Title: Lockheed Martin in Canada
Blurb: The world's largest defence contractor continues to be a major force in the transformation of Canada's armed forces

Few companies are better positioned to take advantage of the upcoming transformation in Canada's armed forces than Lockheed Martin, the world's largest defence contractor. With 130,000 employees and worldwide sales of U.S. $35.5 billion, the company markets products and services in key areas required by modern militaries ranging from aeronautics, space and electronic systems to technology services and systems integration.

LMC also has a significant Canadian presence that is slated to grow significantly in the years ahead. "Canada has long been one of our top ten markets worldwide," says Martin Munro, general manager of Lockheed Martin Canada. "But we also do a lot of R&D and manufacturing here that has great potential in export markets."

While Lockheed Martin has long been a proven name because of the hardware it supplies, such as its new air dominance platform the F-35 Joint Strike Fighter and ongoing space and missile defence initiatives, the company's senior officials increasingly regard LMC as an overall military solutions provider.

In fact, although the LMC's JSF contract with the U.S. government is likely to evolve into the largest military contract ever awarded, hardware accounts for less than half of Lockheed Martin's revenues. The balance comes from IT solutions and systems integration.

Joint Support Ships and HMCCS
One of Lockheed Martin's core competencies and key areas of potential growth during the transformation of Canada's armed forces is its decades-long experience in designing, implementing and providing ongoing product support for command and control systems on Canadian warships.

Among LMC's many initiatives with the Canadian Armed Forces, the company provides repair and overhaul for a wide variety of the Canadian Forces' air and ship borne sensors and equipment, as well as in-service support for combat systems on the Halifax class Canadian patrol frigates and the Iroquois class destroyers.

That experience will prove to be invaluable in coming months with the Canadian Navy in the midst of two key initiatives that will completely overhaul its fixed assets: the Joint Support Ships (JSS) program and the mid-life upgrade for Canada's 12 patrol frigates.

LMC could add significant value to the frigate upgrade program by using the expertise it has acquired in Canada,-- and in major international naval initiatives such as AEGIS and LCS,-- to provide a Halifax Modernized Command and Controls System (HMCCS).

Lockheed is also a key partner in a team led by General Dynamics Canada, to compete on the new JSS bids, which also includes key Canadian players such as Fleetway, Davie Maritime and Irving Shipbuilding. Three new JSS ships are slated to provide replacements for the two aging Auxiliary Oiler Replenishment (AORs) vessels; the HMCS Preserver and HMCS Protecteur. The new ships will be also geared to perform selected tasks such as fleet supply, sealift, medical facilities, helicopter launch facilities and capabilities that would enable the vessel to be configured to act as a command headquarters for coastal operations.

LMC's role would be to provide the JSS ships' their command and control systems. These would integrate features and technology from the frigate command and control system, which would provide significant benefits to the Canadian navy. Most notably, cross-over training and ship-to-ship personnel transfers would both be cheaper and more efficient.

Under LMC's proposals, C2 systems upgrades at the frigate and support ship levels would also be rendered easier, since many navy personnel already have experience working with the company's existing systems, or have been trained at the company's Nova Scotia training facilities.

C-130J: The strategic airlift option
Another key LMC presence in the Canadian Armed Forces has been the Hercules C-130. The CF's Hercs have been true workhorses, hauling personnel and equipment for more than three decades. But the fleet has aged considerably and is due for a replacement.

The solution could well be an upgraded version, the C-130J, which has been completely re-engineered to be the most technologically advanced air-lifter in the world today. The C-130J has greater range than its predecessor, higher cruising and faster climbing speeds. It's also more fuel efficient and cheaper to maintain.

Canada's defence experts generally recognize the key need for strategic lift capability to help the CF better perform such tasks as responding to internal emergencies, rescue Canadians at risk in natural or man-made disasters overseas and to perform military deployments abroad. Yet despite promising noises from the federal government earlier this year regarding financing, the Canadian Armed Forces, continue to operate under enormous cost pressure.

One of Lockheed Martin's proposed solutions to solve the financing gap, is a lease option that meshes well with DND's funding capacity. Under the program, DND pays nothing until the first aircraft is shipped, and the leasing cost will be largely offset by operational savings that will come from using new aircraft.

C-27J Spartan: Fixed wing search and rescue capability
LMC is also part of a group that is proposing to sell 15 C-27J Spartan fixed wing search and rescue (FWSAR) aircraft, as part of the solution to replace the aging CC-115 Buffalos and the CC-130s that are currently being used for SAR.

Developed jointly by LMC and Alenia Aeronautica, the C-27J is also a tactical air-lifter, which can be used for a wide range of missions and all types of terrains. It can carry up to 22,000 pounds of personnel, equipment or even vehicles.

According to LMC officials, The C-27J is faster, has greater range and can carry a bigger payload than competing systems. The
aircraft also offers significant commonality and interoperability features with the C-130J, which significantly eases cross-over training.

Information Technology
One of Lockheed Martin's fastest growth areas is in the increasing variety of information technology solutions that it provides. "Modern militaries are becoming ever more complex organizations. And information is increasingly the main driver of overall strategic and tactical force initiatives," says Munro, who has seen many changes in his long career both in industry and government. "In the old days they used to say that an army marches on its belly. Today warfare unfolds so quickly, that a more appropriate symbol for modern armies could just as well be a laptop computer."

