Sandia Labs News Releases

Report spotlights Sandia’s impact on New Mexico economy

ALBUQUERQUE, N.M. — Sandia National Laboratories spent nearly a billion dollars on goods and services in fiscal year 2014 and New Mexico businesses received more than 38 percent of the total, according to the labs’ latest economic impact report.

Of the total of $961.8 million Sandia spent last year, New Mexico businesses received $362.4 million. U.S. small businesses were awarded more than 47 percent, or $455.7 million in Sandia contracts, and New Mexico small businesses received $240.6 million, or 53 percent of the small business total.

The 2014 Sandia National Laboratories Economic Impact report breaks down nearly $1 billion in spending. (Image courtesy of Sandia National Laboratories) Click on the thumbnail for a high-resolution image.

While total spending and spending with small businesses and New Mexico businesses all declined compared to FY13 — by $12.8 million, $58.6 million and $46.5 million, respectively — “Sandia remains a driving force in New Mexico’s economy,” said Don Devoti, manager of Sandia’s Small Business Utilization Department. “We continue to set aggressive small business and supplier diversity goals and work diligently to meet or exceed those goals.”

Small businesses, diverse suppliers wanted

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 2014 Sandia National Laboratories Economic Impact report breaks down Sandia’s spending and spotlights its role in the economy. The 2014 data, reflecting actual payments made, are based on the fiscal year from Oct. 1, 2013, to Sept. 30, 2014. The report demonstrates Sandia’s continued commitment to small business.

Sandia’s overall economic impact in 2014:

  • $1.6 billion was spent on labor and non-contract-related payments.
  • $961.8 million went to contract-related payments.
  • $61.5 million went to the state of New Mexico for gross receipts taxes.
  • $71.9 million was spent through procurement card purchases.

Don Devoti, manager of Sandia National Laboratories’ Small Business Utilization Department, says Sandia sets aggressive small business and supplier-diversity goals and works diligently to meet or exceed them. (Photo by Randy Montoya) Click on the thumbnail for a high-resolution image.

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 those mandates and negotiates small business subcontracting goals with the National Nuclear Security Administration.

“Looking ahead to FY15, Sandia procurement and our small business team are driven to exceed all our negotiated small business and supplier diversity goals, the standard by which our program is measured,” Devoti said. “We will continue to build upon our successes with HUBZone, veteran, service-disabled and small disadvantaged businesses, where we exceeded our goals last year, to drive future success.”

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.”

Small business expenditures for fiscal year 2014 with breakouts for its New Mexico and California labs:

National New Mexico      California
Total small businesses: $455,685,000 $240,575,000     $71,410,000
Woman-owned small businesses (WOSB): $97,221,000 $75,694,000       $12,377.000
Businesses in impoverished areas (HUBZone): $33,736,000 $22,560,000       $230,000
Small disadvantaged business (SDB) $93,011,000 $63,173,000      $12,949,000
Business owned or co-owned by socially and economically disadvantaged person 8(a): $18,152,000 $11,636,000       $896,000
Veteran-owned small businesses (VOSB): $52,580,000 $20,063,000        $6,817,000
Service-disabled, veteran-owned small businesses (SDVOSB): $30,715,000 $10,272,000        $5,727,000
Small business (non-minority, non-woman, non-veteran owned) $130,270,000 $37,177,000        $32,414,000

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 2014, the Sandia NMSBA provided $2.4 million in technical assistance to 196 New Mexico small businesses in 29 counties. Since 2000, it has provided more than $26 million in assistance.

Sandia employees gave more than $6.2 million in 2014-2015 to the United Way of Central New Mexico, making Sandia the largest corporate contributor to the agency. That will be reflected in the 2015 economic impact report.

Sandia employees also contribute their time as volunteers, supporting 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.

Click here for more information on procurement at Sandia.

Sandia National Laboratories is a multi-program laboratory operated by Sandia Corporation, a wholly owned subsidiary of Lockheed Martin Corp., 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: Nancy Salem,, (505) 844-2739