TheÂ National Nuclear Security Administration has decided to revoke a potentialÂ $5 billion contract NNSA awarded toÂ Nevada Site Science Support and Technologies Corp. earlier this week on grounds that NVS3T did not inform the agency it was acquiredÂ by Leidos Holdings (NYSE: LDOS) as part ofÂ the latter’s merger withÂ Lockheed Martin‘s (NYSE: LMT) government information technology and services businesses.
NNSA on Monday announcedÂ NVS3T wasÂ to succeedÂ National Security TechnologiesÂ –Â a joint venture between Northrop Grumman (NYSE: NOC), AECOM (NYSE: ACM), CH2M and Babcock & Wilcox —Â as the management and operations contractor atÂ the Nevada National Security Site forÂ the next 10 years.
The agency said WednesdayÂ the proposal NVS3T submitted during the acquisition process describes the business as a Lockheed subsidiary.
“This change in ownership raises substantial questions about the information in the NVS3T proposal, which could significantly impact the evaluation of the proposal and award decision, ” NNSA noted.
“In the interest of fairness, NNSA will reconsider all offers previously received in response to the request for proposals, ” the agency added.
NNSA said that NSTec’s current contract will remain in place until workÂ commencesÂ on a new follow-onÂ contract and that the agency’sÂ decision to rescind the award to NVS3TÂ will not affectÂ the agency’s workforce or its national security missions.