ALBUQUERQUE, N.M. — Sandia National Laboratories spent more than $1 billion on goods and services in fiscal year 2016, up more than $56 million from the previous year, and New Mexico businesses received more than $381 million, or 37 percent of the total, according to the labs’ latest economic impact report.
Kirk McWethy, owner and president of SDV Construction Inc. of Albuquerque, has been a Sandia National Laboratories contractor since 2006. His service-disabled veteran-owned small business has 44 employees and has completed numerous construction projects at the labs. “I love being a Sandia contractor because it is a true partnership. Both sides work to make the other successful,” said McWethy, an Air Force veteran. “The people at Sandia want us to succeed and continue to grow.” (Photo by Randy Montoya) Click on the thumbnail for a high-resolution image.
U.S. small businesses received 51 percent of the available dollars, about $530 million in Sandia contracts. New Mexico small businesses received $240 million, or 63 percent of contract payments to New Mexico companies.
The 2016 Sandia National Laboratories Economic Impact brochure breaks down Sandia’s spending and spotlights its role in the economy. The 2016 data, reflecting actual payments made, is based on Sandia’s fiscal year from Oct. 1, 2015, to Sept. 30, 2016.
Compared with fiscal year 2015, spending was down about $900,000 with New Mexico businesses and about $19 million with the state’s small companies, while procurement card purchases to New Mexico businesses were up more than $1 million. Total U.S. small business spending increased about $11 million.
“These annual numbers show that Sandia continues to make an impact to New Mexico’s economy,” said Delfinia Salazar, manager of the labs’ Supply Chain Risk Management and Supplier Diversity Department. “We continue to set aggressive small business and supplier diversity goals and work diligently to meet or exceed those goals. An example of our commitment is seen in our increased awards to Historically Underutilized Business Zone [HUBZone] companies, where those dollars are critically needed.”
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. In October, Sandia also began hosting open house hours to meet personally with business owners and representatives.
Sandia’s overall economic impact in 2016:
- $1.8 billion was spent on labor and non-contract-related payments.
- $1 billion went to contract-related payments.
- $80.4 million went to the state of New Mexico for gross receipts and corporate taxes.
- $83.3 million was spent through procurement card purchases.
Sandia National Laboratories’ 2016 Economic Impact brochure breaks down spending and spotlights Sandia’s role in the economy. (Courtesy of Sandia National Laboratories) Click on the thumbnail for a high-resolution image or download the publication here.
The report demonstrates Sandia’s continued commitment to small business, Salazar said. 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, HUBZone areas. Sandia’s Supplier Diversity oversees the mandate and negotiates small business subcontracting goals with the National Nuclear Security Administration.
“Looking ahead to fiscal year 17, Sandia’s Supply Chain team and Small Business function are committed to identifying and partnering with a diverse supplier pool in support of Sandia’s national security mission and small business goals,” Salazar said. “We will continue to build upon our successes with HUBZone, veteran and small disadvantaged businesses, where we exceeded our goals last year, to drive future success.”
Small business contract-related payments for fiscal year 2016 with breakouts for Sandia’s New Mexico and California labs:
| National | New Mexico | California | |
| Total small businesses: | $529,921,000 | $239,858,000 | $91,960,000 |
| Woman-owned small businesses: | $90,184,000 | $60,044,000 | $12,958,000 |
| Businesses in impoverished areas (HUBZone): | $34,058,000 | $25,513,000 | $214,000 |
| Small disadvantaged business (SDB) | $130,580,000 | $55,558,000 | $14,878,000 |
| Business owned or co-owned by socially and economically disadvantaged person 8(a): | $18,853,000 | $7,261,000 | $214,000 |
| Veteran-owned small businesses: | $59,504,000 | $23,971,000 | $9,445,000 |
| Service-disabled, veteran-owned small businesses (SDVOSB): | $34,756,000 | $9,936,000 | $6,561,000 |
| Small business (non-minority, non-woman, non-veteran owned) | $161,986,000 | $57,575,000 | $47,690,000 |
Sandia also helps the state’s economy through the New Mexico Small Business Assistance (NMSBA) program. In 2000, the state Legislature created the Laboratory Partnership with Small Business Tax Credit Act to help companies get technical support from the national labs. In 2015, the Sandia NMSBA provided $2.4 million in assistance to 205 New Mexico small businesses in 18 counties. It has provided $48.5 million in assistance since 2000.
Sandia employees gave more than $6.9 million in 2016 to nonprofits in New Mexico, California and the nation. They 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.
Salazar said Sandia is committed to strengthening its existing relationships in the New Mexico business community and building new and enduring partnerships. “Sandia has a long and distinguished record of partnering with highly qualified, diverse small business suppliers,” she said. “We value their professionalism, innovation and responsiveness. Sandia continues to be fully committed to maximizing small business opportunities and making a difference to the New Mexico economy.”
Sandia National Laboratories is a multi-mission 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, mnsalem@sandia.gov, (505) 844-2739