To/MS: LANL-ALL
From/MS: Charles F. McMillan, DIR, A100
Phone/Fax: 7-5101/7-2997
Symbol: DIR-12-182
Date: November 7, 2012

SUBJECT: Personnel Changes on NMSSUP

A few days ago, I shared with you some serious construction issues we have encountered on Phase II of the Nuclear Materials Safety and Security Project at TA-55, or NMSSUP.

Since then, a team of senior Laboratory managers, LANS board members, and managers from parent organizations have been working with the government to develop a solution to complete the project. I believe changes are necessary to ensure that this project is completed successfully, so I have some important updates to report to you today.

• We have delivered a revised cost estimate for the project to NNSA. We believe the total project costs will rise from approximately $213 million to approximately $254 million. Because we are not authorized to make this type of change in funding, the project remains in suspended status until Congress or NNSA directs us otherwise.
• With the assistance of the LANS board, I have asked three senior, experienced leaders to assume responsibility for the NMSSUP project.

1) Tyrone “Ty” Troutman will be the NMSSUP project manager. Ty is the construction functional manager for Bechtel Systems and Infrastructure. Although NMSSUP will remain a project of the Principal Associate Directorate for Capital Projects, Ty will report directly to me.

2) Jimmie L. Willman will manage procurement activities. Most recently, Jimmie was vice president, deputy program manager, and Business Services manager for Kwajalein Range Services, LLC.

3) Toby Wilson, currently managing Project Controls for LANL’s Environmental Programs directorate, will be assigned to NMSSUP in the same capacity.

The team is taking on this top-priority issue at my request. I ask that you support Ty, Jimmie, and Toby as they assemble the people, processes, and controls necessary to complete the project. Let me again stress to you that nuclear material at TA-55 remains safe and protected, just as it has during NMSSUP construction. I am convinced that, once complete, NMSSUP will give TA-55 the modern, reliable, perimeter security system it needs.

Performance on this project has been unacceptable to me, the LANS Board of Governors, and our customer. This has damaged the Laboratory’s credibility. We must do better. As we learn more about the breakdowns that occurred, we will share lessons learned.

I expect you will read more about this project in the news media. Please stay focused on safety, security and executing our missions for the nation.