Lockheed Martin

Lockheed Martin (United States) is responsible for the construction of the Trident II (D5) nuclear missiles for the US and the UK. It is also involved in the production and maintenance of the Minuteman III nuclear intercontinental ballistic missiles for the US. It is part of the joint venture AWE-ML, which manages the UK Atomic Weapons Establishment, that designs, manufactures and maintains nuclear warheads for the UK.

Company profile

Lockheed Martin, based in the United States, focuses on aeronautics, space systems, electronic systems and information systems. Its most important divisions are aerospace and defence, information technology and new technologies. 1

 

In the financial year ending 31 December 2014, it generated revenues of US$ 45.6 billion (€ 40.3 billion), resulting in an operating income of US$ 5.6 billion (€ 4.9 billion) and a net income of US$ 3.6 billion (€ 3.2 billion). 2

Contact Information

Website: www.lockheedmartin.com
Twitter: @LockheedMartin
Facebook: www.facebook.com/lockheedmartin

6801 Rockledge Drive,
Bethesda, Maryland 20817-1877
United States
+1.301.897.6000

Nuclear weapons

Lockheed Martin is the world’s largest weapons producer. 3 It produces and maintains a wide variety of conventional weapons around the world, as well as nuclear weapons for both the United States and the United Kingdom. 4

Lockheed Martin is responsible for the construction of the Trident II (D5) nuclear missiles for the US Ohio-class submarines and the British Vanguard-class submarines. 5 Trident II (D5) is the only US submarine-launched intercontinental ballistic missile system still in production. 6 The United States is planning to keep Trident II missiles deployed until 2042. 7

In September 2013, Lockheed Martin was awarded a US$ 15.2 million (€ 11.4 million) contract to support the fiscal year 2014 Trident II (D5) Missile production schedule. Work is expected to be completed in September 2018. 8 This contract was modified several times. In November 2013, Lockheed Martin was awarded US$ 8.3 million (€ 6.1 million) for new Trident II (D5) missile production, D5 life extension development and production, and D5 deployed systems support. This contract includes options, which if exercised, will bring the contract value to US$ 803.2 million (€ 594.3 million). Initial work was expected to be completed December 2014, with all options exercised work will continue to November 2018. 9 A US$ 34.2 million (€ 26.4 million) modification was awarded in September 2014, for the design, development and procurement of facilities, equipment, and processes required for successful activation and support of a Trident II (D5) missile storage facility as well as the design and delivery of specialized support equipment for the movement and storage of D5 missiles at Camp Navajo, Arizona. Work is expected to be completed in September 2019. 10

In December 2013, Lockheed Martin Space Systems was awarded a US$ 61.1 million (€ 44.4 million) contract for engineering services and various low-value missile test hardware. It provides for integrating the Trident II missile and re-entry strategic weapon systems subsystems into the common missile compartment for the Ohio replacement and United Kingdom (UK) successor programmes and designing a testing fixture for nozzle shield retention, and designing an integrated test facility that will be compatible with existing and new submarine fleets. Completion is expected in December 2018. 11 Under a US$ 21.3 million (€ 15.5 million) contract awarded in April 2014, Lockheed Martin provides the United Kingdom with engineering and technical support services and deliverable materials for the UK Trident II Missile System. Completion is expected in June 2016. 12

In July 2014, Lockheed Martin was awarded a US$19.9 million (€ 14.6 million) unpriced-letter contract for long-lead material and the labour, planning and scheduling necessary to support the fiscal 2015 Trident II D-5 missile production schedule, expected to be completed in September 2019. 13 A US$ 146.3 million (€ 113.6 million) modification for new procurement of Trident II (D5) missile production, D5 Life Extension development and production, and D5 Deployed Systems Support extends work through November 2019. Exercise of all options would increase the contract value to US$ 828.4 million (€ 643.0 million), provided by US and UK defence budgets. 14

