Statement by George P. (Pete) Nanos, Interim Director of LANL

Contact: Linn Tytler, ltytler@lanl.gov, (505) 667-7000 (03-045)

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LOS ALAMOS, N.M., April 10, 2003 -- Statement by George P. (Pete) Nanos, Interim Director, Los Alamos National Laboratory regarding the University of California release of the John Layton/PricewaterhouseCoopers external review of the Laboratory's procurement processes:

"I would not have expected the problems or issues found in the expanded Layton/PricewaterhouseCoopers review of Laboratory procurement programs to be substantially different from what was found in their earlier purchase card review. They were examining essentially the same time frame (2000-2002) as the earlier look at purchase cards.

"The weaknesses identified in both reviews — insufficient policies and procedures, lack of timely and reliable data and inadequate management — are being rapidly addressed by a complete re-engineering of the Laboratory's business processes.

"Just as immediate steps were taken in August 2002, when irregularities in the purchase card system were first identified, to implement needed controls and accountability, we also have taken steps to address deficiencies in the just-in-time and local vendor agreements processes. They are among more than 92 measurable milestones, with 514 assigned and accountable activities that are part of the laboratory's overall Business Improvement Project Plan.

"We welcome the additional recommendations contained in this report and will ensure they, too, are quickly implemented. We are committed to ensuring our business processes meet the level of accountability expected by the American public. We will accept nothing less."

Los Alamos National Laboratory is operated by the University of California for the National Nuclear Security Administration (NNSA) of the U.S. Department of Energy and works in partnership with NNSA's Sandia and Lawrence Livermore national laboratories to support NNSA in its mission.

Los Alamos enhances global security by ensuring the safety and reliability of the U.S. nuclear stockpile, developing technologies to reduce threats from weapons of mass destruction, and solving problems related to energy, environment, infrastructure, health and national security concerns.

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