006 Lockheed Martin (imputation (18m Drin- MI) BUSH Jolt-phone 3i) i -89?f?t?:5h5 Rt) LOCKHEED MARTIN A. Hewsou Vice President l;iccirnnic System.? May 20. 2011 The Honorable Stephen Chu Secretary US. Department of Energy Forrestat Buiiding 1000 independence Avenue, SW Washington. DC 20585?1000 Dear Mr. Secretary: The purpose of this letter is to request your consideration of a multiuyear extension of the Sandie Corporation?s contract to manage and operate Sandie Nationat Laboratories under current contract terms and conditions. Lockheed Martin has provided outstanding service through the Sandia Corporation as the Management and Operating (M80) contractor for Sandie for 17 years. The management of Sandia ciosely aligns with Lockheed Martin's core business and values, especially the importance we both place on nationat security matters. Therefore, we seek to extend the current M80 contract and ailow Lockheed Martin to continue our service to this critical institution. As Sandia?s M230 contractor. Lockheed Martin has achieved an enviabte record of service on behalf of the Department of Energy and the National Nuclear Security Agency. We have applied our best practices and core in research and deveiopment, program and process management, cost control and oversight. Our efforts have resulted in outstanding technical, administrative and cost performance at Sandia. and should provide the assurance Lockheed Martin will continue to help Sandie meet its most challenging goals in coming years. In this role. we have aligned top talent from across the corporation to support Sandie. including its management team as wait as Sandie Corporation?s Executive Board. This is a practice we are committed to continuing. The board includes external members such as James Schiesinger, our nation?s first Secretary of Energy, and General Larry Welch. (Ret). former Chief of Staff for the 8. Air Force. aiongside senior leaders from Lockheed Martin. all of whom combine to provide balanced and seasoned oversight. Looking ahead. Lockheed Martin?s skills and best practices wilt prove even more essential to Sandia?s continued success with evolving weapon life?extension projects, clean energy initiatives and work for other government agencies. Extending our current contract avoids potential disruption at Sandia and the costs associated with a potential competition that is not likely to result in either performance or cost improvement for the government, 007 The Honorable Stephen Chu May 20. 2011 Page 2 Lockheed Martin welcomes the opportunity to continue our successful partnership with the Department of Energy and Sandie under the current contract terms and conditions. We look forward to discussing this in more detail with you and your team. Sincerely. Marillyn A. Hewson Chairman, Sandie Corporation cc: The Honorable Daniel Poneman The Honorable Thomas D'Agostino