In November 2014, Lockheed Martin was awarded a US$35.9 million (€ 28.9 million) contract to provide engineering efforts in support of integrating the Trident II missile and re-entry strategic weapon system subsystems into the next-generation ballistic submarine designs of the US and UK. The contract contains two option years, which, if exercised, will bring the contract value to a maximum US$99.2 million (€ 80.0 million). Work is expected to be completed in December 2017; exercise of options will extend the contract through September 2020. 15

In March 2015, Lockheed Martin was awarded a US$ 59.0 million (€ 54.4 million) contract for Trident II D-5 Navigation Subsystem Strategic Systems Program Shipboard Integration (SSI). Work is expected to be completed in December 2016. US Navy funds account for US$47.1 million (€ 43.4 million), United Kingdom funding for the remaining US$ 11.9 million (€ 11.0 million). 16

In April 2015, Lockheed Martin obtained UK contract funds of a maximum US$ 31.1 million (€ 28.9 million) to provide engineering and technical support services and deliverable materials for the UK Trident II Missile System with completion foreseen in March 2019. 17

As a member of the ICBM Prime Integration Team, Lockheed Martin is involved in the production and maintenance of the Minuteman III nuclear intercontinental ballistic missiles. The company has been the principal designer, manufacturer and sustainer of Minuteman III re-entry systems since the 1960s. 18 Lockheed Martin is responsible for the weapons, control and re-entry systems in this project led by BAE Systems since June 2014. 19

In March 2011, the company received a US$ 12.5 million (€ 8.8 million) one-year subcontract by Northrop Grumman for the refurbishment of re-entry vehicle arming and fusing assemblies for the Minuteman III missiles. According to the latest US Air Force plans, these nuclear missiles will continue to be part of the US nuclear defence programme until at least 2030. 20 In June 2014, Lockheed Martin was awarded the contract for sustainment of the re-entry subsystem for the Minuteman III. An initial one-year contract from the US Air Force has a value of US$ 109.0 million (€ 80.5 million). Options for additional years bring the potential contract value to US$ 452.0 million (€ 333.9 million). The contract includes repair, modification and testing of hardware and software components in the re-entry system-re-entry vehicle subsystem and related support equipment. Work is expected to be complete by June 2022. 21

Along with Boeing, Northrop Grumman and Raytheon, Lockheed Martin is under contract since 2013 to conduct trade studies in support of the Air Force Long-Range Standoff (LRSO) missile plans. This line-up is expected to become a four-way competition to build a Long Range Standoff weapon. 22 Reportedly the US Nuclear Weapons Council in October 2014 selected the W80-1 thermonuclear warhead for the LRSO nuclear cruise missile, scheduled for deployment in 2027. After modification during a life-extension programme, the warhead will be dubbed W80-4. 23 Very little information about what the US Air Force is seeking in an LRSO missile is publicly available. 24

Lockheed Martin holds a 33.3% share and takes the lead in the joint venture AWE-ML, the company that manages the United Kingdom’s Atomic Weapons Establishment (AWE). The other partners are Jacobs Engineering and Serco. 25 AWE is responsible for the maintenance of warheads for the UK’s nuclear arsenal, i.e. the Trident, a submarine-launched, intercontinental ballistic missile system carried by the fleet of Vanguard-class submarines. AWE’s involvement with Trident covers the entire life cycle, from initial concept to assessment, design, component manufacture and assembly, in-service support and decommissioning and disposal. 26 AWE-ML has a 25 year-long non-revocable contract to run AWE that expires in March 2025. 27

Lockheed Martin is a member of the Consolidated Nuclear Services (CNS), which took over the management and operation of the Y-12 National Security Complex in Tennessee and the Pantex Plant in Texas under the same contract in 2014. CNS is a Bechtel National-led joint venture including Lockheed Martin Services, ATK Launch Systems (part of Orbital ATK), SOC, and Booz Allen Hamilton [28: Research indicated that SOC provides security services only, while Booz Allen Hamilton is a broad consulting firm who work is not integral to maintain the nuclear arsenal.] as a teaming subcontractor. The five-year contract with NNSA includes options to extend the contract term up to an additional five years, based on performance. 28 At the Y-12 Complex, nuclear weapons are produced and refurbished, and at the Pantex Plant in Texas the life extension programme for the W76 warheads deployed on Trident II (D5) ballistic missiles is expected to continue through 2018. 29

Investors

The following financial institutions have made approximately USD 48,012 million available to this producer since January 2012.

