SPECIFICATION MATERIAL

This appendix enumerates the specifications and requirements which must be met by the irradiated reactor material to be delivered to the Contractor in accordance with this contract, establishes Material Categories with incremental charges, where applicable, and processing units associated therewith, and provides a form of the Specific Material Description of such irradiated reactor material to be provided to the Contractor in accordance with Article IV.

To be specification material, all irradiated reactor material delivered to the Contractor hereunder must meet the General Specifications in Section A hereof and the particular specifications in a listed Material Category in Section B hereof; in addition, it must conform to the description of such material as required by Section C hereof.

1. Per Assembly

A. GENERAL SPECIFICATIONS

(a) The overall length of any assembly, as defined in Section C hereof, must be less than 16 feet.

(b) The maximum cross sectional dimension of any assembly shall not exceed 6 inches. This specification shall be met if a casing or other covering of the shipped assembly can be removed without undue difficulty with installed equipment in the Process Mechanical Cell of the Plant so that the resulting assembly meets this specification, or if the shipped assembly can be broken down without undue difficulty into parts which meet these specifications. (c) The maximum weight of a single assembly is one ton.

(d) Units with exposed uranium or plutonium shall be canned by the Commission in containers whose material and design shall have been approved by the Contractor unless the Contractor determines such canning is unnecessary. 2. Isotopic limits per processing lot

The limits for the following isotopes shall not be exceeded for an average of all irradiated reactor material chemically processed by the Contractor in any processing lot, as measured at the time each assembly is dissolved:

(a) Kr-85 8,250 curies per processing unit.
(b) I-131, 1.7 curies per processing unit.
(c) Tritium, 250 curies per processing unit.
(d) U-237, 2 X 10 curie/Kg U.

(e) Zr-95 plus Nb-95, 500 curies/Kg U.

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B. MATERIAL CATEGORIES

1. General provisions relating to material categories

(a) Assemblies must not contain any components containing foreign materials such as burnable poisons or special samples which must be separated from the fuel proper before processing either for the convenience of the Commission or in order to permit the Contractor to chemically process at normal processing rates and to meet recovered product specifications. Except in the case of Material C. thorium present in excess of 100 ppm U shall be deemed to be a foreign material, unless the specifications for recovered material contain the provisions set forth in paragraph B of Appendix C, in which case thorium present in excess of 1000 ppm U shall be deemed to be a foreign material.

(b) In all of the material categories which follow, assemblies which otherwise would fall within that category except that some of the sub-assemblies contain foreign materials which must be removed before processing, e.g., rods of thoria, samples, or burnable poisons, or fuel elements for which separation by enrichment is required, shall be chemically processed by the Contractor only if the Commission directs the acceptance and chemical processing of such assemblies under the provisions of Article XVII of this contract.

(c) The Contractor agrees that the irradiated reactor materials listed in Table 2 hereof are included in and are examples of the Material Categories indicated in this Appendix.

2. Enumeration of material categories; particular specifications

Category 1.-UO, sheathed in stainless steel, zirconium, or zircaloy. Enrichment of U-235 as initially charged to the nuclear reactor of all the uranium in the processing lot must not exceed 5%. The design of the assembly must be assembly casing and end fittings are removable without undue difficulty with the equipment provided in the Process Mechanical Cell of the Plant. No individual fuel element may exceed 0.75" in diameter and fuel cladding thickness may not exceed 50 mils. Metallic hardware inside the section of the assembly containing source material or special nuclear material may not exceed " thickness. The fuel material must be essentially UO prior to irradiation.

The processing unit for Category 1 specification material is shown in Table 1. W, as defined in Article VI, is to be expressed as kilograms of contained uranium. Category 2.-The same specification as for Category 1 except that the initial U-235 enrichment as charged to the nuclear reactor of all or part of the contained uranium is more than 5% but less than 10%.

