National Nuclear Security Administration

NNSA Awards Sandia National Laboratories Management & Operating Contract to National Technology and Engineering Solutions of Sandia (NTESS)

December 16, 2016

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WASHINGTON, D.C. – The Department of Energy’s National Nuclear Security Administration (DOE/NNSA) announced today it has awarded National Technology and Engineering Solutions of Sandia (NTESS) with the management and operating contract for Sandia National Laboratories (SNL). NTESS is a wholly owned subsidiary of Honeywell International. Northrop Grumman and Universities Research Association will support NTESS in the performance of this contract. The award is valued at $2.6 billion annually over 10 years, if all options are exercised.

“Following a full and open competition, NNSA is pleased to announce the selection of NTESS as our M&O partner at Sandia,” said Lt. Gen. Frank G. Klotz (ret.), Under Secretary for Nuclear Security and NNSA Administrator. “The Sandia bid generated unprecedented interest from across industry, demonstrating that our improved acquisitions process is attracting high-quality competition and the best talent to serve NNSA’s mission.”

In addition to NNSA’s improved selection criteria, the solicitation for the SNL M&O contract incorporated a number of governance initiatives launched by DOE following recommendations from the Congressional Advisory Panel on the Governance of the Nuclear Security Enterprise (Augustine-Mies Report), Commission to Review the Effectiveness of the National Energy Laboratories (CRENEL), and the Secretary of Energy’s Advisory Board (SEAB).

SNL is responsible for non-nuclear engineering development of all U.S. nuclear weapons and for systems integration of the nuclear weapons with their delivery vehicles. SNL's national security responsibilities include design, qualification, certification, and assessment of the nonnuclear subsystems and system qualification of nuclear weapons.

SNL also leads the Nuclear Security Enterprise (NSE) in developing new technologies in the safety, security, reliability and use control of nuclear weapons, and works closely with other NSE sites on issues associated with production and dismantlement of nuclear weapons, surveillance and support of weapons in the stockpile. Other responsibilities include advancing technologies in nuclear intelligence, nonproliferation, and treaty verification. Sandia has locations in Albuquerque, NM; Livermore, CA; Kauai, HI; and Tonopah, NV. 

The current M&O contract for SNL will expire on April 30, 2017, allowing for a full four month transition period, which will provide stability for the workforce employed under the current contract and efficient continuity of operations for NNSA’s vital missions performed there.

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Established by Congress in 2000, NNSA is a semi-autonomous agency within the U.S. Department of Energy responsible for enhancing national security through the military application of nuclear science. NNSA maintains the safety, security, and reliability of the U.S. nuclear weapons stockpile without nuclear explosive testing; works to reduce the global danger from weapons of mass destruction; provides the U.S. Navy with safe and effective nuclear propulsion; and responds to nuclear and radiological emergencies in the U.S. and abroad.