  • Allianz (Germany)
  • Allstate (United States)
  • American Family Mutual Insurance (United States)
  • American International Group (AIG) (United States)
  • American United Mutual Insurance (United States)
  • Ameriprise Financial (United States)
  • ANZ (Australia)
  • AXA (France)
  • Bank of America (United States)
  • Bank of New York Mellon (United States)
  • Barclays (United Kingdom)
  • BlackRock (United States)
  • Caisse de dépôt et placement du Québec (Canada)
  • Capital Group (United States)
  • Citigroup (United States)
  • Columbia Threadneedle Investments (United States)
  • Comerica (United States)
  • Crédit Agricole (France)
  • Crédit Mutuel CIC Group (France)
  • Deutsche Bank (Germany)
  • Drexel Hamilton (United States)
  • First Eagle Investment Management (United States)
  • Franklin Resources (United States)

  • GE Capital Services (United States)
  • Geode Capital Management (United States)
  • Goldman Sachs (United States)
  • Guilford (United States)
  • Janus Capital Group (United States)
  • JPMorgan Chase (United States)
  • Lebenthal Holdings (United States)
  • Legg Mason (United States)
  • Liberty Mutual Insurance (United States)
  • Lloyds Banking Group (United Kingdom)
  • Loop Capital (United States)
  • Macquarie Group (Australia)
  • Manulife Financial (Canada)
  • MassMutual Financial (United States)
  • MetLife (United States)
  • Mitsubishi UFJ Financial (Japan)
  • Mizuho Financial (Japan)
  • Morgan Stanley (United States)
  • Nationwide Mutual Insurance (United States)
  • New York Life Insurance Company (United States)
  • Northern Trust (United States)
  • Northwestern Mutual Life Insurance (United States)
  • Orix Corporation (Japan)

  • Prudential (UK) (United Kingdom)
  • Prudential Financial (US) (United States)
  • Riyad Bank (Saudi Arabia)
  • Royal Bank of Canada (Canada)
  • Royal Bank of Scotland (United Kingdom)
  • State Farm (United States)
  • State Street (United States)
  • Sumitomo Mitsui Financial (Japan)
  • Sun Life Financial (Canada)
  • T. Rowe Price (United States)
  • The Dai-Ichi Life Insurance Company (Japan)
  • Thrivent Financial (United States)
  • TIAA-CREF (United States)
  • Toronto-Dominion Bank (Canada)
  • Travelers (United States)
  • UBS (Switzerland)
  • UniCredit (Italy)
  • Unum Group (United States)
  • US Bancorp (United States)
  • Vanguard (United States)
  • Wellington Management (United States)
  • Wells Fargo (United States)
  • Western & Southern Financial (United States)
  • Williams Capital Group (United States)

This page was last updated 29 October 2015.

