Doing Business With The U.S. Government
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1 Doing Business With The U.S. Government A Prime Contractor s Perspective on Selling to the Government & Partnering Opportunities for Canadian Companies Ronald T. Covais President, The Americas Lockheed Martin Corp. Partnerships Make A World Of Of Difference
2 Lockheed Martin Who We Are 125,000 Employees 50,000 Scientists and Engineers 20,000 Software and Systems Engineers 6 Software Maturity Level-5 5 Companies Recognized as an Employer of Choice $26.6B in Sales $70B in Backlog Presence in 50 States and 53 Countries One Company, One Team 2
3 Lockheed Martin What We Do Execute Complex Projects Of High Visibility and Critical Importance With Advanced Technology and Systems Integration Skills Involving Multiple Organizations and Partners For Our Government Customers Serving the Vital Interests of of Our Customers At At Their Defining Moments 3
4 2002 Sales by Business Area Technology Services $3.1B Systems Integration $9.6B 36% 12% 24% Aeronautics $6.5B 28% Space Systems $7.4B Total Sales -- $26.6B 4
5 2002 Sales by Customer Commercial Domestic $1.0B Department of Defense $15.2B 57% 4% 23% US Government NASA/Other $6.1B 16% International $4.3B Total Sales -- $26.6B, 94% to to Governments 5
6 Lockheed Martin Who We Serve Departments of: Defense Commerce Energy Health & Human Services Housing & Urban Development Justice State Transportation Homeland Security NASA Social Security Administration U.S. Postal Service Foreign Governments 6
7 A Global Presence Annual International Sales of $3-6B Over 300 Partnerships Global Products for Global Markets 7
8 Lockheed Martin Canada 8
9 Lockheed Martin Canada Company Profile Head Office is Located in Kanata: With facilities in Halifax, Gagetown, Valcartier, Montréal, Petawawa, Wainwright, Victoria and Denver Lockheed Martin Canada Is a Systems Integrator and In-service Support Organization for DND & Selected Customers President and Chief Executive Officer: Dan Spoor Employs Over 500 People Across Canada Providing Technology Solutions to to Canada s Armed Forces since
10 Lockheed Martin Canada Heritage Business formed through acquisition & merger of 11 Canadian Companies from 1988 to 1996 Portal for Lockheed Martin Corporation into Canada Structured for supporting growth in: Canadian Defence Export markets Homeland Security WAINWRIGHT, Alberta VALCARTIER, Québec PETAWAWA, VICTORIA, Ontario British Columbia GAGETOWN, New Brunswick HALIFAX, Nova Scotia MONTRÉAL, Québec KANATA, Ontario 10
11 Lockheed Martin Canada Heritage Over 60 Years Serving the Country s Needs (1956) General Electric Canada (1985) GE Aerospace Canada 1 (1988) Martin Marietta Canada Ltd. (1996) Lockheed Martin Canada (1939) Lockheed Canada 1 (1986) Sanders Canada 1 (1986) MEL Defence Systems Ltd. (1976) Sperry Canada 1 (1983) Paramax Electronics 1 (1986) Unisys Canada (1995) Loral Defence (1994) Systems Unisys GSG 1 Started as IRB offset with technology transfer for major Crown project
12 Point of Access to American Technology Interoperable Maritime Helo (Owego) ESM (Owego) TBMCS (Colorado Springs) ASOC (Eagan) Census (Gaithersburg) Customs Modernization (Gaithersburg) Sonar (Syracuse) Access to Best Technology 12
13 Afloat Logistics and Sealift Capability (ALSC) LM Canada Led Canadian Industrial Team Approach Irving / Davie GDC Captured the Best of Canadian Technology and Capability Build on CPF success Government Recognized Benefit of CIT Approach Original program larger than MHP Future of Program is Unclear but Effort Thus Far Prove That Canada Has Enormous Capability and Willingness to Work Together ALSC is is a Prime Example of of How Industrial Competitors Can Can Work Together to to Address Operational Requirements 13
14 MHP LM Is the Only Potential Canadian Prime Jobs Investment Opportunity LM Has the Ability to Open Doors to US Based Programs STAR program LM Has Demonstrated Its Commitment to Atlantic Canada Membertou Northstar Network On-going discussion with dozens of Atlantic based companies Making introductions to LM US companies Northstar NorthstarTechnical TechnicalOriginally OriginallySigned SignedAs Asan anmhp MHPTeammate Teammate Now NowaaKey KeyPartner Partneron onlm LMCanada CanadaSonar SonarProgram Programfor forthe theus USNavy Navy 14
15 Gateway to US Defence Market LM Recognizes the Capability of Canadian Industry Industry Day (Halifax) Spring 2002 Identified opportunity for MHP, JSF & Missiles and Fire Control Nova Crystal identified as potential contractor MHP specific industry days planned for Atlantic and Western Canada (Dates TBD) Easy to Do Business With Canada CCC & EDC Highly competitive - price, quality, delivery Sustained investment Highly skilled workforce Internationally respected regulatory framework Canadian Industry Has the Right Attitude All it asks for is a chance to compete Results on JSF speak for themselves Qualified Companies Can Can Be Be Identified As As Preferred Suppliers Under the the LM LM STAR Program 15
16 F-35 Joint Strike Fighter Multinational Program Emphasizing Design-to to-cost Principles Cost as an Independent Variable (CAIV) Cost is Equal To Performance in Design Process Qualification based on Best Value Represent Cost Advantage to Program Competition Based JSF Canada Database Summary: Over 23 Contract Awards Spread Over 10+ Canadian Companies Over 160 Specific Opportunities Identified More Than 60 Near Term (2003) Opportunities Canada is is Leading All All International Partners in in Identification of of Possibilities, Pursuit and Contract Wins 16
17 Deepwater 30 year modernization program for US Coast Guard Open Business Model ICGS will continuously review new technologies, capabilities, and opportunities in pursuit of providing the customer with the most cost effective system solutions, and will engage suppliers that can provide innovation in products and services to accomplish that goal Supplier Registration sources that provide innovative technologies, state-of of-the-art capabilities, and support improving Operational Effectiveness as well as reduced Total Ownership Costs to the customer JSF Experience Proves Canadian Industry s Ability to to Work on on Major US Programs 17
18 Approach to Markets Address Needs of National Level Customers Establish Long-Term Presence in Key Markets Earn the Trust of Customers as Proven Performers and Reliable Partners Develop Industrial Alliances for Growth Match Corporate Breadth with Customer Needs Strategy for 21st Century 18
19 Growth Markets Defense Government IT Homeland Security 19
20 What s Next? National Missile Defence CVX - New Fleet of Carriers UAVs Homeland Security Shuttle Replacement Program 20
21 Partnerships Make a World of Difference 21
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