Lockheed receives contract extension for Sandia labs

The Energy Department's National Nuclear Security Administration awarded a one-year contract extension Thursday to defense contractor Lockheed Martin to operate the Sandia National Laboratories in New Mexico.

The decision was based on Lockheed Martin's current performance in managing and operating the facility, which handles some of the nation's most advanced technological projects, as well as nuclear weapons technology.

The move comes a week after NNSA officials announced they are officially searching for a contractor for the Los Alamos National Laboratories. The University of California has operated Los Alamos for more than 60 years, but the agency decided to open the contract to competition after a series of security breaches and management lapses.

Lockheed has operated Sandia since 1993. The current five-year contract calls for the company to manage the facility through September 2008. That deal has now been extended until Sept. 30, 2009.

"Allowing a contractor to earn annual extensions for exceptional performance offers a unique and powerful incentive for leaders of management and operating contractors," NNSA Administrator Linton Brooks said Thursday.

Under the contract, Lockheed's management receives an annual score. A score of 90 to 100 qualifies as "outstanding," 80-89 rates as "good," and 70-79 is designated as "satisfactory." A grade lower than 69 is described as "unsuccessful." If the company is rated as outstanding, it becomes eligible for a one-year contract extension.

For fiscal 2004, Lockheed received a score of 90 for the Sandia operation.

To actually receive the extension, the contractor must meet a number of additional goals, according to the NNSA. In fiscal 2004, these included increasing efficiency to accomplish unfunded work and developing a long-term plan to improve management.

Paul Robinson, director of the laboratories, said the contract "establishes greater rigor and discipline" and "provides an understandable report card that we'll use for continued improvement."

"We are pleased to have received an outstanding rating from the National Nuclear Security Administration and are very proud of the Lockheed Martin-Sandia Laboratories relationship," Robinson said.