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NASA LaRC CD COMM # 2005-1 FY05 Procurement Reductions

Status Report From: Langley Research Center
Posted: Friday, February 4, 2005

X-Sender: (Unverified)
To: (All Employees at Langley Research Center)
From: "Roy D. Bridges, Jr." center-director@larc.nasa.gov
Subject: CD COMM # 2005-1 FY05 Procurement Reductions
Date: Fri, 4 Feb 2005 10:56:37 -0500

CD COMM #2005-1
FY05 Procurement Reductions

February 4, 2005

To: All Civil Service and Contractor Employees at Langley Research Center

The Langley leadership team is committed to making difficult decisions and communicating the rationale for those decisions openly, clearly, and as early as practical. The Headquarters Mission Directorates and we are in the process of examining and understanding the FY05 budget as passed by the Congress as part of the Omnibus Budget Act. Thus far, our analysis shows significant changes between the President's submittal and the final budget. These changes arise primarily from congressionally directed activities ("earmarks"), budget rescissions and other institutional factors, including a reduced buyout and higher than anticipated utility costs. We have to free up procurement dollars to fund these "unfunded" mandates.

As I communicated to you in an earlier CD Comm, we have adjusted our G&A rate to accommodate a reduced buyout, some transition account changes directed by the Headquarters into G&A, an increase in our bid and proposal capability, and to adjust our reserves back to a minimum level and avoid any further rate fluctuation this year. Additionally, the actual FY05 budget for Langley is smaller than it was in FY04 by about 15 percent, leading to an overall need to reduce the size of our Facility and Related Services and Wind Tunnel Service Activities. All of these changes are leading to potential actions that could significantly impact our onsite contractor support and to some extent external contracts and grants. Finally, our moves to consolidate our use of facilities to save money require adjustments in our contractor workforce to actually realize the savings.

As a result of a general reduction in service activity demand, the ROME contract will be downsized. Additionally, as a result of accommodating the congressionally directed activities, there will be reductions in many of the services provided by the Mission Support Offices and the Center Operations Directorate. The dollar reductions will lead to actual reductions in services to the Center. There will be significant reductions to our planned facility maintenance program and tactical engineering services. Several of the planned HVAC and roof repair projects will be deferred. We will also need to eliminate vehicle maintenance, fuel for the travel fleet, and vehicles for travel. There will be reduced purchases of new furniture. Clerical support for processing international visitors will be reduced. In addition, we will need to reduce desktop information technology (IT) support, reduce the Center's IT investment and technology modernization (except IT security), and eliminate wireless network support. To go along with the IT reductions, there will be delayed implementation to some planned Integrated Financial Management and e-Gov projects. Finally, in order to accommodate the congressionally directed activities, we will not be extending some of our external contracts or grants.

These decisions were not made easily, but product, core, and mission support units are working as a team to jointly develop the most viable approach to assure we deliver on as many commitments as feasible while taking significant budget reductions midway through FY05. The facility impacts have been minimized because you and your colleagues have worked very hard to help fill the capacity on underutilized facilities with reimbursable customer tests. I want to commend the entrepreneurial spirit of these employees. Most of the major facilities such as the National Transonic Facility, Unitary Wind Tunnel, 8 Ft. High Temperature Tunnel, Aerothermal Complex, and Scramjet facilities are now pretty well assured of being in an operational status if customers come through on verbal commitments made to date. Keep up this great work and let's all support getting these customers their needed business agreements, firm test schedules, and good test data. We'll continue to work to fill any remaining open time in our facilities with your help.

Additionally, our ROME contract partners have been extremely cooperative in working with us to implement these difficult decisions. We plan to work closely with other contractors and grantees in the coming weeks to complete this action. It is important that we offer our support to the extended NASA family through this time and work as a team to deliver on our commitments where possible.

Finally, I have heard a few complaints about improvements in our cafeteria and fitness center while we are suffering the impacts above. The safety, health, and welfare of our workforce come first and will be the last things we touch for budgetary reasons. Many of us were ashamed to take guests to the cafeteria given its rundown appearance as well as needed improvements for food service for our safety. I also had many complaints about obsolete and broken equipment in the fitness center. Working with the NASA Exchange, we were able to partner on some new equipment for a very modest sum. With regard to other construction of facilities projects underway, these were approved years ago and in progress before these budget difficulties. All future CoF projects are being reviewed to assure they are appropriate given our current circumstances.

The FY06 budget will be rolled out next week, and of course, as soon as practical, we will provide additional communication on what the budget means to our Center. I am planning on holding a Town Hall Meeting on February 7, for that purpose. In addition, the Aeronautics Research Mission Director, Dr. Vic Lebacqz, will host a Town Meeting on February 10 to talk about changes in the aeronautics program for FY06. Please consult @LaRC for the latest on the times and dates since the schedules are still dynamic.

Sincerely,

Roy D. Bridges, Jr.

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