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Into The Gulf

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					In The Spotlight                               Healthcare Assistance                            Career Path                                      Super Hercules
Employees are recognized for innovation,       Corporation looks at ways to apply traditional   Diverse career experiences help director         First C-130J Super Hercules
leadership and technical excellence.           engineering capabilities to healthcare.          on Orion space program address challenges.       aircraft for India near completion.




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                                                                                                                                                 July 2010
                                                                                                                                                 Volume 16, No. 7




Into The Gulf
Programs provide range of services in oil spill crisis
For most Lockheed Martin employ-               Team during environmental emergen-
ees, the explosion that rocked British         cies. Although his team has provided the
Petroleum’s Deepwater Horizon off-             most visible support among Lockheed
shore oil drilling rig on April 20 was a       Martin programs, other IS&GS employ-
tragic yet distant event.                      ees also have been assisting the EPA
       But for a group of employees who        during the crisis.
assist the U.S. Environmental Protection              At the same time, Lockheed Martin
Agency (EPA) in emergency response             aircraft, including C-130’s and P-3’s, have
and environmental threat situations, the       been deployed to the Gulf region by the
escalating disaster caused by crude oil        Air Force, Coast Guard and other govern-
spewing into the Gulf of Mexico quickly        ment customers to perform a variety of
became more than a news headline.              tasks, such as monitoring, mapping and
       “We got a call from EPA                 dispersant spraying.
within days of when the platform                      Throughout the effort, Lockheed
fire occurred,” reports Dennis Miller,         Martin employees have been recognized
a program manager at Lockheed                  for their contributions in a wide range of
Martin Information Systems & Global            roles. IS&GS senior network engineer
Solutions. “We immediately mobilized           Lawrence Walker, for example, devel-
equipment and people from Nevada,              oped a solution to a critical networking               Lockheed Martin Environmental Engineer Joe Brandine
                                                                                                      processes an oil sample collected aboard a U.S.
New Jersey and North Carolina.”                issue involving two C-130’s that arrived
                                                                                                      Coast Guard vessel. Brandine is part of the Scientific,
       Miller manages the Scientific,          from the Air Force Reserve Command’s                   Engineering, Response & Analytical Services (SERAS)
Engineering, Response & Analytical             910th Airlift Wing at Youngstown, Ohio,                Program, which supports the EPA’s Environmental
Services (SERAS) Program, which sup-           as part of the cleanup mission.                        Response Team during environmental emergencies.

ports the EPA’s Environmental Response         See Oil Spill p. 5



    More Bangs Per Buck                                                                                                    When developing the ideal munitions for fighting today’s
                                                                                                                           enemies, bigger is decidedly not better.
                                                                                                                                  Faced with “irregular” threats ranging from insur-
    Today’s threats require a smaller, lighter, cheaper munitions solution
                                                                                                                           gents in urban neighborhoods to “shoot-and-scoot” enemies
                                                                                                                           on land or water, U.S. military forces and their allies need
                                                                                                                           small munitions that can destroy targets with minimal col-
                                                                                                                           lateral damage. And they need those weapons to be low-
                                                                                                                           cost, mission-flexible, and precise.
                                                                                                                                  To meet these requirements, Lockheed Martin has
                                                                                                                           extended its family of munitions to include several small
                                                                                                                           missiles and guided bombs that address a variety of opera-
                                                                                                                           tional requirements. Ranging from about 2 to 4.25 inches in
                                                                                                                           diameter and weighing from 10 to 100 pounds, the muni-
                                                                                                                           tions leverage existing products to deliver greater overall
                                                                                                                           effectiveness for less cost.
                                                                                                                                  “It’s a different environment today economically,
                                                                                                                           politically and operationally,” says Steve Farrow, direc-
                                                                                                                           tor of strike weapons business development at Lockheed
                                                                                                                           Martin Missiles and Fire Control (MFC). “It takes more
                                                                                                                           outside-the-box thinking to provide warfighters with the
                                                                                                                           tools they need.”
                                                                                                                                  Three of the new munitions that illustrate the smaller,
    The 2.75-inch diameter DAGR missile is ideally suited for helicopters, although it can also be deployed on
                                                                                                                           lighter, cheaper attributes are Scorpion, Scalpel and
    unmanned aerial vehicles or fighter jets.                                                                              See Missiles p. 4
 IN THE SPOTLIGHT

The following have been recognized for innovation, leadership, and technical excellence.

Orion Team Members Earn
NASA Recognition Awards
Lockheed Martin employees were honored for their
significant contributions to human space flight during
two NASA Spaceflight Awareness recognition events
held in June.
       Members of NASA’s astronaut corps presented
the Silver Snoopy Awards to 12 Lockheed Martin
employees from Space Systems and Information Systems
& Global Solutions (IS&GS) during a ceremony held
at Johnson Space Center (JSC) in Houston, Texas. The
employees were recognized for their significant contribu-
tions to the Orion crew exploration vehicle project.
       Recipients included Peter Munoz, Todd
 Sullivan and Thomas Warner, from Space Systems
in Denver, Colo.; Stephen Fergason from Space
Systems in Littleton, Colo.; Paige Carr, Matthew
Carter, Razvan Gaza, Fredrik Rehnmark, Brian
Tichenor, Viet Truong-Cao and Michael Ross
Wells from IS&GS in Houston, Texas; and Tammy
Spadaccini from IS&GS in Ocala, Fla.
                                                               Receiving NASA’s Silver Snoopy Awards are, from left, Michael Ross Wells, Razvan Gaza, Fredrik Rhenmark, Viet Truong-
       The awards were presented by JSC Center                 Cao, Pete Munoz, Paige Carr, Tammy Spadaccini, Tom Warner, Stephen Fergason, Matt Carter, and Brian Tichenor.
Director Mike Coats and NASA astronauts Chris
Ferguson and Steve Frick, who noted that “these                tions with Space Flight Awareness Leadership Awards                The Orion program achieved several milestones
awards recognize your outstanding performance                  presented by NASA’s Orion Program Manager Mark              this year, including the successful flight test of Orion’s
and thank you for the contributions you make to the            Geyer at an employee appreciation event held at the         launch abort system, completion of the Phase 1 Safety
safety of our space flight experience as well as those         Michoud Assembly Facility in New Orleans, La.               Review that formally acknowledged Orion met all NASA
to come.”                                                      Awards were presented to Timothy Knowles from               requirements for a human-rated space flight vehicle, and
       In addition to the Silver Snoopy awards, Orion          Space Systems in New Orleans, La., and Carlos               the final weld on the initial Orion spacecraft that will be
team members were recognized for their contribu-               Ramirez, from Space Systems in Newtown, Pa.                 used for ground-based tests prior to flight testing.

