Lockheed Martin Contract Extended Through April 2017
Kenneth Fletcher
NS&D Monitor
5/22/2015
The long-awaited procurement for the next contract to manage Sandia National Laboratories is moving forward, with the National Nuclear Security Administration releasing this week a sources sought notice and announcing plans to extend Lockheed Martin’s current contract for Sandia by another year. The NNSA plans to conduct a full-and-open competition for the new Sandia contract, which will have a four-month transition period, a five-year base period and options adding up to five additional years. Lockheed Martin’s contract had been set to expire in March 2014, but right before it was to run out NNSA granted a two-year extension for the contract with an option to extend it a third year. The NNSA has granted the extension until April 30, 2017, the notice states. The NNSA is looking for input from companies interested in the procurement, as well as “suggestions for improvement to the current contract and to the solicitation process,” according to the notice. Responses are due by June 30.
Explaining NNSA’s decision to exercise Lockheed Martin’s remaining option year, NNSA spokeswoman Shelley Laver said in a written response, “When options are included in a contract, the government typically exercises them unless the government’s requirements have changed, or it determines that a more advantageous method exists for obtaining the requirements.” Laver went on to say, “Generally, an M&O contract competition of this size and complexity takes 18 months to complete. Exercising the option to extend the Sandia contact for one year to April 2017, allows NNSA sufficient time, 19 months to compete, followed by four months for an orderly transition if a new contractor is selected.”
The sought-after contract has generated significant interest in recent years and is expected to attract numerous bidders. Previously, both Lockheed Martin and Fluor have said that they plan to launch separate bids. Lockheed Martin this week noted that it has managed the lab through Sandia Corporation since 1993. “We’re grateful for the opportunity to continue to support Sandia’s important mission through this contract extension. With regards to the Sources Sought, we are reviewing the document now and will make a determination on our response in the near future,” Lockheed Martin spokesman Matt Kramer said in a written response.
