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Sandia National Laboratories’ Big Impact on Small Business and New Mexico’s Economy

From oscilloscopes to safety goggles, paper clips to general contractors, Sandia National Laboratories bought nearly $911 million worth of goods and services in fiscal year 2009. Of that, about $358 million, or 39 percent, went to New Mexico businesses.

Sandia’s Small Business Utilization Department has produced a brochure, “Sandia National Laboratories Economic Impact on the State of New Mexico,”outlining the Labs’ spending and programs in fiscal year 2009.

“Sandia’s goal is to share information with the local community and businesses to help them understand the economic impact we have made, and more importantly to allow those who would like to supply products or services to Sandia to understand what it takes for them to become a laboratory supplier,” said Carol Yarnall, director of Sandia’s Supply Chain Management Center.

Here’s the numbers that show Sandia’s overall impact:

* $1.2 billion was spent on labor and non-contract-related payments.
* $910.5 million was paid for contract-related payments.
* $62.7 million was spent using procurement card purchases.
* $61.6 million was paid to the state of New Mexico for corporate taxes.
Not only did Sandia benefit the New Mexico and national economies, but the supply chain team also made sure taxpayers were getting their money’s worth. The center’s budget was about $11 million, but the team saved Sandia $60 million through negotiated savings, Yarnall said.

“We had more than five times the savings for what we cost,” she said.

Sandia reaffirmed its longstanding support of small business, awarding more than half the lab’s total contract-related payments for goods and services, or more than $490 million in payments, to small businesses nationwide. Of the nearly $358 million in contract-related payments spent in New Mexico, 87 percent, or $311 million, was awarded to small businesses in the state.

The Small Business Act mandates that federal contractors utilize small businesses, including those that are small disadvantaged businesses, small businesses owned by women, veterans and service-disabled veterans and small businesses located in impoverished areas — called Historically Underutilized Business (HUB) zone businesses. Overseeing this mandate is Sandia’s Small Business Utilization Department, which annually negotiates small business subcontracting goals with the National Nuclear Security Administration.

“We have a passion for working with small businesses, to seek out, identify and connect them with buyers so hopefully, they can sell their products and services to the labs,” said Don Devoti, manager of the Small Business Utilization Department. “Sandia’s national security mission drives our activities, so we never say that we have to purchase from a small business. If we can identify small businesses that can partner with our scientists and engineers to get their jobs done, then we make that connection happen.”

Sandia’s total small business expenditures for fiscal year 2009 and New Mexico breakouts:


New Mexico

Total small businesses:

$490 million
$311 million
Small disadvantaged businesses:
$32 million
$29 million
Woman-owned small businesses:
$142 million
$119 million
Businesses in impoverished areas:
nearly $6 million
$5.5 million
Veteran-owned small businesses:
$20 million
$9 million
Service-disabled, veteran-owned small businesses:
$3 million
$1 million
To accomplish these goals, Sandia’s Small Business Team held a series of town hall meetings throughout 2009 to engage the New Mexico supplier community on how to do business with Sandia. These meetings were designed in partnership with leaders and representatives of various supplier organizations and focused on the five categories (above) of disadvantaged businesses. After the town halls, Sandia procurement managers and buyers were available to meet with suppliers to discuss business opportunities, the variety of goods and services purchased and to answer questions.

More companies are moving to New Mexico as a result of their partnerships with Sandia labs, bringing an even greater boost to the state’s economy.

Total contract-related payments made in fiscal year 2009 were about $76 million less than in the previous fiscal year. At the same time, the total amount of contract-related payments made to New Mexico businesses increased by about $17 million and the total payments made to small businesses in the state increased by more than $30 million during the same period, Devoti said.

“These statistics clearly indicate that Sandia’s small business and supply chain teams are strongly committed to the identification of qualified, capable New Mexico small business suppliers and that we are successful in placing contracts with them,” he said.

Sandia National Laboratories is a multiprogram laboratory operated by Sandia Corporation, a wholly owned subsidiary of Lockheed Martin Corporation, for the U.S. Department of Energy’s National Nuclear Security Administration. With main facilities in Albuquerque, N.M., and Livermore, Calif., Sandia has major R&D responsibilities in national security, energy and environmental technologies, and economic competitiveness.

Sandia news media contact: Heather Clark, (505) 844-3511

Heather Clark | Newswise Science News
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