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Economic Impact Report Spotlights Sandia Lab’s Effect on New Mexico Economy

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, according to the Labs’ latest economic impact report.

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ALBUQUERQUE, N.M. — Sandia National Laboratories 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 Labs’ 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.

“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,” said Don Devoti, manager of Sandia’s Small Business Utilization Program.

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 and diverse business owners with information on doing business with Sandia and seeks qualified potential suppliers.

“Sandia’s Small Business Utilization 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,” Devoti said. “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 the National Nuclear Security Administration.

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 said. “We are fully committed to continuing this track record.”

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

  Total New Mexico
Total small business: $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
Businesses owned or co-owned by socially and economically $65,604,000 $55,089,000
disadvantaged person 8(a):    
Veteran-owned small businesses: $30,130,000 $13,395,000
Service-disabled, veteran-owned small businesses (SDVOSB): $11,168,000 $536,000

“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,” Devoti said.

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 Lab. 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 2,233 people at an average annual wage of $71,612. Investment in the park is more than $351 million.

Sandia employees gave more than $4.3 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.