Lockheed Martin Corporation
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1 Lockheed Martin Corporation Doing Business with Lockheed Martin October 26, 2012 Smart Proc Conference Frederick, MD. Ken Hilderbrand Manager, Supplier Diversity Lockheed Martin Aeronautics Company /28/2012 1
2 About Lockheed Martin 100,000 Employees Operations in 1,000 Facilities, 500 Cities, 50 States and 75 Countries Partners to Help Customers Meet Their Defining Moments 2 2
3 Aeronautics Electronic Systems Information Systems & Global Solutions Space Systems 3
4 2011 Sales by Customer Defense $28.2B 61% 22% Civil, NASA, Intelligence, Other $10.2B 17% International (Includes FMS, Direct and Commercial Export) $8.1B Air Force 25% Navy/USMC 20% Army 11% Other DoD 5% Total Sales - $46.5B 4
5 Our Customers Departments of Defense Homeland Security Commerce Energy Health & Human Services Housing & Urban Development Justice State Transportation NASA Social Security Administration Environmental Protection Agency U.S. Postal Service Intelligence Communities Foreign Governments We Never Forget Who We re Working For 5
6 New Business Realities in a Changing Marketplace Customers are requesting increased productivity and savings goals to support their increased resource constraints Focus on affordability to enhance performance, reduce costs and deliver optimum value Business will never be the same -- there is a new normal Greater Focus on Supply Chain Efficiency Opportunities 6
7 how: Do Your Homework Study our website and our programs: Identify a few target businesses or programs Register See link under Suppliers tab entitled Doing Business with Lockheed Martin Send a capabilities statement to: supplier.communications@lmco.com 7
8 Lockheed Martin s Procurement Outlook Opportunities exist, but will be very competitive Customers expect competition to ensure best value Concern when engaging new suppliers: RISK Financial stability Past, relevant performance Ability to be viable in the long term Suppliers need to think globally 8
9 Qualities We Look for in a New Supplier... Socio-economic status Past performance with federal customer Experience with Lockheed Martin or Prime Contractor Experience in one of our industries Quality certifications Security clearances Location Past participation in Mentor Protégé program Technology unique to their company, patented Differentiating factors Supplier of needed services 9
10 how: Utilize the SBLO Small Business Liaison Officer (SBLO) Your Point of Entry & Advocate A Business Partner Knows ALL key programs in their area Aware of requirements Integrated with BD & Contracts The SBLO wants to help but is not always the decision maker is the preferred initial contact method Do not send attachments Include your website Understand that the SBLO may need to refer you further Mind your business ethics gifts & gratuities, etc. 10
11 how: Make Initial Contact Present a brief, concise and clear capabilities statement -- The Elevator Speech Company profile and capabilities Small business classification Focus on your company s uniqueness & differentiators Past performance (quality & delivery) Share success stories Offer solutions to problems Every Business Professional Needs a Memorable Answer to the Question "What do you do?" Lorraine Howell, Author, Give Your Elevator Speech A Lift! 11
12 how: Use Business Card Sense FRONT OF CARD Supplier Name Address Web Address Phone number Socio-economic status Key descriptive words BACK OF CARD NAICS/descriptions DUNS & CAGE Code 12
13 how: Have Financials Ready Prime contractors will conduct financial review due diligence Recommendations: Have your financial information organized (sales, orders, assets, liens, number of employees, etc.) If there are notable concerns, call and explain the situation A DCAA approved or third party certified Accounting and Billing systems are important if you are pursuing a cost reimbursement type subcontract under a US Government prime contract 13
14 how: Understand Contracting Dynamics Lockheed Martin has a committed diverse small business base, but sources will change for sound business reasons Major Consideration: RISK! Past Performance Time in Business Financials Corporate Agreements Most primes utilize them Inquire if your product or services is on agreement If yes, when does it expire? Explore potential for value-add partnering with the existing contractor 14
15 how: Offer Innovative Solutions Value-added small business partners at same pricing as Large business Small-Small & Small-Large businesses teaming for competitiveness Small as prime with Large as subcontractor in restricted competitions 15
16 Resources and Tools Follow us on Twitter: Leverage tools on LockheedMartin.com What we buy listing Bulletin Board Events Calendar Coming soon: Supplier Wire A portal dedicated to small & diverse enterprises 16
17 Summary Think Global Embrace changing A&D environment Innovate to address affordability & production challenges Look for strategic partnership opportunities Master your approach Perform 17
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