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Sandia National Laboratories Awards Verizon Federal Network Systems

18 August 2005

Verizon Federal Network Systems (FNS), a leading provider of network design and implementation solutions for the departments and agencies of the federal government, today announced that Sandia National Laboratories (SNL) has awarded Verizon FNS Strategic Supplier status under its new strategic relationship management program.

The award recognizes Verizon FNS' outstanding performance and long-term strategic value as the provider of telecommunications operations and maintenance services vital to SNL's operations.

SNL is one of the U.S. Department of Energy's (DOE's) largest and most diverse research and development facilities. Home to more than 8,300 employees, this national defense infrastructure site requires a wide variety of products and services to fulfill its complex mission, which includes the responsibility for designing, developing and testing the nation's weapons systems. SNL faces the ongoing challenge of managing more than 6,000 suppliers of record, and so is dedicated to continuously improving and streamlining its supply chain operations.

In early 2004, the Sandia Supply Chain and Materials Management Council (SCMMC), in conjunction with the Supplier Community Advisory Council (SCAC), launched a formal strategic relationship program to strengthen SNL's competitive advantage and establish closer relationships with those suppliers best positioned to provide high-quality products and services in a timely and cost-effective way. The program establishes three segments of relationships - transactional, key and strategic - and sets forth characteristics attributable to each segment.

In December 2004, the SCMMC awarded Verizon FNS Strategic Supplier status, making it the first large business to receive the designation under the new program. Verizon has served as the telecommunications provider of record since 1998, when SNL awarded GTE (which later merged with Bell Atlantic to form Verizon) a five-year contract to operate and maintain the site's communications infrastructure and provide voice, video and data services and equipment. In January 2003, SNL re-awarded the contract to Verizon FNS for five years with an additional five-year option.

"We congratulate Verizon FNS on being designated as a Sandia Strategic Supplier," said Gary Romero, SNL Team Leader for Strategic Sourcing. "Strategic supplier status is recognized when a supplier has achieved an outstanding record for providing value-added services that are vital to the safety and effectiveness of the operation and Verizon FNS has achieved this level of performance. Verizon FNS also helped achieve ISO-9000 certification for Sandia's Telecommunication Quality Management System."

In July 2005, Verizon FNS and SNL signed a non-binding strategic supplier memorandum of understanding (MOU). The MOU defines the strategic supplier relationship, creates a framework for a mutually beneficial partnership, and contains guidelines for pursuing collective strategic objectives through performance under existing contracts and orders. Under these guidelines, Verizon FNS will continue to align staff, processes and management structure with SNL's goals and objectives, and will also dedicate resources to identify subcontracting opportunities with local and state, small-disadvantaged, 8A and woman-owned businesses.

"We are honored that the SCMMC selected Verizon FNS as an SNL Strategic Supplier," said Douglas C. Gilbert, Verizon FNS director, U.S. Department of Energy operations. "Verizon FNS is committed to the continued viability and success of our strategic relationship with SNL and will continue working to ensure that the strategic relationship program's goals and metrics are met and maintained. As the MOU outlines, we will look to qualified local businesses for subcontracting personnel and operational supplies."

About Sandia National Laboratories (SNL)

SNL is a multiprogram laboratory operated by Sandia Corporation, a Lockheed Martin company, for the U.S. Department of Energy's (DOE) National Nuclear Security Administration. Originally established in Albuquerque, New Mexico in 1945 during the Manhattan Project, SNL began operating as an independent laboratory in 1949, and has since grown into a broad national security laboratory with major research and development responsibilities in national security, energy and environmental technologies, and economic competitiveness. For more information, go to www.sandia.gov/index.html.

About Verizon Federal Network Systems

Headquartered in Arlington, Virginia, Verizon's Federal Network Systems (FNS) designs, implements, secures, operates, and maintains some of the largest networks for some of the world's most demanding public- and private-sector customers. Verizon FNS provides advanced network management tools to support diverse network types, from circuit switching, to IP or ATM based networks, to networks utilizing emerging technology. Verizon FNS' engineering expertise is derived from some of the industry's best and brightest internetworking technical experts, who understand how to deliver the best consulting, management, and outsourcing solutions. As a component of the Verizon Corporation, FNS draws upon the corporate-wide resources, global reach, and diverse telecommunications capabilities to provide the most complete network solutions, integrated with unparalleled security expertise. For more information visit www.verizon.com/fns.

About Verizon

With more than $71 billion in annual revenues, Verizon Communications Inc. (NYSE:VZ) is one of the world's leading providers of communications services. Verizon has a diverse work force of 212,000 in four business units: Domestic Telecom provides customers based in 28 states with wireline and other telecommunications services, including broadband. Verizon Wireless owns and operates the nation's most reliable wireless network, serving 45.5 million voice and data customers across the United States. Information Services operates directory publishing businesses and provides electronic commerce services. International includes wireline and wireless operations and investments, primarily in the Americas and Europe. For more information, visit www.verizon.com.

VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive speeches and biographies, media contacts, high quality video and images, and other information are available at Verizon's News Center on the World Wide Web at www.verizon.com/news. To receive news releases by e-mail, visit the News Center and register for customized automatic delivery of Verizon news releases.

Contacts

Verizon Federal Network Systems (FNS)
Media Contact:
Forrest Siburt, 703-284-4791
forrest.siburt@verizon.com
or
Verizon Media Relations
Ells Edwards, 302-576-5340
ellsworth.edwards@verizon.com

Source: Business Wire





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