F.Y. 1966 INITIAL PROGRAM APPROVALS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72R00410R000200040026-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: December 15, 2016
• Document Release Date: May 21, 2004
• Sequence Number: 26
• Publication Date: July 2, 1965
• Content Type: MF

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O T, I KT*
DEPARTMENT OF THE AIR FORCE
IIIIIIIIIIII11111IIII111111IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
14 000666340
2 JUL 1965
MEMORANDUM FOR B/GENERAL JACK LEDFORD
DIRECTOR, PROGRAM B
SUBJECT: F.Y. 1966 Initial Program Approvals
Your initial program approvals for FY 1966, by
project or task, are furnished in the attachments.
These reflect my determinations at this time, but may
be subject to change in OSD/BOB and other reviews. In
the meantime, you are authorized to proceed as of 1 July
1965 against these specific approvals.
There are a number of areas in which further examina-
tions, and probably discussions, will have to be held before
the FY 1966 program is considered to be a complete direction,
such as Isinglass, additional U-2 procurements, and your
recommended satellite programs.
I note that in your as of 31 May 65 monthly financial
status report against the FY 1965 programs, there are
significant unobligated balances against a number of
accounts. The NRO Comptroller will conduct an evaluation
with your personnel, when the as of 30 June 65 data is
complete, to determine whether any unobligated balances
at that point can be applied against FY 1966 program ap-
provals herein, or any additional program approvals that
may receive later approval.
I am particularly pleased with the marked improvements
in the data furnished to support your recommendations. This
type of information facilitates an understanding of the
proposals, and provides a basis for conducting more meaning-
ful reviews.
NRO review(s) completed.
15 Attachments
BROCKWAY McMILLAN
Director
National Reconnaissance Office
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FY 1966 Initial Program Approvals to Director B
(Thousand Dollars)
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FY 1966 Initial Program Approvals to Director D,
expected to be funded through Director B
(Thousand Dollars)
SR-71 Aircraft
YF-12A Aircraft
J58 Engine R&D
Tagboard
Dragon Lady
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OXCART, F.Y. 1966: (Thousand Dollars)
Airframe Service Contracts:
Base Operating Support
Engineering & Dev. Testing
Spares, AGE
Flight Testing
Modification Kits
Operational Crews Support
Overhaul and Repair
Tech Reps
Customer Service
Update/Repair/Iran
Sub-total
On the basis of a general analysis of the funds used
in both Fiscal Years 1964 and 1965, the actual rates on
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airframe service contracts have been considerably less than
the initial contractor's estimates for similar effort.
Your FY 1966 recommendations for the Oxcart Airframe Service
Contracts were the same as the contractor's submissions, and
I am convinced that a comprehensive analysis of the contractor's
requirements could have resulted in your being able to submit
reduced recommendations. Specifically, your BOS, Flight Testing,
Tech Reps, and Update/Repair/Iran recommendations for OXCART
are accepted. However, the Engineering and Development Testing
allowance is the same as the latest FY 1965 estimates, inasmuch
as there were no specific reasons provided for a significant
increase for this entry in FY 1966. Follow-on Spares, AGE
and Accommodation Sales allowances are approved at less than
your recommendations inasmuch as certain management actions
are available to you, i.e., examination of assets from prior
procurements, spares purchased vs. consumption experienced,
stock levels at various points, etc., to allow you to reduce
your requirement. Modification Kits allowance is approved
at less than your submission on the basis of the fact that the
extensive mods being accomplished from FY 1965 funding should
reduce the necessity for mods in FY 1966. The Operational
Crew Support allowance is higher than the latest FY 1965
estimate, but lower than your submission. In this area as well
as other areas involving contractor support personnel and
technical reps, I would like you to make a detailed analysis
of the requirements for the increased personnel recommendations,
as well as for the existing personnel levels, to make sure we
are getting value received for the expensive personnel costs
now being experienced. The Overhaul and Repair approval is
also higher than the FY 1965 listings but less than your FY 1966
recommendations, and as I mentioned above, the FY 1965 updating
should minimize the FY 1966 effort required.
In order for your office to be able to proceed against
the entire O-K-T Airframe Service Contract approvals, the
following amounts have been approved to Director D for the 25X1
FY 1966 initial programs:
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Base Operating Support
Engineering & Dev. Testing
Spares, AGE
Flight Testing
Modification Kits
Operational Crews Support
Overhaul and Repair
Tech Reps
Customer Service
Update/Repair/Iran
Sub-total
Tagboard
In accordance with my FY 1965 instructions, any
individual ECP costing over is to be submitted
to me for advance approval.
Engine Support:
Spares, GSE
Overhaul Labor
Tech Reps
Sub-total
These approvals are as recommended.
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Spares, GSE
Overhaul Labor
Tech Reps
Sub-total
Approval is granted to your request. I understand
that studies are being made of the actual utilization
of spares, obsolescence factors, stockage at various
locations, etc. I would appreciate the results and con-
clusions from these studies when finished.
