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News Release

September 28, 1998
Lockheed Martin and DOE agree to new Sandia National Labs operations contract

ALBUQUERQUE, N. M. -- The US Department of Energy (DOE) and Lockheed Martin Corporation today signed a contract modification to extend Lockheed Martin's management of Sandia National Laboratories for five more years.

The prime missions of Sandia, which has its main operations in Albuquerque and in Livermore, Calif., is to provide world-class scientific and engineering solutions to meet national needs in nuclear weapons, related defense systems and technologies and stockpile stewardship. These broadly based programs include areas such as the environment, national infrastructure, health, energy, economic and industrial competitiveness, and science education.

Sandia Labs, which employs about 6,600 people in Albuquerque and another 900 in Livermore, is home to the world's fastest computer. The "teraflops" machine is a joint effort of Sandia and Intel Corporation. Sandia also is a widely recognized leader in working with industry on the transfer of Sandia technologies to US companies. Key recent examples include application of its materials research in Saturn automobile engines, application of its sophisticated computer codes to aid Goodyear Tire & Rubber in the design of many products, application of its microchip manufacturing expertise to develop "test chips" that will help US manufacturers improve their own chips' reliability, and application of its understanding of combustion to the development of more efficient household furnaces.

Sandia President C. Paul Robinson is pleased with today's signing. "Sandia's reputation for scientific and technical excellence has grown significantly over the past five years," said Robinson, "and this during a time when our lab and other DOE facilities have been undergoing downsizing and other significant changes.

"Lockheed Martin has become a vital part of Sandia during the initial five-year contract period [October 1, 1993-Sept. 30, 1998] and has been an excellent corporate role model, particularly in raising the importance of positive interactions with our communities. Lockheed Martin has donated major portions of the fee it receives to improving our communities, both in New Mexico and at our California site."

Bruce Twining, manager of DOE's Albuquerque Operations Office, credited the Lockheed Martin subsidiary that operates the Labs -- Sandia Corporation -- with "excellent overall performance." "During the past five years," he said, "Lockheed Martin has also devoted a sizable portion of its annual fixed fee to support local diversity and community outreach programs and to foster New Mexico entrepreneurial and economic development. Sandia and the Lockheed Martin Corporation have indicated their willingness to continue to support worthwhile community and technology development programs from corporate funds for the contract extension period."

Just a few of the milestones that Lockheed Martin has met during its tenure as Sandia manager for the DOE over the past five years:

  • Successful oversight of the movement of neutron generator production capabilities from Florida to Albuquerque; successful integration of production facilities into Sandia's research and development culture.

  • Demonstrated commitment to fostering the nation's economic competitiveness through establishment of the Technology Ventures Corporation, which has created more than 700 jobs through its technology commercialization efforts.

  • Demonstrated commitment to the community through community-leading support for United Way of Central New Mexico, substantial donations to the New Mexico Museum of Natural History, Albuquerque Biological Park, educational outreach programs.

  • Commitment to creating opportunities for minority and woman-owned businesses through establishment of a Supplier Relations Center.

The contract extension signed today runs from Oct. 1, 1998, to Sept. 30, 2003, and is performance-based. It includes all current DOE contract reform provisions and initiatives. The total estimated budget for the five-year extension period is about $7.5 billion. Sandia's estimated annual operating and capital expenditure budget for fiscal year 1999 is $1.5 billion, which includes a management fee of $15.9 million.

Lockheed Martin is responsible for the management, operation, environment, safety, health, waste, maintenance, logistical support, engineering, technical, administrative, and other services necessary to effectively and efficiently operate Sandia facilities.

The contract extension includes an annual performance appraisal process. Performance objectives will be developed annually by Sandia and DOE. Laboratory self-assessment of performance against key compliance requirements will provide the basis for DOE oversight.

Sandia is a multiprogram DOE laboratory, operated by a subsidiary of Lockheed Martin Corp. With main facilities in Albuquerque, N.M., and Livermore, Calif., Sandia has major research and development responsibilities in national security, energy, and environmental technologies.

Sandia Media Contact (New Mexico):
Rod Geer, wrgeer@sandia.gov, (505) 844-6601

Sandia Media Contact (California):
Barry Schrader, schrader@sandia.gov, (925) 294-2447

Lockheed Martin Media Contact:
Jerry Langheim, jerry.r.langheim@lmco.com , (301) 897-6622

DOE Media Contact:
Al Stotts, astotts@doeal.gov , (505) 845-6094

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