DOE awards $1.8B contract to LLC to manage Jefferson Lab

The U.S. Department of Energy on Tuesday announced it has awarded a $1.83 billion contract to operate the Thomas Jefferson National Accelerator Facility, keeping the Newport News-based lab’s longtime operator involved while also adding new academic and corporate partners, including Virginia Tech.

The contract was awarded to SURATech, a limited liability company that includes the Southeastern Universities Research Association, which currently runs the Newport News-based lab through its limited liability company Jefferson Science Associates. The LLC also includes Virginia Tech and four major subcontractors, Honeywell International, Longenecker and Associates, Akima Support Operations and AtkinsRéalis.

SURATech will assume operations June 1, following a two-month transition period that began Wednesday. The initial contract runs for five years, through May 31, 2031, and the contract also includes performance incentives that would allow the DOE to extend the contract by up to 15 additional years.

The new contract follows a year of uncertainty. In February 2025, the U.S. Department of Energy canceled its search for a new operator for the facility, commonly known as Jefferson Lab, saying the process did not align with the priorities of President Donald Trump‘s administration.

The competition had begun in February 2024 under President Joe Biden, with requests for proposals issued in July 2024. The department had initially planned to award the contract in early March 2025, ahead of the existing contract’s May expiration.

In canceling the solicitation, DOE said “key elements” of the proposal did not reflect priorities outlined in executive orders issued by Trump, without specifying which ones. Since taking office last year, Trump has issued hundreds of executive orders, including measures rolling back initiatives related to diversity, equity and inclusion and renewable energy.

In March 2025, Energy Secretary Chris Wright approved a 12-month extension of the contract for Jefferson Science Associates to continue operating the lab. A new competition was launched in July 2025.

In August 2025, lab director Jens Dilling confirmed that he sought a 7% voluntary workforce reduction.

Jefferson Lab is a federally funded research and development center focused on nuclear physics and accelerator science. The lab occupies a 169-acre federal site in Newport News and employs about 759 people, with an annual budget of approximately $238 million.

SURA and Jefferson Lab  did not immediately return requests for comment. The DOE declined to comment, saying “Beyond information already made public, the Department of Energy is unable to provide additional details at this time due to business‑sensitive considerations.”

Virginia Tech did not answer numerous questions about how the lab may change under the new contract, but instead provided a statement from President Tim Sands.

“Virginia Tech is extremely proud to be a partner in the leadership of one of the nation’s premier research facilities,” said Sands. “As part of SURATech, we’re ready to support Jefferson Lab’s mission and push the boundaries of discovery in ways that benefit the commonwealth, nation and world. The evolution to a multi-purpose National Laboratory, including the new High Performance Data Facility, will deliver breakthrough science and technology, advance job creation and education and bring exciting new opportunities for our faculty and students. We look forward to sharing additional information about Virginia Tech’s role in the near future.”