On April 21, 2006, a Notice of Violation (NOV) and Proposed Imposition of Civil Penalties in the amount of $32,500 was issued to Nuclear Fuel Services, Inc. (NFS). This action is based on a Severity Level III problem associated with two violations. The first violation involved the failure to develop and implement a design for the uranium-aluminum enclosure overflow system which provided that Items Relied on for Safety (IROFS) would be reliable and available to perform their function when needed. The second violation involved the failure to report a condition that resulted in the facility being in a state that was not analyzed, and which resulted in failure to meet the performance requirements of 10 CFR 70.61.