Santa Fe, NM
Today, Los Alamos Lab Director Charles McMillan notified LANL employees that the National Nuclear Security Administration (NNSA) had slashed FY 2014 management award fees to $6.25 million. Seventeen million dollars were available in fixed fees, and around $40 million in incentive fees, resulting in a 90% cut to potential awards. In addition, NNSA declined to grant a previously pro forma one-year contract extension and most remarkably rescinded a contract extension from an earlier year (see more below). As justification, the agency invoked a “First Degree” performance failure… [that] created damage to DOE property or costs for cleaning, decontaminating, renovating, replacing or rehabilitating property that in aggregate exceed $2.5 million.”
This is more fallout from WIPP. The Los Alamos National Laboratory (LANL) used unapproved radioactive waste treatment procedures that resulted in a ruptured drum at the Waste Isolation Pilot Plant, contaminating 21 workers and indefinitely closing that multi-billion dollar facility. It will cost an estimated half-billion dollars to reopen WIPP, which will likely double. Additionally, the New Mexico Environment Department has proposed $54 million in fines against LANL and WIPP, and Congress has cut $40 million from cleanup programs at the Lab while adding $100 million to help reopen WIPP.