Lockheed Martin

Last updated

Lockheed Martin Corporation
Public
Traded as
Industry
Predecessors
FoundedMarch 15, 1995;24 years ago (1995-03-15)
Headquarters Bethesda, Maryland, United States
Area served
Worldwide
Key people
  • Marillyn Hewson
  • (Chairman, President, & CEO)
  • Kenneth R. Possenriede
  • (Executive Vice President & CFO)
Products
RevenueIncrease2.svg US$53.76 billion (2018)
Increase2.svg US$7.33 billion (2018)
Increase2.svg US$5.04 billion (2018)
Total assets Increase2.svg US$44.87 billion (2018)
Total equity Increase2.svg US$1.39 billion (2018)
Number of employees
105,000 (2018)
Subsidiaries
Website LockheedMartin.com
Footnotes /references
[1] [2]

Lockheed Martin Corporation 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, and Loral Federal Systems in 1996. It is headquartered in North Bethesda, Maryland, in the Washington, DC, area. Lockheed Martin employs approximately 100,000 people worldwide as of December 2017. [1]

United States Federal republic in North America

The United States of America (USA), commonly known as the United States or America, is a country comprising 50 states, a federal district, five major self-governing territories, and various possessions. At 3.8 million square miles, the United States is the world's third or fourth largest country by total area and is slightly smaller than the entire continent of Europe's 3.9 million square miles. With a population of over 327 million people, the U.S. is the third most populous country. The capital is Washington, D.C., and the largest city by population is New York City. Forty-eight states and the capital's federal district are contiguous in North America between Canada and Mexico. The State of Alaska is in the northwest corner of North America, bordered by Canada to the east and across the Bering Strait from Russia to the west. The State of Hawaii is an archipelago in the mid-Pacific Ocean. The U.S. territories are scattered about the Pacific Ocean and the Caribbean Sea, stretching across nine official time zones. The extremely diverse geography, climate, and wildlife of the United States make it one of the world's 17 megadiverse countries.

Aerospace manufacturer company involved in manufacturing aircraft, aircraft parts, missiles, rockets, and/or spacecraft

An aerospace manufacturer is a company or individual involved in the various aspects of designing, building, testing, selling, and maintaining aircraft, aircraft parts, missiles, rockets, or spacecraft. Aerospace is a high technology industry.

Military Organization primarily tasked with preparing for and conducting war

A military is a heavily-armed, highly-organised force primarily intended for warfare, also known collectively as armed forces. It is typically officially authorized and maintained by a sovereign state, with its members identifiable by their distinct military uniform. It may consist of one or more military branches such as an Army, Navy, Air Force and in certain countries, Marines and Coast Guard. The main task of the military is usually defined as defence of the state and its interests against external armed threats. Beyond warfare, the military may be employed in additional sanctioned and non-sanctioned functions within the state, including internal security threats, population control, the promotion of a political agenda, emergency services and reconstruction, protecting corporate economic interests, social ceremonies and national honor guards.

Contents

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. [3] In 2013, 78% of Lockheed Martin's revenues came from military sales; [4] it topped the list of US federal government contractors and received nearly 10% of the funds paid out by the Pentagon. [5] 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%). [6]

United States Department of Defense United States federal executive department

The Department of Defense is an executive branch department of the federal government charged with coordinating and supervising all agencies and functions of the government concerned directly with national security and the United States Armed Forces. The department is the largest employer in the world, with nearly 1.3 million active duty servicemen and women as of 2016. Adding to its employees are over 826,000 National Guardsmen and Reservists from the four services, and over 732,000 civilians bringing the total to over 2.8 million employees. Headquartered at the Pentagon in Arlington, Virginia, just outside Washington, D.C., the DoD's stated mission is to provide "the military forces needed to deter war and ensure our nation's security".

