Lockheed Martin 2007 Annual Report Download - page 22

The segment is heavily dependent on both military and civilian agencies of the U.S. Government as customers. In 2007,
U.S. Government customers accounted for approximately 94% of the segment’s net sales.
Satellites
Our Satellites business designs, develops, manufactures and integrates advanced technology satellite systems for
government and commercial applications. We are responsible for various classified systems and services in support of vital
national security systems.
The Space-Based Infrared System (SBIRS) program is providing the nation with enhanced worldwide missile detection
and tracking capabilities. The consolidated ground system, operational since 2001, processes data from the Defense Support
Program satellites and manages the satellite constellation. The ground system also provides the foundation to evolve mission
capabilities as SBIRS payloads and satellites are deployed. SBIRS is envisioned to operate with a total of four satellites in
geo-synchronous earth orbit and two sensors in highly-elliptical orbit (HEO) to increase mission capabilities for missile
warning, missile defense, technical intelligence and battlespace characterization. Our current contract includes two
geo-synchronous orbit spacecraft and two highly-elliptical orbit payloads. The first HEO payload is on-orbit and is exceeding
specifications following initial on-orbit checkout.
The Advanced Extremely High Frequency (AEHF) system is the DoD’s next generation of highly secure
communications satellites. The AEHF constellation is envisioned to include three networked satellites designed to provide
improved secure data throughput capability and coverage flexibility to regional and global military operations and to be
compatible with the Milstar I and II systems. The AEHF communication system includes the satellite constellation, mission
control segment and terminal development. We are under contract to build the three space vehicles and develop the ground
segment.
The Global Positioning System (GPS) is a space-based radio navigation and time distribution system. Its mission is to
provide precise, continuous, and all-weather three-dimensional position, velocity, timing and information to properly
equipped air, land, sea and space-based users. We are the prime contractor for the GPS IIR program, which includes 20
satellites that will improve navigation accuracy and provide longer autonomous satellite operation than current global
positioning satellites. In 2007, we delivered the eighth and final satellite in the modernized Block IIR production program to
the U.S. Air Force. We also successfully delivered in-orbit the fourth GPS Block IIR-M satellite in the series. The GPS
Block IIR-M satellites include new features that enhance operations and navigation signal performance for military and
civilian GPS users around the globe.
In 2007, we continued to perform work in preparation for the GPS III program. GPS III is intended to deliver major
improvements in accuracy, assured service delivery, integrity, and flexibility for military and civil users. We have assessed
mission needs and requirements, and developed innovative architecture recommendations, culminating in a successful
systems design review and subsequent proposal submittal in August 2007. The U.S. Air Force is expected to award a multi-
billion dollar development contract to a single contractor in 2008.
We also continued to conduct risk reduction and system trade studies supporting the U.S. Air Force’s Transformational
Satellite program. The program represents the next step toward transitioning the DoD wideband and protected
communications satellite architecture into a single network comprised of multiple satellite, ground and user segment
components. The system is being designed to network mobile warfighters, sensors, weapons, and communications command
and control nodes located on the ground, in the air, at sea or in space. We executed a successful space segment design review
and subsequently submitted our proposal in July 2007. The U.S. Air Force is expected to award a multi-billion dollar
development contract to a single contractor in 2008.
The Mobile User Objective System (MUOS) is a next-generation narrowband tactical satellite communications system
for the U.S. Navy that is envisioned to provide significantly improved and assured communications for the mobile
warfighter. MUOS is planned to replace the current narrowband tactical satellite communications system known as the Ultra
High Frequency Follow-On (UFO) system. The MUOS satellites are designed to be compatible with the existing UFO
system and associated legacy terminals and provide increased military communications availability. The program calls for
the delivery of five satellites, and operational turnover of the first MUOS satellite is planned for 2010.
We produce exploration spacecraft such as the Mars Reconnaissance Orbiter and Mars Phoenix Lander, as well as earth-
orbiting satellites and sensors for Earth observation and environmental monitoring. Our Satellite business also designs,
builds, markets and operates turnkey commercial satellite systems for space-based telecommunications and other
applications. In 2007, we delivered four commercial satellites and were awarded one new commercial satellite contract.
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