The U.S. Department of Energy has renewed its contract with the University of Chicago to run the Argonne National Laboratory, four months after it cited the university for a series of nuclear-safety violations at the lab.

Under the terms of the $2.5-billion, five-year contract, the lab will be jointly managed by the UChicago Argonne LLC, a new independent entity owned solely by the university, and two new industrial partners with experience in industrial and nuclear operations management: the Jacobs Engineering Group and BWXT Services Inc. Three other institutions—the University of Illinois at Urbana-Champaign, the University of Illinois at Chicago, and Northwestern University—will provide financial support for the lab. Representatives of those universities will also sit on a new science-advisory board and on the lab’s Board of Governors.

Together, UChicago Argonne LLC and its university and industrial partners will contribute $15.5-million over five years for the lab, mostly to support joint appointments and scientific institutes at the laboratory.

In March, the Energy Department issued a preliminary notice of violation to the University of Chicago, citing a failure to follow paperwork requirements, to train staff members adequately, and to label potentially dangerous equipment as such. No one has been injured as a result of the violations (The Chronicle, March 9).

The new contract will run from October 2006 through September 2011, although it could be extended for up to 15 more years, if the university meets performance levels established by the department. During the first five years, the university could earn an annual fee of up to $5.3-million for superior performance.