Lockheed Martin 2007 Annual Report Download - page 15

Global Sustainment
As part of each of our businesses, we provide a full range of logistics support, sustaining engineering, upgrade
modifications and services for our full line of aircraft, including the F-35 Lightning II, the F-22 Raptor, the F-16 Fighting
Falcon, the C-130 Hercules and the C-5 Galaxy airlifters, the P-3 Orion, the S-3 Viking, the F-117 Nighthawk and the U-2
Dragon Lady.
For the F-35 Lightning II SDD program, we have developed an Autonomic Logistics and Global Sustainment solution,
focused on performance-based logistics, to provide an affordable total air system life-cycle sustainment solution for the
aircraft’s multiple variants and worldwide customer base.
We will continue through mid-year 2008 to provide the U.S. Air Force with contractor-led support for the F-117
Nighthawk fleet through our Total System Sustainment Partnership. At that time, after a distinguished legacy that includes 26
years of operational service and over 250,000 flight hours accomplished, the F-117 fleet is planned to be retired. As winner
of the first DoD performance-based logistics award for systems-level support, we are growing that heritage with a program
for the sustainment of the F-22 called the Follow-On Agile Sustainment for the Raptor or FASTeR. Beginning in early 2008,
we will be responsible for integrating and accomplishing all sustainment activities for the F-22 as the Product Support
Integrator in partnership with the U.S. Air Force System Support Manager.
Under the Falcon 2020 program, we provide international F-16 operators with avionics and structural upgrade kits to
enable those customers to keep their fleets viable for the future.
We have developed an extensive service life extension program, including the planned production of new wings, for the
existing fleet of P-3 aircraft. The Royal Norwegian Air Force will be the first service life extension program customer,
having signed a contract to upgrade its P-3 fleet in February 2007. We believe there are additional opportunities to
implement this program with a number of domestic and international P-3 operators. We continue our nearly decade-long
support effort for the U.S. Navy’s fleet of S-3 Viking aircraft through the S-3 Prime Vendor Support contract, which will
continue until the Navy’s planned retirement of the fleet in 2009.
With regard to the C-130, we continue as a key member of a team, including Rolls Royce and Marshall Aerospace, that
was awarded the Hercules Integrated Operational Support (HIOS) contract for the long-term support of the United
Kingdom’s fleet of C-130 aircraft. In addition, we signed a partnering agreement in 2007 to provide long-term support for the
Italian C-130J fleet for a period of three years. We also offer center wing box modifications and avionics upgrades to
customers who fly legacy versions of the Super Hercules in addition to the support and partnerships provided to sustain our
newest tactical aircraft.
The U-2 has been the backbone of our nation’s airborne intelligence collection operations for several decades, and
continues to provide unmatched operational capabilities in support of Operation Enduring Freedom. As a result of the
Reconnaissance Avionics Maintainability Program upgrade, which includes state of the art cockpit displays and controls
along with other sensor modifications, the U-2 is expected to continue to provide leading-edge intelligence collection
capabilities for years to come.
Through our Sustainment Services organization, we offer “nose-to-tail” aircraft maintenance, modifications and
state-of-the-art upgrades, and provide the full range of depot services in addition to a full range of supply chain services.
Under our Integrated Prime Vendor contract with the Defense Logistics Agency, we provide parts to the U.S. Air Force’s
three Air Logistics Center depots.
Through Kelly Aviation Center, L.P., a joint venture with GE-Aviation and Rolls-Royce, we provide engine
maintenance, repair and overhaul and new engine assembly and testing for military and commercial customers.
Competition
We are a major worldwide competitor in combat aircraft, air mobility and military aircraft research and development.
Military aircraft are subject to a wide variety of U.S. Government controls (e.g., export restrictions, market access,
technology transfer, industrial cooperation and contracting practices). Although a variety of criteria determine the results of
different competitions, price is a major factor, as are past performance and customer confidence. Other critical factors are
technical capabilities, release of technology, prior purchase experience, financing and total cost of ownership.
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