here to open a PDF version of Sandia’s 2013 Economic Impact Report.

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Sandia LabNews

Report spotlights Sandia’s increasing economic impact


Click here to open a PDF version of Sandia’s 2013 Economic Impact Report.

Sandia spent roughly $975 million on goods and services in fiscal year 2013 and New Mexico businesses were awarded more than $420 million, or 43 percent, of the total, according to the Labs’ latest economic impact report.

US small businesses received nearly $500 million in Sandia contracts, with the New Mexico share totaling $287 million, or 57 percent.

Compared with the previous fiscal year, total spending was up $79 million and New Mexico spending was up $19 million. Total small business contracts were up $27 million and the New Mexico share up $31 million.

“There is no question that 2013 was a very challenging year for the US economy and in particular for small businesses in New Mexico, California, and the entire country. Yet through it all, Sandia’s overall spending increased $79 million,” says Don Devoti, manager of Small Business Utilization Dept. 10222. “The economic impact of this increased spending has benefited small businesses in New Mexico and across our nation. Sandia’s partnership with small and diverse business suppliers is key to the economic prosperity of New Mexico.”

While Sandia spends a large portion of its funding in New Mexico, its economic footprint is thought to be much larger than the actual dollars it spends. Economic impact models suggest the effect Sandia has on New Mexico’s economy could be about three times the total amount it spends on purchases and salaries.

Seeking small and diverse suppliers

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 2013 Sandia National Laboratories Economic Impact report breaks down Sandia’s spending and spotlights its role in the economy. The 2013 data reflecting actual payments made is based on Sandia’s fiscal year from Oct. 1, 2012, to Sept. 30, 2013. The report demonstrates Sandia’s continued commitment to small business.

Here are some numbers showing Sandia’s overall economic impact in 2013:

•          $1.5 billion was spent on labor and non-contract-related payments.

•          $974.6 million went to contract-related payments.

•          $59.3 million went to the state of New Mexico for gross receipts taxes.

•          $70.1 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.

“Sandia continues to have very aggressive goals for small business and supplier diversity this year,” Don says. “My small business team and our entire procurement organization are committed to meet and/or exceed these goals and to continue making a difference to New Mexico’s economy. We will continue to engage, value, and partner with our supplier community.”

Partnerships promote national security 

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 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 2012, the Sandia NMSBA provided nearly $2.4 million in technical assistance to 196 New Mexico small businesses in 27 counties. Since 2000, it has provided more than $24 million in assistance.

Sandia employees gave more than $5.6 million in 2012-2013 to the United Way of Central New Mexico as the largest corporate contributor to the agency. That number topped $6 million in the 2013-2014 Employee Caring Program campaign, and will be reflected in the 2014 economic impact report.

Sandians also logged more than 115,000 volunteer hours in 2012. They supported STEM (science, technology, engineering, and math) education through a variety of community programs, such as family science and math nights and engineering challenges, that reached thousands of students.