Sandia LabNews

Making an impact in the economy: New Mexico companies did $400 million in business with Sandia

Image of Click image at aleft to download a full PDF version of the economic impact report  <a href="/news/publications/economic_impact/_assets/documents/EconImpact_2011-8921P.pdf" target="_blank" rel="noopener">View PDF</a>.<br/>
Click image to download a full PDF version of the economic impact report  View PDF.

Sandia spent close to $1 billion overall on the procurement of goods and services in fiscal year 2011, and small businesses across the nation were awarded more than half those dollars, $540 million or 59 percent, according to the Lab’s latest economic impact report.

The 2011 Sandia National Laboratories Economic Impact on the State of New Mexico report breaks down Sandia’s spending and spotlights its role in the state’s economy. The annual report shows New Mexico companies secured nearly $400 million in business with Sandia in fiscal year 2011.

“Sandia National Laboratories is committed to strengthening our relationships with the New Mexico business community and, in particular, to be a strong advocate for New Mexico’s diverse, small business suppliers,” says Don Devoti, manager of Small Business Utilization Dept. 10222.

Sandia reaches out to local businesses through a variety of programs. It holds public forums with the supplier community and civic leaders to discuss contracting opportunities, and lists contracts on its Business Opportunities website, It supplies small business owners with information on doing business with Sandia and seeks qualified potential suppliers.

“Sandia’s Small Business team and all of the Procurement organization work diligently to seek out qualified, capable small businesses that Sandia can partner with to achieve our national security mission,” Don says. “We continue to make ourselves available to the community, to be as transparent as possible with our procurement processes, to provide maximum contracting opportunities to small businesses, and to be creative and innovative in our work approaches.”

Here are some numbers showing Sandia’s overall economic impact in 2011:

  • $1.4 billion was spent on labor and non-contract-related payments.
  • $921 million went to contract-related payments.
  • $65.6 million was sent to the state of New Mexico for corporate taxes.
  • $73 million was spent through procurement card purchases, in which Sandia employees use credit cards to buy low-priced commercial goods and services necessary to conduct business.

Sandia employs 9,948 people, 8,856 of them in Albuquerque, according to the report.

The 2011 data is based on Sandia’s fiscal year beginning Oct. 1, 2010, and ending Sept. 30, 2011. The report reflects Sandia’s continued commitment to small business. Labs advocates encourage buyers to do business with small companies.

The Small Business Act mandates that federal contractors use small businesses, including those that are small disadvantaged, owned by women or veterans and service-disabled veterans, and small businesses in impoverished areas — called Historically Underutilized Business (HUB) zones. Sandia’s Small Business Utilization Department oversees the mandate and negotiates small business subcontracting goals with NNSA.

Sandia President and Laboratories Director Paul Hommert has expressed his full understanding and support of the Small Business Act. “Sandia National Laboratories has a long and distinguished record of encouraging and partnering with highly qualified, diverse small business suppliers who assist us in achieving our national security mission,” he says. “We are fully committed to continuing this track record.”

Sandia’s total small business expenditures for fiscal year 2011 and New Mexico breakouts:

TotalNew Mexico
Total small businesses:$540,428,000 $296,112,000
Woman-owned small businesses:$142,505,000$115,016,000
Businesses in impoverished areas (HUBZone)$20,998,000$11,212,000
Business owned or co-owned by sociallyand economically disadvantaged person 8(a):$65,604,000$55,089,000
Veteran-owned small businesses:$30,130,000$13,395,000
Service-disabled, veteran-owned sm. businesses (SDVOSB)$11,168,000$536,000

Sandia also helps the state’s economy through the New Mexico Small Business Assistance (NMSBA) program established by the state legislature in 2000 to help companies receive technical support from the Labs. In 2010, the Sandia NMSBA provided nearly $2.4 million in technical assistance to 194 New Mexico small businesses in 22 counties. Since 2000, it has provided more than $19.8 million in assistance, according to the report.

The 33 companies in the Sandia Science & Technology Park, a 250-acre master-planned research park adjacent to the Laboratories, employ more than 2,200 people at an average annual wage of $71,612. Investment in the park is more than $351 million.

Sandia employees gave a record-breaking $4.66 million in 2011 to the United Way of Central New Mexico. They logged more than 120,000 volunteer hours in 2010. And they donated more than 1,800 books, a truckload of school supplies, 69,478 pounds of food, 500 holiday gifts, and 518 pairs of new shoes to the community in 2011.

Sandia employees donating .92 million to United Way, other organization

Sandia employees in New Mexico pledged to give a record-breaking $4,663 million to nonprofits through the United Way of Central New Mexico during the annual Employee Caring Program campaign. With contributions from Sandia’s employees in Livermore, Calif., the total raised for charitable causes is nearly $4.92 million.

 “Our goal was to exceed last year’s donation of $4.3 million, and we are thrilled our employees and retirees are contributing even more this year,” says Kim Sawyer (0003), Deputy Labs Director and Executive VP for Mission. “Giving back to the community where we live and work has always been a high priority for Sandia, and our employees are committed to making a difference in the lives of those around us.”

 “Employees at Sandia National Laboratories have been the backbone of the United Way of Central New Mexico annual fund drive since 1957, providing up to 20 percent of the dollars raised each year,” says Kathleen Avila, chair of the board for United Way of Central New Mexico. “We have relied on Sandia to provide many volunteer leaders in each of those years and they have consistently done so. The corporate and employee citizenship of Sandia National Laboratories cannot be overstated or overvalued. United Way of Central New Mexico applauds Sandia for their exemplary commitment to our community.”

Since 1957, Sandia employees have participated in the annual Employee Caring Program (ECP), which facilitates employee and retiree donations to the community through the local chapter of the United Way. Participants can designate their gift to any 501(c)3 nonprofit agency or to local community funds to help those most vulnerable in the local area.  For two weeks last fall, ECP hosted fundraising and awareness events, including book fairs, socials, and health walks. Retirees continue to contribute to the successful campaign, pledging more than $655,988 this year. Lockheed Martin, on behalf of Sandia, contributes $100,000 to the United Way Corporate Cornerstone program, which covers United Way administrative overhead costs so that all donations by employees go directly to the organization of their choice.