Morning Briefing - August 30, 2016
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August 30, 2016

NNSA Re-Evaluating New Nevada Site Contract Award

By ExchangeMonitor

The National Nuclear Security Administration said Monday it is re-evaluating the contract award announced last week for management and operation of its Nevada National Security Site.

The semiautonomous Department of Energy branch said Friday that Nevada Site Science Support and Technologies Corp. (NVS3T) had received a contract that could be worth $5 billion over 10 years, including all options.

“The winning proposal identified NVS3T as a wholly owned subsidiary of Lockheed Martin.  In making the award, NNSA evaluated past performance and other factors based upon the proposal as submitted,” NNSA Public Affairs Director Thom Metzger said late Monday in an emailed statement to Weapons Complex Morning Briefing. “After the award, DOE/NNSA learned that Leidos Innovations Corporation had acquired NVS3T from Lockheed Martin.  NNSA was not notified of the change in ownership and control of NVS3T prior to the award as required by the request for proposal (solicitation).  NNSA considers this to be a material change to the offer and is currently evaluating its options regarding the contract award in light of this development.”

Metzger could not say what those options might include.

The 1,360-square-mile Nevada National Security Site conducts U.S. nuclear stockpile support and nonproliferation operations, among other testing and training activities. It is currently managed by National Security Technologies, a partnership of Northrop Grumman, AECOM, CH2M, and BWX Technologies. Per the announcement Friday, the existing contract was to have been extended four months past the Sept. 30 expiration to allow for the transition to the new site manager.

“The current contract with National Security Technologies, LLC (NSTec) will remain in place until performance begins on a new contract,” Metzger said. “This development will not have an impact on NNSS’ workforce or on its ability to execute its national security missions.”

Lockheed Martin referred questions to the NNSA. Leidos had not responded by press time to an after-hours request for comment.

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