University of California Office of the President

MESSAGE TO UC EMPLOYEES FROM UC PRESIDENT ROBERT C. DYNES

December 21, 2005

Dear Colleagues:

Earlier today, the U.S. Department of Energy (DOE) announced that our team, Los Alamos National Security LLC, made up of the University of California, Bechtel National, BWX Technologies and Washington Group International, was chosen as the future manager of Los Alamos National Laboratory. Clearly, I and the entire Los Alamos National Security (LANS) team are very pleased with this decision.

I am proud of all of our employees – current and former – who have contributed their talent and dedication to the mission of Los Alamos, and I am grateful to those who worked tirelessly in recent months on our team’s contract proposal. I truly believe that LANS’ strong proposal and leadership team will provide LANL with the tools to make even greater contributions to national security and scientific discovery in the future.

Since the final days of the Second World War, together, we have served this nation, providing unparalleled scientific and technological excellence while ensuring the safety, security, and reliability of our nation’s nuclear stockpile. The tremendous hard work and dedication of all of our employees at Los Alamos and throughout the University system allows us to stand tall today.

The decision today by the Department of Energy begins a new era for Los Alamos and all of us. We will now commence the transition to a new management team at the Los Alamos lab.

As you are aware, Michael Anastasio has been named the new Director at Los Alamos. He did a tremendous job leading our team in this effort, and many of the best practices that make the Lawrence Livermore National Laboratory highly successful were evident in several facets of the Los Alamos team’s proposal. Director Anastasio is expected to move to Los Alamos shortly as part of the transition team efforts, and I will begin a national search for a new director for the Livermore laboratory soon. The University will look for someone with many of Director Anastasio’s leadership skills, one who can lead the laboratory through the competition and into the future. I will provide you more details about the interim leadership at LLNL and the search process in the near future.

While we are particularly pleased with the Department’s decision today, a significant amount of work lies ahead for all of us to ensure that the new Los Alamos National Security LLC team is properly in place on June 1, 2006, the start date for the new contract. In the coming months, UC and the LANS team will implement an aggressive transition plan designed to ensure that the LANS team is in place at the start of the new contract and that there is a seamless continuation of benefits and employment for current LANL employees. The LANS transition plan, as well as the University’s efforts to close out the current contract, are designed to minimize any disruption to LANL employees, their families, and the work of the laboratory.

Finally, as you are aware, the Department of Energy is preparing to put the management and operations contract for the Lawrence Livermore National Laboratory out for competitive bid. DOE has not announced details about the LLNL contract competition; the current LLNL contract expires on September 30, 2007. The University has not made a formal decision about participating in the competition for the future management of LLNL. That decision will be made by The Regents at an appropriate point in the acquisition cycle.

While they have not yet made that decision, The Regents have authorized the University to prepare for competition. I am fully convinced that if The Regents vote to compete for continued management of LLNL, the University will be well prepared and will submit a strong – and winning – bid.

Thank you for your hard work and your commitment to the work of the University of California. Through the talent and dedication of employees at all of our national laboratories and throughout the UC system, the University will continue to manage the national laboratories on behalf of the nation with a great sense of pride, both in our past and in what is yet to come.

Sincerely,

Robert C. Dynes