The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Monday, March 20, 1995                 TAG: 9503200056
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY JAMES SCHULTZ, STAFF WRITER 
DATELINE: HAMPTON                            LENGTH: Medium:   66 lines

LANGLEY DIRECTOR PROPOSES UNUSUAL COST-CUTTING IDEAS

Anticipated cuts to NASA's budget are inspiring some unusual money-saving ideas at Langley Research Center, including a possible management takeover by a university.

Director Paul F. Holloway will make that suggestion, along with others for streamlining and restructuring the Hampton space center, to a team of high-ranking officials arriving today from NASA headquarters in Washington.

``Goldin admonished us to be bold,'' Holloway said of Daniel S. Goldin, NASA's administrator. ``Open your mind. . Look at privatization and commercialization. There are no bounds.''

Still, there are limits. Holloway said there will be no discussion of closing Langley. The center, specializing in aeronautical research, employs about 5,200 people and has an annual budget of almost $700 million.

``To me, it can't happen,'' Holloway said of closure. ``When you have unique resources - that includes facilities and people - to do the job NASA is required to do, Langley is going to stay open.''

Holloway and senior aides will meet in private today with the Washington delegation, known as the Zero Base Review Team. NASA officials won't make any decisions on restructuring until mid-May at the earliest, he said.

Holloway didn't provide details of how university management might change the Langley center's operation. Nor did he indicate whether a specific Virginia school, or one outside the state, is being considered.

``I'm not saying it (Langley) will be a government organization,'' he said. ``It could be government-owned but operated by a university.''

The recommendation is one among many, he said, and may not be approved by agency administrator Goldin.

On Thursday, Holloway surprised workers by saying he might accept a buyout that NASA is offering to all its employees.

But on Friday, speaking to considerable applause in a closed-circuit television address to a crowd of several hundred at the Langley cafeteria, Holloway, 56, who has been director since October 1991, told his audience he hadn't yet filled out any retirement paperwork. He said he's waiting ``until the last minute'' before deciding. NASA employees have until March 31 to accept the buyout.

``There will be major changes here at Langley and across NASA,'' Holloway said. ``To say that I'll be here four or five years from now to oversee all these changes - I'm not sure I'm up to that.''

The only tension during the 35-minute presentation came as he implored workers not to use computers or fax machines to send riddles and jokes over the Langley telecommunications system.

``The utilization of (government) e-mail or fax machines for personal reasons is illegal, and can lead to jail terms and dollars from your paycheck,'' he said. ``The charge is embezzlement. It's not a joke. There can be an investigation anytime.''

During the review team's visit, Holloway's staff will present plans for a minimum 16 percent reduction in staff, equal to what is expected throughout the federal government. Senior management has also prepared projections estimating the impact of a 40 percent personnel reduction.

If implemented, the larger reduction could involve roughly 2,000 layoffs of civil servants and independent contractors. ILLUSTRATION: Director Paul F. Holloway says having a university manage

Langley Research Center could save money.

by CNB