LOCKHEED MARTIN CORPORATE OVERVIEW

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Presentation transcript:

LOCKHEED MARTIN CORPORATE OVERVIEW HOW TO DO BUSINESS WITH Lockheed Martin LOCKHEED MARTIN CORPORATE OVERVIEW Headquartered in Bethesda, Md., Lockheed Martin employs about 115,000 dedicated men and women worldwide. Lockheed Martin is a premier systems integrator principally engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems, products, and services.

Vision Lockheed Martin is the Leading Global Security and Aerospace Company, Solving our Customers’ Most Difficult Problems Through Our Employees’ Innovation, Performance and Unmatched Integrity Headquartered in Bethesda, Md., Lockheed Martin employs about 115,000 dedicated men and women worldwide. Lockheed Martin is a premier systems integrator principally engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems, products, and services. 9/17/2018

Lockheed Martin Business Areas AERONAUTICS Tactical Fighters Tactical /Strategic Airlift Advanced Development Global Sustainment MISSILES and FIRE CONTROL Air and Missile Defense Tactical Missiles Fire Control Combat Maneuver Systems MISSION SYSTEMS & TRAINING Naval Combat Systems Radar and Surveillance Systems Aviation Systems Training and Logistics Solutions SPACE SYSTEMS Surveillance and Navigation Global Communications Human Space Flight Strategic and Defensive Systems INFORMATION SYSTEMS & GLOBAL SOLUTIONS Cyber Security Information Technology Strategic / Operational Command & Control Systems 9/17/2018

60,000 Scientists, Engineers and IT Professionals People 113,000 Employees 60,000 Scientists, Engineers and IT Professionals 500+ Facilities Across the US And Operating in 70 Countries In 2014 employees donated over $20M to charitable organizations and the company matched that total with just over $24M. Employees also volunteered more than 100,000 service hours. 9/17/2018

We Never Forget Who We’re Working For ® Customers Departments of Defense Homeland Security Commerce Energy Health & Human Services Housing & Urban Development Justice State Transportation NASA Social Security Administration Environmental Protection Agency U.S. Postal Service Intelligence Communities 70 other Governments Worldwide Lockheed Martin holds more than 2,500 active patents. Our technology allows the FBI to make 130,000 daily fingerprint searches on 55 million individual records. Ranked among 10 best companies for veteran-owned businesses (NaVOBA) Number 1 Aerospace and Defense Company for supply chain management (Military Logistics Forum) Number 2 on Fortune’s World’s Most Admired Companies List We Never Forget Who We’re Working For ® 9/17/2018

New Business Realities in a Changing Marketplace Customers are requesting increased productivity and savings goals to support their increased resource constraints Focus on affordability to enhance performance, reduce costs and deliver optimum value Business will never be the same -- there is a new “normal” In 2013 DoD announced a $549 Million budget Cut.. Twenty three initiatives were laid out and some were clearly defined where others were not. Our supply chain has to be more focused and efficient. We must rely upon our suppliers to help us deliver quality and reliability with no margins for error. Greater Focus on Supply Chain Efficiency Opportunities 9/17/2018

Lockheed Martin’s Procurement Outlook Opportunities exist, but will be very competitive Customers expect competition to ensure best value Concern when engaging new suppliers: RISK Financial stability Past, relevant performance Ability to be viable in the long term Security Integrity 9/17/2018

LM Supplier Diversity Program Vision: To be the world’s top corporation in subcontracting with small business concerns in the markets that we compete Mission: To ensure that small business concerns of all types are afforded a fair and equitable opportunity to participate in Lockheed Martin’s subcontracting process, leveraging that success for competitive advantage Governed by Corporate Policy Signed by the President 9/17/2018 50

Qualities We Look for in a New Supplier... Socio-economic status Past performance with federal customer Experience with Lockheed Martin or Prime Contractor Experience in one of our industries Quality certifications Security clearances Location Technology unique to their company, patented Differentiating factors Supplier of needed services 9/17/2018

