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Lockheed Martin

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Title: Lockheed Martin  
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Collection: 1995 Establishments in the United States, Aerospace Companies of the United States, Aircraft Manufacturers of the United States, Collier Trophy Recipients, Companies Based in Bethesda, Maryland, Companies Based in Maryland, Companies Established in 1995, Companies Listed on the New York Stock Exchange, Defense Companies of the United States, Lockheed Martin, Manufacturing Companies Based in Maryland, Motor Vehicle Manufacturers of the United States, Unmanned Aerial Vehicle Manufacturers
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Lockheed Martin

Lockheed Martin () is an American global aerospace, defense, security and advanced technology 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 116,000 people worldwide. Marillyn Hewson is the current President and Chief Executive Officer.

Lockheed Martin is one of the world's largest defense contractors; in 2009, 74% of Lockheed Martin's revenues came from military sales.[1] It received 7.1% of the funds paid out by the Pentagon.[2]

Lockheed Martin operates in five business segments. These comprise Aeronautics, Information Systems & Global Solutions, Missile and Fire Control, Mission Systems and Training, and Space Systems. 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%).[3] In both 2009 and 2008 the company topped the list of US federal government contractors.

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,[4][5][6] 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.


  • History 1
    • 1990s 1.1
    • 2000s 1.2
  • Geography and political subdivisions 2
    • Baronies 2.1
    • Towns and villages 2.2
    • Physical geography 2.3
      • Geology 2.3.1
    • 2010s 2.4
      • Mountains and hills 2.4.1
      • Rivers 2.4.2
      • Protected areas 2.4.3
      • Wildlife 2.4.4
      • Woodlands 2.4.5
  • Criticism 3
    • Gardens 3.1
    • Trails 3.2
  • Organization 4
    • Aeronautics 4.1
    • Information Systems and Global Solutions 4.2
    • Missiles and Fire Control 4.3
    • Mission Systems and Training 4.4
    • Space 4.5
    • Others 4.6
    • Joint ventures 4.7
  • Government contracts 5
  • Corporate governance 6
    • Board of directors 6.1
    • Chief executive officer 6.2
    • Criticism 6.3
  • History 7
  • Lobbying 8
  • Demographics 9
    • Maryland Senator Rob Garagiola and tax rebate 9.1
  • Management 10
    • Double Helix methodology 10.1
  • See also 11
  • References 12
  • Further reading 13
  • External links 14



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.[7] The deal was finalized on March 15, 1995 when the two companies' shareholders approved the merger.[8] 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 & Communications.[9]

Lockheed Martin abandoned plans for a $8.3 billion merger with Northrop Grumman on July 16, 1998, due to government concerns over the potential strength of the new group; Lockheed/Northrop would have had control of 25% of the Department of Defense's procurement budget.[10]

Lockheed Martin provided NASA with measurements in US Customary force units when metric was expected, resulting in the loss of the Mars Climate Orbiter at a cost of $125 million.[11][12] The cost for spacecraft development was $193.1 million.[13]


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 & Communications.[14][15]

In 2001, Lockheed Martin won the contract to build the F-35 Lightning II; 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.[16]

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.[17] 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.[18] 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.[1][24] In 2009, Lockheed Martin bought Unitech.[26]


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.[27]

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.[28]

On May 25, 2011 Lockheed Martin buys 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 Martins 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.[29]

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.[46] 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.[47]

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.[51]

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.[52]

On November 27, 2012, Lockheed Martin announced that Marillyn Hewson will become the corporation's chief executive officer on January 1, 2013.[55]

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, 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.[57]

Lockheed Martin teamed up with Bell Helicopter to propose the V-280 Valor tiltrotor for the Future Vertical Lift (FVL) program.[58]

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.[59]

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.[60]

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. [62]

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.[63]


In 2013, Lt. Gen. Christopher Bogdan criticized the company's F-35 fighter jet program. The general said: "I want them both to start behaving like they want to be around for 40 years...I want them to take on some of the risk of this program. I want them to invest in cost reductions. I want them to do the things that will build a better relationship. I'm not getting all that love yet."[66] The criticism comes in the wake of previous criticism from former Defense Secretary Robert Gates regarding the same program.[68]



C-130 Hercules; in production since the 1950s, now as the C-130J
Naval variant of the Lockheed Martin F-35 Lightning II
Submarine launch of a Lockheed Trident missile

