The Info List - Lockheed Martin

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LOCKHEED MARTIN (NYSE : LMT) is an American global aerospace , defense , security and advanced technologies company with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It is headquartered in Bethesda , Maryland , in the Washington, DC, area . Lockheed Martin employs 126,000 people worldwide. Marillyn Hewson is the current President and Chief Executive Officer.

Lockheed Martin is one of the largest companies in the aerospace, defense, security, and technologies industry. It is the world's largest defense contractor based on revenue for fiscal year 2014. In 2013, 78% of Lockheed Martin's revenues came from military sales; it topped the list of US federal government contractors and received nearly 10% of the funds paid out by the Pentagon . In 2009 US government contracts accounted for $38.4 billion (85%), foreign government contracts $5.8 billion (13%), and commercial and other contracts for $900 million (2%).

Lockheed Martin operates in five business segments: Aeronautics, Information Systems & Global Solutions, Missiles and Fire Control , Rotary and Mission Systems , and Space Systems . The company has received the Collier Trophy six times, including in 2001 for being part of developing the X-35 /F-35B LiftFan Propulsion System , and most recently in 2006 for leading the team that developed the F-22 Raptor fighter jet. Lockheed Martin is currently developing the F-35 Lightning II and leads the international supply chain, leads the team for the development and implementation of technology solutions for the new USAF Space Fence ( AFSSS replacement), and is the primary contractor for the development of the Orion (spacecraft) command module. The company also invests in healthcare systems, renewable energy systems , intelligent energy distribution and compact nuclear fusion .


* 1 History

* 1.1 1990s * 1.2 2000s * 1.3 2010s

* 2 Corruption investigations * 3 Criticism

* 4 Organization

* 4.1 Advanced design and development division * 4.2 Aeronautics * 4.3 Missiles and Fire Control * 4.4 Rotary and Mission Systems * 4.5 Space * 4.6 Others * 4.7 Joint ventures * 4.8 Divested

* 5 Government contracts

* 6 Corporate governance

* 6.1 Board of directors * 6.2 Chief executive officer * 6.3 Chairman of the board * 6.4 Criticism

* 7 Lobbying

* 8 Management

* 8.1 Double Helix methodology

* 9 See also * 10 References * 11 Further reading * 12 External links



Merger talks between Lockheed Corporation and Martin Marietta began in March 1994, with the companies announcing their $10 billion planned merger on August 30, 1994. The deal was finalized on March 15, 1995, when the two companies' shareholders approved the merger. The segments of the two companies not retained by the new company formed the basis for the present L-3 Communications , a mid-size defense contractor in its own right. Lockheed Martin also later spun off the materials company Martin Marietta Materials .

Both companies contributed important products to the new portfolio. Lockheed products included the Trident missile , P-3 Orion , F-16 Fighting Falcon , F-22 Raptor , C-130 Hercules , A-4AR Fightinghawk and the DSCS-3 satellite. Martin Marietta products included Titan rockets , Sandia National Laboratories (management contract acquired in 1993), Space Shuttle External Tank , Viking 1 and Viking 2 landers, the Transfer Orbit Stage (under subcontract to Orbital Sciences Corporation ) and various satellite models.

On April 22, 1996, Lockheed Martin completed the acquisition of Loral Corporation 's defense electronics and system integration businesses for $9.1 billion, the deal having been announced in January. The remainder of Loral became Loral Space Lockheed/Northrop would have had control of 25% of the Department of Defense's procurement budget.

For the Mars Climate Orbiter , Lockheed Martin incorrectly provided NASA with software using measurements in US Customary force units when metric was expected; this resulted in the loss of the Orbiter at a cost of $125 million. The development of the spacecraft cost $193.1 million.


