Sandia LabNews

Economic impact: Sandia Labs tops $4.2B in spending for first time, added 480 jobs in FY 22

Labs’ purchasing power benefits regional, national economies

Image of Sandian applies sealant to pits to hold water and support a new cooling tower that replaces an energy-inefficient one
IMPACTFUL SPENDING — Summit Construction contractor Ramon Silva applies sealant to pits that support a new cooling tower by Building 823. The new towers use less power to operate. Sandia awarded $1.5 billion to subcontractors like Summit Construction during fiscal year 2022. (Photo by Craig Fritz)

For the first time, Sandia’s contributions to the economy have topped $4.2 billion in a fiscal year, supporting individuals, families and businesses at an unprecedented level. Total spending in fiscal year 2022, which ended Sept. 30, was $312 million more than the previous fiscal year. The spending includes labor, subcontracts, purchases and other expenditures.

Sandia also created 480 jobs in fiscal year 2022.

“Sandia has seen steady and significant growth over the last several years, and the numbers show how our communities are growing with us,” said Associate Labs Director Scott Aeilts about the 2022 Sandia Economic Impact brochure. “Partnering with businesses, particularly small businesses, helps us accomplish our national security mission and helps communities thrive.”

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HIGH IMPACT — Sandia’s spending for fiscal year 2022 hit an all-time high. (Graphic by Lloyd Wilson)

Of all subcontract-related payments, totaling more than $1.5 billion, nearly $943 million — or about 63% — went to small businesses. Total subcontract-related payments increased $132 million more than the previous fiscal year, with 79% of the increase going to small businesses.

More than 32% of all subcontract-related payments in fiscal year 2022 benefited New Mexico companies. Sandia also paid the state of New Mexico nearly $112 million in gross receipts tax, up more than $4.8 million from the previous fiscal year.

Sandia spent about $491 million with New Mexico businesses in fiscal year 2022. That includes nearly $8.9 million in procurement purchases and more than $482 million in subcontracts within the state. Of the New Mexico subcontracts, nearly $420 million — or 87% — benefited small businesses.

“Strong partnerships with diverse suppliers have been a key to our mission success,” Labs Director James Peery said. “Small businesses promote innovation and help us bring to the marketplace technologies that improve peoples’ lives. Sandia is committed to partnering with and building relationships with highly qualified small businesses to spur economic growth in New Mexico and across the country.”

In addition to spending, Labs employment increased by 610 over fiscal year 2021, including 480 new nonstudent jobs and 130 more student interns, and more than $2.5 billion was spent on labor and non-subcontract related payments. Sandia’s total employment across all sites is 15,500, with the largest Labs’ site, located in Albuquerque, employing nearly 12,600.

Technology commercialization initiative extended for five more years

In 2022, New Mexico Gov. Michelle Lujan Grisham signed into law legislation extending the Technology Readiness Gross Receipts Initiative for five years. Sandia is a key player in the technology maturation initiative that helps address a critical stage between technology development and commercialization when many companies need additional funding to ready products and services for the marketplace.

The program enabled Sandia to work with 10 companies on 12 projects in 2022, including one that helped IR Dynamics mature a nanoparticle film that could make windows more energy-efficient, using technology invented at Sandia.

Companies acquired 10 licenses for Sandia technologies in fiscal year 2022, and two companies engaged in Cooperative Research and Development Agreements.

Sandia manages several economic development programs that leverage the people, innovations and facilities of the Labs to deploy technology in support of Sandia’s mission and job creation.

During calendar year 2022, Sandia provided $2.4 million in technical assistance to 130 small companies through the New Mexico Small Businesses Assistance program.

In the last fiscal year, 104 new patents were issued for Sandia technologies. Sandia additionally filed 223 patent applications and maintained 567 active commercial licenses.

Mentor-Protégé Program expands with addition of two more companies

Sandia grew its small-business Mentor-Protégé Program in January from three participating companies to five. Dynamic Structure and Materials LLC, based in Tennessee, and Pennsylvania-based Compunetics Inc. joined the program designed to help small businesses develop their ability to compete for federal and industry opportunities.

“We are excited to have our program grow and will continue to look for ways to maximize opportunities for our small-business protégés to work with Sandia Labs and the Department of Energy,” said Royina Lopez, Mentor-Protégé Program lead.

Both companies provide products and services critical to Sandia mission areas. Dynamic Structure and Materials provides precision motion systems and related electronics along with design and manufacturing services. Compunetics manufactures and assembles rigid and flexible printed circuit boards and provides advanced interconnect solutions.

“We value this new relationship as a means to develop as a Department of Energy contractor and intend to harness the resources available through the Mentor-Protégé Program to deliver innovation and an excellent customer experience to Sandia National Labs,” said Dynamic Structure and Materials President Jim Bickmore.

John Gralewski, director of sales at Compunetics, said, “We believe the partnership developed under this program will enhance our growth as a company while also providing a quality supply partner for flex, and rigid-flex printed circuit boards and assemblies to Sandia National Labs.”

Sandia philanthropy supports local families, organizations

Sandia continued to support K-12 educational success and family stability programs throughout Albuquerque and Livermore, California. In calendar year 2022, National Technology and Engineering Solutions of Sandia contributed $1.4 million on behalf of Sandia to the local communities, including $175,000 in the Livermore area.

Sandia employees committed $4.6 million through the United Way of Central New Mexico to nonprofits throughout Albuquerque, Livermore and the nation during the Labs’ annual Sandia Gives campaign. Employees donated an additional $103,000, with Sandia providing a $25,000 match donation, to help victims of the historic 2022 New Mexico wildfires, and more than 4,200 retired Sandia computers were donated to New Mexico schools.

Sandia provided STEM programs, including Family Math NightDepartment of Energy Regional Science BowlsSummer Physics Camp for Young Women, and the New Mexico Electric Car ChallengeSTEM in the Sun provided outdoor science, technology, engineering and math activities for children attending Albuquerque community center programs.

Sandia exceeds small-business goals

Sandia has met and exceeded small-business goals for six consecutive years. The Labs focus on working with small businesses that fit the federal categories of small disadvantaged, women-owned, veteran-owned, service-disabled veteran owned and historically underutilized business zone, also called HUBZone.

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SMALL BUSINESS COMMITMENT — Sandia spent more than $1.5 billion on subcontracts in fiscal year 2022 with nearly $943 million going to small businesses. Total subcontract-related payments increased $132 million over fiscal year 2021. (Graphic by Lloyd Wilson)

“Sandia is motivated to partner with small businesses with a variety of skills and expertise to promote innovation in support of our mission. We have teams dedicated to helping interested suppliers navigate the rewarding but sometimes unfamiliar path of working with a national laboratory,” said Laura Lovato, Sandia’s manager of supplier diversity and supply chain risk management.

Through various efforts in fiscal year 2022, Sandia worked with 500 small businesses that had not previously supported the Labs.

For more information on doing business with Sandia, visit the procurement website or email with questions.

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