Northrop backs away from Los Alamos work

Northrop Grumman Corp. has dropped out of the running for the multibillion-dollar federal contract to operate Los Alamos National Laboratory, officials said today.

"Northrop Grumman Corp. has decided not to pursue the contract," the company said in a press release.

The Energy Department management contract is valued at more than $2 billion a year and more than $40 billion overall. The New Mexico-based nuclear laboratory has been operated by the University of California since it was founded in 1943.

Northrop Grumman said it "continues to be committed to helping the U.S. Department of Energy achieve its overall objectives, but has determined that it can best provide that support through other key programs."

Other potential bidders are believed to include the University of California, Lockheed Martin Corp. and Bechtel Group Inc. Lockheed Martin already operates Sandia National Laboratories in Albuquerque, as well as the Nevada Test Site.