The University of California has managed the nuclear weapons lab in the New Mexico desert since it was created in 1943 as part of the top-secret Manhattan Project.

The past several years, however, have included repeated security lapses and procurement abuses. The Energy Department decided to allow other universities, corporations and nonprofit organizations to bid on the management contract.
Since the competition was announced on April 1, 2003, by former Energy Secretary Spencer Abraham, UC officials maintained they would prepare for a potential bid as if they intended to compete, but would not decide until the Department of Energy established the terms of the competition

On May 11, UC announced it would partner with a trio of companies led by Bechtel International for the bid.

Finally, on Thursday, The University of California's pursuit of the Los Alamos Lab management contract was made official with an 11-1 vote by the Board of Regents.

One of the main competitors Northrop Grumman officials said they decided not to pursue the contract after the Energy Department issued its final request for proposals.
"Based upon its evaluation of the Los Alamos National Laboratory request for proposal, Northrop Grumman corporation has decided not to pursue the contract," the contractor said in a press release.

This means that UC will compete only with The University of Texas and defense contractor Lockheed Martin. They announced a partnership earlier this month to pursue the contract.