The approvals for the YF12 and Tagboard engine support
for FY 1966 to Director D are:
Tagboard
I In the Cameras Portion, initial
approval is granted to for EKC,~for Hycon,
and for Perkin-E mer. Altho I realize that your
estimate or P-E was only about one-half of the company's
recommendation, I feel that the number of tech reps and
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the spares and overhaul costs are still excessive. If a
detailed re-examination indicates the approval to be
too low, I will consider a specific request for increase.
Guidance
The estimates for Auto Pilot and Jet Star Lease
are accepted However, the initial approval for INS
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of tech reps are considered to be excessive, and are
25X1 approved at the procurement of 4 new systems must be
deferred unti am furnished a specific basis for the
of 21 systems; and your estimate erroneously included
for Kedlock, which is charged to the YF-12 account.
This is the amount recommended.
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Operations and Maintenance
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Your estimate was based on achieving a population of
b 30 June 66, which appears unlikely. A reduction
of has been made in the support costs, excluding
the air transportation entries. The amounts for -47 shuttle
costs and Constellation shuttle added to amounts
this is 25X
reduced to an approval of I 25;
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Pilots
This approval is the same as your recommendation.
OXCART TOTAL Initially-Approved
As with FY1965, you will have flexibility within
the Oxcart Airframe Service Contracts, and within e
Engine Support categories, but not between t ese categories
or any other categories without my advance approval. You
will also have flexibility between and within all other
Oxcart line entries, provided that approved otals are
not exceeded thereby, and that effort is not initiated
on initial, disapprovals as stated in the preceding para-
graphs.
Also, the amounts reflected for your info under the
YF-12 and Tagboard Airframe Service Contracts and Engine
Support allowances are considered initially inflexible in
line entries and totals. No changes may be made without
my advance approval.
Certain estimates may be subject to reconsideration
if the Kadena deployment materializes; however, in general,
these approvals should suffice to cover that effort as well.
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IDEALIST, F.Y. 1966: (Thousand Dollars)
Initial Approval
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I
Since the submission of your estimate for
I understand that this has been revised to E:~ after
consideration of additional funding in FY 1 5 for
product improvements. The approved program allows the
remaining amount for your revised estimates on product
improvement, but initially disapproves the following:
Technical Representatives. While I have not made a
specific reduction in the-allowances for these
personnel, I would like a reassessment of the need
for this many people.
With regard to the following two areas, more specific
justifications on these proposals must be provided
before approval can be given.
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Overhaul and Factory Engineering Support:
Basic Desi n Covera e
Flight Test J-58 Engine
II. Cameras:
Research and Development,
25X1 Product Improvement
This item was not included in the Product Improvement
presentation. More specifics must be furnished before
approval.
While I have not made specific reductions in Technical
Representatives, I would like a reassessment of the need
for these numbers.
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III. Airborne Electronics, etc.:
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Ifor Miscellaneous. This is a Contingency
item, and may be subject to reconsideration when
specific efforts materialize.
While I have not made a specific reduction in
the allowances for pilots, I would like an explanation
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In general, I have not attempted in this program approval
to consider the impacts of my memo of 10 June 65 on FY 1966
funding. However, before finalizing contractual effort, your
office should recognize the potentials. For instance, if your
inventory reduces below the planned 10, I should think savings
could accrue in Service Contracts and other areas.
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F.Y. 1966: (Thousand Dollars)
Photo Processing
This allows the increase of personnel as
requested. The reduction of from your submission
is a general application.
This is as you recommended.
Film Requirements (U-2's)
Film Requirements (0, C
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This is the same as your recommendation, except
that 5 copies of each color mission rather than 8, are
considered adequate in FY 1966, which reduces your sub-
mission by Of particular note is that this approval
covers both the Idealist and Dragon Lady requirements.
Director D has not been granted any approval under Dragon
Lady for the I-HF-47 Film and Chemicals. Accordingly, the
entire amount will be handled under the program 25X1
for the first time. However, this should not be considered
as lessening in any way recognition of the FOG requirements.
I consider that FOG support should be provided in accordance
with needs. The combination under is merely an 25X1
administrative convenience.
Equipment Procurement
II
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25X1 No listings were submitted with your request for
I land are dependent to a large extent on EB-1492
develop nts.
TOTAL Initially-Approved
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EKC R&D, F. Y. 1966: (Thousand Dollars)
Initially-Approved Total
0
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The amount requested for this effort, was
considerably above the President's Budget of
However, I am willing to allow an increase of above
the budget.
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CORONA, F.Y. 1966: (Thousand Dollars)
This program ' ' g a re-evaluation, including
proposals made by on 21 June 65. In the meantime,
a first quarter fun release of ill be made against 25
continuation of current effort on the Corona J's and PG-1's.
These funds are not to be used for development or improvement
efforts, improved S/I camera, or additional PG-i's until pro-
gram approvals are furnished. Also, the procurement of
additional J's beyond number 42 should be suspended until
the program decisions are made.
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ISINGLASS, F. Y. 1966:
Initial Approval $ 0
I received your study dated 15 June on 21 June.
It will be given careful consideration. However, no
funding nor authorization to proceed can be approved
at this time.
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