Lockheed Martin's Center For Leadership Excellence (CLE) Building in Bethesda, Maryland

In May 2001, Lockheed Martin sold Lockheed Martin Control Systems to BAE Systems . On November 27, 2000, Lockheed completed the sale of its Aerospace Electronic Systems business to BAE Systems for $1.67 billion, a deal announced in July 2000. This group encompassed Sanders Associates , Fairchild Systems , and Lockheed Martin Space Electronics this was the largest fighter aircraft procurement project since the F-16, with an initial order of 3,000 aircraft. In 2001, Lockheed Martin settled a nine–year investigation conducted by NASA's Office of Inspector General with the assistance of the Defense Contract Audit Agency. The company paid the United States government $7.1 million based on allegations that its predecessor, Lockheed Engineering Science Corporation, submitted false lease costs claims to NASA.

On May 12, 2006, _ The Washington Post _ reported that when Robert Stevens took control of Lockheed Martin in 2004, he faced the dilemma that within 10 years, 100,000 of the about 130,000 Lockheed Martin employees – more than three-quarters – would be retiring. On August 31, 2006, Lockheed Martin won a $3.9 billion contract from NASA to design and build the CEV capsule, later named _Orion_ for the Ares I rocket in the Constellation Program. In 2009, NASA reduced the capsule crew requirements from the initial six seats to four for transport to the International Space Station.

On August 13, 2008, Lockheed Martin acquired the government business unit of Nantero, Inc., a company that had developed methods and processes for incorporating carbon nanotubes in next-generation electronic devices. In 2009, Lockheed Martin bought Unitech.


On November 18, 2010, Lockheed Martin announced that it would be closing its Eagan, Minnesota location by 2013 to reduce costs and optimize capacity at its locations nationwide. In January 2011, Lockheed Martin agreed to pay the US Government $2 million to settle allegations that the company submitted false claims on a U.S. government contract for that amount. The allegations came from a contract with the Naval Oceanographic Office Major Shared Resource Center in Mississippi. On May 25, 2011 Lockheed Martin bought the first Quantum Computing System from D-Wave Systems . Lockheed Martin and D-Wave will collaborate to realize the benefits of a computing platform based upon a quantum annealing processor , as applied to some of Lockheed Martin's most challenging computation problems. Lockheed Martin established a multi-year contract that includes one system, maintenance and services. Potentially an important milestone for both companies.

On May 28, 2011 it was reported that a cyber-attack using previously stolen EMC files had broken through to sensitive materials at the contractor. It is unclear if the Lockheed incident is the specific prompt whereby on June 1, 2011, the new United States military strategy, makes explicit that a cyberattack is _casus belli _ for a traditional act of war.

On July 10, 2012, Lockheed Martin announced it was cutting its workforce by 740 workers to reduce costs and remain competitive as necessary for future growth. On August 2, 2012, the Vice President for Business Development, George Standridge stated that his company has offered 6 more C-130J aircraft to the Indian Air Force , for which discussions are underway with the Indian Government. On November 27, 2012, Lockheed Martin announced that Marillyn Hewson will become the corporation's chief executive officer on January 1, 2013.

On January 7, 2013, Lockheed Martin Canada announced that it will be acquiring the engine maintenance, repair and overhaul assets from Aveos Fleet Performance in Montreal , Quebec , Canada . On July 3, 2013, Lockheed Martin announced that it was partnering with DreamHammer to use the company's software for integrated command and control of its unmanned aerial vehicles. Lockheed Martin teamed up with Bell Helicopter to propose the V-280 Valor tiltrotor for the Future Vertical Lift (FVL) program. In September 2013, Lockheed Martin acquired the Scotland -based tech firm, Amor Group , saying the deal would aid its plans to expand internationally and into non-defence markets. On November 14, 2013, Lockheed announced they would be closing their Akron, Ohio facility laying off 500 employees and transferring other employees to other locations.

In March 2014, Lockheed Martin acquired Beontra AG, a provider of integrated planning and demand forecasting tools for airport, planning to expand their business in commercial airport information technology solutions. Also in March 2014, Lockheed Martin announced its acquisition of Industrial Defender Inc. On June 2, 2014 Lockheed Martin received a Pentagon contract to build a space fence that would track debris, keeping it from damaging satellites and spacecrafts. In September 2014, Lockheed agreed a deal to sell 40 F-35 fighter jets to South Korea for delivery between 2018 and 2021, for a fee in the region of $7.06 billion.

