The National Nuclear Security Administration on Wednesday released the request for proposals for the Sandia National Laboratories management and operations contract.
The current contract is held by Lockheed Martin subsidiary Sandia Corp. and expires on April 30, 2017. It covers Sandia campuses in Albuquerque, N.M., and Livermore, Calif., along with smaller operations in Hawaii, Nevada, and Texas. In total the sites employ about 10,000 workers and have a yearly operating budget roughly of about $2.9 billion, the NNSA said in its announcement.
Within a broad range of responsibilities, Sandia is charged with developing systems to ensure the U.S. nuclear arsenal remains safe, secure, and reliable, and in supporting manufacturing and disassembly of nuclear arms. It similarly provides technology development for nuclear intelligence, nonproliferation, and treaty verification.
Sandia Corp. has generally earned strong marks for its management of the lab since 1993, but it took a hit when the Department of Justice found that the business had illegally used federal funds to lobby for an extension of its M&O contract. The contractor last year agreed to pay more than $4.7 million to settle the case.
Lockheed Martin said Thursday it is studying the request for proposals. “[A]s with any proposal opportunity, we’ll make a final decision on bidding after we’ve completed a thorough review,” spokesman Matthew Kramer said by email. “We previously expressed our interest in bidding to NNSA in response to their Request for Information in 2015. We’re proud of our longstanding partnership with Sandia and our support of its vital national security mission.”
Other major players in the Department of Energy complex have so far been similarly cagey about their intentions in pursuing the new Sandia M&O deal. However, the NNSA website for the contract competition lists a large number of companies and institutions that provided documentation during the draft solicitation process for the contract. Along with Lockheed Martin, these included Battelle, Boeing, BWX Technologies, Fluor, Orbital ATK, the Texas A&M System, and the Universities of Arizona, New Mexico, and Texas. Such input, though, is not required for a company to submit a proposal, nor is it a sure sign the organization will bid.
In a prepared statement Thursday, Boeing said it too is considering whether to bid: “Boeing is proud of its extensive global experience managing a broad portfolio of complex national security programs and products, combining our unique knowledge of Boeing military and commercial platforms. Should we bid for this opportunity, the Sandia National Laboratories would benefit greatly from Boeing’s world-class support and expertise.”
Battelle, Fluor, and BWXT were similarly noncommittal in responses this week.
While Lockheed has managed Sandia on its own for decades, one possibility is a teaming of various companies like those used to manage the nearby Los Alamos National Laboratory (a consortium of Bechtel, BWXT, AECOM, and the University of California) and the Savannah River Site (Fluor, Honeywell, and Newport News Nuclear), among other Department of Energy sites.
The cost-plus-fixed fee Sandia contract would feature a four-month transition followed by a five-year base period and up to five one-year extensions. All fixed and award fees are yet to be determined, according to the RFP.
Bidders will be judged on several criteria: documented relevant performance over the last five years; a “coherent” management organizational structure and qualified personnel; plans for small business participation as subcontractors, including women-owned businesses, veteran-owned businesses, and other segments; and a reasonable and realistic management cost.
“The principal mission of SNL is to be the Nation’s premier science and engineering laboratories for national security and technology innovation related to nuclear weapons; defense systems and assessments; energy and climate; and international, homeland and nuclear security,” the press release says. “The contractor will be required to provide the intellectual leadership and management expertise necessary and appropriate to manage, operate, and staff the laboratories and to accomplish the missions assigned by NNSA.”
The focus on three key criteria – past performance, organizational structure and personnel, and small-business participation – has to date only been used in NNSA contract competitions for the Nevada National Security Site and National Security Campus near Kansas City, Mo. The approach has proven divisive among industry officials, with some arguing that – alongside a number of concerns — it strengthens the position of existing NNSA contractors against new bidders and others countering that it’s natural to consider strong past performance – even outside of the NNSA sphere – when issuing massive new contracts.
Responses to the RFP are due by 4 p.m. EDT on July 13, 2016. The document can be found at fedconnect.net.
