Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA

Carolyn ZerkleExecutive Director

New Mexico Legislative Finance CommitteeJuly 18, 2018

LA-UR-18-26508

An Overview of Los Alamos National Laboratory

75 Years of Serving the Nation:Our Priorities

Do the work our nation needsOur mission does not wait

Empowered and accountableLeaders show that safety, security, and compliance are non-negotiable

Manage through contract transition not to a specific date

Set the focus, and plan for the future

Do what is right for the Laboratory and the nation

Honor, integrity, and service

07/18/2018 | 2

A complex, dynamic system of people, facilities, materials, and services

40 square miles     47 technical areas     1,280 buildings/ 9M sq ft     11 nuclear facilities     268 miles of roads

>8,750 career employees / >12,000 workers on site     >2,100 R&D scientists     1,100 veterans     390 postdocs     1,300 students at peak

$2.6B budget     4,700 projects     600 B&R codes     

5 PADS     13 Directorates     80 Divisions

Weapons Programs• Weapons Physics Design and Computation• Weapons Engineering• High Explosives• Plutonium• Tritium/GTS • Uranium, Beryllium, Salts, Metals• Detonators• Component Fabrication and Assembly

Science, Technology and Engineering• Chemistry, Earth and Life Sciences• Accelerator Science• Engineering Sciences• Materials and Physical Sciences • Theoretical and Computational Sciences

Global Security• Nuclear Nonproliferation• Nuclear Counter‐Proliferation• Emerging Threats• Intelligence Community• National Defense and Homeland Security

Institutional Operations• Business Services• Environmental, Safety, and Health• Nuclear & High Hazard Operations• Security and Mission Assurance

Director’s Office • Institutional Management

Capital Projects• Project Management Services

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Mission: Strategic Nuclear Deterrence

Detecting and preventing the development or use of nuclear weapons and improvised devices

Reducing and limiting nuclear arms and the spread of nuclear materials, technology, and expertise through cooperation and diplomacy

Assuring our nation’s defense with a strategic nuclear deterrent through theory, modeling and simulation, and experimentation

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Slide 5Los Alamos National Laboratory

LANL budget is growing, even with Environmental Management work moving to a new contractor

FY13 FY14 FY15 FY16 FY17 FY18 est. FY19 est.LANL 2,093 2,117 2,250 2,434 2,442 2,574 2,859

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2,800

3,000Costs by Fiscal Year ($M)

FY17: NMGRT paid ~$80M

EM $182M EM $198M EM $153M EM $161M EM $170M EM $96M EM $28M

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Capital & Infrastructure Projects

Infrastructure Projects: $379M Portfolio of 114 active projectsA Small Project Initiative is developing a graded cost-estimating process specifically for small projects

Capital Projects: >$1.26B PortfolioCMRR: Chemistry and Metallurgy Research

Replacement ProjectTWF: Transuranic Waste Facility completed and

operationalTRP: TA-55 Reinvestment Projects I and IILLW: Radioactive Liquid Waste Treatment Facility

Upgrade Project/Low-Level Liquid Waste ProjectEC3E: Exascale Class Computer Cooling Equipment TA-3 Substation

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Business Services1528

Executive53 IT

745

Operations1530

Project/Program Mgt753

R&D2364

Science & Engineering Support

1336

Lab Assoc54

Post Doc394

Student1518

Staff Aug515

Protective Force262

Craft1042

12,094 People: Our strengths are the diversity and quality of our employees

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LANL has grown since 20137,

495

754

391 94

0

7,42

8

758

368

1,00

6

7,38

6

904

351

1,12

2

7,68

1

930

333

1,31

9

8,14

5

999

370

1,50

8

8,28

5

1,03

8

392

1,51

1

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Career Craft Postdoc Student

Empl

oyee

s

2013 2014 2015 2016 2017 2018

41% of current employees were born in New Mexico (4,635)

GRA, UGS, and High SchoolRegular and Term Employees07/18/2018 | 8

Hiring continues to keep pace with terminations

341456 484 530

620 631

281336

512

1013944

698

Projected Terminations808

Projected Hires933

0

200

400

600

800

1000

1200

FY13 FY14 FY15 FY16 FY17 FY18

Empl

oyee

s

LANL Hires and Terminations FY13-18 YTD

Terminations Hires07/18/2018 | 9

LANL’s attrition rate continues to be driven by retirements

FY 2018 Terminations Annualized Attrition Rate

Retirement 258 4.5%

Voluntary Non-Retirement* 258 4.5%

Other 63 1.1%

Total 579 10.1%

2.7%2.2%

1.2%

6.1%

3.6%

2.3%

0.7%

6.6%

4.1%

2.0%1.0%

7.2%

4.3%

2.3%1.3%

7.9%

3.1% 3.1%

0.7%

6.9%

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%

Retirement Voluntary Non-Retirement Other Total

Annu

al A

ttriti

on R

ate

FY14 FY15 FY16 FY17 FY18 YTD

*FY18 YTD includes 100 individuals who left as part of the EM Contract transition.

Security clearances average more than 500 days, and we have 1,500 in the queue. These delays impact our ability to retain early-career employees.

