Lockheed Martin Has Accelerated $1.1 Billion in Pentagon Progress Payments to Suppliers
BETHESDA, Md., June 26, 2020 – Lockheed Martin continued support to critical industrial base suppliers, front-line medical workers and local communities this week for COVID-19 relief and response.
“The COVID-19 pandemic has created health, economic, and national security challenges around the world. In this more volatile environment, it is more important than ever before to maintain the operations of the defense industrial base and support our men and women in uniform,” said Jim Taiclet, president and CEO of Lockheed Martin. “For the past several months, Lockheed Martin has worked with the Department of Defense to strengthen our supply chain. To date we have received more than $1.1 billion in accelerated progress payments from the Pentagon and have flowed all of it to suppliers to ensure we continue to maintain operations, support jobs, and deliver solutions that keep our nation safe.”
Supply Chain Commitment
- In March, the Department of Defense announced it would increase progress payment rates to large businesses from 80 percent to 90 percent, accelerating payments for the completion of work in recognition of the challenges posed by COVID-19. As of this week, Lockheed Martin has flowed all of the accelerated payments it has received from the Department of Defense to its supply chain, giving priority to small and vulnerable suppliers, as we continue our efforts to mitigate COVID-19 risks and promote a healthy Defense Industrial Base.
- In recent weeks, Lockheed Martin’s acceleration of cash to its supply chain partners has ranged from $400 million to $500 million per week. This week alone, we accelerated more than $550 million to our suppliers.
- Lockheed Martin will continue to assess COVID-19 impacts, working with our U.S. Government partners and suppliers, and accelerate cash to at-risk suppliers and small businesses to ensure that we continue to meet commitments vital to national security.
- Lockheed Martin has hired more than 8,300 new employees across the United States since the COVID-19 crisis began and is advertising for more than 3,200 roles. The corporation remains on track with plans to hire 12,000 employees during 2020.
Helping Our Communities
- This week, as part of our ongoing charitable contributions for COVID-19 totaling more than $18 million, the Office of Maryland Governor Larry Hogan announced Lockheed Martin donations of $500,000 to the Greater Washington Community Foundation’s COVID-19 Emergency Response Fund, a $25,000 donation to Montgomery County Public Schools, and $133,000 donation to Morgan State University for student technology, and donation of meals and PPE in Bethesda.
- Additionally, we contributed $500,000 to the Local Initiatives Support Corporation (LISC) Rapid Relief & Resiliency Fund.
- Across the country, we have produced more than 65,000 protective gowns and 32,000 face shields. We have donated PPE at 174 locations where frontline medical workers are caring for COVID-19 patients, and those at risk, including medically vulnerable seniors.
- We have provided more than 55,000 meals to the needy in local communities surrounding nine Lockheed Martin locations.
About Lockheed Martin
Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 110,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.
Please follow @LMNews on Twitter for the latest announcements and news across the corporation.
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Jarrod Agen, 301-897-6412, email@example.com