Incumbent Lockheed Martin [LMT] on Thursday confirmed its intent to bid to retain the management and operations contract for the Sandia National Laboratories.
“We’re proud of our 23-year partnership with the Department of Energy’s National Nuclear Security Administration,” company spokesman Matt Kramer said in an email statement. “Lockheed Martin has helped Sandia maintain a steadfast focus on its core nuclear deterrence mission, delivering on-time and on-budget performance for five major life extension programs.”
“Lockheed Martin looks forward to the opportunity to continue this successful partnership, and is ready to help NNSA and Sandia address tomorrow’s critical global security challenges,” the statement said.
Battelle and Boeing [BA] last week were the first to announce their intention to bid on the contract as a team that would also feature the University of New Mexico, the Texas A&M University System, and the University of Texas System.
The NNSA’s contract competition website notes that BWX Technologies [BWX], Fluor [FLR], Orbital ATK [OA], and the University of Arizona are among the other entities that have participated during the draft solicitation process for the Sandia contract. However, these companies and institutions have not yet made clear their intentions to bid on the RFP.
The Sandia National Laboratories produce non-nuclear weapons components and develops systems to ensure the reliability of the U.S. nuclear arsenal for the NNSA. Its other work includes development of nuclear intelligence, nonproliferation, and treaty verification technologies. Sandia employs over 11,000 workers at a number of sites, primarily two major campuses in New Mexico and California.
Lockheed Martin subsidiary Sandia Corp. holds the current contract, which is worth about $2.9 billion per year and is scheduled to expire on April 30, 2017. The NNSA decided to conduct a full and open competition for a follow-on contract after it was determined that Sandia Corp. had illegally used federal funds to lobby for a contract extension, a matter that was resolved with a $4.7 million settlement last year.
Kramer said by email that Sandia Corp. settled last year “to put the matter behind it, learn from it and focus on its important national security mission. We believe we have successfully addressed this issue, and we are focused on the future.”
The new cost-plus-fixed fee contract will feature a four-month transition, a five-year base period, and up to five one-year extensions, according to the NNSA. The agency on May 18 released the request for proposals for the contract, responses to which are due by 4 p.m. EDT July 13 via fedconnect.net. A contract decision is expected by the end of the year.
Kramer said Lockheed Martin is bidding as the lead contractor while “actively evaluating our options” on potential teammates. “Sandia already has an extensive set of partnerships with universities, small businesses and companies nationwide,” the spokesman said. He did not offer details on the proposed contract structure of the company’s bid.