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Inspection Report: IG-0780

October 25, 2007

Work Order Estimate and Cost Issues for Site Support Services at Los AlamosNational Laboratory

The Department of Energy's Los Alamos National Laboratory (LANL) is one of the largest multidisciplinary science institutions in the world. The National Nuclear Security Administration has cognizance over the Laboratory. Site support services at LANL, including maintenance and repairs, are provided by KSL Services Joint Venture (KSL) under a 5-year, almost $800 million, cost-plus-award-fee subcontract arrangement. Ultimately, essentially all KSL charges are reimbursed by the Department through the Laboratory. Under the terms of the subcontract, KSL is to excercise disciplne and rigor to ensure that appropriate levels of project controls and management are provided for the delivery of work on schedule and within budget. KSL's performance is evaluated semi-annually against performance objectives, expectations, and associated weighting factors.