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SL 05

 

Memorandum from Lockheed Martin UK

 

INTRODUCTION

 

1. Headquartered in Bethesda, Maryland, the Lockheed Martin Corporation employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Lockheed Martin UK is a wholly owned subsidiary of Lockheed Martin Corporation, and a leader in systems integration working on major programmes spanning the aerospace, defence and civil sectors. Lockheed Martin UK works with more than 100 business partners in the UK and employs in the region of 1700 people at 10 UK sites. The Corporation reported 2006 sales of $39.6 billion.

 

2. As the designer and manufacturer of the C-130 Hercules military transport aircraft, Lockheed Martin has provided the mainstay of the Royal Air Force's airlift capability, both strategically and tactically, for the past 40 years and, following introduction of the C-130J in the mid-1990s, the RAF is likely to continue to use the Hercules in support of military operations until at least 2030. The C-130 has been in continuous production for over 50 years, and has current and anticipated orders which should ensure continued production well into the next decade.

 

 

THE STRATEGIC TRANSPORT REQUIREMENT

 

3. The rationale for having the capabilities and structures to conduct expeditionary military operations abroad in support of the UK's National Security objectives were clearly stated in both the 1998 Strategic Defence Review and in the 2002 Strategic Defence Review: New Chapter. The requirement to improve the UK's strategic transport capability to support this objective was highlighted and plans to acquire additional sea and airlift capabilities were announced.

 

THE AIRLIFT CONTRIBUTION TO STRATEGIC TRANSPORT

 

4. With the need to transport rapidly outsize and very heavy loads over strategic distances the MoD has acquired four C-17s with a fifth due in service in mid -2008. However, the bulk of the airlift capability will continue to be provided by the Hercules fleet of 23 C-130Ks, which are due to be replaced by the A400M during the next decade, and by 25 C-130Js (currently 24 as one was lost on operations in February this year).

 

5. In seeking to provide the optimum mix of capabilities which will meet tactical, strategic and outsize airlift requirements, it is our understanding that the MOD has had to take into account many factors such as the availability of existing assets, international acquisition commitments, the operating environment, the need for concurrency and, given the competing MOD funding priorities for other urgent capabilities, affordability. Current operations show that the fixed wing transport assets are being very heavily utilised and that operational factors such as the incorporation of Urgent Operational Requirements, loss of assets on operations, or damage due to rugged environmental conditions are placing ever greater demands on the air transport fleets and on industry. It is within these constraints that a balance has had to be struck between the need to provide support to current operations and to plan for the longer term.

 

HERCULES CONTRIBUTION TO CURRENT OPERATIONS

 

6. The Hercules fleet is being heavily used on current operations in both the strategic and tactical airlift roles, with the C-130J, because of its superior performance, as the preferred in-theatre, tactical transport aircraft for both logistic supply and in support of special operations. Managing the use of current assets to ensure maximum availability with aircraft fit-for-purpose, and planning airlift to optimise the use of aircraft capabilities and crews by using, for example, a "hub and spoke" operation with C-17 providing much of the strategic airlift and the Hercules providing the in-theatre tactical airlift, are the most significant challenges faced by MoD and industry.

 

7. The award of the Hercules Integrated Operational Support (HIOS) contract in May 2006 to the industrial team led by Marshall Aerospace with Lockheed Martin and Rolls Royce as sub-primes in a long term partnering arrangement, has formed a sound basis for industry to work closely with the MoD to provide a performance based, cost effective way of managing the entire Hercules fleet to provide maximum availability to the front-line. The closer working relationship with both the RAF and the Hercules IPT and industry has been instrumental in addressing quickly and efficiently issues which impact badly on the number of aircraft fit-for-purpose.

 

8. In support of operations, Lockheed Martin and Marshall Aerospace have been responding to urgent operational requirements which when fitted will improve both protection and survivability of aircraft deployed in theatre. We are also working with MoD to assess the options for replacing as rapidly as possible the capability lost in February this year when a C-130J which was destroyed in Maysan Province in Iraq

 

HERCULES AND THE UK INDUSTRIAL BASE

 

9. UK Industry and the Lockheed Martin C-130 platform have a long and positive history stretching back over 40 years. In particular, Lockheed Martin has had a very special, long standing relationship with Marshall Aerospace, who won the competition for a UK Technical Centre for the C-130 K in 1966. Since then Marshall Aerospace and Lockheed Martin have worked together to modify and extend the capabilities regularly of the C-130 aircraft to meet the changing needs of the MoD. With the introduction of the C-130J, the relationship expanded through the creation of an Industrial Support Group of 40 first and second tier key suppliers who interact regularly both with Lockheed Martin and with each other to promote their capabilities and to advocate the benefit of what today we would describe as collaborative working or partnering.

 

10 Approximately 20% of every C-130J built is supplied from UK owned businesses with the supply chain extending to in excess of 150 suppliers at all tiers including a significant number of Small and Medium Enterprises (SMEs). The C-130J shows how SME's can work with higher tier suppliers and the primes directly to get their product and service specified as part of the base line product, something which is strongly advocated in both MoD's Defence Industrial Strategy and Defence Technology Strategy.

 

 

 

 

 

11. The positive UK industrial contribution to the C-130J program extends beyond the basic flying platform into ground support, training, simulation and many other areas that contribute to the UK's Defence Industrial Base. With over 200 of the new C-130J's either delivered or on order the foresight of UK industry to partner and invest with Lockheed Martin, over a decade ago, is predicted to continue to provide business base and market access for many years to come.

 

10 April 2007