PROCUREMENT NEWS

United States : Honeywell secures $2.6B Sandia National Laboratories management deal

Published 30 Dec 2016

An arm of Honeywell International will assume management of Sandia National Laboratories in Livermore and its primary operation in Albuquerque early next year.

Beating out over a dozen rivals, the company won a $2.6 billion deal.

Major management changes would be seen both in Livermore and Albuquerque. Many workers at the Livermore operation reside in Pleasanton.

The National Nuclear Security Administration (NNSA)'s decision was surprising when it bypassed defense firm Lockheed Martin, which was managing the nuclear weapons lab for over 20 years.

New Mexico's 3 research universities - the University of New Mexico, New Mexico State and New Mexico Tech- were looking to play a prominent role in Sandia's management, as part of a separate bid with other firms, but those bids failed.

Honeywell's 100% subsidiary, National Technology and Engineering Solutions (NTESS), will have the management and operating deal for Sandia.

Northrop Grumman and Universities Research Association will be supporting NTESS in the performance of the deal.

If all options are exercised, the contract is worth $2.6 billion annually over 10 years.

Lt. Gen. Frank G. Klotz (ret.), under Secretary for Nuclear Security and NNSA Administrator, said, "Following a full and open competition, NNSA is pleased to announce the selection of NTESS as our partner at Sandia. 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."

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