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The defense contractor distributed a tersely worded statement to say it has withdrawn from the bidding process to manage the nuclear lab.

Defense contractor Northrop Grumman, long expected to make a bid for the contract to manage the Los Alamos Nuclear Laboratory in northern New Mexico, instead has decided not to take part in the bidding.

"Based upon its evaluation of the Los Alamos National Laboratory request for proposal, Northrop Grumman Corporation (NOC) has decided not to pursue the contract," the Los Angeles-based global defense contractor said in a statement.

The contractor left the door open on working with the Department of Energy in the future on other projects. No details were provided on any specific reason or part of the contract that caused Northrop to withdraw.

A potentially rich reward awaits the victor, and the field of bidders has narrowed to two groups, the University of California and the University of Texas. UC has partnered with Bechtel, while Texas has joined with Lockheed Martin on its bid.

The next management contract will be worth $53 million to $79 million USD annually for seven years.

David Utter is a staff writer for WebProNews covering technology and business. Email him here.