Lockheed Martin operates in four business segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space Systems. [7] 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, [8] [9] [10] 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), [11] and is the primary contractor for the development of the Orion command module. [12] The company also invests in healthcare systems, renewable energy systems, intelligent energy distribution and compact nuclear fusion. [13]

Aeronautics science involved with the study, design, and manufacturing of airflight-capable machines

Aeronautics is the science or art involved with the study, design, and manufacturing of air flight capable machines, and the techniques of operating aircraft and rockets within the atmosphere. The British Royal Aeronautical Society identifies the aspects of "aeronautical Art, Science and Engineering" and "the profession of Aeronautics ."

Lockheed Martin Space is one of the four major business divisions of Lockheed Martin. It has its headquarters in Denver, Colorado with additional sites in Sunnyvale, California; Santa Cruz, California; Huntsville, Alabama; and elsewhere in the US and UK. The division currently employs about 16,000 people, and its most notable products are commercial and military satellites, space probes, missile defense systems, NASA's Orion Multi-Purpose Crew Vehicle, and the Space Shuttle External Tank.

Collier Trophy annual aviation award administered by the US National Aeronautical Association

The Collier Trophy is an annual aviation award administered by the U.S. National Aeronautic Association (NAA), presented to those who have made "the greatest achievement in aeronautics or astronautics in America, with respect to improving the performance, efficiency, and safety of air or space vehicles, the value of which has been thoroughly demonstrated by actual use during the preceding year."

History

1990s

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 headquarters for the combined companies would be at Martin Marietta headquarters in North Bethesda, Maryland. [14] The deal was finalized on March 15, 1995, when the two companies' shareholders approved the merger. [15] 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.

Lockheed Corporation 1926–1995 aerospace manufacturer in the United States

The Lockheed Corporation was an American aerospace company. Lockheed was founded in 1926 and later merged with Martin Marietta to form Lockheed Martin in 1995. The founder, Allan Lockheed, had earlier founded the similarly named but otherwise unrelated Loughead Aircraft Manufacturing Company, which was operational from 1912 through 1920.

The Martin Marietta Corporation was an American company founded in 1961 through the merger of Glenn L. Martin Company and American Marietta Corporation. The combined company became a leader in chemicals, aerospace, and electronics. In 1995, it merged with Lockheed Corporation to form Lockheed Martin.

North Bethesda, Maryland Census-designated place in Maryland, United States

North Bethesda is an unincorporated, census-designated place in Montgomery County, Maryland, United States, located just north-west of the U.S. capital of Washington, D.C. Among its 14 neighborhoods, the centrally-located, urbanizing district of White Flint is the commercial and residential hub of North Bethesda. The WMATA White Flint metro station and Grosvenor-Strathmore metro station serve the region. Four of the National Institutes of Health as well other federal agencies, including the Nuclear Regulatory Commission, the Health Resources and Services Administration, and the United States Public Health Service Commissioned Corps, are headquartered in North Bethesda. A number of corporate headquarters are headquartered in North Bethesda, as well as nonprofits such as the American Kidney Fund, the Society of American Foresters and United States Pharmacopeia (USP).

The company reportedly received billions of dollars in subsidies to complete the merger. Executives also received large bonuses directly from the government as a result of the merger. Norman R. Augustine who was at the time CEO of Martin Marietta received a $8.2 million bonus. This was strongly opposed by Senator Bernie Sanders. [16]

Norman R. Augustine United States Secretary of the Army

Norman Ralph Augustine is a U.S. aerospace businessman who served as United States Under Secretary of the Army from 1975 to 1977. Augustine served as chairman of the Review of United States Human Space Flight Plans Committee.

Bernie Sanders United States Senator from Vermont

Bernard Sanders is an American politician who has served as the junior United States Senator from Vermont since 2007. He ran unsuccessfully for the 2016 Democratic nomination for president and is running again in 2020. A self-described democratic socialist and progressive, he has advocated for universal and single-payer healthcare and reversing economic inequality. Sanders also supports labor rights, paid parental leave, and tuition-free tertiary education. On foreign policy, he broadly supports reducing military spending, pursuing more diplomacy and international cooperation, and putting greater emphasis on labor rights and environmental concerns when negotiating international trade agreements.

