1. 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.

2. 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.
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3. 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
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4. 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.
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5. 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 ®
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6. 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
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7. 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
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8. 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
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9. 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
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10. How Primes Seek Sources…
Resources:
Internal supplier database
System for Award Management (SAM) (
Industry & Affinity Groups ( NMSDC, NaVOBA, etc.)
Small Business Events (local, regional, national)
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11. 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
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12. 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:
If there are notable concerns explain the situation
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13. 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
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.
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14. Quality What do we want in subcontractor quality? On time, every time
Zero defects
Visibility into status
Consistency
Fair price
Continuous improvement
Innovation
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15. Certifications Multiple types of quality certifications
AS 9100 – Manufacturers
AS 9120 – Distributors
ISO, ISO/IEC 12207
CMMI
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16. 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 for a copy of this presentation
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17. 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:
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.
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18. 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:
Open Web Application Security Project:
National Institute of Standards and Technology Computer Security Division :
International Organization for Standardization: search ISO & 27002
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19. 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.
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20. 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
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21. 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 certified?
Focus on sustainability
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22. Business Matchmaking Prep
Study our website and our programs:
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:
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23. 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
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24. 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 : months
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25. Business Card Recommendations
FRONT OF CARD
Supplier Name
Address
Web Address
Phone number
Socio-economic status
Key descriptive words
BACK OF CARD
NAICS/descriptions
DUNS & CAGE Code
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26. 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
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27. 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
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28. 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:
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29. 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
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