                                                                                                         Corporate Vice President Recognized
                                                                                                         For Outstanding HR Leadership
                                                                                                         Marilyn Figlar, the Corporation’s vice president of Talent and
                                                                                                         Organizational Capability, has been recognized by the Human
                                                                                                         Resources Leadership Awards of Greater Washington. The awards honor
                                                                                                         HR executives for outstanding contributions in categories of leadership,
                                                                                                         innovation, strategic alignment, corporate social responsibility, mentor-
                                                                                                         ing and promoting ethical behavior.
                                                                                                                Figlar won in the leadership category, which honors influence in
                                                                                                         enhancing business performance.
                                                                                                                As the corporate lead for Full Spectrum Leadership, Figlar sup-
                                                                                                         ported a culture change that resulted in the Corporation’s new leadership
                                                                                                         competency model formally introduced by Lockheed Martin Chairman
                                                                                                         and CEO Bob Stevens at the end of 2005. The model focuses on five
                                                                                                         key behavioral imperatives and has impacted how leaders are hired,
                                                                                                         assessed and promoted.
                                                                                                                “This recognition is important and well deserved,” said John
Marilyn Figlar, second from left, receives recognition for her role in instituting the Full Spectrum     Lucas, HR senior vice president. “Marilyn has played an instrumental
Leadership model at Lockheed Martin. The award is presented by members of the HR Leadership
Awards Committee of Greater Washington: from left, Laura Reiff, partner of Greenberg & Taurig
                                                                                                         role in the development of Full Spectrum Leadership and continuing to
law firm; Marilyn Figlar; Ian Herbert, attorney, Greenberg & Taurig law firm; and Jack Gocke, vice       strengthen our commitment to this model as the language of leadership
president, Wells Fargo Insurance Services.                                                               at Lockheed Martin.”

New Award Recognizes Excellence In Configuration And Data Management
Eight professionals were
recently selected to receive
the 2010 Configuration and
Data Management (C&DM)
Corporate Achievement
Award. The winners were
selected from a pool of 34
nominations submitted by
C&DM managers from
across the Corporation.
      These employees were
recognized on the basis of
technical excellence, positive
influence on program per-
formance, technical achieve-
ment, innovation, leadership
excellence, outstanding com-
mitment to achieving busi-
ness goals and objectives,
and proven and outstanding
                               At the presentation of the Configuration and Data Management Corporate Achievement Award are, from left, Cliff Meier, Melanie Brocatto, Debbie
contribution to customer       Rizzo, Melissa McIntyre, Pam Price, Tim Duffy, Becky Shields and Chuck Mills.
success and satisfaction
      Chuck Mills, corporate vice president of Program Management, and Cliff Meier, director of Contracts – CDM, Space Systems, and chairman of the corporate
C&DM Council, presented the awards to Melanie Brocatto, Electronic Systems Configuration Management; Tim Duffy Electronic Systems CM; Roxanne Lafferty,
Information Systems & Global Solutions (IS&GS) CM; Melissa McIntyre, Space Systems C&DM; Cori McLemore, Aerospace CM; Pam Price, Aerospace Enterprise Data
Management; Debbie Rizzo, Space Systems C&DM; and Becky Shields, IS&GS CM. ■

2
                                                                                                                                                  plex systems, which is exactly what
                                                                                                                                                  Lockheed Martin has been doing
                                                                                                                                                  for years in the aerospace industry,”
                                                                                                                                                  Szczerba says. “When the healthcare
                                                                                                                                                  organizations we’re working with started
                                                                                                                                                  to fully understand the capabilities a
                                                                                                                                                  systems integrator like us could bring,
                                                                                                                                                  the feedback was incredibly positive.”
                                                                                                                                                         The ICE STORM project is being
                                                                                                                                                  developed by engineering teams from
                                                                                                                                                  the Mission Systems & Sensors and
                                                                                                                                                  Global Training and Logistics (formerly
                                                                                                                                                  Simulation, Training & Support) busi-
                                                                                                                                                  ness units. The initial concept is focused
                                                                                                                                                  on developing a virtual world model of
                                                                                                                                                  a critical care unit, which would allow
                                                                                                                                                  clinicians to model various health care
                                                                                                                                                  delivery environments. They would be
                                                                                                                                                  able to run what-if scenarios to first
                                                                                                                                                  identify potential problems and then
                                                                                                                                                  design efficient and effective solutions.
                                                                                                                                                         One of the main problems that
                                                                                                                                                  healthcare organizations typically face
                                                                                                                                                  is dealing with multiple systems that
                                                                                                                                                  don’t communicate with each other. In
Here, Rob Szczerba, seated, discusses ICE STORM simulations with engineer Jamie Bishop, ICE STORM engineering lead for Mission                    addition, doctors, nurses and other clini-
Systems & Sensors. Szczerba a Lockheed Martin senior fellow at Corporate Engineering & Technology, is looking at ways to apply
                                                                                                                                                  cians often need help to get the right
traditional engineering disciplines to the bioscience and healthcare domains.
                                                                                                                                                  information at the right time to perform


