International space program cut: SDL lays off employees
About 25 employees at the Space Dynamics Laboratory were laid off Friday afternoon due to the cancellation of funds for the close-out of project RAMOS (Russian American Observation Satellite).
The project was the only international cooperative effort between the United States and the Russian Federation, and brought in more than $26 million a year to SDL, Michael Pavich, director of SDL, said.
SDL, which has been the main contractor of RAMOS for more than 10 years, was notified in February that the Missile Defense Agency (MDA) would no longer be funding RAMOS. Plans were made for close-out and SDL was told to be done with all RAMOS work by spring 2005, Pavich said. But Congress rescinded 2004 funding for the project causing the MDA to call for an early and almost immediate end-leading to the lay-off of employees and a projected $10 million loss for SDL over the next fiscal year.
“We had planned through spring 2005 and dollars were there for a smooth close-out,” Pavich said. “This probably could have been done without significant employee impact.”
Pavich said his guess is RAMOS was most likely ended because of a loss of interest by the Russian government.
“We think that the Russian Federation is no longer concerned with this type of program because of the projected cost involved. They could feel there are better ways to spend funds,” he said. However, Pavich said Russia still seems interested in other cooperative programs.
As to why Congress rescinded ’04 money to facilitate a close-out, “I have not a clue,” Pavich said. “They could be looking for opportunities to pay bills in the Department of Defense.”
“It was simply a decision by Congress to cut the funding,” Dave Norton, president of the Utah State University Research Foundation, said, “They don’t choose to tell us why.”
The early end to RAMOS does not just create problems for employees, Pavich said, but also makes gaining information from the past decade of work much more difficult.
“It was just terminated. The close-out was designed to harvest from that work the scientific designs and date that would be useful to other projects.
With rapid close-out, it’s just been shut down,” he said.
“There is a short period of time where reports and other materials are turned over to the government for review, but in many situations they simply terminate the activity,” Norton said.
More than 40 employees were currently involved with the RAMOS project, and after transfers were made and others voluntarily left, an approximate 25 employees were let go.
Both Norton and Pavich said they have optimism for those who will be looking for new employment.
“We do know the defense industry is in high demand for those that are willing to leave the area, and there’s also opportunity in the area.
With current war efforts some funds have simply been redirected, so those who have contracts who are currently being funded have a demand for skills we have,” Norton said. “We have highly skilled individuals.”
Pavich said SDL has already received requests for resumes by several companies, including the MDA.
“Typically SDL employees have very good resumes that would fill vacancies. Many have national credentials and will relocate out of Cache Valley,” Pavich said.
Melanie Pond, human resources manager of the USU research foundation said in a press release, “We will provide supportive tools for displaced employees to assist them with issues that may emerge during this difficult time.”
Norton said while the early termination was a surprise, “We view our future as positive. It’s just one of those things in this industry that can occur.”
-bnelson@cc.usu.edu