The National Nuclear Security Administration has awarded Los Alamos National Security LLC $76.1 million in management fees and a one-year extension to its lab management contract, extending the contractor’s current contract through 2017. As has been the practice in recent years, lab and NNSA officials did not release the award letter or performance evaluation report detailing the government’s evaluation of the contractor. But according to a copy of the revised contract document posted on the lab’s website, which details the fee amounts, the fixed fee for managing the lab rose to $26 million for Fiscal Year 2011 with an at-risk award fee of $50.1 million (82.6 percent out of a possible $60.7 million). Between the fixed and at-risk fees, LANS could have earned up to $86.7 million in total fee, according to its contract. In addition, LANS was paid another $7.6 million for its management of non-NNSA reimbursable work.
For perspective, LANS earned 88 percent of its available fee in FY2010 ($74.2 million out of $84.4 million) and a “very good” rating. It has four times been awarded one-year contract extensions by meeting a set of goals in its annual review. “The award is a tribute to our employees’ dedication to delivering on our commitments,” lab director Charlie McMillan said in a statement circulated to employees. “2011 was an outstanding year for science and mission execution at the Laboratory.”
At Sandia National Laboratories, contractor Lockheed Martin earned $27.0 million and a “very good” rating for managing the lab. According to information provided by the Sandia Site Office, Sandia earned $18.5 million in fixed fee and $8.5 million in at-risk fee, 85.3 percent of the $9.9 million in possible at-risk fee. The lab earned “excellent” ratings on stretch goals related to NNSA mission work, the removal of material at the lab, and mission support efficiencies, “very good” on stretch goals related to multi-site targets and “good” on stretch goals related to nuclear weapons quality assurance, which likely reflects concerns raised during the year about communication of weapons data to NNSA’s production sites. The lab completed 98 percent of its nuclear weapons milestones, including the completion of multiple shots at the Z-Machine. “Sandia continues to deliver technological solutions for a broad spectrum of 21st century global and national security challenges,” the site office said. “Moreover, Sandia successfully worked to build strategic partnerships with other federal agencies, industry and academia that have expanded beyond the context of technology transfer.”
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