Los Alamos' Business Operations Division restructured

Contact: Steve Sandoval, steves@lanl.gov, (505) 665-9206 (03-068)

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LOS ALAMOS, N.M., May 22, 2003 -- New Chief Financial Officer and Supply Chain Management divisions have been created as part of a restructuring of Los Alamos National Laboratory's business operations. The new divisions will absorb the duties and functions of Los Alamos' present Business Operations Division.

Personnel in the Business Operations Division were told of the restructuring — Laboratory and BUS Division managers and employees have been working for several months toward this goal — at a meeting Tuesday in Los Alamos' Administration Building Auditorium at Technical Area 3. The restructuring should be in place and begin operating about June 23.

The new organizational structure allows Los Alamos to continue the improvement of its business practices begun in January, said Richard Marquez, Los Alamos' associate director for administration. "The University of California and the Laboratory are committed to demonstrating real, tangible results," said Marquez. "This is a sign of [our] future." He said the restructuring of the Business Operations Division also builds on the momentum that began earlier this year but noted that a restructuring "without addressing processes, technology and people issues will not yield the improved performance levels needed."

The new Chief Financial Officer Division will include Accounting, Institutional/Nonweapons Budget, Weapons Budget, and Compliance and Control groups.

The new Supply Chain Management Division will include Procurement, Property Management, Materials Management groups and Los Alamos' Small Business Program Office.

Added Anne Broome, University of California vice president for financial management in the Office of the President, who also attended Tuesday's BUS Division meeting, "This is one more step [in] moving toward quality business practices. We really need to move the business practices here to a higher standard and a higher quality."

Broome also has been working with Los Alamos for several months as part of the Laboratory's business-improvements overhaul project. She reiterated the university's continued support of this effort. "Since January, the University of California has been actively engaged in supporting Laboratory management and addressing issues," said Broome. "I intend to be here until every single one of the problems that are identified have been fixed. We're going to have to work together and jump in to solve them. This is not insurmountable."

Marquez said the Laboratory this week will begin the process of searching nationally for personnel to fill the new division leader positions with the intention of filling them by July 28. He also said that Jim Lopez will continue as Los Alamos' acting chief financial officer; Jay Johnson will continue as acting controller; and Chuck McDonald will continue as acting procurement officer for Los Alamos. Lopez and McDonald are on temporary assignment to Los Alamos from Lawrence Livermore National Laboratory and UCOP respectively.

At Tuesday's meeting for BUS Division personnel, Interim Laboratory Director Pete Nanos said the Department of Energy's recent decision to allow the University of California to retain the operating contract through September 2005 was due in part to the hard work of BUS employees. The restructuring of business functions and practices also will position the Laboratory for the future, Nanos said. And he reiterated that he will continue to play an active role in Los Alamos' business-improvement efforts. "I have to have a very direct relationship with how this Laboratory does business . . . without micromanaging," said Nanos.

Los Alamos National Laboratory is operated by the University of California for the National Nuclear Security Administration 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 weapons stockpile, developing technical solutions to reduce the threat of weapons of mass destruction and solving problems related to energy, environment, infrastructure, health and national security concerns.

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