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Procurement Spending is estimated to rise significantly this FY

$600,000,000

$620,000,000

$640,000,000

$660,000,000

$680,000,000

$700,000,000

$720,000,000

$740,000,000

$760,000,000

$780,000,000

$800,000,000

FY 2015FY 2016

FY 2017

FY 2018 (Estimated)07/18/2018 | 11

Procurements Made in New Mexico / Northern New Mexico from FY15 – FY18

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

FY 2015 FY 2016 FY 2017 FY 2018 (YTD)

NM Dollars NNM Dollars07/18/2018 | 12

Top New Mexico / Northern New Mexico Suppliers to the Laboratory

Major Small-Business, New Mexico-based Suppliers to LANLCompa Industries Inc Staff AugmentationCross Connection Inc ConstructionTsay Construction and Services LLC Custodial Services (Native Owned)Wildflower International Ltd IT EquipmentHolmans USA LLC IT EquipmentFranks Supply Co. Inc Industrial SuppliesRocky Mountain Business Systems Inc Business EquipmentEdgewater Technical Associates Professional Support ServicesHacienda Home Centers Inc Industrial SuppliesRG Construction Services LLC ConstructionGoodmans Office Furniture

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Small Business Achievements

FY 2015DOE Protégé of the Year

RG Construction Services LLC

FY 2015DOE Mentor of the Year

Los Alamos National Laboratory

FY 2016DOE Small Business Program Manager of the Year

Christopher Fresquez

FY 2018SBA Family Business of the Year

Holman’s USA LLC

FY 2018LANL Mentor Protégé Program Graduate

RG Construction Services LLC

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2018 Student Projections are similar to 2017

Over 2,200 students and postdocs worked at LANL in FY17

• 1,791 students were part of our workforce in FY17

• 45% of our students are native New Mexicans

2017

• Returning students: 1,205 • May/June hires: 375 • Student guests: 200

2018 Summer peak projection is 1,780 students

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A strong Laboratory depends on a strong region

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Education and workforce development• RTC training course at Northern New Mexico College and

environmental technician training course at Santa Fe Community College

• 139 students from the region received $712,000 in scholarships from the Los Alamos Employees’ Scholarship Fund this year.

• June 1 we completed our Employee Scholarship campaign with record setting contributions from employees.

Working with business and local government partners to grow the economy

• Last year, the Laboratory’s economic development initiatives helped create or retain 1,700 jobs at New Mexico companies

• Laboratory workers raised $3M in a record-setting Employee Giving Campaign last year, benefitting mostly New Mexico nonprofits

• The LANS Board approved a $1.875M grant to support education, economic development, and community giving in the region in 2018

Gabriella Rodriguez from Santa Fe is a 2018 LAESF Scholar and recipient of a Silver Award

We Work Safely: At historical low for injury / illness rates

76%

89%

07/18/2018 | 17

Wildland Fire Risk

Mitigation

Preparedness Response Capabilities

Fire Potential/Weather Outlook

Treated Fire Road

Treated Fire Break

Drought conditions continue to be at historic severity.

Fire potential outlooks remain above-normal levels.

Fuel moisture content is low. Monsoonal moisture is projected to

increase throughout July.

Current Mitigation Projects Defensible Space: Creating barriers by clearing

vegetation around LANL structures and Technical Areas.

Fire Roads: Ensuring fire roads have clear ingress and egress routes for first responder access.

Fire Breaks: Creating a separation of fuels in strategically placed areas around LANL that can be used as line of defense against fires.

Firing Site Improvements: Completed inspection of all firing sites. Working with the weapons programs and facilities to strengthen mitigation effort.

Both the Southwest Coordination Area and the National Preparedness levels have been elevated to preparedness level III.

LANL Wildland Fire Program has been promoting wildland fire prevention campaigns, and conducting interagency response training and drills.

SEO-EP and EES-16 have collaborated to integrate next generation wildland fire modeling software into preparedness and response protocols.

USFS provided Wildland Fire Decision Support System (WFDSS) training to LANL personnel on July 12th. This allows LANL to become a super user of the WFDSS software package which enhances situational awareness on Incident Command objectives and fire behavior models for incidents that could impact LANL.

LANL Wildland Fire Program developed wildland fire response checklists for LANL Agency Representatives, Technical Specialists, Archeologists, and Resources Advisors.

LANL Wildland Fire Program and Agency Representatives integrated into the T3 Incident Management Team structure during the San Antonio Fire, which burned over 400 acres in June 2018.

LANL Wildland Fire Staff and Emergency Managers have become compliant with National Wildland Coordination Group (NWCG) standards.

Protocols are in place to ensure the integration of offsite wildland fire management agencies to support LANL wildland fire response efforts.

07/18/2018 | 18

Start of ContractTransition

Oct 12018

July 5 2018

Jun 8 2018

NNSAAward

Triad Assumes Contract Responsibility

M&O Contract Transition

FY19

LANS

FY18

Contract Responsibility

Nov 12018Est.

Laboratory’s PhilosophyManage through transition not to transition

Support our workforce• Prompt, open communications with our workforce through DIR all hands, DIR communications,

and transition webpage• Ensure that decisions regarding personnel are done early in transition (benefits, pension,

organizational mapping, etc.)

Maintain safe, secure, and compliant operations07/18/2018 | 19

75th AnniversaryHonor, Integrity, Service

07/18/2018 | 20

Operated by Los Alamos National Security, LLC for the U.S. Department of Energy's NNSA