February 01, 2005
(Computerworld)
A report by the National Nuclear Security Administration (NNSA) has determined that two classified computer disks that apparently disappeared at the Los Alamos National Laboratory last year never even existed.
Instead, according to the report, bar codes were generated for the disks, but the actual disks were never made.
Although multiple investigations eventually confirmed that the disks never existed, the NNSA, the division of the U.S. Department of Energy that oversees nuclear laboratories, said it slashed fees paid to the Los Alamos lab for fiscal year 2004 by $5.2 million, from $8.7 million to $2.9 million. The lab is managed by the University of California and has a total annual budget of about $2.2 billion.
"NNSA's action represents the largest fee reduction imposed on a national laboratory in history," the agency said in a statement. It cited "management failures" during the fiscal year that ended last September as the reason for the funding cut.
The decision follows a year in which laboratory operations were suspended to address serious safety and security problems, including the report that two classified computer disks could not be located at the lab, the NNSA said. The disks were initially reported missing last July, prompting a security crackdown at the lab (see story).
"Although multiple investigations have confirmed that the 'missing' disks never existed, the major weaknesses in controlling classified material revealed by this incident are absolutely unacceptable, and the University of California must be held accountable for them," said NNSA Administrator Linton Brooks.
He also cited "significant" safety issues that came to light during the investigation into the whereabouts of the disks, saying those safety concerns were of even greater concern than questions about the disks. That prompted Brooks to cut fees for the lab even further than the $2.1 million cut would have been normal under the circumstances.
"I consider this an appropriate indication of the severity and systemic nature of the problems uncovered at Los Alamos, problems which have already resulted in substantial loss to the government," Brooks said.
Kevin Roark, a spokesman for the Los Alamos lab, stressed that no disks were ultimately found to be missing and said the agency worked closely with the DOE and law enforcement officials to share all evidence in the case.
"All three [investigative agencies] came to the same basic conclusions -- that there was no evidence of criminal activity.... There was an inventory discrepancy that occurred because two bar code slips were generated but never actually attached or assigned to any physical CREM [classified, removable, electronic media] items," Roark said. "At no time did anyone find evidence that classified materials were at risk."