June 2023


Sandia National Laboratories (Sandia) is a world leader in high-performance computing (HPC), developing solutions to the most sweeping and critical challenges facing our nation. Sandia’s researchers use supercomputers in mission-critical areas, including nuclear stockpile stewardship, hypersonics, machine learning, energy, material design, and more. The Sandia procurement team has the important task of sourcing the cutting-edge technology their researchers need to stay ahead of new and emerging challenges.


Fortunately, a new commodity agreement awarded by the Supply Chain Management Center (SCMC) turned out to be just the tool they needed to help with this vital work.


The SCMC is a strategic supply chain program dedicated to providing supply chain solutions to the Department of Energy (DOE). The program works with 25 different National Nuclear Security Administration and DOE Environmental Management sites across the enterprise. The SCMC’s shared commodity agreements are a key attribute of the program, which can be used by all 25 sites, saving time and money that would otherwise be spent negotiating site-level agreements.


By using an SCMC agreement for IT hardware and software products, Sandia was able to consolidate purchases previously made through four separate suppliers onto a single supplier, streamlining the acquisition process for vital networking equipment supporting Sandia’s high-performance computing program.


Additionally, the agreement was transitioned to a Just-in-Time (JIT) agreement, which means Sandia will realize immense time savings in order processing. JIT is a form of inventory management that focuses on keeping as little inventory on hand as possible. Instead of stockpiling products and materials, smaller shipments are ordered to replace inventory, which reduces costs while ensuring the highest quality products.


“This agreement will help streamline key hardware and software purchases across Sandia’s high-performance computing and associated programs, thus propelling the mission,” said Lorenzo Silveria, Sandia subcontract manager. “We are excited to be working with the Supply Chain Management Center for these products and services.”


As a Federally Funded Research and Development Center (FFRDC) to the DOE, Sandia is mandated to meet certain requirements for spending with small businesses. Working with the SCMC has made it possible for Sandia to procure these vital computing products from a current New Mexico small business, which is estimated to total $100 million over the next seven years. More than 60% of the SCMC’s shared commodity agreements are with small or disadvantaged businesses, making it easier for SCMC partner sites to meet their socioeconomic goals.   


Through working with the SCMC, Sandia has been able to streamline the acquisition process to ensure their ability to provide continuity of mission for the HPC program while also supporting New Mexico’s small business community.