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Sandia LabNews

Report spotlights Sandia’s impact on New Mexico


Sandia spent roughly $900 million on goods and services in fiscal year 2012 and New Mexico businesses were awarded more than $400 million, or 45 percent, of the total, according to the Labs’ latest economic impact report. For more on Sandia’s economic impact on the community, visit the Labs’ Economic Impact website.

Sandia spent roughly $900 million on goods and services in fiscal year 2012 and New Mexico businesses were awarded more than $400 million, or 45 percent, of the total, according to the Labs’ latest economic impact report.

US small businesses received $472.7 million in Sandia contracts, with the New Mexico share totaling $255.9 million, or 64 percent.

"I am proud to say that fiscal year 2012 stood out as another consecutive year where Sandia exceeded its over-arching small business goal and, in addition, all but one of its sub-tier small/socio-economic goals," says Don Devoti, manager of Small Business Utilization Dept. 10222.

"Sandia’s commitment to identify and contract with qualified, capable small business suppliers continues to push new frontiers."

Sandia reaches out to local businesses through

a variety of programs. It holds public forums with suppliers and civic leaders to discuss contracting opportunities, and lists contracts on its Business Opportunities website. It supplies small and diverse business owners with information on doing business with Sandia and seeks qualified suppliers.

The 2012 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 2012 data is based on Sandia’s fiscal year beginning Oct. 1, 2011, and ending Sept. 30, 2012. The report reflects Sandia’s continued commitment to small business.

Here are some numbers showing Sandia’s overall economic impact in 2012:

  • $1.4 billion was spent on labor and non-contract-related payments.
  • $896.3 million went to contract-related payments.
  • $66.4 million was sent to the state of New Mexico for gross receipts taxes.
  • $65 million was spent through procurement card purchases.

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. The Small Business Utilization Department oversees the mandate and negotiates small business subcontracting goals with NNSA.

"Our goal for small disadvantaged businesses will double from 5 percent in FY12 to 10 percent in FY13," Don says. "We have increased our woman-owned small business goal from 10 percent to 11 percent, our veteran-owned small business goal from 3 percent to 4 percent, and our service-disabled veteran-owned small business goal from 2 percent to 3 percent.

"The entire procurement organization, including my small business team, is driven to achieve these tougher goals by providing New Mexico small business suppliers with increased contracting opportunities at the Laboratories and by continuing to implement innovative, transparent, and relevant work processes and approaches."

While Sandia’s Procurement organization stewards small-business contracting opportunities, Sandia President and Laboratories Director Paul Hommert echoes the Labs’ full 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 2012 and New Mexico breakouts:

National

New Mexico

Total small businesses:

$472,732,000

$255,920,000

Woman-owned small businesses:

$113,381,000

$91,285,000

Businesses in impoverished areas (HUBZone):

$11,707,000

$4,600,000

Small disadvantaged business (SDB)

$83,783,000

$68,827,000

Business owned or co-owned by socially and economically disadvantaged person 8(a):

$36,354,000

$31,091,000

Veteran-owned small businesses:

$51,977,000

$14,364,000

Service-disabled, veteran-owned small businesses (SDVOSB):

$16,591,000

$1,759,000

Small business (non-minority, non-woman, non-veteran owned)

$158,939,000

$43,994,000

"We value the relationships forged with our current small business suppliers and within the New Mexico business community and look forward to developing new and enduring partnerships as we go forward," Don says.

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 2011, the Sandia NMSBA program provided nearly $2.4 million in technical assistance to 194 New Mexico small businesses in 22 counties. Since 2000, it has provided more than $22.2 million in assistance, according to the report.

The 33 companies in Sandia Science & Technology Park, a 300-acre master-planned research park adjacent to the Laboratories, employ about 2,500 people at an average annual wage of $74,949. Investment in the park is more than $351 million. Since it opened in 1998, the park has generated $1.89 billion in spending on taxable goods and services and contributed $73.4 million in gross receipts taxes to the state and $10.4 million to the city.

Sandia employees gave more than $4.6 million in 2011-2012 to the United Way of Central New Mexico as the largest corporate contributor to the agency. That number jumped 17.1 percent to $5.5 million in the 2012-2013 Employee Caring Program campaign, and will be reflected in the 2013 economic impact report.

Sandians logged more than 100,000 volunteer hours in 2012. And they donated more than 2,500 books, a truckload of school supplies, 450 holiday gifts, and 500 pairs of new shoes to disadvantaged kids in the community in 2012.