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STONE & WEBSTER ENGINEERING CORPORATION
245 SUMMER STREET, BOSTON, MASSACHUSETTI
ADONEIS ALL CORREOPONOENCE TO P.O. box 134.. JOITOM. NA
W.U. TELEX: 54-0001
February 12, 1986
Mr. William P. Willi., 048...I Manager
Dear Mr. Willis:
This is to confirm the flnancial interests that employees of Stone & Webster vill have in connection with the services that we will be providing to TVA pursuant to the TVN SWEC LoRa Agreement.
The total revenues of Stone & Webster during ito last fiscal yur were lo excess of $2,000,000,000, and the revenues from the servirao providod to TVA purouant es Llou above agreement will represent a small fraction (less than .4%) of Stone & Webster's total revenues per year. Company personnel providing service to TVA pursuant to the TVN SWEC Loan Agreement will be compensated in accordance with ustablished Stoa. & Webster policy. No employee of Stone & Webstor will receive any bonus, compensation, or any other personal benefit that is attributable to the dollar volume of vervice provided to TVA by scona & Waboter.
Application for Board Detech.nation
Determination for Richard B. Kelly under 18 U.S.C.
WHEREAS, Richard B. Kelly will serve for not more than 2 years as a
loaned employee, as TVA's Manager of Nuclear Quality Assurance, in
WHEREAS, Mr. Kelly is an officer, director, salaried employee, and
stockholder of SWEC; and WHEREAS, Mr. Kelly has made a written disclosure of certain financial
financial interests in SWEC; and
WHEREAS, TVA's General Manager has directed that the Office of Nuclear Power limit its use of SWEC for QA engineering work to $.
per year for 2 years; and
WHEREAS, Mr. Kelly is compensated by SWEC on a salary basis, and he will
not receive any SWEC bonus or other personal benefit in connection with the work he performs for TVA under this arrangement, other than as a shareholder of less than .1 percent of SWEC stock; and.
WHEREAS, SWEC is a large entity with revenues substantially in excess of
that represented by TVA's maximum QA engineering business with SWEC;
and WHEREAS, as a ioaned employee, Mr. Kelly is subject to TVA's employee
rules, regulations, and procedures on conduct, conflicts, and ethics
except as provided herein; BE IT RESOLVED that the Board hereby finds pursuant to 18 U.S.c. 208(8) ::. that Mr. Kelly's financial interests in SWEC are not so substantial
as to be deemed likely to affect the integrity of the services which TYA expects of him.
W. F. Willis memorandum to the Board
Manager of Nuclear Power Steven A. White has selected and the individual
Mr. Kelly is coming to TVA under TVA Contract No. TV-68879A with Stone &
As a loaned employee, unless otherwise specified, Mr. Kelly is subject to all TVA rules, regulations, and procedures on conduct, conflicts, and ethics applicable to regular TVA employees.
· As TVA's QA Manager, Mr. Kelly will direct and be responsible for TVA's
per year for two years. My direction to the Office of Nuclear Power in this regard is attached.
Stone & Webster is a large firm. It represents that its annual revenues in its last fiscal year were in excess of $2 billion. Under present contracts, TVA's total annual payments to SWEC will not exceed $8 million per year and the QA engineering work in which Mr. Kelly might participate in directing for TVA will not exceed $
per year, a very small fraction of SWEC's business. These details of SWEC's business are set out in Mr. Matson's February 12 letter to me which is attached.
Thus, Mr. Kelly's disclosed interests in SWEC would prevent him under 18. U.S.c: 208 from participating in any way in TVA determinations on the TVA/SWEC contracts. However, as the Board knows, it could determine that the specifically identified interests of Mr. Kelly in SWEC and the limits we have placed on his participation in any TVA/SWEC contract matter cause that financial interest to be not so substantial as to be deemed likely to affect the integrity of the services which TVA may expect of him and, therefore, waive the prohibitions of the statute ! pursuant to 18 U.S.C. 9. 208(b).
The Individual members of the Board can act by indicating their determinations on the attached Board action form.
W. F. Willi,
C. R. Dean, Jr.
Steven A. White, LP 6N 38A-C
Steven A. White, Manager of Nuclear Power, LP 6N 38A-C
LIMITATION ON QA ENGINEERING SERVICES TO BE ORDERED FROM STONE & WEBSTER
As we discussed, the Office of Nuclear Power is to order any QA engineering
W.' F. Willis