ALBUQUERQUE, N.M. — Sandia National Laboratories bought more than $500 million worth of goods and services in fiscal year 2010 from New Mexico companies, 40 percent more than in the previous fiscal year, according to a new report.
The purchases are part of the more than $1 billion spent overall on the procurement of goods and services, the “2010 Sandia National Laboratories Economic Impact on the State of New Mexico” report shows. The report — released today at a Sandia-sponsored Economic Impact Summit — shows the role Sandia plays in the state and local economy and the community.
“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. We are fully committed to continuing this track record,” Sandia National Laboratories President and Director Paul Hommert said before the summit.
The increase in money flowing into New Mexico’s economy is due to Sandia’s outreach efforts — meeting with business organizations, chambers of commerce and business owners, holding town halls and hosting a Supplier Engagement Summit where suppliers discussed their needs in working with the Labs, said Don Devoti, manager of Sandia’s Small Business Utilization Department.
“We’re being more transparent in our operations and by letting these companies know we really want their business. I think that exposure and our efforts to open up Sandia and our procurement process to the local community has paid off,” Devoti said.
Here are some of the numbers showing Sandia’s overall impact:
- $1.3 billion was spent on labor and non-contract-related payments.
- $950 million was paid for contract-related payments.
- $68 million was sent to the state of New Mexico for corporate taxes.
- $66 million was spent through procurement card purchases, in which Sandia employees use cards similar to credit cards to buy low-priced commercial goods and services necessary to conduct business.
Sam Felix, a senior manager in the Supply Chain Management Center at Sandia, said the report also shows Sandia employs 9,300 people, about 8,200 of them in Albuquerque.
Economic models estimate Sandia’s purchases and salaries have a total impact on the local economy of almost $7 billion, or three times greater than the amount spent, the report said.
“When our community is dealing with tough economic times, we hope that Sandia’s jobs, the Labs’ partnership with businesses and its volunteerism and charitable donations to local programs will help the Albuquerque area weather the storm and emerge even stronger when the economy improves,” Felix said.
Buyers with Sandia’s Supply Chain Management Center saved taxpayers about $64 million through cost savings on purchase orders using negotiated savings, such as volume discounts, Felix said.
The report also shows Sandia’s long-standing commitment to small businesses. Sandia’s small business advocates encourage buyers to give qualified small businesses opportunities to sell their products and services to Sandia. Nationwide, the Labs spent $552 million at small businesses: almost $330 million of that, or 60 percent, was spent at small companies in New Mexico.
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.
Sandia’s total small business expenditures for fiscal year 2010 and New Mexico breakouts:
| Total | New Mexico | |
| Total small businesses: | $552 million | $330 million |
| Woman-owned small businesses: | $152 million | $130 million |
| Businesses in impoverished areas (HUBZone): | $8.5 million | $3.8 million |
| Small disadvantaged businesses: | $67 million | $38 million |
| Business owned or co-owned by socially and economically disadvantaged person 8(a): | $26 million | $20 million |
| Veteran-owned small businesses: | $21 million | $9 million |
| Service-disabled, veteran-owned small businesses (SDVOSB): | $5.8 million | $951,000 |
Sandia also helps the state’s economy through participation in the New Mexico Small Business Assistance (NMSBA) Program. The Sandia NMSBA Program has created and retained 1,549 jobs, decreased operating costs by $45.7 million, increased revenues by more than $82.4 million and invested more than $17.4 million in expansion efforts and purchases of local goods and services since its inception, according to the report.
And, the Sandia Science & Technology Park, a 250-acre master-planned research park adjacent to the laboratories, employs more than 2,000 people at an average wage of $71,612.
Sandia employees contributed more than $4.2 million in 2010 to the United Way of Central New Mexico. They also logged more than 100,000 volunteer hours in 2009. And, they donate an average of 2,000 books, 23,000 school supplies, 63,000 pounds of food, 435 holiday gifts and 500 pairs of new shoes to the community each year, the report said.
Participants in the summit also had the chance to meet with Sandia buyers face-to-face to explore current and future business opportunities, Devoti said.
“We’re looking for qualified, capable companies, so if you have a product or service that we buy, let’s talk,” he said.