UK’s FIRST MASTER’S QUALIFICATION IN CONTRACT MANAGEMENT ANNOUNCED BY UNIVERSITY OF PORTSMOUTH AND LOCKHEED MARTIN

7 May 2003

HAVANT, United Kingdom – 7 May 2003 – The University of Portsmouth and leading advanced technology firm, Lockheed Martin UK Ltd Integrated Systems, in Havant, have teamed to offer the UK’s first and only Master’s degree qualification in contract management. The two or three year course consists of seven modules - two exam based and five workplace based – which will award students with either a postgraduate diploma or a master’s of science qualification.

The University joined with Lockheed Martin due to the company’s pre-eminent reputation in systems integration and prime contracting; skills that require its people to manage complex and demanding contracts with subcontractors – many on an international basis.

L-R Linda McCormack, Business Development Director of Portsmouth University Business School with Ian Wakeling, Commercial Manager for Lockheed Martin UK Integrated Systems and Peter Harris, the Lockheed Martin Training Manager. Standing in front of a Merlin Helicopter, 44 of which have been delivered to the Royal Navy by Lockheed Martin.

An example of Lockheed Martin’s complex contract management expertise is the company’s successful £2.2 billion Merlin helicopter project, run on behalf of the Ministry of Defence, which has just delivered the 44th and final helicopter to the Royal Navy on schedule and to budget. Lockheed Martin had to:

Manage 13 major sub-contractors with more than a quarter of these being traditional competitors in overlapping markets.

In addition, the company has managed more than 100 2nd tier suppliers and have supervised many more in lower tiers.

Nearly a quarter of the major sub-contractors were awarded contracts after competitive tender, with the balance being directed suppliers from the MOD, but with Lockheed Martin able to negotiate on price.

In order to satisfy the MOD’s 2,700 individual, top-level system requirements Lockheed Martin’s system engineering processes created ten critical sub-system specifications with an additional 10,500 derived requirements for sub-contractors to satisfy contractually.

Since the start of the programme Lockheed Martin has managed more than 3000 customer and sub-contractor requirement changes – each needing a separate contract amendment.

Ron Christenson, Group Managing Director of Lockheed Martin UK Ltd Integrated Systems said: “The complexity of the Merlin programme demonstrates how important this specialization has become and until now it has not been an area that has received much professional recognition. However, we wanted our people to have a high level of knowledge in contract law and associated areas, but also to be able to negotiate effectively immensely complex contracts, whilst not forgetting the underlying business imperatives.

“Efficient and taut contracts have a significant impact on the bottom line and it is important that our contracts people develop these diverse skills at an early stage; this course will help them do that. We are very proud to be associated with Portsmouth University in this venture.”

Linda McCormack, Business Development Director of Portsmouth University Business School said: “The business world is increasingly driven by strict contractual obligations which set out what has been agreed and when. The better the contract, the greater the business benefits all round, as people know where they stand. Contract Management is becoming more and more important with wider recognition every year. This course will give its graduates a significant qualification, which should translate into direct business advantages. This is a very cost-effective way of training up the workforce.

“We think that being associated with one of the world’s most advanced technology companies gives us enhanced credibility and positions us strongly to offer this course as a template to an even wider audience.”

Twelve people from Lockheed Martin are taking the course this year, and at the start of the next curriculum year the course will be made available to other companies and organizations. Other organisations have already expressed an interest in understanding more about this course.

Ian Wakeling, the Commercial Manager for Lockheed Martin UK Ltd Integrated Systems, who jointly developed the course with the University said: “As the course is work-based, it puts the investment back into the business because outputs from the modules benefit directly the individual’s work. This is further proof of our commitment to our people and a visible expression of our Investors in People accreditation. We are confident that other companies will be extremely interested.”

For further information on the Contract Management MSc, please contact the Portsmouth Business School on 023 9284 8200 or email: bus.admissions@port.ac.uk 

University of Portsmouth contact: Andrew Garratt, Public Relations Manager - on 023 9284 2721, or email: andrew.garratt@port.ac.uk 

Lockheed Martin contacts:
Jeremy Greaves, on: +44(0)2392 44 3977 (mob) +44(0)7887 506338 email: jeremy.greaves@lmco.com or Chris Trippick +44(0)207 798 2856 (mob) +44 (0)7905 356 646 or email: chris.trippick@lmco.com