The Right Prescription
                                                                                                                                                  critical tasks.
                                                                                                                                                         For Lockheed Martin, Szczerba
                                                                                                                                                  says, the ultimate goal of the initiative
Lockheed Martin aims to help hospitals reduce costs and prevent errors                                                                            isn’t to develop a specific technology
                                                                                                                                                  product but rather to create a suite of
Have you ever glanced out of an aircraft        that are exploring potential innovative          other clinical environments, such as             tools that help subject matter experts,
window before takeoff and noticed the           new opportunities in emerging markets.           operating rooms, emergency depart-               in collaboration with Lockheed Martin
pilot walking around the plane with a           The other two are Human Terrain and              ments, or ambulatory care units.                 engineers, design a next-generation
checklist? The pilot was performing a           Autonomous Systems.                                     “Systems integration and high-            healthcare delivery system.
visual inspection of the aircraft to con-              The first initiative under the            fidelity simulation reside in our DNA at                “Our objective is to create human-
firm that nothing was broken, missing           Systems Biology Pathfinder is called ICE         Lockheed Martin,” Szczerba says. “The            in-the-loop models — just like we would
or compromised. A similar process takes         STORM (short for Integrated Clinical             global challenges in healthcare provide          for, say, an F-35 — that represent how the
place in the cockpit with the aircraft’s        Environments; Systems, Training,                 an opportunity to apply that expertise to        hospital’s team executes its clinical mis-
electronic systems.                             Operations, Research, and Methods),              improve the quality of life for millions         sion,” he says. “Then we can experiment
       Checklists are simple safety pre-        which is investigating ways to apply             of people.”                                      to determine which system integration,
cautions that have been around in avia-         Lockheed Martin’s core capabilities to                  Indeed. Healthcare in the United          data visualization, and procedural modifi-
tion for more than half a century, and          healthcare.                                      States alone incurs almost $1.2 trillion         cations can produce better outcomes.”
they have undoubtedly saved many lives.                The project is a collaboration            per year in avoidable costs, according                  While the challenge of reduc-
       Safety checklists are beginning          between Lockheed Martin and the                  to a 2009 Price Waterhouse Cooper                ing health care costs has proven to
to gain favor in yet another life-critical      Center for Integration of Medicine               study. Plus, 200,000 U.S. deaths result          be exceptionally difficult in the past,
industry — healthcare. That’s a fact that       and Innovative Technology (CIMIT),               annually from preventable medical                Szczerba believes the time is right for a
Rob Szczerba finds striking, and it’s one       a non-profit consortium of world-class           errors or infections, according to the           breakthrough.
example, he believes, of how technolo-          teaching hospitals and universities in the       HealthGrades 2007 report.                                “We now have a situation where
gies, practices, and capabilities from          Boston area, including Massachusetts                    Szczerba believes that the key            the industry’s business model is chang-
the aerospace industry (such as flight          General Hospital, Brigham and Women’s            to making meaningful progress lies in            ing to an approach where providers
simulators, smart displays, and systems         Hospital, Beth Israel Deaconess Medical          looking holistically at healthcare sys-          are paid based on successful patient
integration laboratories) can be used to        Center, Harvard Medical School, the              tems and integrating data, people, and           outcomes. The result is that they have a
help save lives and reduce waste in the         Veteran’s Administration, Massachusetts          devices more effectively.                        much greater incentive to reduce costs
U.S. healthcare system.                         Institute of Technology, Boston                         Healthcare providers are start-           and waste while improving the quality
       Szczerba, a Lockheed Martin              University and several others.                   ing to recognize that fact, too, he says,        of care. And that represents a significant
senior fellow at Corporate Engineering &               CIMIT is donating space for an            but they simply haven’t had the right            opportunity for Lockheed Martin to
Technology, is the lead for the Systems         ICE STORM demonstration center,                  tools to model and analyze all of the            share its expertise.” ■
Biology Pathfinder effort, which is look-       which initially will model an intensive          complexities of care delivery and to ade-
                                                                                                                                                          For more information about the
ing at ways to apply traditional engineer-      care unit using a combination of simu-           quately test new concepts before they’re                 Corporate Engineering &
ing disciplines to the bioscience and           lated systems and actual medical equip-          introduced in a live environment.                        Technology ICE STORM Project,
healthcare domains. The endeavor is             ment. Eventually, the same techniques                   “The healthcare industry is in             contact communicator Thad Madden at
                                                                                                                                                   301-897-6833, thad.madden@lmco.com.
one of three strategic Pathfinder efforts       and technologies could be applied to             desperate need of integrating its com-




Virtual world representations allow modeling of various health care delivery environments. For example, at left is an intensive care unit with models of medical equipment, information
systems, and people, used to help reduce medical errors in the clinical environment. At right is a representation of multiple avatars, representing clinicians in an intensive care unit. The
avatars can be controlled by actual people or by artificial intelligence algorithms and allow development of new, efficient clinical workflows and contextual interactions between the different
entities. The virtual world is created using UltiSim, a Lockheed Martin product created by Global Training and Logistics.

                                                                                                                                                                                              3
Oil Spill
Continued from p. 1

       Another employee, Sandia
National Laboratories President Tom
Hunter, was one of five experts brought
together by U.S. Energy Secretary
Steven Chu in May to discuss ideas for
capping the deepwater well and contain-
ing the spill. Lockheed Martin manages
Sandia for the Department of Energy.
       The most hands-on role among
Lockheed Martin employees has
belonged to a group of about a dozen
SERAS team members. They deployed
to the Gulf in April along with two
Trace Atmospheric Gas Analyzer
(TAGA) mobile laboratories.
       The TAGA mobile labs, which               Leaving for the Gulf Coast in April from Youngstown Air Reserve Station in Ohio, the C-130 Hercules was deployed to perform a variety of
                                                 tasks, such as monitoring, mapping and dispersant spraying.
look like passenger buses except for
their markings, have been traversing             to many high-profile disasters in the 12        operating in the region, and its role was       demobilize and report on resources needed
roads along the Gulf Coast in Louisiana,         years that Lockheed Martin has had the          recently expanded to include water and          to fight wildfires, the system’s mission
Mississippi, Alabama, and Florida. Packed        contract, which until recently was the          sediment sampling.                              was expanded to encompass natural
with sophisticated collection and analyz-        Response, Engineering and Analytical                   Thus far, Miller reports, the TAGA       disasters and human-caused incidents,
ing equipment, they have been taking air         Contract, or REAC. The team was at the          labs have not detected high concen-             ranging from hurricanes and floods to
samples and looking for the presence of          World Trade Center site after the 9/11          trations of the compounds for which             disease outbreaks and biohazards.
volatile organic compounds or chemicals          attack, on the Gulf Coast after Hurricane       they’ve been searching, and that has                   The system, supported by a
associated with oil and oil dispersants.         Katrina, and at two sites where anthrax         helped ease at least one of the fears           35-person team in Denver, Colo., pro-
       The information is then incorpo-          was discovered in 2001.                         faced by local residents.                       cessed hundreds of requests for informa-
rated into digital maps that show the                   The team’s work during the cur-                 “I think that our presence in the        tion and support in the first weeks of the
location of each sample and details              rent disaster has been widely praised by        area has been reassuring in and of itself.      crisis and has continued to play a key
about when it was collected and what             officials, including EPA Administrator          Seeing the labs lets people know that the       role in getting resources to a wide range
was found. The results are posted daily          Lisa Jackson, who visited the TAGA labs         air is being actively monitored and their       of agencies.
on the EPA website.                              to see them in operation. Various other         safety concerns are being addressed,” he               “Our ROSS people aren’t on the
       “Primarily, our team has been             federal, state and local officials and legis-   says, noting that the team expects to be        ground in the Gulf, but their support of
going out in response to reports of              lators also have toured the labs to under-      in the area for an extended period.             the system from a distance helps ensure
odors,” says Miller, the program man-            stand their capabilities and function.                 Another Lockheed Martin program          that the resources are being managed
ager. “Our people have been working 12-                 In addition to collecting and ana-       that has a significant role in the emer-        efficiently and effectively,” says Lynn
to 17-hour days, depending on their role.”       lyzing samples on their own, the SERAS          gency response is the Resource Ordering         Singleton, director of Environmental
       The demanding job isn’t new to            team has helped facilitate the processing       and Status System (ROSS). Developed             Services at IS&GS.
the SERAS team, which has responded              of samples collected by other groups            originally to track status, order, mobilize,    See Oil Spill p. 6



