More details have emerged regarding Sandia National Laboratories’ (SNL) use of federal contract funds to lobby for the noncompetitive extension of a contract between Sandia Corporation, a Lockheed Martin Corporation subsidiary, and the Department of Energy (DOE), according to a DOE Office of Inspector General report. Last November’s report, which was released in full to Greenwire via the Freedom of Information Act, details SNL’s attempts to “influence Federal and Congressional officials” to extend a Management and Operating contract for the lab, in violation of federal regulations, the audit says. The contract was “then valued at about $2.4 billion per year,” it says.
SNL’s plan to “campaign aggressively” for the contract extension included the creation of a Contract Strategy Team, which relied on the expertise of three consultants, the audit says. The strategy included talking points that presented a potential competitive bid as “costly and disruptive to the Department/National Nuclear Security Administration,” and involved communication with federal officials to “convince a new President, freshman NM [New Mexico] delegation, Democratic Congress, new DOE Secretary, new NNSA administration, new E&W [Energy and Water] Appropriations Committee Chair that the value and contribution of the team merits a contract extension," the audit says.
In response to the investigation, SNL claimed its activities were meant “to demonstrate to [DOE/NNSA] that SNL was fulfilling the Department’s needs” and that their costs were allowable because the actions “were based on ‘the merits of the matter’,” according to the report. Sandia spokeswoman Heather Clark said in a statement, “Sandia National Laboratories has cooperated fully with the government’s review of this matter” and “will continue to work closely with the Inspector General’s office, the Department of Energy and the National Nuclear Security Administration to address all the IG’s recommendations.” Clark also said, “We are hopeful this matter will soon be resolved.”
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