The processing unit for Category 2 specification material is shown in Table 1. W, as defined in Article VI, is to be expressed as kilograms of contained uranium. Category 3.-UO-ThO2 sheathed in stainless steel, zirconium or zircaloy. Uranium used in the fuel may be highly enriched with U-235 (93.5%) or any

lower enrichment. The design of the assembly must be such that the fuel assembly casing and end fittings are removable without undue difficulty with the equipment provided in the Process Mechanical Cell of the Plant. No individual fuel element may exceed 0.75'' in diameter and fuel cladding thickness may not exceed 50 mils. Metallic hardware in the section of the assembly containing source material or special nuclear material may not exceed " in thickness. The fuel material must be essentially ThO2 or ThO2-UO2 prior to irradiation. The uranium (elemental basis) content shall not exceed 8.5%.

The processing unit for Category 3 specification material is 500 Kg (U+Th.). I, as defined in Article VI of this contract, is $74 for Category 3 specification material. W, as defined in Article VI, is expressed as kilograms of contained uranium plus contained thorium.

Category 4.-U-Mo alloy contained in tubes of stainless steel, zirconium, or zircaloy. Uranium used in the alloy must be no higher than 26.5% U-235 enrichment. The design of assembly must be such that the assembly casing is removable without undue difficulty with the equipment provided in the Process Movement Cell of the Plant. No individual fuel element may exceed 0.77" in diameter and fuel cladding thickness may not exceed 50 mils. Metallic hardware in the section of the assembly containing source material or special nuclear material may not exceed '' in thickness.

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The alloy must be essentially U-Mo prior to irradiation. The average molybdenum content for a processing lot may not exceed 10%.

The processing unit for Category 4 specification material is 150 kg of contained uranium. I, as defined in Article VI of this contract, is $407 for Category 4 specification material. W, as defined in Article VI, is to be expressed as kilograms of contained uranium.

Category 5.-U-Zr alloy or U-Zircaloy alloy clad in zirconium or zircaloy and contained in plate-type fuel elements requiring no mechanical head-end treatment other than the removal of end fittings in order to be charged to the dissolver. Uranium used in the alloy may be highly enriched with U-235 (93.5%) or any lower enrichment.

The alloy must be essentially U-Zr prior to irradiation. The uranium content of the alloy plus cladding must not exceed 10%.

The processing unit for Category 5 specification material is 400 kg gross weight of alloy plus cladding. I, as defined in Article VI of this contract, is $301 for Category 5 specification material. W, as defined in Article VI, is to be expressed as kilograms of gross weight of alloy plus cladding.

Category 6.—UO, or uranium metal sheathed in aluminum and contained in plate, rod or hollow cylindrical type fuel elements. Initial U-235 enrichment of all uranium must not exceed 5%. The design of the assembly must be such that the assembly casing and end fitting are removable without undue difficulty with the equipment provided in the Process Mechanical Cell of the Plant.

The fuel material, prior to irradiation, must be essentially UO, or U metal except for bonding materials such as Ni or Al-Si.

The processing unit for Category 6 specification material, is shown in Table 1. I, as defined in Article VI of this contract, is $85 for Category 6 specification material. W, as defined in Article VI, is to be expressed as kilograms of contained uranium.

Category 7.-U-Al alloy clad in aluminum and contained in plate-type fuel elements requiring no mechanical headend treatment other than the removal of end fittings. Uranium used in the alloy may be highly enriched with U-235, (93.5%), or any lower enrichment. No fuel element may be more than 4% inches on a side or 40 inches long in fuel length.

The alloy must be essentially U-Al prior to irradiation. The uranium content of alloy plus cladding must not exceed 10%.

The processing unit for Category 7 specification material is 400 kg gross weight of alloy plus cladding. I, as defined in Article VI of the contract, is $54 for Category 7 specification material. W, as defined in Article VI, is to be expressed as kilograms of gross weight of alloy plus cladding.

