Comments
The correct answer is Yes.
The Government [NNSA] could terminate the LANS contract for managing and operating LANL in accordance with clause I-115 of the contract. However it is an all or nothing approach if you are talking about the full LANL M&O contract. In other words it would have to transition to a new M&O, not an "interim" M&O - as this is not a legal concept under federal procurement rules. The government can't just hand LANL ($2.2 Billion/yr) operations over to another entity without a competitive bidding process. NNSA would have to issue a new RFP for LANL management and award it to a new M&O, so LANS would continue running the lab until a new contractor took over. LANS could replace senior key management with "interim" management to handle the transition to the new contractor, but technically LANS would still be in charge of LANL. LANS can (and would) appeal the termination, which would probably take at least a year (see Y-12 contract fight from a few years ago) thus extending the whole process by a year before an RFP could be released. Given that LANS is already done at LANL, terminating the contract now would actually keep LANS at LANL longer.
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I-115
(a) The Government may terminate performance of work under this contract in whole or, from time to time, in part, if-
(1) The Contracting Officer determines that a termination is in the Government's interest; or
(2) The Contractor [LANS] defaults in performing this contract and fails to cure the default within 10 days (unless extended by the Contracting Officer) after receiving a notice specifying the default. "Default" includes failure to make progress in the work so as to endanger performance.
http://www.lanl.gov/about/_assets/docs/conformed-prime-contract.pdf
The Government [NNSA] could terminate the LANS contract for managing and operating LANL in accordance with clause I-115 of the contract. However it is an all or nothing approach if you are talking about the full LANL M&O contract. In other words it would have to transition to a new M&O, not an "interim" M&O - as this is not a legal concept under federal procurement rules. The government can't just hand LANL ($2.2 Billion/yr) operations over to another entity without a competitive bidding process. NNSA would have to issue a new RFP for LANL management and award it to a new M&O, so LANS would continue running the lab until a new contractor took over. LANS could replace senior key management with "interim" management to handle the transition to the new contractor, but technically LANS would still be in charge of LANL. LANS can (and would) appeal the termination, which would probably take at least a year (see Y-12 contract fight from a few years ago) thus extending the whole process by a year before an RFP could be released. Given that LANS is already done at LANL, terminating the contract now would actually keep LANS at LANL longer.
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I-115
(a) The Government may terminate performance of work under this contract in whole or, from time to time, in part, if-
(1) The Contracting Officer determines that a termination is in the Government's interest; or
(2) The Contractor [LANS] defaults in performing this contract and fails to cure the default within 10 days (unless extended by the Contracting Officer) after receiving a notice specifying the default. "Default" includes failure to make progress in the work so as to endanger performance.
http://www.lanl.gov/about/_assets/docs/conformed-prime-contract.pdf
"...Given that LANS is already done at LANL..."
There is also the chance that one (or more) of the losing bidders to operate LANL will protest. In such a case, until the protests are fully resolved, the current contractor keeps on operating the lab. So even if NNSA could get their act together and publish a RFP sometime in the next few weeks, it might not translate to a new contractor taking over next year.
Remember, it ain't over til the fat lady sings, and there are no signs that she is warming up to perform anytime soon.
There is also the chance that one (or more) of the losing bidders to operate LANL will protest. In such a case, until the protests are fully resolved, the current contractor keeps on operating the lab. So even if NNSA could get their act together and publish a RFP sometime in the next few weeks, it might not translate to a new contractor taking over next year.
Remember, it ain't over til the fat lady sings, and there are no signs that she is warming up to perform anytime soon.
THe LANS contract will be rebid after the SNL contract rebid is done, not before. There is just no way NNSA can handle the two at once. It really is that simple, and there is no one who can or will second guess NNSA on this decision. Dream up all the conspiracy theories or complicated scenarios you want, it is just the way it is. There is no "emergency" here, in NNSA's mind.
February 14, 2016 at 9:38 AM
Actually, it is just that they have no mechanism or capability to rebid two contracts (SNL, LANL) at one. SNL first.