On July 20, 2015, Lockheed Martin announced plans to purchase Sikorsky Aircraft from United Technologies Corporation at a cost of $7.1 billion. The Pentagon has criticized the acquisition as causing a reduction in competition. In November 2015, the acquisition received final approval from the Chinese government, with a total cost of $9 billion. Dan Schulz was named the president of Lockheed Martin's Sikorsky company. Lockheed Martin has shown sketches for a twin-engine, blended wing body strategic airlifter similar in size to the C-5. On March 31, 2015, the US Navy awarded Lockheed Martin a contract worth $362 million for construction of Freedom-class ship LCS 21 and $79 million for advanced procurement for LCS 23. The Freedom-class ships are built by Fincantieri Marinette Marine in Marinette, Wisconsin . In December 2015, Lockheed won a $867 million seven-year contract to train Australia ’s next generation of military pilots . There is also an option in the deal to extend this contract across 26 years which would greatly increase the deal’s value.

In August 2016, Canadian Forces Maritime tested an integrated submarine combat system developed by Lockheed Martin. The test marked Canada’s first use of the combat system with the MK 48 heavyweight torpedo, variant 7AT.


On March 3, 2012, the U.S. Justice Department said that Lockheed Martin had agreed to settle allegations that the defense contractor had sold overpriced perishable tools used on many contracts. The DoJ said the allegations were based specifically on the subsidiary Tools "> C-130 Hercules ; in production since the 1950s, now as the C-130J Submarine launch of a Lockheed Trident missile

* Lockheed Martin Aeronautics


* Lockheed Martin Missiles and Fire Control


* Lockheed Martin Rotary and Mission Systems (formerly Mission Systems and Sensors, and then Mission Systems & Training) * Sikorsky Aircraft


* Lockheed Martin Space Systems


* Lockheed Martin Canada * Lockheed Martin Australia * Lockheed Martin Advanced Technology Laboratories * LMC Properties * Lockheed Martin Enterprise Business Services * Lockheed Martin Finance Corporation * Lockheed Martin U.K. * SIM Industries – a Lockheed Martin company


* International Launch Services (with Khrunichev , RSC Energia ) * Lockheed Martin Alenia Tactical Transport Systems (with Alenia Aeronautica ), now folded * MEADS International (with EADS and MBDA ) * Space Imaging (46%, remainder public) * United Launch Alliance (with Boeing ) * Longbow LLC (with Northrop Grumman) * United Space Alliance (with Boeing) * Kelly Aviation Center (with GE and Rolls-Royce ) * Protector USV – an unmanned surface vehicle (with Rafael Advanced Defense Systems and BAE Systems ) * Defense Support Services (DS2) with Day white-space:nowrap;"> Lockheed's PAC contributed $350,279 to federal candidates, with about 62 percent going to Republicans, according to the Center for Responsive Politics. That compares with $515,000 from General Dynamics' political action committee and $122,850 from BAE Systems North America, the center's data showed.


Senior management consists of the CEO, COO and CFO, and Executive Vice Presidents (EVP) of five business areas. The EVPs are responsible for managing major programs.

Employees in each program are organized into four tiers: Tier1 –Program Manager/VP, Tier2-Functional Teams (Finance, Chief Engineer, Quality, Operations, etc.), Tier3-Integrated Product Teams (IPTs) (Weapon System Development, Weapon System Integration, etc.), and Tier4-detailed product development. Floor or touch workers belong to component assembly teams. Lockheed Martin manages and maintains its relationship with these touch workers through its supervisors and unions.

Lockheed Martin manages employees through its Full Spectrum Leadership and LM21 programs. The LM21 program relies on Six Sigma principles, which are techniques to improve efficiency. Senior management constructs leadership councils and assigns managers to facilitate Kaizen events, which target specific processes for improvement. A manager facilitates teams and processes stakeholders and suppliers to streamline process implementation.