Both companies contributed important products to the new portfolio. Lockheed products included the Trident missile, P-3 Orion maritime patrol aircraft, U-2 and SR-71 reconnaissance airplanes, F-117 Nighthawk, 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.

Maritime patrol aircraft Military aircraft designed to reconnoiter oceans and other bodies of water

A maritime patrol aircraft (MPA), also known as a patrol aircraft, maritime reconnaissance aircraft, or by the older American term patrol bomber, is a fixed-wing aircraft designed to operate for long durations over water in maritime patrol roles — in particular anti-submarine warfare (ASW), anti-ship warfare (AShW), and search and rescue (SAR).

Lockheed U-2 airplane

The Lockheed U-2, nicknamed "Dragon Lady", is an American single-jet engine, ultra-high altitude reconnaissance aircraft operated by the United States Air Force (USAF) and previously flown by the Central Intelligence Agency (CIA). It provides day and night, high-altitude, all-weather intelligence gathering.

Reconnaissance aircraft Aircraft designed to observe enemy forces and facilities and maintain area surveillance

A reconnaissance aircraft is a military surveillance aircraft designed or adapted to perform aerial reconnaissance with roles including collection of imagery intelligence, signals intelligence, as well as measurement and signature intelligence. Modern technology has also enabled some aircraft and UAVs to carry out real-time surveillance in addition to general intelligence gathering.

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. [17] 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. [18]

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. [19] [20] The development of the spacecraft cost $193.1 million. [21]

In addition to their military products, in the 1990s Lockheed Martin developed the texture mapping chip for the Sega Model 2 arcade system board and the entire graphics system for the Sega Model 3, which were used to power some of the most popular arcade games of the time. [22]

2000s

Lockheed Martin's Center For Leadership Excellence (CLE) Building in North Bethesda, Maryland Lockheed Martin headquarters.jpg
Lockheed Martin's Center For Leadership Excellence (CLE) Building in North 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. [23] [24] 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. [25]

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. [26] 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. [27]

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. [28] [29] In 2009, Lockheed Martin bought Unitech. [30]

2010s

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. [31] 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. [32] 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. [33]

On May 28, 2011 it was reported that a cyberattack using previously stolen EMC files had broken through to sensitive materials at the contractor. [34] 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. [35]

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. [36] 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. [37] On November 27, 2012, Lockheed Martin announced that Marillyn Hewson will become the corporation's chief executive officer on January 1, 2013. [38]

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. [39] Lockheed Martin teamed up with Bell Helicopter to propose the V-280 Valor tiltrotor for the Future Vertical Lift (FVL) program. [40] 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. [41] 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. [42]

Lockheed Martin's F-35 Lightning F-35A flight (cropped).jpg
Lockheed Martin's F-35 Lightning

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. [43] Also in March 2014, Lockheed Martin announced its acquisition of Industrial Defender Inc. [44] 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. [45] In September 2014, Lockheed agreed a deal to sell 40 F-35 fighters to South Korea for delivery between 2018 and 2021, for a fee in the range of $7.06 billion. [46]

On July 20, 2015, Lockheed Martin announced plans to purchase Sikorsky Aircraft from United Technologies Corporation at a cost of $7.1 billion. [47] [48] The Pentagon has criticized the acquisition as causing a reduction in competition. [49] In November 2015, the acquisition received final approval from the Chinese government, [50] with a total cost of $9 billion. [51] Dan Schulz was named the president of Lockheed Martin's Sikorsky company. [52] Lockheed Martin has shown[ when? ] sketches for a twin-engine, blended wing body strategic airlifter similar in size to the C-5. [53] 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. [54] 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. [55]

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. [56]