Notes

  1. Lockheed Martin, “What we do”, Website Lockheed Martin (www.lockheedmartin.com/us/what-we-do.html), viewed June 2015.
  2. Lockheed Martin, “Annual Report 2014”, Lockheed Martin, February 2015;
    Thomson Reuters Eikon, “Lockheed Martin Corp – Fundamentals”, Thomson Reuters Eikon, viewed June 2015.
  3. Stockholm International Peace Research Institute (SIPRI), “The SIPRI Top 100 arms-producing and military services companies in the world excluding China, 2012”, Website SIPRI (www.sipri.org/research/armaments/production/Top100), viewed June 2015.
  4. Lockheed Martin, “Lockheed Martin-Built Trident II D5 Missile Achieves 143 Successful Test Flights”, News release Lockheed Martin, 31 October 2012 (www.lockheedmartin.com/us/news/press-releases/2012/october/1031-ss-trident.html);
    Edwards, R., “Anger as US arms dealer takes over running of Scottish nuclear bomb base”, Scotland Herald, 28 May 2011 (www.heraldscotland.com/news/home-news/anger-as-us-arms-dealer-takes-over-running-of-scottish-nuclear-bomb-base.13864732).
  5. Lockheed Martin, “Trident II D5 Fleet Ballistic Missile (FBM)”, Website Lockheed Martin (www.lockheedmartin.com/us/products/trident-ii-d5-fleet-ballistic-missile–fbm-.html), viewed June 2015.
  6. ATK, “ATK Awarded $100 Million Contract for Trident II Solid Rocket Propulsion Systems”, Website ATK, 11 November 2009 (atk.mediaroom.com/index.php?s=25280&item=58065), viewed May 2015;
    ATK, “Trident II”, Website ATK (www.atk.com/products-services/trident-ii/), viewed May 2015.
  7. UK Parliament, “Selected Committee on Defence Eight Report, 2006”, Website UK Parliament (www.publications.parliament.uk/pa/cm200506/cmselect/cmdfence/986/98609.htm), viewed June 2015.
  8. U.S. Department of Defense, “Daily Contracts List – Contract N00030-13-C-0100”, US Department of Defense, 13 September 2013 (www.defense.gov/contracts/contract.aspx?contractid=5133).
  9. U.S. Department of Defense, “Daily Contracts List – Contract N00030-13-C-0100”, U.S. Department of Defense, 5 November 2013 (www.defense.gov/Contracts/Contract.aspx?ContractID=5158).
  10. U.S. Department of Defense, “Daily contract list – Contract N00030-13-C-0100”, U.S. Department of Defense, 19 September 2014 (www.defense.gov/Contracts/Contract.aspx?ContractID=5380).
  11. US Department of Defense, “Daily Contracts List”, US Department of Defense, 19 December 2013 (insidedefense.com/201312192456401/Defense-Plus/Text-Document/dod-12192013-daily-contracts-list/menu-id-77.html).
  12. U.S. Department of Defense, “Daily contracts – Contract N00030-14-C-0028”, Website U.S. Department of Defense, 1 April 2014 (www.defense.gov/Contracts/Contract.aspx?ContractID=5253).
  13. U.S. Department of Defense, “Daily contracts – Contract N00030-14-C-0100”, Website U.S. Department of Defense, 1 July 2014 (www.defense.gov/Contracts/Contract.aspx?ContractID=5319).
  14. U.S. Department of Defense, “Daily contracts – Contract PZ0001 – N00030-14-C-0100”, Website U.S. Department of Defense, 19 September 2014 (www.defense.gov/Contracts/Contract.aspx?ContractID=5380).
