Our Performance



We’re committed to an inclusive supplier base that enhances our competitiveness, creates economic security and reflects corporate diversity goals and principles.

Strengthening Connections
We launched Supplier Wire to reach out to diverse suppliers. This new online educational resource offers free webinars, video tips and supplier testimonials to help small businesses sustain and expand their work with us. The site also identifies immediate procurement opportunities and provides information on Lockheed Martin purchases, including a list of corporate agreements with expiration dates and a calendar of our supplier diversity events.

Each year we stage unique supplier-engagement programs targeting small and diverse businesses. In 2012, we held four information and networking sessions for potential suppliers to engage one-on-one with our representatives. We also hosted three virtual sessions in which small business suppliers share information on their company, services, product lines, green initiatives and business strengths with procurement professionals and small business liaison officers. We cover all the technology and access costs of these events.

Mentoring Small Businesses
We actively support the federally-managed Mentor-Protégé Program, which helps small businesses compete for prime and subcontract awards by partnering with large companies under individual, project-based agreements. We provide training to protégé partners and host information sessions where they meet our small business liaison officers and procurement personnel. We also promote our small business partners to our five business areas.

These programs benefit Lockheed Martin, small businesses and our customers by:

  • Enhancing technical capabilities of both mentor and protégé
  • Awarding non-competitive subcontracts/purchase orders to protégés
  • Enabling faster insertion of new technology to our customers
  • Expanding our base of innovative and qualified small businesses
  • Establishing qualified sources at more competitive prices

An example is Sciaky, Inc., of Chicago, Il. a protégé partnership formed in 2012. Sciaky’s electronic beam welding process can reduce the time it takes to cut metal forging by several months, which could benefit many aerospace products. Savings come from using less metal and reducing waste during machining of titanium, nickel alloy and other high-value metals.

Incubating Innovation
We help small businesses expand their technological potential by providing dedicated centers where firms that have won federal awards can collaborate with our employees. Lockheed Martin Technology Collaboration Centers located in San Diego, Ca., and Washington, D.C., focus on Naval surface platform tactical, communications and training applications and are open to small businesses free of charge. The Lockheed Martin Innovation Marketplace in Huntsville, Al., opened in 2012. It supports private sector and academic sector technologists participating in federally managed small business innovation research and technology transfer programs. Academic partners include Auburn University, Tuskegee University and the University of Alabama in Huntsville.

Joining Forces with Veteran Entrepreneurs
During 2012, our Supply Chain leadership team launched several efforts to connect small businesses owned by veterans or disabled service members to our procurement opportunities and buyers. These initiatives included:

  • Highlighting procurement opportunities for veteran businesses on our immediate needs e-bulletin board
  • Targeting training opportunities for existing and potential veteran firms to enhance program performance and the ability to win government contracts
  • Holding exclusive supplier information sessions that match veteran small enterprises with all Lockheed Martin buyers
  • Creating a dedicated section for veteran businesses on our internal employee discount program website
  • Adapting a procurement process that promotes competition to service-disabled, veteran-owned small businesses

Recognizing Supplier Excellence
Lockheed Martin annually recognizes small businesses in the United States for their outstanding support and quality in goods and services. We also celebrate employees who make exemplary contributions toward small business initiatives through awards and recognition events. In 2012, our Missiles and Fire Control and former Global Training and Logistics operations held an awards ceremony to recognize 18 suppliers. Aeronautics also held an awards luncheon in Fort Worth, Tx. to honor three outstanding suppliers.

Diverse Small Business Spending



Where We Are Going

Despite meeting or exceeding all our customer targets, we are strongly committed to further expanding opportunities for diverse suppliers.

Potential budget cuts for the U.S. Department of Defense due to sequestration would cause significant disruption to ongoing programs and initiatives leading to facility closures and personnel reduction. With nearly 60% of our program costs in the supply chain, our suppliers would be significantly affected, especially small businesses and niche technology providers.

We will use our new Supplier Wire website to engage with more qualified small businesses and increase the number of registrants for our information webinars. Given U.S. federal budget fiscal pressures, we will also seek to raise awareness of how thousands of small businesses help us to support our customers’ missions. Major fiscal impasses could greatly complicate our ability to increase business opportunities to firms owned by minorities, women, veterans and people living in disadvantaged areas.

To further support veteran-owned small businesses, we plan to offer additional informal e-learning programs and recruit more companies for listing in our employee discount program website, available to Lockheed Martin employees and retirees.


Lifetime Achievement Award

Ken Hilderbrand (pictured above on right) exemplifies our supplier diversity efforts. With 27 years of field experience, he is the Supplier Diversity lead of our Aeronautics’ Marietta, Ga. location. He served on the advisory board that developed the Department of Defense’s groundbreaking Comprehensive Subcontracting Program and its Mentor-Protégé Program. He was also Board Chair of the Georgia Minority Supplier Development Council and Board member of the Greater Women’s Business Council. In 2012, the Alliance of Supplier Diversity Professionals presented Ken with the first Murray Schooner Lifetime Achievement Award.


Mershelle Davis (pictured above on right), our Aeronautics Small Business Liaison Officer, won the 2012 Corporate Advocate Award from the U.S. Department of Veterans Affairs. She also earned accolades from the U.S. Small Business Administration and the Women of Color STEM Special Recognition Award for her advocacy on behalf of small businesses owned by veterans and disabled service members.

20 National and Local Industry Recognitions

Received 20 national and local industry recognitions for our supplier diversity program and efforts

Best 10 Corporations for Veteran-Owned Businesses

Named one of the Best 10 Corporations for Veteran-Owned Businesses by the National Veteran-Owned Business Association

Corporate Leadership Award

Honored as the first recipient of a Corporate Leadership award from the National Center for American Indian Enterprise Development

Multicultural Business Opportunities

Named among America’s Top Corporations for Multicultural Business Opportunities by DiversityBusiness.com

U.S. Navy People’s Choice Award

Received the first U.S. Navy People’s Choice Award for our ongoing efforts to build the technology capabilities of small business suppliers. The award reflected a poll among 185 small companies in the Navy’s Small Business Innovation Research (SBIR) program for technology transition.

Corporate Advocate Award

Mershelle Davis, our Aeronautics Small Business Liaison Officer, won the 2012 Corporate Advocate Award from the U.S. Department of Veterans Affairs. She also earned accolades from the U.S. Small Business Administration and the Women of Color STEM Special Recognition Award for her advocacy on behalf of small businesses owned by veterans and disabled service members.

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