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Policy

DOE Cites $731 Million In Contractor Cuts

by Jeff Johnson
March 18, 2013 | APPEARED IN VOLUME 91, ISSUE 11

Some $731 million and 25,000 contractor jobs could be cut as a result of across-the-board reductions, or sequestration, of federal funds, the Department of Energy estimated in letters to governors of 10 states with large DOE laboratories and other facilities. Overall, DOE’s $26 billion budget will be reduced by $1.9 billion for the remainder of the fiscal year because of sequestration, noted Daniel B. Poneman, deputy secretary of energy. Poneman’s letters to governors, however, concerned only contractors and their employees. Among those hit hardest would be contractors in California, Washington, and New Mexico, according to DOE. Contractors in California, including those at Lawrence Livermore National Laboratory, would see a $180 million reduction and furloughs or layoffs of some 6,100 contract employees. Contractors operating in Washington state would face an estimated reduction of $182 million and the loss or furlough of up to 4,800 contract workers, including at the Hanford nuclear cleanup site. New Mexico contractors would receive a $67 million cut, with nearly all of the reduction at Los Alamos National Laboratory, which would affect 8,200 contract workers there.

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