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Laboratory changes overhead pricing structure

The information below is from Rich Marquez, associate Laboratory director for administration (ADA):

"Today (Oct. 1), the Laboratory will implement changes to [its] overhead pricing structure for the 2004 fiscal year and beyond. These changes will improve and simplify the way [the Laboratory] distributes the basic costs of doing business - management and administration, facilities and other basic overhead costs for its programs. By dramatically reducing the number of cost codes, we expect these changes to allow the Laboratory to compare and streamline costs and to provide for a more equitable distribution of the costs of running this Laboratory.

"It is important to keep in mind that this proposal only changes the way in which our current costs are charged," said Marquez. "There is no overall cost impact to the Laboratory, except for the benefits we expect to gain through [a greater] ability to manage and control these costs.

"I expect individual programs to be impacted differently. I also expect those who benefit most from these changes to be frugal and to help mitigate potentially negative impacts to other programs whenever and wherever possible."

Marquez said he has established a committee of deputy associate directors to address the problems of programs that will be negatively impacted by these changes. This committee is tasked with determining mitigation strategies and working implementation solutions, he said.

"Employees who have questions or concerns about the new pricing system should contact their supervisors and group leaders who in turn will discuss with their division leaders and the deputy associate directors for resolution. For specific pricing questions, employees also can contact their Chief Financial Officer (CFO) Division representative."

-- James E. Rickman