Prime Contract

The Prime Contract

View the Prime Contract (pdf) »

The LANS contract began in 2006 and currently runs through September 30, 2017. The prime contract, which lists fees earned by LANS, is posted here (pdf). The contract is for seven years, with the opportunity for LANS to earn up to 13 additional years. If LANS earns all years, the contract would expire in 2026.

Under the contract, the government reimburses LANS for the allowable costs of running the Laboratory and its programs. Additionally, each year a Performance Evaluation Plan (PEP) is completed. The document outlines certain additional fees that LANS may earn if it completes the objectives in the PEP.

This performance fee is used for nonallowable costs, which range from recruiting and retention of the world’s foremost scientists and engineers to an annual employee picnic. Some of the performance fee pays for collaborative research with the University of California. Some $3 million per year is invested in Northern New Mexico through community giving, educational programs, and economic development. The remainder goes to the LANS parent organizations.

Oversight and regulation

The land upon which the Laboratory sits, its buildings, and its equipment are all owned by the federal government.

The Laboratory may not spend more on federal programs than that authorized and appropriated by Congress and performs work only in areas directed or approved by NNSA or other government agencies to support national security science.

Primary oversight for the Laboratory comes from the NNSA. Additional oversight is provided by the Department of Energy. The Lab is subject to NNSA, DOE, and federal regulations for safety and security. For environmental regulation, the Lab is subject to the New Mexico Environment Department and the U.S. Environmental Protection Agency.