Lab Manager | Run Your Lab Like a Business

Report Spotlights Sandia’s Impact on New Mexico Economy

Sandia National Laboratories 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.

by Sandia National Laboratories
Register for free to listen to this article
Listen with Speechify

ALBUQUERQUE, N.M. – Sandia National Laboratories 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.

U.S. 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 overarching small business goal and, in addition, all but one of its sub-tier small/socio-economic goals,” said Don Devoti, manager of Sandia’s Small Business Utilization Program. “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.
Sandia's annual Economic Impact report breaks down the Labs' spending and spotlights its role in the New Mexico economy. Image courtesy of Sandia National Laboratories

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.

“Our goal for small disadvantaged businesses will double from 5 percent in FY12 to 10 percent in FY13,” Devoti said. “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 echoed 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 said. “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,” 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 labs. In 2011, 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 $22.2 million in assistance, according to the report.

The 33 companies in the 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 and retirees gave more than $4.6 million in 2012 to the United Way of Central New Mexico as the largest corporate contributor to the agency. They 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 the community in 2012.

For more information and to view past reports, visit the Economic Impact webpage.