1995 Annual Report - Lockheed Martin

E n e r g y & E n v i r o n m e n t S e c t o rAn important achievement in 1995 was winning theperformance-based contract to provide support services forthe Department of Energy's Nevada Test Site.One of Lockheed Martin's early decisions in 1995 was to establish a fifth sector — Energy &Environment — to strengthen its role in managing and operating Department of Energyfacilities. Establishment of the new sector also signals the Corporation's intent, directly andthrough ventures with other corporations, to gain a large presence in the domestic and internationalenvironmental remediation business.Molten MetalTechnology:The Science ofRecyclingThe Energy & Environment Sector's overall strategy is to apply its technology skills tomanage Department of Energy facilities and leverage that experience to create new businessopportunities. For example, the Energy & Environment Sector is positioned to pursueDepartment of Energy privatization initiatives that, in turn, lead to other privatization andmilitary base environmental remediation opportunities in the United States and abroad.An important achievement in 1995 was winning the performance-based contract to providesupport services for the Department of Energy's Nevada Test Site. Lockheed Martin, as anintegrated subcontractor to Bechtel National, Inc., will manage the testing, counterproliferationand technology base of the Nevada Test Site, beginning in 1996. We established a new operatingunit in the Energy & Environment Sector, Lockheed Martin Nevada Technologies, Inc.,for the effort.Lockheed Martin Energy Systems signed a two-year extension to manage and operate theDepartment of Energy's Oak Ridge facilities and the environmental management programs atthe Portsmouth, Ohio, and Paducah, Kentucky, facilities. This extension continues our managementof these facilities through March 31, 1998, with an estimated Department of Energy budgetof $3.5 billion. In December, the Department of Energy and Lockheed Martin agreed to operatethe Oak Ridge National Laboratory, a major national science center, under a separate contract,which will be performed by a new operating unit in the Energy & Environment Sector, LockheedMartin Energy Research Corporation.26