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UF6



NSSI's ownership asked me to offer the following opinion.
 
 
 
 
 
March 17, 1999
 

Referencing the note from Bernadette Baca concerning DOE seeking industry input to convert Uranium Hexafluoride to a more stable form:
 
The technology already exists for such conversion. The literature defines several procedures for such conversion. Unfortunately, all of the procedures generate significant quantities of Hydrofluoric acid or other Fluorides and require very expensive equipment.
 
What DOE is really interested in is identifying companies with the expertise and licensure to conduct such treatment at the lowest possible cost.  Once a company has provided DOE with an acceptable  technological approach, DOE will partially fund a pilot project to that company with the company paying most of the cost. At the end of the pilot project the company is required to provide a report containing the technology and pilot project results. DOE immediately publishes the report and provides the information to all known competitors. DOE then issues an RFQ and invites all to bid using the technology based on the pilot project.
 
Nothing could be more unfair. A company comes up with a good idea and proves the process. DOE gathers all the technology from the proof of process and provides it to anyone who wishes to compete.
 
DOE would get a lot more interest in this type of project if it allowed the company with the brains to develop a proprietary technology to use that knowledge to bid the project. Distributing the technology to others who wish to compete may provide the government with the lowest price on the immediate project but it insures that the company that developed the process won't participate in future projects.
 
Thanks for the opportunity to be involved but we will stick with private sector projects.
 
Robert D. Gallagher
President
NSSI
03179A1.doc