Supplier Diversity

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 Program is governed by a Corporate Policy Signed by the President 50

Program Objectives Enhance Corporation’s competitiveness & profitability Serve as Liaison for LM and Small Businesses Ensure Small Business participation in subcontracting process Assure compliance with government regulations and corporate policy & procedures Negotiate and execute Small Business subcontracting plan Provide LM personnel with the resources needed to meet Supplier Diversity goals and objectives 50

Organizational Structure Mike Bush, Corporate Director Supplier Diversity C.J. Anderson, Administrative Support Mario A. Ramirez Corporate Manager, Mentor Protégé & Small Business Innovative Research Brenda Lingo, INROADS Intern Ken Hilderbrand Manager, Supplier Diversity Aeronautics Emily Mann, Manager, Supplier Diversity Enterprise Information Systems Nancy Deskins, Manager, Supplier Diversity Electronic Systems 8 SBLOs 1 SBLO 17 SBLOs Julie Paglione, Manager, Supplier Diversity Information & Technology Services Regina Stout, Manager, Supplier Diversity Integrated Systems & Solutions Bob Thompson, Manager, Supplier Diversity Space Systems 13 SBLOs 8 SBLOs 12 SBLOs More than 50 Supplier Diversity Professionals to Help You Identify Subcontracting Opportunities!

Historical Performance SB - FY ’00 decline correlates to; 1) the expanded utilization of corporate agreements; and 2) a shift in acquisition strategy to buying more systems and fewer components. Increase in FY ’01 is primarily due to the increased emphasis that was placed on SB subcontracting by agreement commodity teams. SDB – FY ’01 decline is directly attributable to the federal governments requirement for SDB certification. Effective 1 Oct. 98, contractors were not allowed to take SDB credit for subcontracts issued to non SBA certified firms. Subcontracts issued to self-certified SDBs was allowed for all awards issued prior to this date. We continue to meet or exceed our contractual goals. Strong Historical performance in all major categories even with certification changes. 5

Met or Exceeded Goal in Every Category 2005 Goals vs. Actual Actual Goal* Small Business 30.5% 28.2% Small Disadvantaged Business 5.1% 3.9% Woman-Owned Small Business 6.1% 5.0% Historically Underutilized Business Zone 0.8% 0.7% Veteran-Owned Small Business 3.0% 2.0% Service Disabled Veteran-Owned Small Business All Supplier Diversity Metrics are Effected by Business Shift Toward Integration of Large Subsystems Size, Timing and Teaming Arrangements for JSF Increased Number of Corporate Agreements in Areas Traditionally Served by Small Businesses Additional Specific Factors Include Anticipated Impact of SDB External Certification Requirement on Small Disadvantaged Business Metric HUB Zone, Veteran-Owned and Service Disabled Veteran-Owned Business Metrics Quantity, Quality and Expertise of Businesses Listed in PRONet Database HUB Zone and Veteran-Owned Business Categories are Less Than Two Years Old; Service Disabled Veteran-Owned Business Category Established in October 2001 In the aggregate these goals are still higher (for the top 3) than required by most individual program requirements. Met or Exceeded Goal in Every Category 6

BEST PRACTICES Website Informational Site for Suppliers Registration Functionality Intranet Site For Internal Use Supplier Database Search Capability Links to SBA ProNet Database Telephone Call System 877-LMC-SBLO (877-562-7256)

BEST PRACTICES Memoranda of Understanding Air Force Managerial Accountability and Business Process Emphasis on “Best Value” Corporate Councils Lockheed Martin Day Supplier Information Sessions Targeted Approach to Identifying Suppliers Better Use of Resources

AWARDS (Representative sample) Billion Dollar Round Table Div2000 Fortune 1000 Award Selected in the top 3 for two consecutive years SBA Eisenhower Award of Excellence SBA Francis Perkins Award NASA Excellence in Outreach SBA Award of Distinction DCMA Award of Achievement Corporation of the Year National Center for American Indian-Owned Business American Indian Chamber of Commerce of Texas National Minority Supplier Development Council Nunn Perry Awards

Tips on Becoming a Lockheed Martin Supplier

Do Your Homework Expand industry intelligence Develop company “Hit List” Get to know “Hit List” companies - What they do, buy, challenges, etc. Assess contracting potential Devise business capture strategy

Make Initial Contact Ask SBLO for assistance Present brief, concise, and clear capabilities statement Identify end-user and buyer Mind your business ethics

Sell Yourself and Your Company Company profile and capabilities literature (Soft Copy Preferred) Focus on your company’s uniqueness Past performance (quality and delivery) Share personal experiences Offer solutions to problems

Follow Up Once you know a company is a real prospect, stay in touch If you’re talking to the wrong person, find the right one If there are multiple buyers of your product or service, call them all Give every call your best effort Be Persistent!

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 Cost – Don’t nickel and dime us Always meet your Commitments Quality – 100% in everything you do! Delivery – On time, every time Always meet your Commitments

Summary Lockheed Martin is a Recognized Leader in Supplier Diversity Small businesses are an Integral Part of our Acquisition Process Emphasis on competitiveness of small businesses