Desert Research Institute seeks contract to manage Energy Department lab

By Daniel Rothberg

Friday, Oct. 23, 2015 | 2 a.m.

The Desert Research Institute is one of two bidders for a significant federal contract to manage a Department of Energy research installation near the Oak Ridge National Lab in Tennessee, according to a briefing prepared for Nevada higher-education officials.

If awarded the contract at the end of October, DRI — the environmental research arm of the Nevada System of Higher Education — would play a sizable role operating the Oak Ridge Institute for Science and Education, a facility with more than 500 employees and several laboratories.

The Oak Ridge Institute's research focuses on occupational hazards, environmental cleanup and radiation emergencies. The briefing for the Board of Regents frames the contract as an opportunity to give the state's higher-education institutions “national visibility” and open up new research possibilities.

The proposed contract extends for up to 10 years and could be, in the long term, worth about $3.2 billion, according to the documents. It estimates an initial award of $150 million per year. Because DRI is proposing to manage the Oak Ridge Institute through a nonprofit affiliate, to be called DRI-Tennessee, it would not be the direct recipient of the funds but would still benefit from the contract.

The contract is open, according to the Board of Regents documents, because of “serious deficiencies with the incumbent performer over two five-year contract periods.” Oak Ridge Affiliated Universities, the incumbent contractor, is the only other entity competing with DRI for the contract.

Since its founding in 1959, DRI has worked closely with the Department of Energy. For decades, it provided the DOE with environmental monitoring services on the Nevada National Security Site, formerly called the Nevada Test Site, about 65 miles from Las Vegas. Most recently, DRI secured a DOE contract with a $35 million ceiling in 2012.

As part of its Oak Ridge bid, DRI submitted a three-volume proposal to the DOE. The Nevada institute has, according to the briefing, also identified industry partners with a history of working with the federal agency. The briefing also shows an organizational chart for the possible Oak Ridge venture that lists its top leadership and a board of directors.

“DRI is confident that the team assembled to lead and manage ORISE not only addresses these key deficiencies but ... provides a clear and bold vision for ORISE,” reads the briefing.

DRI administrators were not able to comment because the bid process is ongoing.

At a meeting Friday, DRI officials will ask the regents to approve the formation of the nonprofit DRI-Tennessee, which would be incorporated in Tennessee and manage the Oak Ridge Institute as an affiliate of DRI. To create the nonprofit, DRI was required to seek the board’s approval.

According to the documents, the federal agency is expected to decide on a contractor by Oct. 31.

ORISE is located near the Oak Ridge National Lab, known by many for its role in the Manhattan Project.