Missiles                                         ment, they could endanger the civilian
                                                 population. In addition, EAPS has much
                                                 greater range than existing defenses.
Continued from p. 1
                                                        Thus far, EAPS has performed
DAGR (pronounced “dagger”), each                 successfully in lethality tests, and it is
of which is deployed from an aircraft            currently undergoing guidance testing in
— manned or unmanned — against                   preparation for live field tests.
targets on the ground or water. Another                 To put all of EAPS’ capability into
program, Extended Area Protection                such a small package, MFC engineers
and Survivability (EAPS), includes the           looked at advanced technologies and
Miniature Hit-to-Kill interceptor that           miniaturization techniques in a number
protects troops on the ground, but could         of industries, says Chris Murphy, MFC’s
be adapted as a strike weapon.                   business development manager for
                                                 Advanced Air Defense and EAPS.
EAPS                                                    “We have a unique group of engi-
                                                 neers here led by Dr. Wayne Schroeder
The smallest of the MFC’s diminutive             called the advanced systems design syn-
new munitions is the EAPS missile,               dicate, which is kind of like the Skunk
which is just over 2 feet long, a little         Works for missiles,” he says. “They             On the Extended Area Protection and Survivability (EAPS) program, a group of engineers
more than 1.5 inches in diameter, and            went out and looked at a lot of cellular        called the Advanced Systems Design Syndicate are shown in the laboratory used for
                                                                                                 simulating the properties of missile flight. In the bottom row, from left, are Joel Johnson,
weighs about 5 pounds. It’s currently            and mobile technology, along with some          Chris Rahnke, Ray Patel, David Tate, Aaron Cain and Bruce Lee. Middle row, from left, are
being developed under a U.S. Army                medical imaging photonics technology,           Michael Zamarron, Kurt Schuder, Alan Phillips, Wayne Schroeder, Hank Steadman, Allan
science and technology contract, along           and from that developed a proprietary           Baker, Ashley Taylor and Huan Le. Top row, from left, are Mike Worthey, John Banks, Scott
with a competing system.                         receiver for the missile.”                      Paynter, James Arnott and J. D. Thompson.

       EAPS is designed to replace                      While the current application for        Hellfire missile program, DAGR offers           celled, DAGR includes before-launch
1960’s technology for protecting ground          EAPS is force protection, Murphy says           many of Hellfire’s capabilities in a smaller,   lock-on capability. The MFC team
forces from rocket artillery and mortar          MFC and the Army are already look-              lower-cost package. It weighs about 30          believes that’s essential in minimiz-
fire. Currently, troops rely on high-cali-       ing at adapting the missile for adjacent        pounds, which is less than a third of           ing collateral damage, which is vital in
ber guns that fire hundreds of rounds in         purposes. With a modified seeker and            Hellfire’s weight, and is also about a third    urban combat.
the hope that a few will hit the incoming        installation of a warhead, the missile          of the cost. The rocket comes in a four-               Another differentiator for DAGR
rockets, artillery and mortars.                  could be deployed on a variety of air-          pack container that mounts on the same          is its guidance system. Unlike APKWS,
       EAPS, by contrast, is designed to         craft, provide platform protection, and         launchers used by Hellfire, and it employs      DAGR can adjust its course to hit offset
fire one round to defeat each incoming           even be carried by individual soldiers.         the same fire control system as Hellfire.       targets.
threat. It leverages technology and algo-                                                               “From a firing standpoint, it’s                 “With DAGR, the operator has
rithms developed for interceptors designed       DAGR                                            transparent to the operator whether it’s a      the ability to communicate direction to
to defeat larger missile threats, yet it packs                                                   DAGR or a Hellfire,” says Mike Dowty,           the rocket and shoot off-axis,” Dowty
up to 135 rounds into a single launcher.         Next up on the size scale is DAGR, a            MFC’s business development manager              explains. “The nose of the aircraft
       A huge benefit of the system is           2.75-inch diameter missile that is ideally      for DAGR.                                       doesn’t have to be pointed at the target,
that it eliminates collateral damage from        suited for helicopters, although it can                MFC began developing DAGR                which greatly increases the engagement
the hundreds of rounds that miss incom-          also be deployed on unmanned aerial             with internal funding in 2006. In con-          envelope.”
ing rounds during a saturation attack.           vehicles (UAVs) or fighter jets.                trast to the Army’s Advanced Precision                 Although DAGR has been fired
Those rounds all strike something                      Leveraging much of the technol-           Kill Weapons System (APKWS), which              from four different rotary-wing plat-
eventually, and in an urban environ-             ogy developed for the highly successful         has twice been competed and twice can-          forms and is 12-for-12 in flight tests, the

4
Healthy Competition
Employees walk for fitness with LM HealthWorks Corporate Challenge
Stephen Aiken got the fitness bug this        to walk more, and the Corporate                      And Aiken was certainly up for         Instead of riding the golf cart around
year, and it started with a program the       Challenge structure and team camaraderie       the challenge. He donned his pedometer       the plant, he started walking to the labs,
Corporation rolled out. In January, Aiken,    helped him to significantly increase           every morning and found ways to work         administrative buildings, machine shops
a laser research scientist at Missiles and    his activity level and commitment to           in thousands of extra steps. Before his      and receiving docks around the facility
Fire Control (MFC) in Orlando, Fla.,          exercise. “The combination of poten-           long daily commute, he awoke at 5 a.m.       – some 15 minutes apart.
signed up for Virgin HealthMiles (VHM),       tially winning prizes and helping out a        to exercise. When the Florida heat and             “When I do something, I really
a free physical tracking tool sponsored by    team was all it took for me to get more        humidity kicked in, he hopped on the         dive into it 100 percent,” Aiken said.
LM HealthWorks.                               active,” Aiken said.                           treadmill in his air-conditioned home.       See Health p. 6
       This spring, Aiken took involve-
ment in VHM one step further when he
joined the inaugural Lockheed Martin
Corporate Challenge and became a
leader of a team with six co-workers.
       In doing so, Aiken joined more
than 14,000 employees from across
the Corporation who signed up for the
Corporate Challenge, which was held
April 22 – May 20. Lockheed Martin
partners with VHM to offer a free
pedometer and physical activity tracking
tool for employees. Participants can use
the VHM website to monitor their prog-
ress and receive HealthMiles, which are
special points earned for doing a variety
of activities. The site also lets employees
manage health and fitness data in one
place, and offers articles and video on the
latest health and fitness topics.
       The Lockheed Martin Corporate
Challenge came along at just the right
time for Aiken. As with many people, he
had a strong desire to lose weight and to
get fit, but was struggling to find time to
exercise. When he heard about the pro-
gram, he enrolled online.
                                              Joining thousands of other Lockheed Martin employees, this team from Missiles and Fire Control in Orlando, Fla., competed in the
       Soon after, he found that simply       inaugural Corporate Challenge, an LM HealthWorks initiative that supported better health and included some friendly competition
wearing the pedometer motivated him           along the way. From left are Bryan Gundrum, Gordon Aiken, Karri Vasara (in front), Steve Aiken, Karen Kelleher and Joyce Kephart.



