FEB I 4 2007

Robert J. Lynch Pantex Guards Union P.O. Box 31234 Amarillo, TX 79120-1234

Dear Mr. Lynch:

Thank you for your letter of February 9, 2007. As requested in your letter, the following clarification is provided:

The relationship between BWXT Pantex, LLC, and the National Nuclear Security Administration (NNSA) is established and bounded by the Management and Operating (M&O) contract. Through this arrangement BWXT Pantex implements the safeguards and security requirements identified in the general clauses and Appendix E of that contract. The appendix incorporates various Federal requirements, DOE Orders/Manuals as well as NNSA policy. As the Site Manager, my expectation is that BWXT Pantex implement the requirements of the contract to ensure adequate levels of program implementation at the Pantex Plant, as well as consistency throughout the NNSA. As BWXT Pantex implements the various requirements they may, through the contract, request clarification or propose alternative means of meeting the requirements due to site specific characteristics, e.g., physical construction or terrain, and/or extremely unusual extenuating circumstances where contract requirements simply do not apply. Given the importance of meeting basic DOE Order requirements and the high level of implementation required at a facility such as the Pantex Plant, instances of deviation approval are relatively rare.

Concerning negotiations, as representatives of a labor union your direct relationship is with BWXT Pantex. Any clarifications you may require should be addressed to BWXT Pantex. While this is always the case it is now especially important given that you are entering into collective bargaining agreement negotiations with BWXT Pantex. To clarify, the NNSA does not have a role in the negotiating process. Consistent with the language of the M&O contract, BWXT Pantex must seek approval from the NNSA for general economic parameters. The requirement for this approval ensures BWXT Pantex actions are within congressionally established funding levels and meet HQ expectations concerning long-term liabilities affecting the NNSA and DOE.

I know that you join me in your commitment to the protection of the NNSA's assets at the Pantex Plant. I encourage you to work under existing labor laws and rules that provide a solid framework for collective bargaining agreement negotiations.

Sincerely,

Steven C. Erhart Acting Manager

cc:

Steve Wanzer, NA-72, FORS