Supply Chain Management Center Resolution

PROVIDE FOR REGIONAL COLLABORATION IN SUPPORT OF MAINTAINING AND INCREASING LOCAL FEDERAL INSTITUTIONS’ PROCUREMENTS THROUGH LOCAL BUSINESSES

WHEREAS, effective economic and community development on the behalf of our citizens requires a strategic collaborative effort on a regional basis by all essential government subdivisions, vital institutions and the private sector; and

WHEREAS, Los Alamos National Laboratory (LANL) is a major economic driver of the cities, counties and Tribes throughout northern New Mexico, directly benefiting the economy of our communities; and

WHEREAS, many local businesses benefit from contracts with Los Alamos National Laboratory and its major subcontractors, positively impacting our local economies, increasing our tax base and directly employing thousands of people in communities throughout northern New Mexico; and

WHEREAS, LANL, together with local governments and Tribes, has consciously pursued a policy of attempting to maximize efficient local purchasing and the increased utilization of local contractors in order to foster regional economic development for many decades; and

WHEREAS, the Los Alamos National Laboratory’s Major Subcontractors’ Consortium is an organization made up of all LANL subcontractors with contracts of $5 million or more; and

WHEREAS, the membership of the Los Alamos National Laboratory’s Major Subcontractors’ Consortium (MSC) generate hundreds of millions of dollars in annual revenues, further augments our tax base and employs thousands of northern New Mexico residents.

WHEREAS, membership in Los Alamos National Laboratory’s Major Subcontractors’ Consortium requires each company to maintain local facilities and implement a community development plans that supports community, education and economic development in northern New Mexico in addition to maintaining local facilities, personnel and warehousing; and

WHEREAS, over the past four years the Major Subcontractors’ Consortium membership has directly contributed over $13 million in money and services to northern New Mexico communities and nonprofit organizations, directly benefiting schools by providing equipment and resources for students in need, providing computers and training to local youth organizations, rebuilding acequias for local farmers, providing heavy earthmoving equipment to flood ravaged pueblos, amongst many other community service activities; and

WHEREAS, the Major Subcontractors’ Consortium members contribute funds to and administer a MSC grant pool that has provided over $400,000 to dozens of economic development projects with local nonprofits and local governments, including $80,000 awarded in 2013 in grants to organizations throughout northern New Mexico; and

WHEREAS, the National Nuclear Security Administration (NNSA) which oversees LANL and other National Laboratories has implemented a policy directing LANL and other NNSA facilities to utilize the out-of-state Supply Chain Management Center (SCMC) for commodity purchases under unequal and non-competitive terms, thereby bypassing a normal competitive RFP process and driving LANL purchases away from regional contractors towards out-of-state firms; and

WHEREAS, the National Nuclear Security Administration has established specific performance targets for commodities purchases through the SCMC system for LANL and each other NNSA sites; and

WHEREAS, the National Nuclear Security Administration has publicly confirmed that the utilization of the SCMC is scheduled to expand, thereby directing even more funds away from the northern New Mexico subcontractors; and

WHEREAS, the out–of-state firms contracted through the Supply Chain Management Center do not employ northern New Mexico residents, nor do they pay gross receipts taxes to local communities nor implement community development plans that benefit the economy of northern New Mexico; and

WHEREAS, the SCMC system institutes an un-level playing field by allowing out-of-state suppliers to circumvent the additional requirements placed on local contractors to include maintaining local facilities, participation and funding of a Community Development Plan, payment of local gross receipts taxes; and

WHEREAS, increased use of the Supply Chain Management Center at LANL is likely to result in a loss of substantial jobs in northern New Mexico, reduced investment in the MSC members community development plan, and an overall loss to the regional economy and a direct impact to the economy of the communities of northern New Mexico; and

NOW, THEREFORE, BE IT RESOLVED, that the Regional Coalition of LANL Communities fully supports the LANL Major Subcontractors’ Consortium’s efforts to study the possible impact and mitigate the effects of the NNSA’s efforts to utilize the Supply Chain Management Center under current rules and regulations; and

THEREFORE, BE IT FURTHER RESOLVED, the Regional Coalition of LANL Communities requests that all members of the New Mexico Congressional Delegation collaborate with the impacted regional governments, vital institutions and the private sector, including the Major Subcontractors’ Consortium to work with the NNSA to mitigate or eliminate the negative impact of requiring LANL to utilize the SCMC procurement system under existing policy, and that copies of this resolution be transmitted to all members of the New Mexico Congressional Delegation.

Passed, approved and adopted this 21st day of February, 2014.