INDEX


                                 CHAPTER II

                         MATERIALS MANAGEMENT PLANS

1.  PURPOSE.  To provide guidelines for the uniform preparation of the field
    office Materials Management Plans which are used by the Office of
    Nuclear Weapons Management for the preparation of the DOE-wide Materials
    Management Plan and strategic management plans for specific nuclear
    materials.

2.  GENERAL.  A key component of any management system is the planning
    function.  Planning in nuclear materials management is particularly
    important because of the strategic value of the materials and the high
    costs of producing, processing, storing or disposing of the materials.
    Within DOE, the plans for managing nuclear materials are formalized
    annually in the DOE Materials Management Plan and other strategic
    management plans.  The DOE Materials Management Plan provides an
    analysis of the nuclear materials available and the projected
    requirements over the 11-year planning period (beyond the current fiscal
    year).  It presents plans for the management of nuclear material
    reserves and other inactive materials, and addresses issues requiring
    management attention by identifying risks and options that could affect
    nuclear materials management.  The DOE Materials Management Plan is the
    only document that combines user and supply project requirements and
    identifies the total demand for nuclear materials.  The DOE Materials
    Management Plan also addresses other nuclear materials-related
    considerations such as the need for new production capability, shipping,
    storage, processing and management problems.

3.  FIELD OFFICE MATERIALS MANAGEMENT PLAN.

    a.   Content and Responsibilities.  Field offices shall prepare
         Materials Management Plans containing the following information, as
         applicable:

         (1)  Projections of nuclear materials inventories and transactions
              for each "supply" project for which the field office is
              responsible.  The following data shall be provided for each
              supply project for each of the 11 fiscal years of the
              designated planning period:

              (a)  Beginning Inventory;
              (b)  Receipts (identify other party);
              (c)  Removals (identify other party); and
              (d)  Ending Inventory.

         (2)  Projections of nuclear material inventories and transactions
              for user projects involving weapon production or nuclear
              materials production activities.  This requirement is
              applicable to any field office having programmatic
              responsibility for weapon production or nuclear materials
              production.  The following data shall be provided for each
              project for each of the 11 fiscal years of the designated
              planning period:

              (a)  Beginning Inventory;
              (b)  Receipts (identify other party);
              (c)  Removals (identify other party); and
              (d)  Ending Inventory.

         (3)  Specific site issues related to nuclear materials production,
              processing, storing, and management activities.  Typical
              issues would be:  need for nuclear materials storage
              capability; impact of lack of acceptable shipping containers;
              need to maintain DOE nuclear materials processing/conversion
              capability to meet current or future needs or for long-term
              safe storage; and ways to minimize nuclear material wastes.

         (4)  A list of nuclear materials management and related analytical
              studies being performed or completed during the previous year
              by the field office or its contractors.  The title and a brief
              abstract of each study should be included.

    b.   Schedule.  The field office Materials Management Plan shall be
         provided annually to the Office of Nuclear Weapons Management by
         6-15. /3

    c.   Materials Reported and Units.  Materials and units to be included
         in the Materials Management Plans, unless otherwise authorized by
         the Office of Nuclear Weapons Management, are as follows:

                                          Component             Reporting
                  Material                Reported                Unit
                  --------                ---------             ---------
                                                                (Nearest)

              Enriched Uranium       U-235 isotope              kilogram
              Plutonium              Total Pu (Wt.% Pu-240)     kilogram
              Uranium-233            U-233 (PPM U-232)          kilogram
              Heavy Water (D2O)      D2O equivalent              kilogram
              Plutonium-238          Pu-238 (% Pu-238)          gram
              Tritium                Tritium                    gram
              Normal Uranium         Total U                    metric ton
              Neptunium-237          Np-237 isotope             kilogram

-------------------------
    /3 If the Office of Nuclear Weapons Management delays in providing
planning assumptions and the nuclear materials withdrawals and returns
summaries for use in the field office Materials Management Plan (see
paragraph 3e below), the field office Materials Management Plan may be
delayed an equivalent number of days.


    d.   Assumptions.  Each Materials Management Plan should contain the
         important assumptions used to develop projections for materials
         supply or user project inventories and transactions.

    e.   Coordination.  Annually, by 4-1, the Office of Nuclear Weapons
         Management will provide field offices with planning assumptions and
         applicable nuclear materials withdrawals and returns summaries
         (developed from field office requirements forecasts (Chapter I))
         for use in preparing the field office Materials Management Plan.
         Because resultant processing schedules developed by one field
         office may be needed by another field office for use in developing
         its Materials Management Plan schedules, it is important to
         coordinate such schedules between field offices at the earliest
         possible date so that the Materials Management Plan preparation
         date can be met by all organizations.

4.  DOE MATERIALS MANAGEMENT PLAN.  Annually, by 9-30, the Office of Nuclear
    Weapons Management will prepare and issue the DOE Materials Management
    Plan.  It will be based on information from nuclear material
    requirements forecasts (Chapter 1), field office Materials Management
    Plans, the latest Nuclear Weapons Stockpile Plan approved by the
    President, and information developed from nuclear material strategic
    management plans.  The DOE Materials Management Plan will be provided to
    appropriate DOE organizations and other Government agencies as a
    comprehensive analysis of nuclear materials supply-demand during the
    next 11-year planning period together with important nuclear materials
    management issues.