current procurement environment has                  But how does the warfighter know        Lockheed Martin Aeronautics for includ-      The weapon is based on the Paveway II
prevented it from landing a production        which weapon configuration to carry            ing it on the F-35 Joint Strike Fighter.     Enhanced Laser Guided Training Round
contract from the U.S. Department of          on a given sortie? Scorpion’s small size              Developed with internal fund-         (E-LGTR), which MFC supplies to the
Defense. More promising, Dowty says,          makes the question moot, says Chris            ing, Scorpion is capturing customer          Navy for use on fixed-wing aircraft.
are international customers.                  Rohe, strike weapons business develop-         attention on several fronts. The MFC                Because Scalpel deploys just like
      “There are a large number of            ment manager at MFC.                           team recently completed a successful         an E-LGTR, it can transition seam-
overseas customers who have requested                “You can load out approximately         drop demonstration, and it has landed        lessly into the Navy’s arsenal. Weighing
DAGR’s capabilities,” he says. “It’s          30 to 40 Scorpions on a Reaper UAV             a subcontract with General Atomics to        about 100 pounds, it can be used against
kind of the reverse of traditional pro-       (unmanned aerial vehicle), so you can          provide the munition for a system that       targets that don’t require the explosive
curement programs, which start out in         carry all of the various permutations          targets lightly armored moving vehicles.     force of a 500-pound laser-guided bomb.
the U.S. and are then made available to       you would need for a variety of situa-         Meanwhile, the Navy also is eying            Plus, at a fraction of the cost of an LGB,
overseas customers.”                          tions,” Rohe explains. “The weapon is          Scorpion as an option for use against        it eliminates the imbalance of using an
                                              effective against structures, personnel,       small craft in shallow water or even         expensive weapon to take out a low-
Scorpion                                      lightly armored vehicles, trucks, cars,        pirate vessels.                              value target.
                                              missile launchers, and artillery or gun                                                            The Navy recently informed MFC
In addition to small missiles, MFC is         positions.”                                    Scalpel                                      that it intended to purchase six Scalpels
also developing lightweight guided                   Scorpion, which can be deployed                                                      for testing over the next year. “The
munitions, one of which is Scorpion.          from existing tube launchers as well as the    Like Scorpion and DAGR, Scalpel is           really nice thing about Scalpel is that we
       Weighing less than 30 pounds and       launch system used by Hellfire, was envi-      an excellent example of how MFC has          already have a production line in place
with a diameter of 4.25 inches, Scorpion      sioned initially for use on unmanned plat-     taken existing weapons technology and        that can be modified quickly to produce
is a glide weapon that uses many off-the-     forms, but planning is now underway with       adapted it to meet new requirements.         the weapon as soon as we get a con-
shelf components to provide affordability                                                                                                 tract,” says MFC’s Farrow.
and a wide range of configuration options.                                                                                                       Each of the smaller weapons being
       In its most basic form, it has a                                                                                                   developed by MFC has specific advan-
semi-active laser guidance system,                                                                                                        tages and attributes, but they all address
which directs the weapon to a target                                                                                                      customers’ need for munitions designed to
that has been designated by the aircraft                                                                                                  meet the emerging set of irregular threats.
operator or troops on the ground. The                                                                                                            “We’re not talking about sophis-
weapon can also be configured with                                                                                                        ticated new technology,” Farrow says.
imaging infrared or millimeter wave                                                                                                       “For the most part, we’re taking exist-
seekers, which allow it to operate in                                                                                                     ing technologies and applying them in
adverse weather conditions.                                                                                                               new ways to give our warfighters the
       The seekers make Scorpion                                                                                                          weapons they need to defeat today’s
accurate to within one meter, which,                                                                                                      challenges.” ■
along with a range of warhead options,
greatly reduces collateral damage to                                                                                                               For more information about the
civilians, residences and public build-                                                                                                            Extended Area Protection and
ings that enemy combatants often use as                                                                                                            Survivability system, contact Chris
                                                                                                                                           Murphy at 972-207-6508, chris.murphy@
shields. Warheads can weigh 10 to 17
                                                                                                                                           lmco.com; about Scorpion and Scalpel,
pounds and can be designed to explode                                                                                                      contact Steve Farrow at 407-356-3740,
at various heights above the target or to     Scalpel is a precise, small-weapon system based on the Paveway II Enhanced Laser             steve.farrow@lmco.com; and about DAGR,
                                              Guided Training Round, which is supplied to the U.S. Navy for use on fixed-wing aircraft.
penetrate structures and explode inside,      Weighing about 100 pounds, Scalpel can be used against targets that don’t require the
                                                                                                                                           contact Mike Dowty at 407-356-3831,
                                                                                                                                           mike.dowty@lmco.com.
depending on the nature of the target.        explosive force of a 500-pound laser-guided bomb


