National Labs (and sites, e.g. Y-12) are either DOE or NNSA facilities. The government uses a government owned, contractor operated M&O (management and operations) contract to run the labs. M&O contractors are usually public/private consortiums or one of a few private contractors (see:Bechtel). M&O contractors are responsible for staff and operations, and are paid a fee based on a percentage (based o performance) of business the lab did over that FY. National Lab (and site) employees are employees of the M&O contractor, not the federal government.