University of California Office of the President

FOR IMMEDIATE RELEASE
Thursday, May 26, 2005
UC Office of the President contact:
Chris Harrington (202) 997-3150
chris.harrington@ucdc.edu

UNIVERSITY OF CALIFORNIA REGENTS VOTE TO COMPETE
FOR MANAGEMENT OF LOS ALAMOS NATIONAL LABORATORY

UC, Bechtel National, BWXT and Washington Group International team to compete and manage LANL

The UC Board of Regents voted today (May 26) to pursue continued management and operations of Los Alamos National Laboratory by submitting a competitive proposal to the U.S. Department of Energy in response to the final request for proposals that was issued on May 19.

Acting on the recommendation of UC President Robert C. Dynes, the regents voted to grant Dynes the authority to submit a proposal to the Department of Energy (DOE) by the July 19, 2005, deadline. The final bid will be submitted by a UC and Bechtel-led team that includes BWX Technologies Inc. (BWXT) and Washington Group International, as well as a consortium of New Mexico higher education institutions.

The regents also voted to appoint Michael R. Anastasio the director of Los Alamos National Laboratory, contingent upon the university and Bechtel-led team being awarded the contract for future management of Los Alamos. Anastasio, a nuclear physicist, has more than 25 years' experience in national security and nuclear weapons and has led the Department of Energy's Lawrence Livermore National Laboratory since 2002. On May 17, the University of California and Bechtel National-led team named Anastasio as the team leader in the competition preparations for the Los Alamos National Laboratory.

"The UC-Bechtel led team is perfectly positioned to preserve the world-class scientific mission of Los Alamos while maximizing the quality and accountability of the laboratory's business, management, security and operational functions," said Dynes. "We at the university have recognized that the management of these laboratories in the 21st century requires a team effort, one bringing together skills that are greater than what the university alone can offer. And we have put together a team that I believe is incredibly strong.

"I believe we should compete for the Los Alamos contract for three essential reasons: the excellence in science that we bring to the table, the strength of the management team we have put together, and the contribution this unique combination of players can make to the nation."

Under the teaming agreement with Bechtel, UC and Bechtel will form a separate corporate entity to act as prime contractor to manage the laboratory. Current Los Alamos employees who do not terminate employment or retire will be moved to the new corporate structure and will retain their current benefits and pensions to the extent legally permissible under the DOE's new requirements.

"The regents have thought about the Los Alamos contract competition for many months, and with the issuance of the final request for proposals, we have examined this proposal with extreme care," said UC Board of Regents' Chairman Gerald L. Parsky. "Our historic relationship with Los Alamos embodies the university's highest mission of public service, and we believe our decision to compete vigorously for the new contract represents the best interests of the nation.

"The regents' action today ensures that our nation's greatest scientific and technological resources are brought to bear in defending the precious security of our homeland and the enduring prospects for peace in the world."

Due to the competitive nature of the bid process, the University of California did not publicly detail other aspects of its proposal.

"The UC, Bechtel, BWXT, and Washington Group team will ensure integration of the very best business and management practices into the science and technology innovation which underpins program achievement," said LANL competition team leader Michael R. Anastasio. "It continues to be in the best interest of the nation to have a leading scientific institution, the University of California, creating the cutting edge science and technology which is necessary to meet our challenging national security missions."

On May 11, UC announced that it would join with Bechtel National, who is joined by BWXT and Washington Group, bringing a best-in-class business management and industrial operations lineup to Los Alamos National Laboratory (LANL).

Bechtel National provides world-class program and project management, facilities management, safety and environmental management, and robust government business systems. As premier managers of complex, high-consequence nuclear and national security operations, BWXT and Washington Group will ensure safe and secure, effective and efficient nuclear facilities operations.

Together, the UC-Bechtel led team will combine unparalleled scientific achievement with efficient business management, while ensuring safe, secure and effective nuclear facilities operations. Going forward, this partnership will provide LANL with strong management that delivers superb quality, accountability and dedication, demonstrated by experience, to both management and scientific operations. This partnership allows strong management to be in place, ensuring that critical science and technology remains the underpinning of the laboratory's mission.

In late March, UC announced it would also partner with a consortium of New Mexico institutions to form the Advanced Studies Institute at Los Alamos. These institutions include the University of New Mexico, New Mexico State University and New Mexico Institute for Mining and Technology. The agreement with these institutions solidifies the role of New Mexico universities as part of a bid to compete for the LANL contract.

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BACKGROUND ON THE LANL COMPETITION PROCESS:

Los Alamos National Laboratory -- The contract to manage LANL expires Sept. 30, 2005. On April 30, 2003, then-U.S. Secretary of Energy Spencer Abraham announced that the DOE would compete the management and operations contract for Los Alamos National Laboratory. Congressional action in 2003 mandated that DOE conduct a competition for management of any laboratory contract that had been in place for 50 years or more without competition. Five national laboratory contracts, including Los Alamos National Laboratory, were affected by this action. On May 19, 2005, the DOE's National Nuclear Security Administration released the final request for proposals (RFP). The deadline for submission of bids is July 19, 2005. According to DOE, a source evaluation board made up of DOE technical and business experts will review the proposals submitted and provide recommendations to the Source Selection Official.

