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A11-36007_1 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation
Rob Weiss EVP and GM, Aeronautics Operations
Lockheed Martin
A11-36007_1 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation
A11-36007_2 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation
Supporting the Warfighter
We never forget who we’re working for TM
A11-36007_2 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation
A11-36007_3 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation
Getting the Job Done
• Most Capable, Best
Equipped & Supported
Military in the World
• DoD/Industry Meeting
Warfighter Expectations
• Opportunity to Improve
Ao and Reduce Costs Air
craf
t A
vaila
bili
ty P
erce
nt
Aircraft Availability
99 03 05 09 01 Fiscal Year
07
64
60
55
62
58
56
57
59
61
63
65
11
A11-36007_4 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation
Affordability Challenge
• Nation Entering
Uncharted Territory
• Competing Budget
Priorities
• New Focus Required To
Deliver Performance
and Quality
0%
20%
40%
60%
80%
100%
120%
1940 1950 1960 1970 1980 1990 2000 2010 2020
De
bt H
eld
by
th
e P
ub
lic a
s %
of
GD
P
CBO
Baseline
CBO
Alternative
Historical Projection
(Office of Management & Budget, Congressional Budget Office)
National Debt
(Center for Strategic & Budgetary Analysis)
$350
$400
$450
$500
$550
$600
2001 2005 2009 2013 2017 2021
Do
D B
as
e B
ud
ge
t, F
Y1
2 $
M
DoD FYDP & Projection
Initial Cuts (~$465M Cut)
“Trigger” (~$1B Cut)
Defense Budget Reductions
A11-36007_5 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation
Delivering More for Less
Continuing to Add Value to the Warfighter
USAF Fighter
Force Structure Reality • Aging Force Structure
• Increasing Maintenance
Requirements
• Must Maintain Readiness
with Reduced Budgets
1980 1990 2000 2010
25
20
15
10
5
0
Fig
hte
r A
ge
(Yea
rs)
A11-36007_6 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation
Culture of Continuous Affordability
• DoD/Industry Focused on
Cost Takeout
• Investing in Technologies
& Systems to Reduce Cost
• A Journey; Not a Destination
Year Over Year Improvements of Cost and Performance
A11-36007_7 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation
Successful Public / Private Partnering
• Performance Based
Relationships Delivering
Results
• Optimizing Performance
and Quality at Best Cost
• Leveraging the Best
That DoD / Industry
Has To Offer
A11-36007_7 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation
A11-36007_8 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation
Partnering – Moving Forward
• Align DoD/Industry
Competencies
• Conduct Fact-Based
Business Case
Assessments
• Overcome the
Resistance to Change
A11-36007_8 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation
A11-36007_9 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation
Supporting the Warfighter
We never forget who we’re working for TM
A11-36007_9 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation
A11-36007_10 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation