LANL: The Corporate Story

Pat, a little update on Nanos...
-Anonymous contributor
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Livermore has largest share of dubious costs
By Ian Hoffman, STAFF WRITER, Inside Bay Area, 03/29/2007

A scientist from Lawrence Livermore Lab went to work in a French research facility, as a U.S. liaison. That was back in 1998, yet the scientist is still collecting salary and "dislocation allowances" of about $300,000 a year for housing, furniture rental, private school for his daughter and, in the past, foreign language lessons for his wife. So far the total bill is more than $2.7 million, according to an audit released Wednesday by the Energy Department's inspector general.

Winning an off-site assignment from the nation's nuclear weapons labs can be a career plum, a brief but valuable chance to work inside the Pentagon, the Department of Homeland Security or the CIA.

But one of the secrets inside the labs is that reassignments elsewhere also can offer a handy way of finessing senior management problems, such as an incompetent manager or one angered at being passed over for a promotion.

Either way, the practice of reassignments is largely unregulated inside the Department of Energy, and while auditors found it hasn't resulted in dubious or wasteful spending at basic science labs such as Lawrence Berkeley Lab, they found millions of dollars in questionable expenses for reassignments from the nation's three nuclear weapons labs.

Overall, in 2004 and 2005 the inspector general found $11.3 million in weapons lab reassignments that "were either too long, resulted in excess costs, or were not appropriately cost-shared with host entities."

At Los Alamos Lab in New Mexico, the University of California in years past has provided lab-salaried scientists as staff to Sen. Pete Domenici, the top Republican on a key appropriations committee holding purse strings on nuclear weapons work. More recently, the university has resolved problems with unpopular lab managers by finding them jobs at the Defense Department while still paying them Los Alamos salaries and entitlement to UC's richly funded pension plan.

That was the case with retired Vice Adm. G. Pete Nanos, who left Los Alamos after a tumultuous period as director in which he derided staff as "buttheads." The university secured a job for Nanos planning strategy for scientific research at the Defense Threat Reduction Agency and paid him a Los Alamos salary of $289,000. When an internal audit questioned the payment, the university itself took over Nanos' salary, now at $235,000.

"He has knowledge of Los Alamos and knowledge of (the Defense Department) and he's been able to apply that at DTRA," university spokesman Chris Harrington said. "Being able at times to present the perspective of the laboratory, having a liaison at times, is valuable for the laboratory."

Of the three bomb labs, Livermore Lab had the largest share of questionable expenses noted by the inspector general — more than $5 million for 2004 and 2005.

Auditors found the lab's payment of 100 percent of the $3.7 million costs for four employee reassignments "especially troubling" because the reasons for the assignments were not documented and because lab officials acknowledged other agencies were getting some benefit and should have been charged.

"We use these because we really feel there are benefits to the laboratory and the agency that the employee is being transferred to," lab spokeswoman Lynda Seaver said. "We agree we can improve our documentation."

Auditors also found that in several cases Livermore employees were kept on assignment for the more than the maximum of four years and that the lab had no plans on file to take the employees back.

In one case auditors found a Livermore scientist took a six-month assignment and still hasn't come back after 15 years and $1.2 million in lab expenses.