More WIPP Fallout: NNSA Cuts Los Alamos Lab’s Award Fees by 90% Watchdogs Say Management Contract Should Be Put Out for Bid

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 In addition, NNSA declined to grant a previously pro forma one-year contract extension and most remarkably rescinded a contract extension from an earlier year (see more below).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.

Read More…

Scroll to top