WASHINGTON - The University of California will continue its 62-year run at the helm of Los Alamos National Laboratory.

Energy Secretary Samuel Bodman announced Wednesday that UC beat out Lockheed Martin, the world's largest military contractor, in the first-ever competition to manage the nation's premier weapons laboratory.

There will be a corporate presence at the lab, however. Bechtel Corp., another military contractor, partnered with UC in its bid. Los Alamos also will get a new director - Michael Anastasio, currently the director of California's Lawrence Livermore National Laboratory and the leader of the UC and Bechtel team.

Details have to be finalized before the seven-year contract is actually awarded. The department can extend the contract another 20 years without a new competition. A six-month transition period is planned.

UC President Robert Dynes issued a statement saying the decision allows the university to continue to provide "public service to the nation" as it has done for the past six decades.

Dynes also said that the decision starts a new era for Los Alamos, UC and the team.

"The transition plans of both the new LANS team, as well as the university's efforts to close out the current contract, are designed to minimize disruption for our employees as well as the important work of the laboratory," he said in the statement.

Lockheed Martin, which manages Sandia National Laboratories in Albuquerque, N.M., released the following statement:

"We wish the University of California-Bechtel team every success with its new contract to manage one of the nation's most important scientific institutions. We are thankful that the employees of the lab and their families have a decision."

Bodman's predecessor, Spencer Abraham, announced the competition to run Los Alamos in April of 2003, after a series of safety, security and management problems brought the lab and the University of California under increased and often critical scrutiny by Congress and the department's inspector general. They included missing classified materials that turned out to be an accounting error and fraudulent use of purchasing cards.

All or parts of the lab were put in a stand-down mode to fix security and safety lapses from July 2004 to May 2005, causing at least temporary delays in important nuclear weapons programs.

New Mexico Sen. Pete Domenici, the Albuquerque Republican who chairs the Senate Energy Committee, had stated a preference that the contract continue with UC, but the large Texas congressional delegation favored Lockheed, which chose the University of Texas as its research partner.

The benefits package for lab employees under the new contract - especially retirement benefits - has been a prime area of speculation in Los Alamos, considered by many as the birthplace of the nuclear weapons industry.

Some feared the lab would see an exodus of its best and brightest scientists if things changed too much.

Brian Stafford, 42, a lab scientist for nine years, said workers are concerned about how their benefits will change.

"I think everything's pretty much up in the air. Even with UC, we're going to have change. It used to be just UC; now, we're going to have a partnership," Stafford said while having coffee across the street from the lab.

Dean Peterson, 64, has been a scientist at the lab for 33 years. He said he had been considering a move to a university or private company but is leaning toward staying now that UC has won the bid.

"That's pretty exciting. They've managed the lab well for many years now," Peterson said. "It's less likely that people will leave with UC. I'm hopeful that somebody in my position can stay at the lab."

Domenici said he believes the lab will "thrive" with Bechtel's management and UC's scientific leadership.

"I particularly hope the new management team will clarify lines of authority and minimize bureaucracies so our scientists can focus on science," said Domenici, adding he had "every reason to believe this selection was made in a thoroughly objective manner."

Rep. Tom Udall, the Santa Fe Democrat who represents Los Alamos, said he is hoping the lab workers "will be spared from a turbulent transition" to the Cal-Bechtel team.

"From the outset, my main concern in this long process has been two-fold. First, to ensure LANL continues to produce world class science. And secondly, to prevent an exodus of employees from the lab by ensuring their benefits are protected in the new contract," Udall said.

The town has been tense and morale has been low since DOE first announced it would put the contract up for bid. That's been bad for business, as people have put off purchases until an announcement is made, Brownell said.

"We'd just like a little peace and quiet for a while," he said.

(Contact The Tribune in Albuquerque, N.M., at http://www.abqtrib.com.)