The UT System is expected to finalize a partnership this week with Lockheed Martin to bid on Los Alamos National Laboratory, according to UT System spokesman Michael Warden.
"The work of Los Alamos is fundamental to our national security," said James R. Huffines, chairman of the Board of Regents in a written statement. "As one of the finest institutions in the country, we have a duty to pursue this proposal."
On May 12, The UT System Board of Regents authorized Chancellor Mark Yudof to sign a teaming agreement with Lockheed Martin, the defense-contractor leading the bid for management and operation of the nuclear weapons lab.
The University of California's board of regents announced Thursday their intention to submit a proposal to manage the lab jointly with Bechtel Group, Inc. The UC/Bechtel-led team also includes Washington Group International, BWXT and a consortium of New Mexico universities. Lawrence Livermore National Laboratory Director Michael Anastasio will lead UC/Bechtel's bid proposal group, and if they win, he will also lead lab management.
Lockheed Martin has signed on partners CH2M Hill and Fluor, with UT System remaining the largest partner, said Lockheed Martin spokesman Don Carson. Lockheed Martin has selected Sandia National Laboratories' President C. Paul Robinson as its choice for lab manager and bid team leader. Robinson also led the weapons program at Los Alamos, which consists of 80 percent of the laboratory's $2.2 billion budget, Carson said.
In order to finance the UT/Lockheed bid proposal, UT System regents also approved budgeting $1.2 million from the Available University Fund, Warden said. The total includes salaries, consultants, travel and supplies for participation in the proposal.
The money will be taken out of the UT System administration's budget and will not affect any distribution to UT-Austin, but will influence how much money is available for the System's 14 other universities and health institutions. Constitutionally, UT-Austin is the first to receive income from the Permanent University Fund, followed by System administration and the other institutions.
The budgeting will span two fiscal year pay-offs Warden said, and would be reimbursed out of the Department of Energy fee awarded to UT System if it wins.
The student government of UT-San Antonio disapproves of the System's expenditure.
"The student government association of UTSA does not support the funding for the Los Alamos bid to come from our share of the Available University Fund given that we are underfunded and the fastest growing UT institution in Texas," said UTSA SG President Jason Palasota.
UC will be paying for its share of its bid proposal with part of the management fee it receives from DOE, Harrington said.
A week after the UT System regents made their decision, the National Nuclear Security Administration released its final request for proposals, which stated that the winning team must establish a separate, dedicated corporation to run the lab for seven years, beginning a year from today. In return, the management team will receive a fee of up to $79 million per year. Thirty percent of the fee will be fixed, according to the proposal, with the rest to be awarded based on performance. UC currently receives a yearly fee as large as $8 million per year, said UC spokesman Chris Harrington.
After reviewing the RFP, defense contractor Northrop Grumman announced its intention to drop out of the race May 26.
Proposals are due July 19, and NNSA will award the contract by Dec. 1, according to the RFP.
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