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Lockheed Martin Moves Acquisition Reform Forward

Fort Worth, Texas, September 22nd, 1999 -- With the increased emphasis of military aircraft customers on affordability, doing more for less has become a driving force for Lockheed Martin Tactical Aircraft Systems in Fort Worth, Texas.

To that end, the Joint Management Council (JMC) was formed at the company in 1996 as a partnership between Tactical Aircraft Systems and its government customers, promoting acquisition reform with an initial emphasis on the Single Process Initiative (SPI).

SPI is a Department of Defense program that enables contractors to replace outdated Military Specifications and Standards with less costly company or commercial ones. In 1999, the JMC has approved nine SPIs worth $14 million in combined savings and cost avoidance at Tactical Aircraft Systems. Highlights were:

* Alternate Method for Subcontractor Certifications. This deals with how Procurement certifies that Lockheed Martin subcontractors meet the Federal Acquisition Requirements in such areas as Clean Air & Water and Toxic Chemical Release Reporting. Previously, subcontractors were required to submit separate formal certificates of compliance. These certificates were placed in a Purchase Order folder until required for audit purposes, adding no value to the product purchased. The new lean process no longer requires separate certification, making the job easier and less complicated.
* Performance Based Technical Data Package Requirements. Technical Data Packages (TDP) are the source data used to support a wide range of outputs from Product Engineering. With performance based TDP, a number of military and industry standards traditionally imposed as "how-to" requirements are eliminated in favor of performance-based specifications. With this new methodology, standards are revised to reflect new technologies and practices.
* Electronic TDP - Index and Format. The use of hard copy for the exchange of TDP is becoming obsolete, thanks in part to the electronic TDP index and format, an SPI that establishes digital index and format requirements for the delivery of TDP. The new standardized process provides Tactical Aircraft Systems customers and suppliers with a single environment for TDP delivery and access. And as technology changes, this SPI also allows process improvements without requiring further contract change.

"While these three SPIs are very significant, they are just the tip of the iceberg for what the JMC has already accomplished and will be accomplishing in the months ahead," said Kathy Eppers, director of enterprise productivity for Tactical Aircraft Systems. "Last spring, the JMC gathered for an all-day meeting where company management and customer representatives brainstormed on how to further drive acquisition reform throughout our operations. The result was a road map that will guide our actions for the next 18 months."

Eppers attributes the success of the JMC to the strong teamwork exercised by its members; teamwork that has led the government to recognize Tactical Aircraft Systems with three SPI Recognition awards. It has also led to cost savings and avoidance of $29.7 million over five years. "We are very proud of what we have accomplished and very excited about what we will accomplish," Eppers said.

Lockheed Martin's Fort Worth plant produces the F-16 for the U.S. Air Force and a number of international customers, and is leading Lockheed Martin's Joint Strike Fighter team. It also produces the F-22's mid-fuselage section, is responsible for various subsystems of the air dominance fighter, and is participating in the production of Japan's F-2 fighter.

Eric Hehs
(817) 763-4085
e-mail: eric.hehs@lmco.com