Contact: Randa S. Safady, (512) 499-4363

Date: December 1, 2004

UT System Statement

Regarding the Los Alamos National Laboratory Draft RFP

The U.S. Department of Energy (DOE) today released its draft request for proposal for the management and operations contract for Los Alamos National Laboratory. DOE has released the draft to solicit questions and comments from potential offerors prior to the preparation and release of a final RFP.

Comments and questions on the draft must be submitted to DOE by Jan. 7, 2005.

The University of Texas System will be evaluating the various sections and provisions of the draft RFP and will be submitting any comments or questions by the January deadline to the National Nuclear Safety Administration and DOE. Release of the draft for comments and questions from prospective offerors is a major milestone in the competition for the management and operations contract of a national laboratory. UT System will be analyzing the draft as part of its process of making recommendations to the UT System Board of Regents on whether to submit a proposal to operate the Los Alamos National Laboratory in New Mexico. In February 2004 Regents authorized planning for a possible bid.

A final RFP will likely be issued in late January or early February after comments on the draft from potential offerors are addressed by DOE. Proposals from prospective bidders will be due 60 days after the final RFP is issued.

Proposals will be reviewed by National Nuclear Security Agency's Source Evaluation Board, comprised of NNSA technical and business experts who will provide a report of findings to the NNSA Source Selection Official. Selection of the contractor will occur in the summer of 2005 and begin full contract performance on Oct. 1, 2005. The current LANL management and operations contract expires on Sept. 30, 2005.

A decision on whether the UT System will submit a proposal to manage LANL will be made by the Board of Regents after analysis and recommendations are made to them by Mark Yudof, chancellor of the UT System. The Regents are scheduled to meet in Austin, Texas, Feb. 9-10, 2005.