Category 8.-U-Mo alloy clad in aluminum and contained in hollow cylindrical fuel elements. The design of stainless steel end fittings must be such that they are removable without undue difficulty with the equipment installed in the Process Mechanical Cell of the Plant and it must be possible to push the aluminumclad fuel elements out of the stainless steel casing. Uranium used in the alloy must not exceed 4.5% in initial U-235 enrichment. The individual fuel element must not exceed 24 inches in length or 5.5 inches in outside diameter.

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The alloy must be essentially U-Mo prior to irradiation. The Mo content of the alloy may not exceed 4%. The assembly may contain up to 2.3% nickel based on the total weight of assembly.

The processing unit for Category 8 specification material is 800 kg of total alloy. I, as defined in Article VI of the contract, is $781 for Category 8 specification material. W, as defined in Article VI, is to be expressed as kilograms of total alloy.

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* Linear interpolation will be used between enrichments indicated.

C. SPECIFIC MATERIAL DESCRIPTION

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The Commission will submit to the Contractor a description, in the form of Table 3 hereof, of the irradiated reactor material which it plans to have chemieally processed under this contract. Such description must be submitted to the Contractor at least 60 days prior to date of initial shipment of each type of material. If the Contractor does not agree with the Commission's designation of the Material Category for such material, it shall within 30 days after receipt of such material description, so notify the Commission. Such notification shall state the Material Category, if any, which the Contractor believes to be applicable together with its reasons therefor. Unless the Contractor so notifies the Commission, it shall be conclusively deemed that the material meeting the description furnished by the Commission falls into the Material Category designated by the Commission. The Commission may delay shipment of the material to the Plant until the matter is resolved. If the parties do not resolve the matter by mutual agreement, it shall be deemed to be a dispute concerning a question of fact and subject to Article XLIX of this contract, unless otherwise provided in this contract.

Material Category

Element Described..

Subassembly Described..

Assembly Described__

Table 8

Post-Irradiation Specifications and Special Information Described for

The following definitions are applied to the Specification Material as described herein:

Fuel Element: The smallest integral unit of clad fuel (or blanket) containing Source or Special Nuclear Material (SSNM), i.e., a plate, tube, rod, disc, etc. Subassembly: If used, is a group of elements, combined in a structural unit, which is grouped with other subassemblies to form the larger unit called the assembly.

Assembly: A group of elements or subassemblies combined in a structural unit. The assembly is usually that fuel structure which is removed from the nuclear reactor as an individual unit.

A separate description form is required for each element, subassembly or assembly which is different in description.

All dimensions are given in feet and inches and all weights in grams or kilograms.

1. Drawings. Drawing (s) no.(s), three copies of which have been furnished the Contractor and which are incorporated herein by reference thereto, constitute (s) a comprehensive illustration of the fuel elements, subassemblies, and assemblies described herein as charged to the nuclear reactor in sufficient detail and accuracy to permit chemical processing under this contract.

2. Material Description. The following summarizes the description of fuel elements, subassemblies, assemblies as charged to the nuclear reactor. Where dimensions are required, the nominal dimensions, as charged to the nuclear reactor, must be used. Weight must be dry, unirradiated weights with the expected range of weights also to be indicated.

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a. Element Description

(1) Type (plate, disc, rod, tube, etc.).

(2) Nominal dimensions (including clad and bond).

(3) Nominal gross weight__

(4) Weight of SSNM before irradiation

Total U

U-233.

U-235--

U-235 enrichment....

Total Pu..

Total Th

(5) Chemical form of SSNM (UO2, UC, etc.) —

(6) Fabricated form of SSNM (Pellets, slugs, ribbons) and pattern in element__

(7) Alloy or dispersing material (Zr, SS, etc.)

Weight

(8) Cladding material (Zr, SS, etc.) (if appropriate in ASTM designations)

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(10) Spacers, inactive end material (MgO; SS, etc.)

Dimensions_

Weight---

(11) Other Material contained in fuel element

Any material not covered by the above shall be added to provide additional description of fuel. All impurities in excess of 100 ppm or uranium prior to irradiation shall be identified.

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