NNSA CONSIDERING MERGING SANDIA, KANSAS CITY PLANT CONTRACTS

The National Nuclear Security Administration is considering merging all—or part—of the Sandia National Laboratories and Kansas City Plant management and operating contracts, and is seeking input from industry on its plans. The agency issued a Request for Information yesterday asking industry to comment on merging the two M&O contracts or combining the Kansas City Plant contract with Sandia production work, an idea that was considered and shelved several years ago to allow for construction of a new home for the Kansas City Plant. The NNSA, however, has continued to look for ways to save money, and an acquisition strategy team formed earlier this year to examine the two contracting options for the Sandia and Kansas City contracts. “We know there’s a lot of smart thinking out there,” NNSA Principal Deputy Administrator Neile Miller said in a statement. “We’re focused on continuous improvement. We’re looking for creative solutions to the complex challenges we face.” In the RFI, the agency said combining all non-nuclear production into a single contract could help better align similar activities and free up Sandia to focus on its main mission: research and development in engineering. Completely combining the two contracts could help integrate design, manufacturing and outsourcing efforts than with separate contracts and “promotes exchanges of manpower among the facilities of the combined institution, and promotes more efficient operations by taking advantage of private sector capabilities and capacities.” It could also lead to cost savings through the consolidation of site overhead and support functions, the creation of efficiencies between the sites, and in medical and retirement benefits.