In May 2017, during a visit to Saudi Arabia by President Donald Trump, Saudi Arabia signed business deals worth tens of billions of dollars with U.S. companies, including Lockheed Martin. [57] (See: 2017 United States–Saudi Arabia arms deal)

On November 29, 2018, Lockheed Martin was awarded a Commercial Lunar Payload Services contract by NASA, which makes it eligible to bid on delivering science and technology payloads to the Moon for NASA, worth $2.6 billion. [58] Lockheed Martin plans to formally propose a lander called McCandless Lunar Lander , named after the late astronaut and former Lockheed Martin employee Bruce McCandless II, who in 1984 performed the first free-flying spacewalk without a lifeline to the orbiting shuttle, using a jetpack built by the company. [59] This lander would be based on the successful design of the Phoenix and InSight Mars landers. [60]

On April 11, 2019 at 6:35 pm EDT, an Arabsat-6A satellite was successfully launched from (LC-39A). This satellite is one of two, the other being SaudiGeoSat-1/HellasSat-4 and they are the "most advanced commercial communications satellites ever built by" Lockheed Martin. [61]

Finances

For the fiscal year 2017, Lockheed Martin reported earnings of US$2.002 billion, with an annual revenue of US$51.048 billion, an increase of 8.0% over the previous fiscal cycle. Lockheed Martin's shares traded at over $280 per share, and its market capitalization was valued at over US$86.8 billion in September 2018. [62] Lockheed Martin ranked No. 59 in the 2018 Fortune 500 list of the largest United States corporations by total revenue. [63]

YearRevenue
in mil. USD$
Net income
in mil. USD$
Total Assets
in mil. USD$
Price per Share
in USD$
Employees
2005 [64] 37,2131,82527,74441.78
2006 [65] 39,6202,52928,23154.52
2007 [66] 41,8623,03328,92670.93
2008 [67] 41,3723,21733,43971.54
2009 [68] 43,8672,97335,11155.94
2010 [69] 45,6712,87835,11357.35
2011 [70] 46,4992,65537,90860.85
2012 [71] 47,1822,74538,65773.10
2013 [72] 45,3582,98136,18897.53115,000
2014 [73] 39,9463,61437,046151.21112,000
2015 [74] 40,5363,60549,304187.00126,000
2016 [75] 47,2485,30247,806226.0597,000
2017 [62] 51,0482,00246,521280.65100,000

Government contracts

Lockheed Martin received $36 billion in government contracts in 2008 alone, more than any company in history. It 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. [76]

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. [77]

Lockheed Martin has already begun to help the military transition to renewable energy sources with solar photovoltaic powered microgrids [78] and as the military aims to reach 25% renewable energy by 2025 [79] in order to improve national security. [80]

Corruption investigations

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 & Metals Inc's inflation of costs between 1998 and 2005, which Lockheed Martin then passed on to the U.S. government under its contracts. Further, in March 2006, Todd B. Loftis, a former TMI president, was sentenced to 87 months in prison and ordered to pay a fine of $20 million following his guilty plea. [81]

On February 20, 2013, Lockheed Martin Corp complied with the U.S. District Court in New York, agreeing to pay a $19.5 million lawsuit to conclude a securities fraud class-action legal battle that had accused the company of deceiving shareholders in regards to expectations for the company's information technology division. [82]

On December 20, 2014, Lockheed Martin Integrated Systems agreed to settle a False Claims Act lawsuit paying $27.5 million to finalize allegations that it had knowingly overbilled the taxpayer for work performed by company staff who did not hold the relevant, essential qualifications for the contract. [83]

Organization

Advanced design and development division

Aeronautics

C-130 Hercules; in production since the 1950s, now as the C-130J Lockheed C-130 Hercules.jpg
C-130 Hercules; in production since the 1950s, now as the C-130J
Submarine launch of a Lockheed Trident missile Trident II missile image.jpg
Submarine launch of a Lockheed Trident missile