                                                                                                                                                                                     5
 CAREER PATH



Entrepreneurial Instinct
Varied experiences prepare Space Systems manager for challenges
When the Obama Administration proposed a NASA
budget in February that would have canceled develop-
ment of the Orion crew exploration vehicle, program
team members at Lockheed Martin Space Systems
were faced with a difficult question: What next?
        For the team’s business operations director, Buck
McKeon, the answers could be found in diverse career
experiences in industries ranging from western cloth-
ing to home furnishings.
        “My entrepreneurial side said, ‘Wait a minute,
there’s an opportunity here,’” McKeon says. “There are
many missions that Orion can do, and our affordability
initiatives will help us keep the program sold.”
        His instinct was right. Within two months, a
new future for the program had already taken shape.
President Obama announced that Orion would con-
tinue, at the very least, as an escape vehicle for crew
members from the International Space Station.
        McKeon believes other potential missions will
emerge as well. The key, his experience tells him, will
be listening — to experts, to leaders and, most of all,
to customers. He’s a firm believer that the information
necessary to turn any difficult situation into a positive
outcome is available to those who are willing to ask
for it and use it.                                          Buck McKeon, business operations director on the Orion crew exploration vehicle program, is a firm believer that information
        That’s something McKeon first learned while         necessary to turn any difficult situation into a positive outcome is available to those willing to ask for it and use it.
growing up in Santa Clarita, Calif., where he got his
start in a family business that operated Western wear       with the Corporation,” McKeon says. “I felt it would                   “I always make sure to do my research and ask
retail stores. After earning his degree from Brigham        help me more with my career in the long run.”                   two or three specific questions that are relevant to the
Young University, he was hired as the controller of the            Again, his instinct proved right. After the FLDP         person’s experience,” he says.
company, which was facing severe financial difficulty.      stint, he rose to a finance manager position on the JSF                McKeon believes that having the courage to ask
        He developed a proposal that resulted in the        program, where he served as the integration interface           for help in situations not covered by one’s experience
assets being sold to a new corporate owner, which he        for multiple program and company leaders. He also               and knowledge is a key attribute for career success.
joined as a finance manager.                                earned an MBA from Duke University.                                    “I think it’s a mistake for managers to insulate
        From there he became involved in securing                  From there, he came to the Lockheed Martin cor-          themselves because they don’t want anybody poking
financing and managing new ventures for a variety           porate organization as a senior manager on the Mergers          and prodding about in their plans,” he says. “If things
of companies, all of which honed his entrepreneurial        and Acquisitions team. “That job taught me about the            go wrong, you’re left with only your own thoughts and
skills.                                                     industry and how to manage people who don’t work                ideas. It’s much better to get advice and feedback along
        “Many of the situations I was involved with         for you,” says McKeon, whose next step was the key              the way.”
early in my career were with companies undergoing           role he now holds on the Orion program.                                That approach has been especially important dur-
major changes, whether they were starting new opera-               Throughout his career progression, he has taken          ing the recent developments on the Orion program, as the
tions or in distressed situations,” McKeon says. “My        a methodical approach to reaching his goal, which is            team has defined a path forward that leverages the value
early experiences helped me recognize and respond to        to be the chief financial officer for one of Lockheed           of the excellent development work performed to date.
threats and opportunities. That’s something that contin-    Martin’s business areas.                                               In many ways, the course that lies ahead for the
ues to be relevant in my job today.”                               “At the point that I realized what my goal was, I        program is like the one taken by McKeon for his career.
        He came to Lockheed Martin in 2002 as a cost        set up a spreadsheet with the different paths for getting              “First, develop a clear plan and learn as much as
analyst on the Joint Strike Fighter program, and his        there,” he says. “It has a timeframe for taking up different    you can,” he says. “Second, work though the different
responsibilities grew quickly. Soon he was offered a        responsibilities — not title oriented but scope oriented —      options to get there. And, third, be open to changes. It
significant promotion within the program, but he chose      and the skills and attributes I need for each step. I then go   may be that an opportunity arises you didn’t see when
instead to enter the Financial Leadership Development       out and look for opportunities to develop those.”               you started. ■
Program (FLDP).                                                    An important part of the process, he adds, has
        “The promotion would have helped financially,       been seeking advice from leaders. He has found that
                                                                                                                                    Buck McKeon can be contacted at buck.mckeon@
especially since we were raising four kids, but the         many leaders are willing to share their thoughts if                     lmco.com.
FLDP offered to give me more breadth of experience          they’re asked. But be sure you’re prepared, he says.



Health                                       reviewing the standings of close com-
                                             petitors, and watching teams across
                                                                                                  As for Aiken, he still wears his
                                                                                            pedometer, going for early-morning
                                                                                                                                            Oil Spill
Continued from p. 5                          the company move up or down in the             runs and logging HealthMiles every              Continued from p. 4
                                             rankings. “The VHM website is a good           day. He bought a heart rate monitor
“When I decided to be a team captain, I      source of physical fitness information,        through the HealthMiles program and                   Yet another group of IS&GS
felt motivated to be a leader.”              activity planning and training ideas,          believes he is well on his way to better       employees, he adds, are compiling and
       He encouraged co-workers to           and a place to monitor your individual         health. He also purchased a pedometer          protecting the huge volume of e-mail
enroll, get their free pedometers and join   progress,” Aiken said.                         and monitor for his wife. Even his son         messages associated with the disaster
the challenge team. He motivated team               Aiken’s Phat Cobra team stayed          is impressed that his dad is starting to       response, which could be helpful as the
members weekly, at first urging them         in the top 10 during the entire challenge,     work out again.                                catastrophic oil spill is investigated, liti-
to walk 7,000 steps a day, then 12,000.      coming in eighth out of 745 teams. Aiken             Aiken is now participating in chal-      gated, and analyzed for lessons learned.
Some even reached 20,000 steps. He           came in 400th out of 14,000 people.            lenges with his entire family and even                “Our people are attentive to our
also sent motivational e-mail messages              Overall, employees accumu-              his boss. “Now that I’m here, I don’t          customers’ needs 365 days a year,”
like “Keep on keeping on.” When a            lated nearly 20 million HealthMiles in         want to go backward. I’ve lost weight          Singleton says. “But disasters like the
“HealthMiles up for grabs!” promotion        the first Lockheed Martin Corporate            and feel better,” he says.                     Gulf oil spill require an even greater
appeared on the challenge site, he urged     Challenge. Any player who earned 1,500               Would he do the next Corporate           level of commitment. We’re proud to be
teammates to get the extra points by         HealthMiles or more was entered into           Challenge? “Absolutely.” ■                     able to serve the nation during this criti-
entering their measurements and logging      a raffle drawing, and the number of                                                           cal time.” ■
activities in their activity journals.       HealthMiles individuals earned was used                 Join the employees enrolled in VHM
       Aiken found that visiting the         to determine the tier they reached for
                                                                                                     at www.virginhealthmiles.com/
                                                                                                     lockheedmartin and sign up to                 For more information about IS&GS
challenge website made it fun – watch-       prize eligibility. In the end, 125 partici-     receive a free pedometer. You can                     assistance during the Gulf oil spill
ing tracking logs to see the number          pants were randomly chosen to win prizes        participate any time, and create your own             crisis, contact Lynn Singleton at
of steps his team members achieved,          such as WiiFit Bundles and Apple iPods.         personal challenge or recruit co-workers.      301-519-5837, lynn.r.singleton@lmco.com.



