In a major setback to the University of California, U.S. Energy Secretary Spencer Abraham announced Wednesday that he will invite competition for the contract to manage Los Alamos National Laboratory.
Abraham cited “widespread” management problems at the lab to explain why there will be open bidding after the current contract expires in September 2005.
The UC has managed the lab without competition since it was formed in 1943 to create the world’s first atomic bomb, but numerous allegations of fraud, improper spending, poor security and a management cover-up at the lab emerged late last year.
“The university bears responsibility for the systematic management failures that came to light in 2002,” Abraham said in a statement.
Abraham praised “the vigorous action the university has taken” to solve the problems at Los Alamos. This, along with possible disruptions at the lab, is why the current contract will not be cut short.
He also urged the UC to bid for the Los Alamos contract in the future.
The UC Board of Regents will have the final say about whether the university will make a bid, and they have not yet decided. But UC President Richard Atkinson recommended they should not give up.
“My instinct continues to be to compete – and to compete hard – in order to continue the university’s stewardship of excellence in science and innovation,” Atkinson said in a statement, repeating remarks he made earlier this month at the lab’s 60th anniversary.
He is scheduled to testify before the House Energy and Commerce Committee today.
Committee Chairman Billy Tauzin, R-La., and Investigations Subcommittee Chair James Greenwood, R-Pa., both said they were pleased with Abraham’s decision.
“For far too long, the management of this lab by the University of California has operated with no accountability for the problems that have occurred on its watch,” Tauzin and Greenwood said in a joint statement.
“The idea that the UC is entitled to the contract by some divine birthright is absurd,” they added.
Defense contractors Lockheed Martin and Batelle are considering whether to bid for the lab contract. The University of Texas has also been mentioned as a possible bidder.
If the UC loses the lab management contract, it would probably hurt Los Alamos more than the university, said Steven Aftergood, who follows the lab’s activities for the Federation of American Scientists.
Los Alamos uses the university’s reputation to attract the nation’s top scientists.
Without this connection, the lab could have trouble maintaining the quality of its research programs.
“If they were to be taken over by a defense contractor, that would be viewed by many at Los Alamos as a poor substitute,” Aftergood said.
But the university would be able to overcome the effects of losing the contract because its research is based on more than just Los Alamos, he said.
Aftergood said Abraham surprised him by making the “right decision,” and the university must fight for the contract and prove it can address the security concerns.
“The UC would be a lot of people's first choice if it can step up and take responsibility for what’s been going wrong,” Aftergood said.
Whoever ends up managing the lab after the current contract ends will be responsible for maintaining and protecting part of the United States’ nuclear weapons stockpile.
Security concerns have been a recurring issue at the lab in recent years.
In 1999, lab scientist Wen Ho Lee spent nine months in jail while under investigation for mishandling nuclear weapons codes.
The next year, two computer hard drives with nuclear-related material disappeared. They were later found behind a copy machine.
Last year, multiple employees tried to buy items – ranging from camping gear to barbeques to a Ford Mustang – using government purchase cards.
In November, whistle-blowers leaked documents describing millions of dollars in equipment found missing or stolen from the lab, including computers and power supplies.
In response, the Department of Energy’s Inspector General and the National Nuclear Security Administration began to investigate business practices at Los Alamos.
They found a wide variety of problems, including improper and unallowable purchases with government funds and an inability to account for equipment.
The most recent report, released Monday, said the lab could not account for all of its classified computers.
Atkinson said the university has worked hard to solve these problems and will continue to try and resolve them.
“Continued UC management is in the absolute best interests of the nation’s security,” Atkinson said.