The University of California-managed Los Alamos National Laboratory continues to be plagued with security problems that could jeopardize the UC’s contract to manage the lab as well as the existence of the lab.

Fifteen workers at the lab were placed on investigatory leave July 22 for security violations involving the loss of data, and four were placed on leave for a separate safety incident involving an intern who suffered an eye injury from a laser.

The latest security incident involving the loss of two devices containing classified material prompted a stoppage of all classified work at the lab. Though officials said there is no reason to believe the devices have gotten out of the lab, the devices have not been found since they were reported missing July 6.

Lab Director Pete Nanos said there was substantial evidence that the loss of data was due to a “cultural” problem at the lab where individuals felt they did not need to follow all safety and security rules.

Nanos told employees July 22 that the suspension of work at the lab is costing the federal government hundreds of millions of dollars and that he believes the lab is likely to experience revenue losses as customers leave the institution.

“The issue now is not whether the UC contract is at risk (but if) most laboratory work will be moved elsewhere,” Nanos said.

The security issues at Los Alamos also prompted the U.S. Department of Energy to halt classified work on July 23 in facilities around the country that use disks like those missing from the New Mexico lab.

“While we have no evidence that the problems currently being investigated are present elsewhere, we have a responsibility to take all necessary action to prevent such problems from occurring at all,” said Energy Secretary Spencer Abraham in a press release on July 23.

Officials said classified work at Los Alamos and at the other laboratories will not resume until all security issues have been addressed.

Los Alamos spokesman Jim Fallin said the process of resuming classified work could take weeks, if not months for some Los Alamos departments at the lab.

“We’re not in a race. This is not about how fast we can get it done. This is about doing what is necessary to get this lab back on track,” Fallin said.

Nanos said the “inability to provide a safe secure environment is something I never want to see repeated.”

The Department of Energy put all lab management contracts up for bid after problems such as misappropriation of funds, missing inventory and misplaced classified data plagued the UC-managed labs.

Recently the Department of Energy extended the UC’s contract for Lawrence Livermore National Laboratory to 2007. But management contracts of the Los Alamos and Berkeley National labs will be up for bid in 2005.

The latest security incident seriously could damage the UC’s credibility if it decides to compete for the contracts.

“There’s a belief among some very powerful people in Congress that academic culture and running a high security national laboratory are totally incompatible and scientists can’t be trusted," Nanos said.

Sen. Wayne Allard, R-Colo., a member of the Senate Armed Services Committee, already has introduced legislation asking that the UC end its role as manager of operations.

A longtime proponent of the lab, Sen. Pete Domenici, R-N.M., issued an open letter to Los Alamos employees July 22 in which he said “Today, in Washington, Los Alamos’ reputation as a crown jewel of science is being eclipsed by a reputation as being both dysfunctional and untouchable. … As the proudest defender of the laboratory, I can tell you that the defense can no longer be sustained unless the laboratory changes.”

With reports from Richard Clough, Bruin senior staff