How Primes Seek Sources… Resources: Internal supplier database System for Award Management (SAM) (www.sam.gov) Industry & Affinity Groups ( NMSDC, NaVOBA, etc.) Small Business Events (local, regional, national) 9/17/2018

Supplier Differentiators With thousands of suppliers to consider, what factors are important to Lockheed Martin in selecting one supplier over another? Financials Quality program IT Security Ethics program Green or Sustainability program 9/17/2018

Financials Prime contractors will conduct financial review due diligence Recommendations: Have your financial information current and organized For assistance or to inquire about current listings with D&B contact: 1-800-234-3867. If there are notable concerns explain the situation 9/17/2018

Financials The Supplier Diversity office will check your D&B ratings prior to recommendation D&B does not charge businesses to update their company information or establish a DUNS number A business can view and update D&B information for free at www.iUpdate.dnb.com D&B suspects that our suppliers may have been contacted by an unrelated company. There is no need for LM suppliers to subscribe with another company in order to update D&B records. If any of our suppliers are being contacted by other companies that are asking for payment to update a D&B profile, D&B is always willing to speak directly with our supplier or the company making a solicitation, and resolve the issue. Additional services to monitor and build your D&B file are available through D&B Credibility Corporation (DBCC), a separate, third party provider of solutions to monitor and build your company’s credit report.  DBCC is in no way affiliated with the Dun & Bradstreet Corporation.  These additional services are never required for a company to do business with Lockheed Martin. 9/17/2018

Quality What do we want in subcontractor quality? On time, every time Zero defects Visibility into status Consistency Fair price Continuous improvement Innovation 9/17/2018

Certifications Multiple types of quality certifications AS 9100 – Manufacturers AS 9120 – Distributors ISO, ISO/IEC 12207 CMMI 9/17/2018

A Strong Focus on Supply Chain Security Problem Statement As Lockheed Martin has Enhanced its Cyber Security Defenses, Threats Have Expanded Across the Entire Supply Base. Supplier Capabilities Vary in Ability to Effectively Address These Threats and Protect Sensitive Program Information. LM Operations Disruption Counterfeit Parts Cyber Attack Vector Data Harvesting Every Supplier 2FA Secure Secure the Information Shared Between Supplier and Lockheed Martin. Cyber Security Threats Expand Across the Entire Supply Base. The Supplier Link Is Critical Because of the Opportunity It Presents to Those With Malicious Intent. Moving to the global supply chain ... SOME SUPPLIER THREATS: Supplier down: Suppliers can be taken down by either disrupting their IT systems, or disabling their physical infrastructure like we saw in the IRAN uranium centrifuges. Cyber attack vector: If our adversaries cannot breach our defenses, they can simply move down the supply chain until they find a softer target, and rely on our trust relationship with our supplier to try to slip past our defenses. Altered Specs or drawings: A small change in a requirement could sabotage a system or moving of a hole on a drawing could make a part or subsystem unusable. Counterfeit Parts: The counterfeit Cisco routers sold to the defense industry a few years ago are the poster child for this vulnerability. Financial Disruption: A company whose operations have been sabotaged or whose financials systems have been destroyed may not be able to stay afloat for long. Data Harvesting: Intellectual property stolen from suppliers by foreign states can be used to improve their technology or counter ours. And some of that IP could be LM data in their care. LM Operations Disruption: If our supply chain is disrupted, it becomes our problem. Altered Specs IP Loss Supplier “Down” Visit www.myexostar.com/lm2fa for a copy of this presentation 9/17/2018

IT Security Per a Help Net Security article, 36 percent of all targeted attacks (58 per day) during the last six months were directed at businesses with 250 or fewer employees. The Defense industry has been the targeted industry of choice in the first half of the year, with an average of 7.3 attacks per day. Reference article at: http://www.net-security.org/secworld.php?id=13225&utm There appears to be a direct correlation between the rise in attacks against smaller businesses and a drop in attacks against larger ones. It almost seems attackers are diverting their resources directly from the one group to the other It may be that your company is not the primary target, but an attacker may use your organization as a stepping-stone to attack another company. You do not want your business to be the weakest link in the supply chain. 9/17/2018

