The subcontract, which should be awarded by July 1, includes such services as operation and maintenance of the Laboratory's utility system and infrastructure; custodial services; waste removal; maintenance of roads and grounds; construction support; and engineering services.
Johnson Controls Northern New Mexico is a new company formed specifically to bid on the Los Alamos support services subcontract. The present subcontractor, Johnson Controls World Services Inc. of Cape Canaveral, Fla., holds a majority interest in the new company. Other partners in Johnson Controls Northern New Mexico are Morrison Knudsen Corp. of Boise, Idaho, Jacobs Engineering Group of Pasadena, Calif., and Duke Engineering and Services of Charlotte, N.C.
"Ultimately, after reviewing the recommendations of the source selection team, it's apparent that the team did a very careful and conscientious job of evaluating the bids. I fully concurred with their unanimous recommendation of Johnson Controls Northern New Mexico," said Laboratory Deputy Director Jim Jackson.
The new company has committed to retain nearly all the current subcontractor personnel and to maintain pay and benefits similar to those received by current Johnson Controls workers.
The current subcontract for facility support services to the Laboratory expires on September 30. The new subcontract is worth approximately $77 million a year for five years with an option to renew for an additional five years.
A source selection committee made up of representatives from the Laboratory's Facility Management Council and from the Business Operations; Facility, Security and Safeguards; Environment, Safety and Health; and Nuclear Materials Technology divisions chose Johnson Controls Northern New Mexico over other bidders.
"All the companies submitted good proposals, but the package from Johnson Controls Northern New Mexico's team was the strongest," Jackson said.
The source selection committee examined how each of the bidders proposed to fulfill four key evaluation criteria: technical capability, quality of the management team, environment, safety and health, and regional economic development. Jackson said the panel gave equal weight to the first two criteria and slightly less emphasis to the other two criteria.
"Johnson Controls Northern New Mexico proposed a strong senior management team," Jackson said.
Mike Barr, general manager of the Los Alamos office of Johnson Controls World Services since November 1996, will continue as general manager for the new company. Other key management positions will be filled by executives from Johnson Controls World Services and the other three partners.
Dennis Roybal, the Laboratory's senior contract specialist, said the new company proposed a number of important changes in key areas, including improved safety measures and specific plans for promoting regional economic development.
On safety, Johnson Controls Northern New Mexico promised a total commitment to improved safety, as demonstrated by zero tolerance for accidents, Roybal said.
All five companies in their proposals had to address job creation, investments and diversification of the economy; and to describe how they would ensure that at least a fourth of their procurement activities would go to small businesses and those with minority or woman ownership.
"The source selection committee felt that Johnson Controls Northern New Mexico offered the strongest economic development package," Roybal said.
That package included commitments by the company to
- open a Northern New Mexico Business Center in Española;
- establish a recycling center at Nambe Pueblo and turn it over to the Pueblo;
- enter into a partnership with Northern New Mexico Community College in Española and El Rito;
- within two years, locate a subsidiary of one or more of the four corporate partners in northern New Mexico; and
- create as many as 600 jobs over the next five years.
The Laboratory issued a formal request for proposals on November 8, 1996, and accepted bids until January 24.
The new subcontract includes an important change in the way the subcontractor is rewarded, Roybal said. Fees paid to Johnson Controls Northern New Mexico will be based on how well the subcontractor meets objective performance measures and milestones. These so-called performance-based fee structures are part of the Department of Energy's recent contract reform initiatives, Roybal said.
Los Alamos National Laboratory, a multidisciplinary research institution engaged in strategic science on behalf of national security, is operated by Los Alamos National Security, LLC, a team composed of Bechtel National, the University of California, The Babcock & Wilcox Company, and the Washington Division of URS for the Department of Energy's National Nuclear Security Administration.
Los Alamos enhances national security by ensuring the safety and reliability of the U.S. nuclear stockpile, developing technologies to reduce threats from weapons of mass destruction, and solving problems related to energy, environment, infrastructure, health, and global security concerns.