LOCKHEED MARTIN CORPORATION

# Lockheed Martin Corporation - Vendor Assessment

## Agency Concentration Risk

Lockheed Martin exhibits extreme concentration risk, with the Department of Defense commanding 99% ($271.9B) of its $275.5B obligated portfolio across 951 awards. This dependency on a single agency creates significant vulnerability to budget fluctuations, policy shifts, or procurement strategy changes. The remaining seven agencies collectively represent only 1% of total value, with NASA contributing the secondary position at $2.2B (0.8%). This narrow customer base limits revenue diversification and increases exposure to defense spending cycles.

## Contract Expiry Exposure

The vendor faces substantial near-term contract maturity risk, with $86.1B in obligated value expiring within 18 months. This represents 31.3% of total portfolio value, indicating significant renewal dependency. The concentration of expiring contracts likely mirrors the DoD concentration, creating potential cash flow volatility if renewals experience delays or competitive challenges.

## NAICS Diversification

Lockheed Martin demonstrates moderate diversification across 10 NAICS codes, though heavily weighted toward defense-oriented sectors. Engineering services (541330) leads with 143 awards, followed by aircraft manufacturing (336411) with 93 awards. The portfolio emphasizes aerospace and defense manufacturing, with limited exposure to non-traditional sectors.

## Strategic Outlook

The vendor maintains a defensible but concentrated position. While DoD dominance reflects core competencies in advanced aerospace and defense systems, strategic expansion into adjacent federal agencies—particularly civilian space, infrastructure, and technology sectors—would reduce concentration risk and stabilize revenue streams amid defense budget uncertainties.