Information Systems and Global Solutions

  • Lockheed Martin IS&GS-Civil
  • Lockheed Martin IS&GS-Defense
  • Lockheed Martin IS&GS-National
    • Lockheed Martin Orincon
    • Lockheed Martin STASYS
  • Lockheed Martin Technology Ventures

Missiles and Fire Control

Mission Systems and Training



Joint ventures

Government contracts

Lockheed Martin is active in many aspects of government contracting. It received $36 billion in government contracts in 2008 alone, more than any company in history. It now does work for more than two dozen government agencies from the Department of Defense and the Department of Energy to the Department of Agriculture and the Environmental Protection Agency. It's involved in surveillance and information processing for the CIA, the FBI, the Internal Revenue Service (IRS), the National Security Agency (NSA), The Pentagon, the Census Bureau and the Postal Service."[2]

In October 2013, Lockheed announced it expected to finalise a $2.2 billion contract with the United States Air Force for two advanced military communications satellites.[70]

Corporate governance

Board of directors

The board of directors consists of 14 members:

Chief executive officer

1997-2004 Vance Coffman
2004–2012 Robert J. Stevens
2013– Marilyn Hewson


Lockheed is listed as the largest US government contractor and "ranks third for number of incidents, and twenty-first for size of settlements on the 'contractor misconduct' database maintained by the Project on Government Oversight, a Washington-DC-based watchdog group."[2] Since 1995, the company has agreed to pay $606 million to settle 59 instances of misconduct.[74]


The company's 2010 lobbying expenditure by the third quarter was $9.9 million (2009 total: $13.7 million).[79][81]

Through its political action committee (PAC), the company provides low levels of financial support to candidates who advocate national defense and relevant business issues.[83] It is "the top contributor to the incoming House Armed Services Committee chairman, Republican Howard P. 'Buck' McKeon of California, giving more than $50,000 in the most recent election cycle. It also topped the list of donors to Sen. Daniel Inouye (D-HI), the chair of the Senate Appropriations Committee before his death in 2012. Inouye described himself as the number #1 earmarks guy in the US Congress."[2]

Lockheed Martin Employees Political Action Committee is one of the 50 largest in the country, according to FEC data. With contributions from 3,000 employees, it donates $500,000 a year to about 260 House and Senate candidates. For the 2004 election cycle, 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.[84]

Maryland Senator Rob Garagiola and tax rebate

In March 2013, Maryland State Senate Majority Leader Rob Garagiola cosponsored a resolution which would give Lockheed Martin tax rebate worth millions of dollars, related to hotel taxes paid at their CLE facility in Bethesda, MD, even while he was allegedly dating Lockheed Martin's lobbyist. This was after Montgomery County Council refused to pass a similar resolution.[86]


Senior management consists of the CEO, COO and CFO, and Executive Vice Presidents (EVP) of five business areas.[87] These executives oversee [88] The EVPs are responsible for managing major programs.

Lockheed Martin assigns its employees to 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. [89] Lockheed Martin manages and maintains its relationship with these touch workers through its supervisors and unions.[90]

Lockheed Martin manages employees through its Full Spectrum Leadership and LM21 programs.[91] 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.[92][93][94]

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.[94]

To control quality, Lockheed Martin trains and builds IPT teams.[94] 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.[95]

Floor employees assemble aircraft using Flow-to-takt lean manufacturing process[96] 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,[97] specialization on a specific area creates efficiency.

Double Helix methodology

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.[99]

See also


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  2. ^ a b c d Hartung, William (2011-01-12) "Is Lockheed Martin Shadowing You?". Mother Jones
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Further reading

External links

  • Lockheed Martin site
  • FAS, history and key dates
  • Prepar3D(R): Visual flight simulation software development kit for computers
  • "A Security Analyst Wins Big in Court". Time magazine
  • Lockheed Martin page. Center for Media and Democracy
  • "Lockheed Wins Contract to Build NASA's New Spaceship". Washington Post
  • "Jury Slaps Defense Giant for Neglecting National Security". ABC News
  • "NASA: Mars Surveyor Was Doomed By Humans". CBS News
  • "Lockheed Fined Over Secrets Breach". BBC News
  • "Coast Guard Failed to Properly Oversee Contracts, Officials Say". Washington Post
  • Ceremonial event planned for final F-22 Raptor

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