Morning Briefing - July 17, 2019
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July 17, 2019

U. of California Expects $22.5M in Nuke Lab Management Fees for 2019

By ExchangeMonitor

The University of California expects to bank some $22.5 million in fees in 2019 for its part in managing the two main U.S. nuclear-weapon design laboratories, the university’s Board of Regents estimated in a document published Wednesday.

The University of California (UC) is a senior partner on Triad National Security, which has managed the Los Alamos National Laboratory in New Mexico since November, and Lawrence Livermore National Security, which has managed the Livermore National Laboratory in California since 2007.

The UC regents, slated to meet today in San Francisco to discuss the anticipated fee-take, did not say how the expected $22.5 million fee is split between the two labs. The estimated fees will be for work performed at Los Alamos and Livermore from October 2018 through December.

The Livermore contractor, whose award including options runs through 2026, follows a government fiscal year that ends in September. The Los Alamos contractor, on the job through 2028, including options, observes a financial year that ends in December.

It is also “a possibility” that the University of California will earn some fees in 2019 from former Los Alamos National Laboratory management and operations contractor Los Alamos National Security. That company, led by Bechtel and UC with senior industry partners AECOM and BWX Technologies, managed Los Alamos from 2006 through October 2018. The group lost its lab contract well before the final option period following a series management and nuclear safety lapses.

The UC Board of Regents National Laboratories Subcommittee plans to webcast its meeting in San Francisco at 6:45 p.m. Eastern time Wednesday.

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