Protect Your Company and Our Industry Files are often shared and networks accessed by partner companies, opening security vulnerabilities We look to all trusted supplier partners to protect the full computing environment by securing their network and systems For suppliers with current or potential requirements to share electronic files, an assessment of IT security vulnerability will be conducted If you are unsure what is needed to protect our shared environment, ask for guidance Cyber Security Resources: SANS (SysAdmin, Audit, Network, Security) Institute: www.SANS.org Open Web Application Security Project: www.owasp.org National Institute of Standards and Technology Computer Security Division : http://csrc.nist.gov/ International Organization for Standardization: http://www.iso.org/iso/ search ISO 27001 & 27002 9/17/2018

Ethics Lockheed Martin has a strong commitment to ethics Strong internal Ethics program Live training class to all employees annually Employees in procurement roles have additional expectations to decline gifts. Don’t offer more than a token logo item. Values: Do What's Right Respect Others Perform With Excellence If you are interested in having one of our ethics officers coming to your facility to provide an overview of our ethics program and how you can incorporate these ideas at your company, let me know and we will make that happen. 9/17/2018

LM: Greening the Supply Chain Goal: eliminate adverse environmental impact from our operations Reduce carbon emissions by 25% Reduce waste to landfill by 25% Reduce water usage by 25% How: developing ‘Green’ contractual language reducing packaging waste at the source increasing procurement of environmentally-friendly products and services 9/17/2018 20

Green Initiatives…a Differentiator Recycle Major waste streams Waste Efficient at waste reduction Converting Waste to Biodiesel Waste grease Energy Energy conservation programs Water Water conservation programs Hazardous Waste Hazardous waste awareness What are you doing about energy, water, waste? Is your environmental management system ISO-14001 certified? Focus on sustainability 9/17/2018

Business Matchmaking Prep Study our website and our programs: www.lockheedmartin.com Market Your firm - See link under “Suppliers” tab entitled “Doing Business with Lockheed Martin” Identify requirements that align with your core competencies Send questions to: supplier.communications@lmco.com 9/17/2018

Business Matchmaking Suggested way to break down the 10 minute meeting 2 minutes-Introduction and brief company overview Be clear, concise and compelling 2 minutes-Description of products and services Focus on your company’s differentiators 3 minutes-Past performance (quality & delivery) Share success stories Offer solutions to problems 3 minutes-Interaction with the buyer to learn more about opportunities and next steps 9/17/2018

Following up after Business Matchmaking Lockheed Martin has a committed diverse small business base, but sources will change for sound business reasons Major Consideration: RISK Past Performance Time in Business Financials Average time from initial contact to first contract : 24-30 months 9/17/2018

Business Card Recommendations FRONT OF CARD Supplier Name Address Email Web Address Phone number Socio-economic status Key descriptive words BACK OF CARD NAICS/descriptions DUNS & CAGE Code 9/17/2018

Seek Strategic Partnerships Small-Small & Small-Large businesses teaming for competitiveness Small as prime with large as subcontractor in restricted competitions (customer directed) Participate in Government Outreach Programs 9/17/2018

When You Get an RFQ… Be Responsive Read and understand every element of request: - Terms & Conditions - Quality & Delivery Requirements - etc… Ask for clarification or an extension if necessary Submit no-bid response if you choose not to compete Always return calls promptly Perform: 100% Quality and Delivery 9/17/2018

Resources and Tools We are constantly updating our website We have: Scheduled Live Chat Sessions: Chats are one-on-one sessions to answer individual questions, not a group discussion Immediate Needs Bulletin Board Fill out the Supplier Profile Go to Supplier Wire: http://www.lockheedmartin.com/supplierwire 9/17/2018

Summary Embrace changing A&D environment Innovate to address affordability & production challenges Look for strategic partnership opportunities Master your approach What is your “X” factor? Perform 9/17/2018