The government has slashed its funding of the Los Alamos
nuclear research centre, the birth place of the atom bomb, after a
major security scare.
The US National Nuclear Security Administration (NNSA) cut fees
by two-thirds to the University of California which runs the Los
Alamos National Laboratory after "serious safety and security
problems", including the reported loss of two classified computer
discs.
"Although multiple investigations have confirmed that the
'missing' discs never existed, the major weaknesses in controlling
classified material revealed by this incident are absolutely
unacceptable, and the University of California must be held
accountable for them," said NNSA administrator Linton Brooks.
"Of even greater concern are significant safety weaknesses which
came to light at around the same time," said Brooks.
Under the existing contract, the university is entitled to a
fixed fee of almost £2m plus a performance-based fee up to an
additional £3m. As a result of the NNSA penalty, the University of
California will receive a total management fee of £1.6m for 2004,
only a third of the maximum potential fee.
Los Alamos was the first nuclear weapons laboratory in the US
and has been managed by the University of California for the past
60 years.
In 2003, the Department of Energy announced that as a result of
previous weaknesses in business practice, the management contract
would be open for competition when it expires this September.