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The National Nuclear Security Administration on Wednesday selected the LLC - a consortium of the University of California, Bechtel Corp., BWX Technologies Inc. and Washington Group International - to run Los Alamos for the next seven years.
What comes next is a six-month transition from the old contractor, the University of California, to a mix of the new partners, said spokesman Jeff Berger.
Some workers may be shuffled around, but on Wednesday, it was too early to give details, he said.
It's a new day for Los Alamos
TALKING POINTS What's new: A consortium called the Los Alamos National Security LLC will run Los Alamos National Laboratory for the next seven years, starting June 1. The group is made up of the University of California, Bechtel Corp., BWX Technologies Inc. and Washington Group International. What's next: An estimated six-month transition period. What's at issue: Workers are wondering about benefits and job security. So far, there's no reason to expect firings or layoffs, the consortium says, although there are also no details. Who wanted the job: Lockheed Martin, the world's largest military contractor, competed against the UC team. How much it's worth: $79 million annually. Why the bid: The National Nuclear Security Administration decided in 2003 to put the lab's operation up for bid for the first time in six decades. Run solely by the University of California, the lab was the focus of safety, management and security problems. |
So far, there's no reason to believe there will be firings or layoffs, Berger added.
"We're not getting into real specifics, at least not yet," Berger said. "That will come in time."
Officials with the Department of Energy, the UC consortium and the NSA will meet during the upcoming weeks. They will review the relationships between different operations, the condition of each facility and how each part of the lab is run, Berger said.
The UC team's competitor for the job, Lockheed Martin, which manages Sandia National Laboratories in Albuquerque, opened offices in Los Alamos and Espa?ola in mid-October. By 5 p.m. Wednesday, both offices were closed.
C. Paul Robinson, who stepped down as director of Sandia National Laboratories to run the Lockheed bid team, on Wednesday couldn't be reached for comment on his future.
But John Seabrooks, one of two staffers in Lockheed's Los Alamos office, called the decision a disappointment.
"We had what I believe was a good transition plan, but we were up against some good competition," Seabrooks said. "The important thing is that the employees have a decision."
Just knowing the government's decision was welcome news, several employees said Wednesday. The announcement was originally scheduled for Dec. 1, then delayed.
Changes will also be welcome, said Steven Brumby, 34, a lab computer scientist for seven years.
The science has always been good, but Brumby said he thinks outdated business operations and accounting problems led to scandals over missing classified materials and stolen purchase cards.
Many problems were blown out of proportion in the media, he said.
Still, he said, "I think there has to be a stronger emphasis on efficiency of services, keeping down the cost of services, that accounting is excellently managed so we don't have to worry about how people account for things."
Experienced managers, like those coming from Bechtel, should improve the situation, he said, adding that academics don't always make the best managers.
Not everyone is happy with the government's choice.
Doug Roberts, a retired lab scientist who operates a popular blog about the lab at www.lanl-the-real-story.blogspot.com, hoped that Lockheed would win the contract.
"I'm deeply disappointed because I felt Lockheed Martin and its associates were the better choice," Roberts said. "I say that because the management problems were so highly visible in the last year and a half."
The blog's traffic peaked on Tuesday and Wednesday, hitting 25,000 page views Tuesday and cresting that number by 2:30 p.m. on Wednesday. At that time, comments were coming in with about four people to one feeling disappointed, Roberts said.
Employees have expressed concerns about how their benefits and retirement packages will change, Roberts said.
They will have options to choose from with the change in leadership. Those options will differ from what they have now, officials said.
At the Hot Rocks Java Cafe across the street from the lab, the mood seemed upbeat as people learned of the UC-led team winning the contract.
Dean Peterson, 64, who has worked at Los Alamos for 33 years, said he thinks the lab will experience less turnover with UC remaining part of the management mix.
His children took advantage of one UC benefit: in-state tuition at its campuses. One of his children attends UC-Santa Barbara.
"They've managed the lab well for many years now," Peterson said. "It's less likely that people will leave with UC."
Paul Graham, 36, an electrical engineer at the lab for the past four years, said he was surprised that the UC-led team won.
UC, he said, "had a lot going against them. They had to have a good proposal in."
"I think a lot of the operations, day-to-day business things, will change, since they'll be run by Bechtel," Graham said. "I'm sure they'll want to do the right thing."
There's certainly room for improvement in the areas that caused scandals and spurred the administration to open the contract for competition, he said.
"There's been a lot of upheaval in the last couple years," Graham said. "Hopefully there's not more upheaval because of this."
Brumby said he, too, is glad the process is over and life in this northern New Mexico town can move forward.
"The community has been under incredible stress for the last several years," Brumby said. "You see that in the way people buy things for Christmas - for everything."
He found it symbolic that the decision was announced shortly after noon on the winter solstice, the shortest day of the year.
"It feels like the old year is gone and longer days and happier times are ahead," Brumby said.