Managing disparate information sources is one of DND's biggest challenges. Over the years LMC has developed solutions that deal with a range of issues from simpler problems such as controlling users' ability to work in both classified and non-classified domains, to more complex initiatives such as the creation of an electronic hub that binds different kinds of information together, so that time sensitive decisions can be made faster.

Canadian forces health management system
One area in which LMC's IT capabilities continue to play out in a positive way, is in the management of the Canadian Forces Health Information System project. LMC won the initial 10-year contract in 2002, and was awarded Phase II of the project earlier this year. When complete the initiative will enable the CF's 2,500 health and medical staff to share information about the force's 85,000 regular and reserve staff on a secure and coordinated basis.

The project's first phase, which was completed in 2004, consisted of registering patients and implementing scheduling systems at three Canadian bases. Phase II, will involve migrating paper-based information online such as clinical order reviews, pharmacy, laboratory and diagnostic imaging data online. A third phase will be implemented in 2007, which will integrate clinical notes and orders as well as MIS guidelines.

Intelligence, Surveillance and Reconnaissance (C4ISR)
Lockheed Martin has also been a leader in developing new C4ISR technologies. These range from knowledge management tools to marine domain awareness systems. LMC has partnered with IBM to develop a defence and security lab at its Kanata office. The lab provides Canadian officials the ability to test new concepts and ideas.

One key area that Lockheed Martin has been increasingly active in that has significant homeland security applications is data-mining. The September 11th attacks on the United States graphically illustrated dramatic holes in U.S security systems, not only in terms of breaches, but also in the stunning amount of intelligence that was available to a variety of defence, immigration, and law enforcement officials, who were unable to "connect the dots."

LMC is currently refining highly sophisticated software tools that could be sold to naval, coastal defence, military, intelligence and law enforcement agencies that could potentially plug many of those gaps in the future.

For example in a fictitious scenario involving a possible terrorist attack on liquid nitrogen facilities detected though internet or communications "chatter," a computer operator could run a data merge on a variety of information sources. These could compare crew and destination logs from ships manifests, with recently names of protagonists in published articles on terrorists, militants and affiliated organizations.

The search could detect, for example, that a suspected terrorist's brother, (whose name was quoted in a newspaper article claiming his brother's innocence), is now working as the first mate on a ship loaded with liquid nitrogen that is headed into Boston Harbor. The data mining applications could be also be modified to meet a wide variety of naval, defence and intelligence needs.

The Joint Strike Fighter (JSF) air dominance platform
The crown jewel in Lockheed Martin's product catalogue is the F-35 Joint Strike Fighter (JSF), which will be the planet's dominant air-defence vehicle for decades after the first model rolls of the production line in 2009. The U.S. and U.K. are expected to take 2,593 units, and many more will be produced for other partners.

Ever since LMC signed its initial System Development and Demonstration deal with the U.S. Armed Forces in October 2001, defence industry stakeholders around the globe have been closely following its progress.

The F-35, will come in three versions one each for the U.S. navy, marines and air force. The new plane will either match or beat the F-16's performance levels in a variety of metrics from increased range, maneuverability and fuel economy. It will also incorporate numerous stealth features, that will give pilots first-look, first-shot capability.

Canada's F-18s will remain in service until 2017-2018, but Canada did invest $150 million into the program to sign on as a Level 3 JSF participant. This will give us the option to buy planes at a future date.

But Lockheed Martin also gets benefits beyond the direct sales from its F-35 program. Being able produce one of the most demanding pieces of weaponry in the world, for the most demanding militaries, provides LMC significant credibility in other lines, many of which will benefit from crossover uses of technologies that will be developed for the JSF.

AMIRS and the Sniper Advanced Targeting Pod
One obvious area that LMC's JSF experience and credibility could prove to be invaluable is in the tough bidding for the $200 million Advanced Multi-role Infra-Red Sensor (AMIRS) project.

AMIRS is a key component of the Canada's F-18 Incremental Modernization program (IMP). LMC officials believe that the company's Sniper Targeting Pod, which was designed for the F/A-18, -- and which shares a common architecture with the JFS's Electro-Optical Targeting System (EOTS),-- provides an ideal solution.

Not only is the Sniper an effective force multiplier in precision targeting and other missions, it is already operational in numerous air forces around the world and has been combat proven in Iraq, both on the F-16 and F-15E. The Sniper offers superior detection range, stability and point accuracy and is changing the way the USAF combines it air power, with non-traditional ISR missions.

Looking toward the future
As the Canadian Armed Forces tackle the new challenges of 21rst century, emerging threats, deployments and interoperability issues, their equipment, information systems and ways of thinking will have to evolve. "Canada is at a key moment of redefining its strategic military assets," says Munro thoughtfully. "We can provide suggestions and recommendations. It's up to you to decide to how use them."

 

Corporate Snapshot

Company: Lockheed Martin Canada
Canadian Operations: Ron Covais, president for the Americas, Martin Munro, general manager (Canada)
Key Canadian Installations: Kanata, Montreal, Halifax, Canadian employees: 500
Product services: Research, design, development, manufacture and integration of advanced technology systems, products and services in the defence, homeland security and IT sectors
Canadian forces operations: Martin Munro, general manager
Exports: Approximately 10%

 

peter@peterdiekmeyer.com

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