6
 ETHICS AND BUSINESS CONDUCT



Pressure Points                                                                             a written reprimand, were required to
                                                                                            complete the labor charging compli-
                                                                                            ance training course, and were reminded
                                                                                                                                         Resolution and Lessons Learned
                                                                                                                                         The customer was informed of the prob-
                                                                                                                                         lem and the company replaced the mem-
Ethics cases highlight work-related stresses                                                that budget pressure does not justify        ory chips in the deployed computers.
                                                                                            mischarging. The employee who raised         Although the procurement employee did
Lockheed Martin employees can con-             manager sent an e-mail instructing           the issue was commended for doing the        not intentionally substitute a product, he
tact the Office of Ethics and Business         employees to charge their overhead           right thing and speaking up.                 was counseled on the need to pay closer
Conduct to allege wrongdoing or to             tasks directly to contracts. The man-                                                     attention to product specifications and
request guidance on ethical issues.            ager explained that he was following         Case Issues: Schedule                        ensure contractual requirements are met.
Following are summaries of case inves-         the labor charging practices used at a       Pressure, Procurement,                       The employee explained that he felt
tigations wherein pressure to deliver          previous employer. Several employees         Product Substitution                         rushed to procure the computers based
results was a significant factor.              interviewed stated that they had told the                                                 on the aggressive delivery schedules;
        “We all have to perform to dead-       manager that charging indirect labor as      Background                                   he was counseled that this was not an
lines, budgets and deliverables – all are      direct would be mischarging. The man-        An employee allegedly procured com-          acceptable excuse.
critical to our success and some can           ager replied, “Don’t worry about it.”        puters with insufficient internal memory
be more challenging than others,” said                Also, the manager continually         that did not meet contractual require-       Case Issues: Schedule
Alice Eldridge, vice president, Ethics and     put pressure on employees to limit the       ments. These computers were then             Pressure, Procurement,
Business Conduct. “Our company value           amount of overhead expenditures, such        deployed to customer sites.                  Software Licensing
of ‘perform with excellence’ means we          as travel costs. However, when he was
set and strive to achieve high performance     on travel, the manager stayed in hotels      Issue                                        Background
standards. At the same time, pressure          that were double the per diem amount         Did the employee create a product sub-       An employee alleged that an engineer
to deliver results is never an acceptable      for that location.                           stitution issue?                             violated a software licensing agreement
excuse to cut corners or to treat our fellow          Lastly, employees interviewed                                                      by using a trial version of the software
employees disrespectfully.                     stated that the manager frequently yelled,   Investigation Findings                       on actual engineering work.
       “Remember our other two com-            was rude, talked down to them with others    Program management for a contract
pany values – ‘do what’s right’ and            present, did not listen, and blamed others   was being pressured by the customer to       Issue
‘respect others.’ Work-related pressure        for his own poor decisions.                  meet delivery schedules for a system that    Did the engineer violate procurement rules
will never totally go away, but how we                                                      included a network of computers. The         and the software licensing agreement?
deal with it reflects our character and        Resolution and Lessons Learned               contract specified the memory required for
our culture,” Eldridge said.                   The manager was responsible for              these computers. Program management          Investigation Findings
       Eldridge added that employees           directing employees to mischarge their       emphasized to procurement the urgency of     The engineer was assigned to a pro-
who are overly stressed should seek            overhead labor and did not exhibit the       this need, and was pressuring a procure-     gram that had an urgent need for a
assistance from their management,              behaviors of a full spectrum leader. The     ment employee to expedite delivery.          certain software package in order to
human resources, or the Employee               manager’s employment was terminated.                The employee placed the order         meet schedule milestones. The engineer
Assistance Program.                            Incorrectly charged labor was applied to     with a vendor, not noticing that the         bypassed the procurement organiza-
       The following cases involve alle-       the correct overhead accounts, the cus-      amount of memory specified by the            tion and contacted a vendor directly,
gations that were at least partially attrib-   tomer was reimbursed for the mischarged      vendor was half of what was required         requesting a trial version of the software
utable to program pressures.                   amount, and the Inspector General was        contractually. The computers were deliv-     and promising that the company would
                                               notified in accordance with the Federal      ered and installed at the customer sites     eventually purchase the software from
Case Issues: Overhead                          Acquisition Regulation requirement.          with the insufficient memory capability.     them. The vendor provided the trial ver-
Budgets, Charging Practices,                          Employees who followed the man-       Software engineers noticed the discrep-      sion to the engineer, who then used the
Interpersonal Skills                           ager’s direction to mischarge received       ancy and notified their management.          See Ethics p. 8

Background
A department manager allegedly
directed employees to charge their indi-
                                                 Chairman’s Ethics Award To Be Added To NOVA Program
rect labor directly to contracts. Also, the       With the Chairman’s Award approaching its 10th anni-             says Alice Eldridge, the Corporation’s vice president of
manager allegedly yelled at and publicly          versary, the annual recognition is now being added to the        Ethics and Business Conduct. “The 10th anniversary of
embarrassed department employees.                 Corporation’s NOVA Awards program.                               this award is the perfect time to make the transition.”
                                                         Called the Chairman’s Ethics Award, it honors a                 The NOVA awards are the Corporation’s highest
Issues                                            Lockheed Martin employee for extraordinary actions or behav-     honor and are presented annually to individuals and teams
Did mischarging occur? Was the man-               ior that exemplify the Corporation’s commitment to “setting      for achievement. ■
ager’s behavior inappropriate?                    the standard” for ethical business conduct and integrity.
                                                                                                                          For more information on the Chairman’s Ethics Award,
                                                         “The award will retain the same level of significance,           contact Tara Mancinelli, tara.mancinelli@lmco.com.
Investigation Findings                            and with enhanced visibility at the annual NOVA event,”
The department was close to over-
running its overhead budget, and the



   Lockheed Martin F-35 Navy Jet Confirms Carrier-Landing Strength Predictions
                                                                                                                  A Lockheed Martin F-35C Lightning II carrier variant
                                                                                                                  successfully completed testing in which it was dropped
                                                                                                                  from heights of more than 11 feet during a series of
                                                                                                                  simulated aircraft-carrier landings that concluded in June.
                                                                                                                  The tests validated predictions and will help confirm the
                                                                                                                  F-35C’s structural integrity for carrier operations. The
                                                                                                                  photo shows the jet, a ground-test article known as CG-1,
                                                                                                                  undergoing drop testing at Vought Aircraft Industries in
                                                                                                                  Grand Prairie, Texas. No load exceedances or structural
                                                                                                                  issues were found at any of the drop conditions, and all
                                                                                                                  drops were conducted at the maximum carrier landing
                                                                                                                  weight. The tests were used to mimic the wide range of
                                                                                                                  landing conditions expected in the fleet. Three F-35 variants
                                                                                                                  are under development – the F-35A CTOL variant to
                                                                                                                  replace U.S. Air Force F-16s and A-10s, as well as aircraft
                                                                                                                  employed by seven allied nations; the F-35B STOVL
                                                                                                                  variant to replace U.S. Marine Corps AV-8B Harriers and
                                                                                                                  F/A-18s, U.K. Royal Air Force and Royal Navy Harrier
                                                                                                                  GR.7s, GR.9s and Sea Harriers, and Italian Harriers; and
                                                                                                                  the F-35C carrier variant to replace U.S. Navy F/A-18s.
                                                                                                                  (Photo courtesy of Vought Aircraft Industries, Inc.)




                                                                                                                                                                                  7
    First C-130J Super Hercules For India Near Completion
    At left, the first three C-130J Super Hercules for India take the final positions on Lockheed Martin’s assembly line at Marietta, Ga., in June. Inset, the first C-130J
    completes painting. The aircraft now enters flight test in preparation for delivery at the end of the year. The program for India includes six C-130Js, training
    of aircrew and maintenance technicians, spare parts, and ground support and test equipment. Also included is India-unique operational equipment designed to
    increase Special Operations capabilities.



