LANL Community Support Is Contract Requirement
A recent press release from Los Alamos National Laboratory stated that the LANL “Board of Governors last week approved a $3.1 million extension to the company’s plan supporting education, economic development and charitable giving in Northern New Mexico.”
This, like most LANL statements, could use a little decoding.
1. The Lab’s contract with DOE requires community support. The LANL Conformed Contract (Conformed to Mod 215, 01/25/2013) tells us:
H-24 NNSA AND CONTRACTOR COMMUNITY COMMITMENTS
(a) The Contractor shall perform the activities described in the Contract’s Section J Appendices entitled “Regional Initiatives”, “Regional Purchasing Program” and “Technology Commercialization”, which sets forth the NNSA’s commitments to support the community…
(b) The Contract’s Section J Appendix entitled “Contractor and Parent Organization Commitments, Agreements, and Understandings” sets forth the Contractor’s Community Commitment plan that describes its planned activities as to how the Contractor will be a constructive partner to the communities in northern New Mexico, the eight northern pueblos, and to citizens of the State of New Mexico who should all benefit from the Contractor’s management and operation of Los Alamos National Laboratory…
2. For 2014, the Press release states the Plan will provide “$1 million for economic development such as financial and technical assistance to start and grow regional businesses. ” However, the contract states that the Lab receives a $1.8 million tax credit (per year) from the State of New Mexico for providing technical services assistance to small business. It is unclear to us what the Lab does with the other $.8 million.
4. The Press release continues that the Plan will provide “$1.1 million for educational programs and scholarships for New Mexico students and teachers as well as workforce development programs.” One of the scholarship programs that the Lab provides is the Out-of-State Tuition and Fee Waiver program. The contract explains that this program is for any LANS “full-time active employee and/or dependent who is accepted to any University of California undergraduate or graduate program. Based on the past 3 years of data, approximately 100 students will take advantage of this program annually. Out-of-state tuition and fee waiver represents a savings of $17,000 per student each year” or $1.7 million annually.
5. For meeting its community giving contract requirements, the then Lab receives an award fee on top of the regular payments. LANL’s FY 2012 Performance Evaluation Report does not give the public the exact breakout, but we know that Performance Based Initiative 11 (PBI 11: Excellence in Business and Institutional Management), which includes community giving, earned the Lab an additional $3,656,808 for 2012.
6. Not mentioned in the press release was one of the biggest gives, which is to Los Alamos Public Schools. The contract states, “The primary management and operations contractor shall provide $8.0 million in each fiscal year to the Los Alamos Public School District to support public elementary and secondary education.”