Missiles and Fire Control

Rotary and Mission Systems

Space

Others

Joint ventures

Divested

Corporate governance

Board of directors

The board of directors consists of 14 members. As of February 2016, members include: [87]

Chief executive officer

Chairman of the board

Ownership

As of 2017 Lockheed Martin shares are mainly held by institutional investors (State Street Corporation, Capital Group Companies, Vanguard group, BlackRock, and others [88] )

Criticism

Lockheed Martin is listed as the largest U.S. 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, D.C.-based watchdog group." [76] Since 1995, the company has agreed to pay $606 million to settle 59 instances of misconduct. [89]

In 2013, Lt. Gen. Christopher Bogdan criticized the company's F-35 fighter 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." [90] The criticism comes in the wake of previous criticism from former Defense Secretary Robert Gates regarding the same program. [91]

Lobbying

According to the magazine Politico , Lockheed Martin has "a political network that is already the envy of its competitors", and its contracts enjoy wide bipartisan support in the U.S. Congress thanks to it having "perfected the strategy of spreading jobs on weapons programs in key states and congressional districts". [92] The company's 2010 lobbying expenditure by the third quarter was $9.9 million (2009 total: $13.7 million). [93] [94]

Through its political action committee (PAC), the company provides low levels of financial support to candidates who advocate national defense and relevant business issues. [95] It was the largest contributor to the House Armed Services Committee chairman, Republican Buck McKeon of California with over $50,000 donated in the election cycle as of January 2011. It also was the top donor to Sen. Daniel Inouye (D-HI), the chair of the Senate Appropriations Committee before his death in 2012. [76]

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. [96]

Management

Senior management consists of the CEO, COO and CFO, and Executive Vice Presidents (EVP) of five business areas. [97] 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. [98] Lockheed Martin manages and maintains its relationship with these touch workers through its supervisors and unions. [99]

Lockheed Martin manages employees through its Full Spectrum Leadership and LM21 programs. [100] 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. [101] [102] [103]

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. [103]

To control quality, Lockheed Martin trains and builds IPT teams. [103] 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. [104]

Floor employees assemble aircraft using Flow-to-takt lean manufacturing process [105] 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, [106] 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. [107]

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VXX, officially the Presidential Helicopter Replacement Program, is a procurement program to replace aging Marine One helicopters that transport the President of the United States. The current VH-3 helicopters have aging airframes, having entered service with United States Marine Corps Marine Helicopter Squadron One (HMX-1) in 1963. The VH-3D replaced the VH-3A by 1976. The smaller VH-60N was ordered beginning in 1989. On 7 May 2014, it was announced that the Sikorsky VH-92 had won the VXX competition.

Exelis Inc., was a global aerospace, defense, information and services company created in October 2011 as a result of the spinoff of ITT Corporation's defense business into an independent, publicly traded company. The company was headquartered in Tysons Corner, Virginia, USA and was led by CEO and President David F. Melcher. The Washington Post highlighted Exelis as a top company in the Washington, D.C. region in 2011. It was acquired by the Harris Corporation for $4.75 billion in 2015.

Vencore, Inc. is a private defense contractor that serves the U.S. Intelligence Community, Department of Defense and other agencies. From 2010 to 2014, the company was named The SI Organization, Inc.. The SI provides full life cycle, mission-focused systems engineering and integration capabilities, according to its corporate website. Major locations include Chantilly (VA), Basking Ridge (NJ), Denver (CO), Laurel (MD), Los Angeles (CA), Red Bank (NJ), St. Louis (MO), and Valley Forge (PA). The company employs approximately 2,000 people.

Engility Holdings, Inc. is an American publicly-traded company that provides engineering and logistics services to several United States military and civilian agencies. The company based in Chantilly, Virginia was formed in 2012 as a spin-off of the services division of L-3 Communications Holdings. As of 2017, Engility reports an annual revenue of about $2 billion. On September 10, 2018, Science Applications International Corporation (SAIC) announced it was buying Engility for about $2.5 billion.

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Further reading