Ethics                                                              established routines in requesting the
                                                                    tool enhancement and that the additional
                                                                                                                                       er’s “driver” personality. Occasional fric-
                                                                                                                                       tion between the manufacturing manager
                                                                                                                                                                                                              both organizations needed to make a
                                                                                                                                                                                                              concerted effort to better work together.
Continued from p. 7                                                 effort on the tool threatened his program                          and engineers assigned to the engineering                              Senior management from manufactur-
                                                                    budget, became angry and verbally                                  manager led to deterioration in the rela-                              ing and engineering met with human
software to complete various engineer-                              berated the engineering employee in                                tionship between the two organizations.                                resources to develop an action plan
ing tasks.                                                          front of many witnesses.                                                  Manufacturing employees                                         to improve the working relationship
      Using a trial version of the soft-                                                                                               believed that the engineers didn’t value                               between the two organizations.
ware in this manner was a violation of                              Resolution and Lessons Learned                                     their input because some manufactur-                                         Actions taken included mentoring
the software licensing agreement. The                               Although the engineering employee did                              ing employees didn’t have a college                                    and counseling the manufacturing and
engineer’s management did not real-                                 not follow procedure in requesting the                             education. Conversely, the engineers                                   engineering managers, team-building
ize that the software was not procured                              tool modification, the operations man-                             believed that manufacturing employees                                  exercises, skip-level meetings to discuss
according to established processes and                              ager did not respond appropriately to                              did not value the engineers’ contribu-                                 issues, and increased communications
thought that the version being used on                              the situation. The manager received a                              tion to the overall process and wouldn’t                               between the two organizations. ■
the program was purchased properly.                                 written reprimand for his behavior and                             listen to them because they were not the
                                                                    was counseled on anger management                                  ones building the product. The signifi-
Resolution and Lessons Learned                                      techniques to avoid similar outbursts in                           cant program pressures exacerbated an                                        Employees who observe miscon-
The engineer was suspended without                                  the future. The engineer was counseled                             already difficult working relationship                                       duct should report the situation
pay, received a written reprimand, and                              on following applicable procedures.                                between the two organizations.                                               to their management, Human
was counseled on the use of proper pro-                                                                                                                                                                             Resources or local Ethics officer.
curement practices. All employees are                               Case Issue: Program                                                Resolution and Lessons Learned                                               They can also call the Corporate
reminded that schedule pressure is not a                            Pressures, Respect                                                 Although the investigation identified no                                     HelpLine at 800-LM-ETHIC.
valid reason to break the rules.                                                                                                       inappropriate behavior, it was clear that
                                                                    Background
Case Issue: Program                                                 A manufacturing manager alleged that an
Budgets, Interpersonal                                              engineering manager was not treating his
Skills                                                              organization with dignity and respect.                             Lockheed Martin Corporation, Volume 16, Number 7
                                                                                                                                       Published for employees by Lockheed Martin Corporate Communications. Lockheed Martin Today archives are
Background                                                          Issue                                                              available on the Lockheed Martin Intranet at http://pageone.global.lmco.com/pageone/. The award-winning
A manager allegedly verbally abused an                              Did the engineering manager behave                                 Lockheed Martin Today is printed on recycled paper using soy-based inks and is recyclable. For permission to

employee.                                                           appropriately?                                                     reprint or excerpt material, contact mona.coan@lmco.com.
                                                                                                                                       To subscribe, change your mailing address or obtain additional copies of this publication,
                                                                                                                                       e-mail your request to: today@lmdistribute.com.
Issue                                                               Investigation Findings
                                                                                                                                       Corporate Communications:
Did the manager behave inappropri-                                  The manufacturing manager and engi-                                Ron Rand, senior vice president, Corporate Communications
ately?                                                              neering manager both supported a pro-                              Dave Waller, acting vice president, Enterprise Communications

                                                                    gram that was being threatened with                                Editor: Mona Coan

Investigation Findings                                              cancellation by the customer due to cost                           Design/Art Direction: Spark Design – Silver Spring, MD

An engineering employee had asked an                                and schedule issues. Employees on the                              Special Reporter: Rick Sauder

operations employee to make a modi-                                 program were under extreme pressure to                             Contributors: Dean Acosta, Cheryl Amerine, DJ Gaskin, John Kent, Thad Madden, Erin Mantz, Brian Sears,
fication to a tool to increase efficiency                           deliver results. The manufacturing man-                            Peter Simmons, Linda Singleton, Lynn Singleton, Matt Swibel, Craig Vanbebber

of an operation. The tool was modified                              ager had a reputation as a “driver” and                            Photography/art: Eric Burns, Dean Dorman, Jon Hammerstein, Ed Hendricks, John Rossino, Dan Rude

and worked effectively. The engineering                             consistently pushed to meet program                                Web Editorial Assistant: Cheryl Worden

employee, wanting to show appreciation,                             commitments, which manufacturing
went to the operations employee’s man-                              employees respected.                                                                  30%


ager to thank his staff for the assistance.                               The engineering manager had                                                               Lockheed Martin Today is printed on ArborWeb Gloss text, an environmentally

The operations manager, unhappy that                                a more laid-back style that contrasted                                                          friendly web paper formulated with 30% postconsumer recycled fiber and featuring
                                                                                                                                                                    chain of custody certifications from the Forest Stewardship Council (FSC).
the engineering employee did not follow                             sharply with the manufacturing manag-
                                                                                                                                          Cert no. SW-COC-002262




Lockheed Martin Today may contain forward-looking statements relating to projected future financial performance that are con-          events, changed circumstances or changes in the Corporation's expectations. In addition, some or all of the following factors could
sidered forward-looking statements under the federal securities laws. These statements are not guarantees of the Corporation's         affect the Corporation's forward-looking statements: the ability to obtain or the timing of obtaining future government awards; the
future performance as actual results may vary depending on a multitude of factors. Investors should review the Corporation’s filings   availability of government funding and customer requirements both domestically and internationally; changes in government or
regarding risks and uncertainties associated with Lockheed Martin's business. Refer to the Corporation’s SEC filings, including the    customer priorities due to program reviews or revisions to strategic objectives; difficulties in developing and producing operationally
"Management's Discussion and Analysis of Results of Operations and Financial Condition," "Risk Factors and Forward-Looking             advanced technology systems; the competitive environment; economic, business and political conditions domestically and interna-
Statements" and “Legal Proceedings” sections of the Corporation’s most recent annual report on Form 10-K and 2010 quarterly            tionally; program performance; the timing and customer acceptance of product deliveries; performance issues with key suppliers
reports on Form 10-Q, copies of which may be obtained at the Corporation's Web site http://www.lockheedmartin.com or the SEC’s         and subcontractors; and the Corporation's ability to achieve or realize savings for its customers or itself through its cost-cutting pro-
site at www.sec.gov. The Corporation expressly disclaims a duty to provide updates to forward-looking statements, and the esti-        gram and other financial management programs. These are only some of the numerous factors that may affect the forward-looking
mates and assumptions associated with them, after the date of this Lockheed Martin Today to reflect the occurrence of subsequent       statements contained in Lockheed Martin Today.



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