The Nuclear Regulatory Commission on Wednesday approved 150 staff recommendations for reducing the agency’s expenses and staffing workloads, which will reportedly result in about $40 million in savings over the next year.
The reductions ranged in savings from $1 million to $1.3 million and encompassed cost reductions in everything from information technology service contracts to lowering the frequency of staff reviews and inspections at nuclear sites. The four-member commission approved all but one of the staff’s 151 cost-savings recommendations late Wednesday. The recommendations were made as part of the agency’s Project Aim 2020 initiative, the NRC’s attempt to become a more efficient organization in the long term. The recommendations call for the removal of about 180 full-time equivalent employees.
Officials held a telephone press conference Thursday, where they were asked why the agency hadn’t realized these savings sooner. In her closing remarks, NRC Chief Financial Officer Maureen Wylie said Project Aim is intended to be a culture shift at NRC, adding that the agency has spent the past year discussing how to improve efficiency.
“Our goal is to make this continuous improvement and innovation a part of our DNA,” Wylie said.
NRC acting Executive Director for Operations Dan Dorman called the reductions “low-hanging fruit,” adding that the agency anticipates further cost savings in its corporate support and materials segments moving forward.
The biggest cost saving comes with year’s expiration of a 10-year information technology contract NRC has with Dell. The agency anticipates a new, more competitive contract that will save an estimated $1.3 million, about $400,000 more in savings then the second largest item. The contract includes telephone, telecom, and data services.
“It is our expectation that given the substantial changes in the IT market today, that we will have, when we let this final contract (expire), savings from what we have now,” Wylie said Thursday. “Certainly we’re going to use best practices today for strategic contracts, and we’re going to do our best to get the best value possible.”
In one approved recommendation, NRC said it will take a “common-sense” approach and allow more flexibility for inspections for nuclear materials licensees. One example will involve extending the initial inspection period for certain NRC licensees and allowing for inspection extensions based on good performance.
The commission did not approve a $188,000 item to delay a rulemaking on the 2010 Dodd-Frank Act. That rulemaking would amend NRC regulations to remove or replace any use or references to bond rating guidance for verifying decommissioning finance reports, as mandated by the Dodd-Frank Act.
