Pre-Delivery Inspections Save Time and Money

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08/25/95
 
Title: Pre-Delivery Inspections Save Time and Money
 
Identifier: L-1995-OR-LMESX10-0801 Date: 8/25/95
 
Lesson Learned:
Site organizations may prevent costly downtime and increase safety margins
by ensuring that procurement documents for leased mobile cranes and similar
lifting equipment are processed appropriately. Procurement documents
should include a requirement that suppliers of this equipment perform a
pre-delivery inspection of the equipment for the detection of
suspect/counterfeit (S/C) parts, and S/C parts criteria should be included
in purchase/lease contracts.
 
Discussion:
Around the end of October 1994, Lockheed Martin Energy Systems (LMES; at
that time, Martin Marietta Energy Systems), Oak Ridge National Laboratory
(ORNL), Waste Management and Remedial Actions Division, Solid Waste
Operations leased two (2) 120-ton capacity lattice boom crawler cranes.
After the cranes arrived on site, the cranes were inspected and S/C
fasteners were identified installed in the cranes.
 
Delays resulting from the discovery (by ORNL) and the replacement (by the
supplier) of the S/C fasteners increased the overall cost of the work the
cranes were procured to perform. Leaving the S/C fasteners in place
without proper action would have resulted in a violation of S/C Parts
Program requirements. Operating the cranes with S/C parts in place would
have created a potentially unsafe condition. Work was stopped to replace
the suspect fasteners.
 
Recommended Actions:
Solid Waste Operations (SWO) personnel are including S/C parts acceptance
and inspection criteria in procurement documents under the provisions of
LMES Procedure PC-165, "Technical Review of Procurement Documents" and ORNL
Standard Practice Procedure (SPP) X-GP-16, "Procurement of Critical
Application/ Safety-Class Items and Services at ORNL." For example, in May
1995, SWO rented a 60-ton capacity, rough terrain crane and included the
necessary requirements in the procurement document. The lease agreement
required the supplier to conduct a pre-delivery inspection of the crane for
S/C parts. If suspect fasteners were discovered, the supplier was required
to have them replaced before providing the equipment to LMES.
Implementation of these requirements prevented lost time after crane
delivery, reduced the job cost, and potentially improved the margin of
safety.
 
Waste Management Operations Division, Solid Waste Operations (SWO)
personnel recommend that LMES organizations and other sites throughout the
DOE complex be sensitive to these issues and ensure provisions for vendor
pre-delivery inspections for S/C parts are made part of the purchase/lease
contracts. Contact K. D. (Kent) Calfee (615-241-3064) for additional
information.
 
Originator: Lockheed Martin Energy Systems, Inc.; Oak Ridge National Lab
(K. D. (Kent) Calfee 615-241-3064)
 
Contact: A. L. Wachs, (615-574-2343)
 
Name of Authorized Derivative Classifier: n/a
 
Name of Reviewing Official: Dave Hamrin
 
Priority Descriptor: Blue/Information
 
Functional Category: 430 - Facility Operations
 
Keywords: Inspection, pre-delivery, suspect, counterfeit
 
References: LMES Procedure PC-165, "Technical Review of Procurement
Documents."
ORNL SPP X-GP-16, "Procurement of Critical Application/Safety-Class Items
and Services at ORNL."