Small and NM businesses key factors in Sandia’s economic impact

Sandia 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.

US 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 US small business spending increased about $11 million.

“These annual numbers show that Sandia continues to make an impact to New Mexico’s economy,” says Delfinia Salazar, manager of Supply Chain Risk Management and Supplier Diversity Dept. 10222. “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.

The report demonstrates Sandia’s continued commitment to small business, Delfinia says. 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 NNSA.

Building on success

“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,” Delfinia says. “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.”

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.

Delfinia says 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 says. “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.”