Lockheed Martin – USA’s top salesman for war?
Lockheed Martin Used Pentagon Dollars to Lobby Congress for Nuclear Weapons Funding One of the uses of the billions of dollars from these contracts is to recycle them back into lobbying the government to push for additional conventional and nuclear weapons spending, as reported by William Hartung and Stephen Miles. Of course, in addition, these funds are used to support a general environment of fear and insecurity, through contributions supporting hawkish think tanks.
“……..Corporations that contract with the Department of Defense (DOD) for nuclear weapons complex work do not report revenues and profits from this work separately from their other military work, although they do break up government work from civilian work, and sometimes break up military work from other government work. Hence, it is not possible to determine profits made from nuclear weapons complex work from the annual reports and Securities and Exchange Commission (SEC) filings of large military corporations. However, it is possible to estimate, and to demonstrate how a significant amount of military R&D and production not recorded as nuclear weapons work is in fact partially nuclear weapons work. The nuclear weapons work financed by the US Department of Energy (DOE) is (not surprisingly) carried out in a semi-secret insiders club that insulates it from public knowledge and oversight. The first contracts for the upgrading of the nuclear weapons triads have already been awarded — one to Northrop Grumman — for a new generation of long-range bomber. But the public remains in the dark as to how many tens of billions of their tax dollars will be spent on the project.
From 2012-2014, according to Lockheed Martin’s 2014 annual report, the company realized an average of $46 billion a year in revenue, with an average of $3.2 billion in profits — 7 percent of revenue, and a 76 percent return on $4.2 billion of investor equity. The annual report informs us that 59 percent of 2014 revenue came from the Pentagon. We know from other sources that $1.4 billion a year is coming from the DOE for operation of the Sandia nuclear weapons lab, and we are estimating that an additional $600 million a year is coming for DOE nuclear weapons complex work. Information in the annual report indicates that around $6.1 billion came from foreign military sales. This adds up to around $35 billion of military revenue, or 75.3 percent of total 2014 revenue. The single biggest revenue earner in recent years is the F-35 jet fighter, bringing in $8.2 billion, 17 percent of total corporation revenue, in 2014. (William Hartung’s recent report describes additional aspects of Lockheed Martin’s military business, and his book Prophets of War: Lockheed Martin and the Making of the Military Industrial Complex provides extensive background).
The only references to Lockheed Martin’s nuclear weapons complex work in its 2014 annual report is a sentence noting provision of infrastructure and site support to the DOE’s Hanford complex, and a phrase noting continuing work on the Trident missile. The words “nuclear weapons” never appear in the report.
Lockheed Martin’s Nuclear Weapons Operations
In spite of the lack of mention in the annual report, Lockheed Martin is a partner with Bechtel ATK, SOC LLC and subcontractor Booz Allen Hamilton in Consolidated Nuclear Security LLC (CNS), in running the DOE Pantex Plant and the Y-12 Complex. Pantex does nuclear weapons life extension, dismantlement, development, testing and fabrication of high explosive nuclear warhead components. Y-12 stores and processes uranium, and fabricates uranium weapons components.
Lockheed Martin produced the Trident strategic nuclear missile for the 14 US Ohio-class nuclear submarines and for the four British Vanguard-class submarines. The 24 Tridents on each Ohio-class submarine each carry either eight or 12 warheads, all of them 20 to 50 times more powerful than the bombs dropped on Hiroshima and Nagasaki. Each warhead is capable of killing most of the people in any one of the world’s largest cities — either immediately or later, from radiation, burns, other injuries, starvation and disease. Lockheed MArtin is not producing new Trident missiles now, but it maintains and modifies them. Previously, Lockheed Martin and its subcontractors received $65 million for each of the 651 Trident missiles, in addition to the $35 billion in earlier development costs.
The other primary strategic nuclear weapon delivery vehicle is Boeing’s land-based Minuteman III strategic missile, also with many warheads per missile. About 450 of them are in silos in Colorado and northern plains states. Lockheed Martin produced and continues to produce key systems for the Minuteman III, and plays a large role in maintaining them. It was awarded a $452 million contract for this work in 2014.
Lockheed’s Sandia Subsidiary
Regarding the Pentagon’s nuclear weapons upgrades planned for the next decade; particularly important is the role of Sandia National Laboratories (SNL). Outside of Albuquerque, New Mexico, this DOE lab’s 10,600 employees make 95 percent of the roughly 6,500 non-nuclear components of all seven US nuclear warhead types. Components arm, fuse, fire, generate neutrons to start nuclear reactions, prevent unauthorized firing, preserve the aging nuclear weapons stockpile and mate the weapons to the missiles, planes and ships that deliver them to targets. Sandia Corporation LLC, wholly owned by Lockheed Martin, operates Sandia. The DOE is spending at least $1.4 billion a year on Sandia nuclear weapons work. The secret Lockheed Martin nuclear warhead assembly plant uncovered in Sunnyvale in 2010 is an extension of Lockheed Martin’s Sandia operations. Again, none of this received any mention or revenue numbers in Lockheed Martin’s 2014 annual report.
Lockheed Martin Used Pentagon Dollars to Lobby Congress for Nuclear Weapons Funding
One of the uses of the billions of dollars from these contracts is to recycle them back into lobbying the government to push for additional conventional and nuclear weapons spending, as reported by William Hartung and Stephen Miles. Of course, in addition, these funds are used to support a general environment of fear and insecurity, through contributions supporting hawkish think tanks. Technically, the federal government does not allow military contracting firms to use awarded funds to lobby Congress. Lobbying funds must come from other parts of the companies’ businesses. In reality, this is a non-functional restriction, since profits from various business segments are fungible; that is, once they are profits, they are intermingled, so in reality, the firms can use the profits from military contracts to lobby Congress. But Lockheed Martin went ahead and spent military contract funds from 2008-2012 as part of the contract expenditures. It didn’t even bother to book the lobbying expenditures as expenditures of profits. In 2015, the US Department of Justice required Lockheed Martin’s Sandia subsidiary to repay $4.9 million of a Sandia contract award to the Pentagon that the firm had spent under the contract for lobbying of Congressman the DOE secretary and the secretary’s family and friends………http://www.truth-out.org/news/item/39712-trump-is-bankrupting-our-nation-to-enrich-the-war-profiteers
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