Los Alamos National Security, LLC Set to Launch Transition at Laboratory

Team Leaders Comment on Announcement by DOE  

LOS ALAMOS, NEW MEXICO, December  21, 2005--Los Alamos National Security, LLC (LANS), selected by the U.S. Department of Energy (DOE) and the National Nuclear Security Administration (NNSA) in  the competition for the contract to manage and operate Los Alamos National Laboratory (LANL), today announced its mobilization of personnel to begin the transition period specified by DOE, with NNSA mission activities under the new contract starting June 1, 2006. (See the DOE announcement.)  

"We are honored and excited that the Department of Energy has selected our team and given us the opportunity to lead this vital national security science laboratory," said LANS President Michael Anastasio, currently director of the Lawrence Livermore National Laboratory and the designated director for Los Alamos. 

"Los Alamos has the tradition for over 60 years of pushing scientific frontiers for the benefit of our nation through its unique and outstanding workforce.  LANS is committed to ensuring that this tradition continues well into the future.  

"Our team has been preparing for months to assume this tremendous responsibility and provide as smooth a transition as possible for the employees, their families, and the community," he said.  

"We formed LANS for the sole purpose of delivering to DOE and to the Laboratory the best combination of scientific and management expertise," said Gerald Parsky, chairman of the LANS board of governors.  "Our team is eager to apply our expertise and capabilities to further benefit the Laboratory and the security of our nation."  Parsky also is chairman of Aurora Capital Group, a Los Angeles-based investment firm, as well as the University of California Board of Regents.  

"We are ready to serve," said LANS Vice Chairman Tom Hash.  "Mike Anastasio and his team look forward to working with Laboratory personnel to chart a course for the future that meets or exceeds DOE's requirements."  Hash is chairman and president of Bechtel Systems and Infrastructure, Inc., Bechtel Corporation's government services unit.  

The LANS team was formed to manage and operate Los Alamos National Laboratory by four entities renowned for accomplishments throughout the DOE nuclear weapons complex and beyond.  Bechtel is the largest project management contractor in the United States. 

The University of California is the world's largest academic research institution.  BWX Technologies and Washington Group International are the top two DOE nuclear facilities contractors and between them manage and operate four of DOE's five safest sites. 

The team also includes the Advanced Studies Institute at Los Alamos National Laboratory, a consortium of the University of New Mexico, New Mexico State University, and the New Mexico Institute of Mining and Technology. 

Background on the organizations that formed LANS:  

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 nearly 40,000 employees working in 50 countries.  Bechtel 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, Bechtel has broad capabilities and extensive experience in the management of complex, multisite, environmental programs, including projects at several DOE sites.
 
Bechtel's national security work includes managing and operating Nevada Test Site and its affiliated facilities for NNSA.  The company also is 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, Bechtel National manages the Kwajalein missile range and supports nonproliferation efforts in the former Soviet Union for the Defense Threat Reduction Agency.  Bechtel 's portfolio also includes more than 15 years of government laboratory management and support experience.  

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 by DOE a five-year contract 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.  

BWX TECHNOLOGIES INC.  

BWX Technologies Inc. (BWXT), headquartered in Lynchburg, Virginia, is the nation's premier manager of complex, high-consequence nuclear and national security operations.  BWXT is a subsidiary of McDermott International, Inc. [NYSE: MDR].  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 DOE.  BWXT has 11,000 employees nationwide with operations in 11 states.

WASHINGTON GROUP INTERNATIONAL  

With approximately 25,000 employees at work in more than 30 countries, Washington Group (Nasdaq: WGII) provides professional, scientific, management, and development services in more than two dozen major markets.  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.