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Message from UC President Dynes

July 20, 2005

Dear Colleagues:

Yesterday, the University of California and Bechtel-led team submitted our bid proposal, responsive to the Department of Energy Request for Proposals, for the future management of Los Alamos National Laboratory. We fully believe that this is a strong, winning proposal that builds upon the tremendous scientific and technological history of Los Alamos, while bringing in industrial partners that will ensure strong business, management, safety and security practices.

Now that the bid has been submitted, the Source Evaluation Board (SEB), made up of DOE technical and business experts, will begin reviewing our team's bid as well as bids from potential competitors. In late August, our team, lead by LANL's future lab director, Michael Anastasio, will participate in oral presentations before the SEB. I am very confident in our proposal and our team, and I believe that as a result of this competition and our strong proposal, LANL will be a better, stronger, safer and more efficient laboratory for decades to come.

I know you continue to have many questions regarding LANL's future, the role of science at the laboratory, and the issue of how the competition, and specifically our proposal, protects your pensions and benefits. Due to the competitive nature of the contract process, many of the details of the University's proposal will not be made public until after DOE makes a determination regarding the future contractor for the Laboratory. I would, however, like to share a few highlights of our proposal.

First, the UC-Bechtel - led team is a true partnership. Our management team brings together a team of contractors with a proven record and preeminence in the application of science to the work of the laboratory, and specifically to weapons design. Every entity has a seat at the table. Each of the team members - UC, Bechtel, BWX Technologies and Washington Group International-- has deep technical and professional expertise that have been incorporated into our proposal and will be brought to the future management of LANL.

Second, science will continue to be the cornerstone of the work of the laboratory. The UC-Bechtel-led team's proposal will foster an atmosphere that allows lab scientists to continue to do the great science that the laboratory is known for, without being hampered by unnecessary bureaucratic processes to the greatest extent possible. Our team believes that science and technology are critical to the LANL mission, and our proposal underscores this.

Third, assuming the University wins the competition, the UC-Bechtel-led team will do everything it can to seek approval from the DOE for existing employees who continue employment without interruption to participate in a pension plan that mirrors the benefits currently provided in the University of California Retirement Plan (UCRP) to the extent legally permissible. As we move forward in the process, I will keep you informed regarding this and other issues.

I understand that this competition continues to bring you some uncertainty. On behalf of the University, I greatly appreciate your commitment to your work in our nation's interest.

Sincerely,

Robert C. Dynes
July 19, 2005


Sen. Pete Domenici on Tuesday issued the following statement:

"I am pleased to see two strong bids emerge from this application process. The proposals partner industrial and academic institutions together to place the future excellence of [Los Alamos National Laboratory] as paramount. It is imperative that the Department of Energy move forward deliberately in this process to protect full benefits for employees and find a strong scientific-based proposal that promotes economic development."

Sen. Jeff Bingaman on Tuesday issued the following statement:

"I am pleased that there are two excellent teams bidding for the [Los Alamos National Laboratory] contract. I know they both place very high value on the role of science at LANL, and are committed to being a good neighbor to Northern New Mexico communities. I also am pleased that the Department of Energy has stuck to a firm time line to award the contract on schedule, which is important for the morale of lab employees."

Rep. Tom Udall on Tuesday issued this statement:

"This represents the culmination of a tough time for the lab and its employees. My expectation is that the Department of Energy will thoroughly review these detailed proposals and select the best qualified operator. It is crucial that the department make its determination solely on the merits and performance records of the bidders.

"It is my understanding that a final decision will be made by the end of the year. The winning bidder will take over operations by June 1, (2006). My hope is that this competition will ultimately result in safety, efficiency and morale improvements at the lab."


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