  15. U.S. Department of Defense, “Daily contracts – Contract N00030-15-C-0005”, Website U.S. Department of Defense, 25 November 2014 (www.defense.gov/contracts/contract.aspx?contractid=5425);
    Keller, J., “Lockheed Martin to move Trident nuclear missile design to next-generation ballistic missile submarine”, Website Miltary & Aerospace Electronics, 9 December 2014 (www.militaryaerospace.com/articles/2014/12/trident-ohio-replacement.html).
  16. U.S. Department of Defense, “Daily contract list – Contract N00030-15-C-0015”, Website U.S. Department of Defense, 31 March 2015 (insidedefense.com/content/dods-3312015-daily-contracts-list).
  17. U.S. Department of Defense, “Daily contracts – Contract N00030-15-C-002”, Website U.S. Department of Defense, 2 April 2015 (www.defense.gov/contracts/contract.aspx?contractid=5510).
  18. Defense Industry Daily, “Missile Envy: Modernizing the US ICBM Force, 14 March 2011”, Defense Industry Daily Website (www.defenseindustrydaily.com/Missile-Envy-Modernizing-the-US-ICBM-Force-06059/), viewed June 2015;
    Airforce-Technology, “USAF awards Minuteman III reentry subsystem sustainment contract”, Website Airforce-Technology, 17 June 2014 (www.airforce-technology.com/news/newsusaf-awards-minuteman-iii-reentry-subsystem-sustainment-contract-4294836).
  19. Inside the Air Force, “Air Force Chooses BAE As Lead ICBM Contractor, Supplanting Northrop”, Inside the Air Force, Vol.24(31), 2 August 2013;
    Boeing, “Intercontinental Ballistic Missile Systems”, Website Boeing (www.boeing.com/defense-space/ic/icbmsys/index.html), viewed June 2015;
    Defense Industry Daily, “Missile Envy: Modernizing the US ICBM Force”, Defense Industry Daily, 14 March 2011 (www.defenseindustrydaily.com/Missile-Envy-Modernizing-the-US-ICBM-Force-06059/);
    WashingtonWatch, “Minuteman III Solid Rocket Motor Warm Line Program (SRMWL)”, Website WashintonWatch (www.washingtonwatch.com/bills/show/ED_81542.html), viewed June 2015;
    Globe Newswire, “Minuteman ICBM Commemorates 50 Years of Nuclear Deterrence”, Website GlobeNewswire, 9 January 2013 (globenewswire.com/news-release/2013/01/09/515498/10017538/en/Minuteman-ICBM-Commemorates-50-Years-of-Nuclear-Deterrence.html);
    Lockheed Martin, “Lockheed Martin Receives $12.5 Million Contract for Reentry Vehicle Fuze Refurbishment for Air Force’s ICBM Program”, News Release Lockheed Martin, 14 March 2011 (www.lockheedmartin.com/us/news/press-releases/2011/march/LockheedMartinReceives125.html);
    Inside the Pentagon, “BAE Weeks Away From Fully Assuming Lead Role In ICBM Sustainment”, Inside the Pentagon, Vol.30(18), 1 May 2014.
  20. Lockheed Martin, “Lockheed Martin Receives $12.5 Million Contract for Reentry Vehicle Fuze Refurbishment for Air Force’s ICBM Program”, News Release Lockheed Martin, 14 March 2011 (www.lockheedmartin.com/us/news/press-releases/2011/march/LockheedMartinReceives125.html);