Tier2 Functional Leads and Tier3 IPT Leads report to Tier1. IPT leads are responsible for entire systems or products defined by the contract’s Statement of Work.

To control quality, Lockheed Martin trains and builds IPT teams. and ensures that work is executed correctly through a Technical Performance Measure (TPM) system which emphasizes its Lean and 6 Sigma processes. Middle management uses commitment mechanisms that parallel high commitment and human relations theory.

Floor employees assemble aircraft using Flow-to-takt lean manufacturing process which uses properties from both division of labor and scientific management. By separating tasks based on parts, Lockheed Martin utilizes the division of labor theory, specialization on a specific area creates efficiency.


The DOUBLE HELIX METHODOLOGY is a systems development methodology used by Lockheed Martin. It combines experimentation, technology, and a warfighter's concept of operations to create new tactics and weapons.


* Aviation portal

* Defense contractor – table of comparable companies * Lockheed Martin Maintenance Trophy * Top 100 US Federal Contractors – $38.5 billion in FY09


* ^ _A_ _B_ _C_ _D_ " Lockheed Martin Corporation 2015 Financials Annual Data". Retrieved February 19, 2016. * ^ https://www.nyse.com/quote/XNYS:LMT * ^ _A_ _B_ 2015 Annual Report, page 10 * ^ " Lockheed Martin (NYSE:LMT) Subsidiaries & Locations". _AeroWeb_. Barr Group Aerospace. Retrieved 15 November 2013. * ^ POC Top 20 Defence Contractors of 2014. Retrieved: July 2015 * ^ DefenseIQ Top 10 defence companies in the world, 2013. Retrieved: July 6, 2015. * ^ "Top 100 Contractors Report Fiscal Year 2013" (XLS). _Federal Procurement Data System - Next Generation_. General Services Administration . Retrieved 2 January 2015. * ^ "2009 Annual Report" (PDF). LockheedMartin.com. Retrieved January 4, 2011. * ^ " Lockheed Martin Corporation 2014 Annual Report" (PDF). lockheedmartin.com. Retrieved June 16, 2015. * ^ Propulsion System in Lockheed Martin Joint Strike Fighter wins Collier Trophy Archived January 3, 2013, at the Wayback Machine . Lockheed Martin press release, February 28, 2003. Retrieved: January 2010 * ^ "Propulsion system for a vertical and short takeoff and landing aircraft" (PDF). 1990. United States Patent 5209428 (pdf of original) * ^ Collier Trophy; list of winners. Retrieved January 2010 * ^ Space Fence: Lockheed Martin, 2015. Retrieved: July 7, 2015. * ^ Orion: Lockheed Martin, 2015. Retrieved: July 7, 2015. * ^ CNF: Lockheed Martin, 2015. Retrieved: 8 July 2015 * ^ Norris, Floyd (August 31, 1994). "A 'merger of equals,' with Martin Marietta the most equal". _The New York Times_. access-date= requires url= (help ) * ^ "Martin Marietta-Lockheed merger is approved". _The New York Times_. March 16, 1995. access-date= requires url= (help ) * ^ Mintz, John (April 23, 1996). "Lockheed-Martin Loral Merger May Mean a Loss of Business; McDonnell Douglas Threatens to Cancel Billions in Contracts". _The Washington Post_. access-date= requires url= (help ) * ^ Wayne, Leslie (July 17, 1998). "Lockheed cancels Northrop merger, citing U.S. stand". _The New York Times_. access-date= requires url= (help ) * ^ "Metric mishap caused loss of NASA orbiter". CNN. September 30, 1999. * ^ "Math error equals loss of Mars orbiter". Science News. October 9, 1999. * ^ The Lockheed Martin Corporation