Lockheed Martin Corporation


Honeywell/Cat Logistics Alliance Bolsters Lockheed Martin JSF Affordability, Supportability

A commercial coalition comprising two widely recognized corporations will provide product-support and supply-chain management guidance for the Lockheed Martin Joint Strike Fighter (JSF) team. The arrangement fortifies the team's stated commitment to keep the next-generation aircraft affordable and supportable.

The Strategic Alliance (the Alliance) -- a long term, contractual relationship between Honeywell and Cat Logistics -- has joined the Lockheed Martin JSF team through the signing of a memorandum of understanding.

"The efficient and effective management of our supply chain is absolutely critical to the overall success of the JSF," said Frank J. Cappuccio, vice president and program manager of the Lockheed Martin JSF team. "It's no secret that Honeywell and Cat Logistics together offer some of the most advanced supply-chain logistics support in the world."

Supply-chain management includes responsibility for the integration of business processes through the entire supply base to the end user. It incorporates products, services and information.

Honeywell and Cat Logistics formed the Alliance in 1998 to create a new, comprehensive business approach to product support and supply-chain management for customers in the defense and aerospace industries. The Alliance combines Honeywell's experience in aerospace product support, maintenance, repair and overhaul, and technical services with Cat Logistics' global presence and demonstrated capabilities in information systems and supply-chain management.

Lockheed Martin JSF team members expect the new relationship to be especially beneficial as the U.S. Department of Defense executes new acquisition strategies and enhanced support requirements. Major defense suppliers are expected to commit to Total Systems Performance and Support Responsibility (TSPSR) and assist the government in re-engineering the way a weapon system is supported throughout its life cycle.

"Using the Honeywell/Cat Logistics Alliance is consistent with our JSF philosophy of using 'best athletes' to provide our customer with the best product possible, while offering significant opportunities to reduce JSF sustainment costs and maximizing overall readiness," Cappuccio said.

"The Alliance is leveraging state-of-the art information systems with Cat Logistics' distribution and inventory-management experience to save time and money," said Garrett M. Mikita, vice president and general manager for Honeywell Supply Chain Services. "We are pleased that techniques from both Honeywell and Cat Logistics that work so effectively in the commercial marketplace can now be applied to critical military programs such as the JSF."

"The agreement will aid the Lockheed Martin JSF team in its quest to fulfill program logistics requirements," said Bill Springer, Cat Logistics president. "We believe our agreement with Lockheed Martin will better position us as a team to provide the DoD a totally integrated logistics, technical and product-support solution for the JSF program. We are excited about the opportunity to work together on this important initiative."

Lockheed Martin received one of two JSF Concept Demonstration contracts awarded by the U.S. Department of Defense in November 1996. The Lockheed Martin JSF team includes Northrop Grumman and BAE SYSTEMS. Flight evaluation of the demonstrator aircraft is scheduled to take place in 2000, with government selection of a single contractor set for 2001.

Caterpillar Logistics Services, Inc. (Cat Logistics), a wholly owned subsidiary of Caterpillar Inc. , is a world leader in providing fully integrated logistics solutions that incorporate information technology, warehouse management, transportation management, inventory management and product support. Its parent company, Peoria, Illinois-based Caterpillar Inc., is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines.

Honeywell International, Inc. (Honeywell) is a US $24-billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; power generation systems; specialty chemicals; fibers; plastics; and electronic and advanced materials. The company employs approximately 120,000 people in 95 countries.

Lockheed Martin is headquartered in Bethesda, Md., and is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced-technology systems, products and services. The corporation's core businesses are systems integration, space, aeronautics and technology services.

For information on the Honeywell/Cat Logistics Strategic Alliance, visit: http://www.honeywellaerospaceservices.com/logistics_home.html.

For information on Lockheed Martin Corporation, visit: http://www.lockheedmartin.com/

For information on Lockheed Martin Aeronautics Company, visit: http://www.lmaeronautics.com/

For information on Lockheed Martin Joint Strike Fighter program, visit: http://www.jsfteam.com/

SOURCE: Lockheed Martin Aeronautics Company

Contact: Carolyn Hodge of Lockheed Martin Aeronautics Company,
817-777-8110, or carolyn.c.hodge@lmco.com

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