UNIVERSITY OF CALIFORNIA

The University of California, founded in 1868, is a system of 10 campuses with a mission of teaching, research and public service. With 208,000 undergraduate and graduate students, UC is the world's premier public university. UC has five medical schools, three law schools and the nation's largest continuing education program. Forty-nine researchers affiliated with UC have been awarded Nobel Prizes; 16 of the Nobel Prizes have been won since 1995. In addition, UC has 358 members in the National Academy of Sciences and UC-affiliated researchers have received 48 Medals of Science since Congress created the award in 1959.

UC manages three national laboratories on behalf of the Department of Energy. Today, Lawrence Livermore and Los Alamos national laboratories each employ more then 8,000 UC staff and have combined annual budgets exceeding $3.8 billion, while Lawrence Berkeley National Laboratory has approximately 4,000 employees and an annual budget of nearly $500 million. The university was recently awarded a five-year contract from DOE to continue management of Lawrence Berkeley National Laboratory.

The laboratories are major sources of scientific and technical strength for the nation in fields ranging from national security, to basic physics, biotechnology, climate studies, computer development, materials science, energy, and the environment. The laboratories contribute to the country's economic competitiveness through research partnerships with industry and engage in math and science education for students and teachers at all levels.

For more news and information about the University of California:

www.universityofcalifornia.edu

BECHTEL

Bechtel is a global engineering, construction and project management company with more than a century of experience mastering complex projects in challenging locations. Privately owned, with headquarters in San Francisco, the company has 40,000 employees working in 50 countries. Bechtel National Inc. is supporting national security and U.S. intelligence and defense efforts, developing new technologies to fight terrorism, monitoring the consequences of terrorist acts, designing emergency response programs, and training both military and civilian responders nationwide. Additionally, BNI has broad capabilities and extensive experience in the management of complex, multisite, environmental programs, including environmental cleanup projects at several DOE sites in the United States.

BNI's national security work includes managing and operating the Nevada Test Site and its affiliated facilities for the National Nuclear Security Administration. BNI is also a partner in management of NNSA's Y-12 National Security Complex in Tennessee and the Pantex Plant in Texas, as well as the Savannah River Site in South Carolina. Among its Department of Defense contracts, BNI manages the Kwajalein missile range and supports non-proliferation efforts in the former Soviet Union for the Defense Threat Reduction Agency. BNI's portfolio also includes over 15 years of government laboratory management and support experience.

For more news and information about Bechtel National Inc.: www.Bechtel.com

BWX TECHNOLOGIES INC.

BWX Technologies Inc. (BWXT), headquartered in Lynchburg, VA, is the nation's premier manager of complex, high-consequence nuclear and national security operations. Responsible for the operations of the Pantex Plant in Texas and Y-12 National Security Complex in Tennessee, along with nuclear operations at the Idaho National Laboratory, BWXT has a long history in nuclear manufacturing and operations, both in the Department of Energy and at its unique, highly secure, privately owned and operated nuclear manufacturing and laboratory facilities. A supplier of nuclear products and services to the U.S. government and commercial clients for over 50 years, BWXT has unparalleled experience in nuclear safeguards and security and has been recognized as a model by the DOE. With more than 11,000 employees nationwide, BWXT manages complex, high-consequence nuclear and national security production facilities and is a principal supplier of nuclear components and advanced energy products, delivering both value and customer confidence.

For more news and information about BWX Technologies Inc.: www.bwxt.com/

BWXT Public Relations: 1- 434-522-5076/1-434-522-5158.

WASHINGTON GROUP INTERNATIONAL

Washington Group International, with headquarters in Boise, ID, provides the talent, innovation, and proven performance to deliver integrated engineering, construction, and management solutions for businesses and governments worldwide. A contractor for the U.S. Department of Energy and its predecessor agencies since the Manhattan Project, Washington Group is a leader in providing safe, disciplined operations, risk management and comprehensive environmental services for its customers. Its long history of successful DOE operations continues today with: management and operation contracts at the Savannah River Site, the Waste Isolation Pilot Plant, the West Valley Demonstration Project and its partnership in the Battelle Energy Alliance for operation of the Idaho National Laboratory. Washington Group also is involved in closure contracts at the Weldon Spring Remedial Action Project, Miamisburg Closure Project, Rocky Flats Environmental Technology Site, and the recently awarded Hanford River Closure and Idaho Cleanup Project, as well as technical support and consulting projects at Los Alamos, Lawrence Livermore and Sandia national laboratories, DOE's Hanford Site, Pantex Plant and Oak Ridge complex.

For more news and information about Washington Group International: www.wgint.com

For media inquiries contact: Jack N. Herrmann of Washington Group International Inc., 1-803-502-9791.

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