Aviation Articles Archived May 11, 2013, at the Wayback Machine . * ^ "Contract for BAE". _The Times_. Times Newspapers. November 28, 2000. access-date= requires url= (help ) * ^ Parreault, Carl (July 14, 2004). "British aerospace firm buys Sanders". _The Union Leader_. access-date= requires url= (help ) * ^ LOCKHEED MARTIN PAYS NASA $7.1 MILLION SETTLEMENT. U.S. Department of Justice, United States Attorney Press Release, July 10, 2003. * ^ Dutt, Jill. "Taking an Engineer\'s Approach at Lockheed Martin." Washington Post, May 1, 2006. * ^ Spires, Shelby. "NASA slashes Orion Crew Exploration Vehicle crew size to four". _al.com_. Alabama Media Group. Retrieved 10 October 2013. * ^ " Lockheed Martin Corporation 2013 Annual Report" (PDF). lockheedmartin.com. Retrieved March 23, 2014. * ^ " Lockheed Martin Acquires Nantero, Inc.\'s Government Business Unit". Taume News. August 14, 2008. Retrieved August 14, 2008. * ^ "UNITECH acquired by Lockheed Martin". _UPI.com_. United Press International, Inc. Retrieved 11 October 2013. * ^ Hult, Karla. " Lockheed Martin to Close Eagan Plant, Shed 1,000 Jobs." Kare 11 News, November 19, 2010. * ^ _ Washington Post _, "Lockheed To Pay $2 million To Settle Lawsuit", January 25, 2011, p. 14. * ^ "Press Releases - D-Wave Systems". * ^ " Lockheed Martin Hit by Unspecified Cyber Incident". _Fox News_. May 28, 2011. * ^ "Pentagon to Consider Cyberattacks Acts of War". _The New York Times_. June 1, 2011. * ^ " Lockheed Martin cuts 740 jobs". _The Indian Express_. July 11, 2012. Retrieved July 11, 2012. * ^ " Lockheed Martin eyes greater share of Indian defence market". _The Times Of India_. 2 August 2012. * ^ " Lockheed Martin raises compensation of CEO-elect Hewson". _Chicago Tribune_. November 27, 2012. * ^ "Dreamhammer Hammers Out Deal With Lockheed Martin". _socalTECH.com_. SOCALTECH LLC. Retrieved 2 October 2013. * ^ " Bell Helicopter and Lockheed Martin team on V-280 Valor" _AirFramer_, September 9th, 2013. Accessed: September 9th, 2013. * ^ Andrea Shalal-Esa (11 September 2013). "Lockheed acquires Amor group as part of global expansion plan". Reuters. * ^ Chris Horne (14 November 2013). " Lockheed Martin laying off hundreds, closing Akron facility". Scripps Media, Inc. * ^ " Lockheed Martin Acquires BEONTRA AG". PR Newswire. 18 March 2014. * ^ " Lockheed Martin To Acquire Industrial Defender". Lockheed Martin. 12 March 2014. Retrieved 11 December 2015. * ^ Sherman, Erik. "Lockheed wins $915 million "space fence" contract". _CBS News_. Retrieved 6 June 2014. * ^ South Korea to sign deal this month to buy 40 F-35 jets for $7 billion. Reuters , 24 September 2014 * ^ Thompson, Loren. " Lockheed Martin Announces Sikorsky Purchase And Strategic Review Of Services Portfolio". * ^ " Lockheed Martin takes the plunge with $9bn Sikorsky deal". July 20, 2015. * ^ "Rotor & Wing". _aviationtoday.com_. Retrieved 4 October 2015. * ^ " Lockheed Martin receives final regulatory approval needed to close Sikorsky acquisition - Vertical Magazine". * ^ "Lockheed finalizes $9B purchase of helicopter maker Sikorsky". _NZ Herald_. Retrieved 7 November 2015. * ^ " Lockheed Martin Completes Acquisition of Sikorsky Aircraft". _lockheedmartin.com_. Retrieved 19 November 2015. * ^ Warwick, Graham. "Lockheed Martin’s Hybrid Wing-Body Future Airlifter" * ^ "Flurry of Contracts Spark US Navy Shipbuilding". Retrieved 9 A