    US Air Force, “SecAF discusses Minuteman III, space at Vandenberg, 17 June 2011”, Website US Air Force (www.af.mil/News/ArticleDisplay/tabid/223/Article/116366/secaf-discusses-minuteman-iii-space-at-vandenberg.aspx), viewed May 2015.

  21. Lockheed Martin, “Lockheed Martin Receives $109 Million Sustainment Contract For The Air Force’s Minuteman III Reentry Subsystem”, News release Lockheed Martin, 12 June 2014 (www.lockheedmartin.com/us/news/press-releases/2014/june/0612-ss-minuteman.html);
    U.S. Department of Defense, “Daily contracts – Contract FA8214-14-D-0002”, Website U.S. Department of Defense, 5 June 2014 (www.defense.gov/contracts/contract.aspx?contractid=5300);
    Airforce-Technology, “USAF awards Minuteman III reentry subsystem sustainment contract”, Website Airforce-Technology, 17 June 2014 (www.airforce-technology.com/news/newsusaf-awards-minuteman-iii-reentry-subsystem-sustainment-contract-4294836).
  22. InsideDefense, “Long-Range Standoff Missile Development Pushed Back By Three Years”, InsideDefense, 5 March 2014.
  23. Federation of American Scientists, “W80-1 Warhead Selected For New Nuclear Cruise Missile”, Website Federation of American Scientists, 10 October 2014 (fas.org/blogs/security/2014/10/w80-1_lrso/).
  24. Malenic, M., “USAF wants to dodge latest air defences with bomber’s new secret weapon”, Website IHS Jane’s Defence Weekly, 27 January 2015 (www.janes.com/article/48385/usaf-wants-to-dodge-latest-air-defences-with-bomber-s-new-secret-weapon).
  25. AWE-ML, “Our company”, Website AWE-ML (www.awe.co.uk/about-us/our-company/), viewed June 2015;
    Edwards, R., “Anger as US arms dealer takes over running of Scottish nuclear bomb base”, Scotland Herald (www.heraldscotland.com/news/home-news/anger-as-us-arms-dealer-takes-over-running-of-scottish-nuclear-bomb-base.13864732), 28 May 2011.
  26. AWE, “Overview”, AWE, July 2014 (www.awe.co.uk/app/uploads/2014/07/AWE-OVERVIEW-FINAL.pdf).
  27. The Guardian, “Britain’s nuclear spending soars amid defence cuts”, Website The Guardian, 2 October 2011 (www.guardian.co.uk/uk/2011/oct/02/ministry-of-defence-nuclear-spending-project-pegasus);
    AWE, “Annual review 2013”, AWE, May 2014.
  28. Bechtel National, “Team Will Manage and Operate Facilities Within Nuclear Security Enterprise”, Website Bechtel National, 8 January 2013 (www.bechtel.com/newsroom/releases/2013/01/bechtel-led-team-awarded-contract-y12-pantex/);
    Power Engineering, “Consolidated Nuclear Security to manage US Nuclear Facility Management”, Website Power Engineering, 7 March 2014 (www.power-eng.com/articles/2014/03/consolidated-nuclear-security-to-manage-us-nuclear-facility-management.html).
  29. National Nuclear Security Administration, “FY 2012 Congressional Budget Request”, Department of Energy, February 2011 (nnsa.energy.gov/sites/default/files/nnsa/inlinefiles/FY%202012%20NNSA%20Congressional%20Budget%20Submission_0.pdf);
    Kristensen, H.M., “The Nuclear Weapons Modernization Budget”, FAS Strategic Security Blog of the Federation of American Scientists, 17 February 2011 (blogs.fas.org/security/2011/02/nuclearbudget/);
    National Nuclear Security Administration, “W76-1 Life Extension Program”, Website National Nuclear Security Administration, 15 November 2012 (nnsa.energy.gov/mediaroom/factsheets/w76-1lep);
    Arms Control Association, “US Nuclear Modernization Programs”, Website Arms Control Association, January 2014 (www.armscontrol.org/factsheets/USNuclearModernization).

Producers

In some nuclear-armed states – in particular the United States, the United Kingdom and France – private companies are hired by governments to carry out work on maintaining and modernising nuclear arsenals. This report looks at companies that are providing the necessary components to develop, test, maintain and modernise nuclear weapons.The contracts these companies have with nuclear armed countries are for materials and services to keep nuclear weapons in their arsenals. The companies described are substantially involved in the nuclear weapons programmes of the United States, the United Kingdom, France, or India and are themselves based in France, India, Italy, the Netherlands, the United Kingdom and the United States.

In other nuclear-armed countries –Russia, China, Pakistan and North Korea – the maintenance and modernization of nuclear forces is carried out primarily or exclusively by government agencies.

Methodology

The nuclear weapon producers identified were selected on the basis of a predetermined set of criteria.
– Information on investments is publicly available.
– The company is directly involved in the development, testing, production, maintenance or trade of nuclear weapons related technology, parts, products or services.
– The company’s involvement is related to warheads, or to delivery systems such as missiles, that are specifically developed for nuclear tasks. This includes technology that is designed for ‘dual use’ (military and civilian) but excludes technology that is not designed for, but can be used in nuclear warfare. It does not include delivery platforms such as bombers and submarines.

State owned or controlled nuclear industries are outside the scope of this research, as are companies not publicly listed. Our research uncovered a number of Universities involved in nuclear weapons programmes, but these are also outside the scope of the report.

The list of nuclear weapon producers investigated was compiled through a wide variety of sources, including financial institution exclusion lists, civil society reports, media reports, etc. Additional details on the contracts and components can be found in the Annex. We welcome information at any time about possible nuclear weapons producing companies to investigate.