Los Alamos selects IBM for business improvement initiative

Contact: James E. Rickman, jamesr@lanl.gov, (505) 665-9203 (02-070)

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LOS ALAMOS, N.M., June 17, 2002 -- The U.S. Department of Energy's Los Alamos National Laboratory has selected IBM to serve as business systems consultants in the implementation of a Laboratory-wide business improvement initiative.

The Laboratory selected IBM through a lengthy, competitive search for a company to provide professional services to help implement the Laboratory's Enterprise Resource Planning system — a computer-based system that will improve the way the Laboratory handles administrative functions, including finance, human resources, project management and facility management. The four-year contract with IBM is worth up to $22 million and includes provisions for regional economic development activities.

The Laboratory began the process of implementing an ERP system in August. Since then, the Laboratory's Enterprise Project has selected Oracle to provide the primary business systems software and previously selected IBM to provide hardware for central computing systems associated with the ERP system. As "integrator," IBM will bring significant business and technical expertise in the implementation of similar business systems, said Charlie Slocomb, leader of the Enterprise Project. IBM will co-manage the Laboratory's Enterprise Project and will work hand in hand with Laboratory personnel to ensure that Laboratory business activities are reengineered toward best business standards and that the new system is effective and responsive to Laboratory needs.

"IBM previously has completed 4,000 ERP implementations, including an implementation currently underway at DOE," Slocomb said. "We look forward to working with the talented team that IBM will provide to the Enterprise Project."

As part of the contract, IBM also brings potential economic benefits to Northern New Mexico. The company will work with the Northern New Mexico Regional Development Corp. to provide computers for use in regional economic development initiatives. IBM also will establish a fund based on 1 percent of the revenues of the contract to provide financial assistance to the Laboratory's Small Business Office — which works with regional businesses to capitalize on business opportunities with the Laboratory — and other organizations approved by the Regional Development Corp.

Moreover, IBM has pledged to provide at least 200 hours of technical assistance to regional small businesses to build electronic-procurement catalogs in order to give the businesses a greater chance to participate in "e-Commerce" opportunities.

"We are very pleased that IBM not only will become a partner to the Laboratory, but to the region as well," said Slocomb.

The Enterprise Project's goal is to use government and industry best business practices in conjunction with off-the-shelf business software to aid in managerial decision making, reductions in the Laboratory's cost of doing business and in increasing the Laboratory's business compatibility with DOE and other laboratories managed by the University of California. Design of the first version off the system is expected to be completed at the end of June. The financial portion of the system is scheduled to be implemented in October 2003.

Los Alamos National Laboratory is operated by the University of California for the National Nuclear Security Administration (NNSA) of the U.S. Department of Energy and works in partnership with NNSA's Sandia and Lawrence Livermore national laboratories to support NNSA in its mission.

Los Alamos enhances global security by ensuring the safety and reliability of the U.S. nuclear stockpile, developing technologies to reduce threats from weapons of mass destruction, and solving problems related to energy, environment, infrastructure, health and national security concerns.

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