CONTRACT RD-122, PROPOSAL FOR TASK ORDER NO. 2

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-03330A004100080006-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 29
• Document Creation Date: December 22, 2016
• Document Release Date: February 14, 2012
• Sequence Number: 6
• Publication Date: June 12, 1959
• Content Type: LETTER

Declassified in Part - Sanitized Copy Approved for Release 2012/02/14: CIA-RDP78-0333OA004100080006-8
CONE
DENT AL
ILLEGIB
12 June 1959
Subject: Contract RD-122, Proposal for Task Order No. 2
is pleased to quote on R & D for
changes in the design of basic DEequipment L delivered under subject
APPLICABLE COMMENTS,rand
The sections entitled PRICE,
TERMS all form a part of this quotation.
Gentlemen:
the ma
agrees to supply
price of $78, 097a . 00, plus a fee of 7% or $5, 466.00.
DELIVERY
terial and services for a
s to deliver one each of all modified units not
agree
later than December 31, 1959 or as soon prior to this as possible as each unit
_r ,,.,;*~ Fi rPtiirned
g
r
units for completion of final manufacturing av~
production tooling and test fixtures. One each of the following modified units is
to be delivered to you: AT3 Transmitter, CO3 Coder, CA3 Cartridge. The BA3
Battery will also be supplied if it is determined that a new physical dimension is
required for the unit.
wiui yvui .,~...~...,.... __
messenger. By proceeding in this manner it is expected that can use these
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APPLICABLE COMMENTS
agrees to furnish the necessary facilities, equip-
ment, and personnel to make the following modifications and changes based on
(1) the customer's test reports of the prototype units, (2) conference notes of
May 27, 1958, (3) making the production of certain units more feasible as in-
dicated below. The type of work to be done is listed under each item.
I. AC-3 Power Supply:
This unit will remain the same as the prototypes.
II. BC-3 Battery Charger:
This unit will remain the same as the prototypes.
III. BA-3 Battery:
a. The Battery case will be re-designed for production.
b. The size may be increased based on customer approval
of the same cell in a taller package which allows for
more electrolyte and consequently less maintenance.
c. The battery type could be changed to a BTK6XH which
is the same size as the present battery, but having
4.5 amp. hr. capacity, and better suited to the type of
operation of the AS-3 system.
IV. CA-3 Cartridge
a. Make- necessary modifications to improve tape wind-rewind
operation.
b. Investigate method of insertion in conjunction with manu-
facturers of similar cartridge
c. Change cover hinge location so AT-3 controls will not be
obscured.
d. Reduce cartridge thickness
e. Reduce noise level during rewind operation
f. Modify erase shaft to eliminate interference with other
components.
V. AT-3 Transmitter
a. It is expected that the transmitter will increase slightly
in width and/or length.
b. Provide for low power tune up (less than 1 watt radiated)
by incorporation of additional switching operation.
c. Use tuning meter only during low power tune up, neon
bulb when high power is used.
d. Revise antennae matching circuit for faster tune up
process.
-2..
CON DENT AL
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e. Modify AT-3 for break-in operation during hand key
operation only.
f. Provide power plug for VFO and investigate require-
ments necessary for AT-3 to be operated by the VFO.
(see section VII).
g. Provide for easier operation of push buttons.
h. Change crystal socket to accept FT-243 crystal pins
instead of the modified pins as per the prototype.
i. Provide lock for hand key door in the operate position.
j. Provide suitable protection from antenna shorts to case.
k. Enclose as much as possible the channel which holds the
cartridge.
1. Insure adequate frequency coverage,
m. Investigate coupling of RF energy at the receiver terminals
during transmission.
n. Keyer amplifier
Investigate the practicability of using a dot channel and dash
channel instead of the present start and stop channels; the
dot and dash lengths to be fixed by design of the keyer
amplifier. The advantage of this method should result in
a more simple and reliable coder. If this new method does
not prove sufficiently attractive, the present method would
be retained.
o. Should the new method of keying the transmitter prove
feasible, the frequency of the identification (IDY) would
have to be changed to approximately 195 ? 10 cps.
p. We shall investigate the reduction of key click interference.
reliability
a. Increase the cutout around the key buttons.
b. Improve mechanical spacing, principally after dashes.
c. Investigate along with the proposed keyer-amplifier change
the simplification of impressing the pulses on the tape.
Regardless of the keying method used, improve the
VII. Remarks:
It will be necessary at a very early date in the continuance of
this work that the following equipments be supplied on
a loan basis:
1. RR/11'-D Receiver
2. TP-3 Printer
3. VFO and its characteristics.
4. Other manufacturer's cartridge.
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TERMS
will agree to a Task Order No. 2 to subject
contract with of the terms and conditions of the original contract.
of presenting this proposal.
wishes to thank you for the opportunity
Yours very truly,
WFC/AWP:ms
Enclosures: (a) Cost and Price Analysis, Form DD633
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 Declassified in Part - Sanitized Copy Approved for Release 2012/02/14: CIA-RDP78-0333OA004100080006-8
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 Declassified in Part - Sanitized Copy Approved for Release 2012/02/14: CIA-RDP78-0333OA004100080006-8
ANALYSIS OF TOTAL ESTIMATED COST
OF SPECIAL TOOLING
PURCHASED PARTS
SUBCONTRACTED ITEMS A/
6. OTHER FACTORS:_U
Furnish in space at left separate analysis for total.
cost of special tooling.
Definitions are shown on DD Form 347 referenced in ASPR
paragraph 7-105.7, Bill of Materials. Attach list of prin-
cipal parts and items indicating source and unit price.
J Ordinarily includes (1) basic commodities and raw ma-
terials acquired by a contractor in a form or state
which requires further processing and (2) other gen-
eral usage materials which are procured or manufac-
tured for usage in the normal course of contractor's
business. Describe method of costing (2).
For research and development and other projects under
which it is impracticable to show unit prices, the data
should be presented on a total contract price basis.
Furnish patent numbers, names of licensors and rate
and basis of royalties.
Exclude any preproduction or other non-recurring costs.
If previous contract is not completed, use best esti-
mate.
11Explain fully, attaching list of items and amounts.
'Selling price must include any applicable excise tax
on finished articles.
r
Price is F.O.B. = origin or 0 destination. If
the latter, indicate transportation cost $
Should include, for example, such things as:
1. "Packaging and Packing", if special to the contract,
of significant dollar value, or separately accounted
for. As alternate procedure, use a supporting schedule.
1. Is the estimate for direct labor based on wage rates currently prevailing in your plant? 0 Yes No
(If not explain difference on a, separate sheet)
2. What monthly rate of production is contemplated in calculating your price proposal? units How
many hours of operation required per week?
3. If currently producing the same or similar items, what monthly rate of production prevails? units
How many hours of operation required per week?
4a. Explain method of computing any depreciation charge included in your proposal.
Depreciation included is in accordance with rates established by the
Engineering Division of the Internal Revenue Department,
b. Have you included any charge for fully depreciated facilities or equipment? 0 Yes No (If yes,
e lain)
5. The Company, Corporation, or Firm submitting this analysis represents that; (A) The prices shown on this
form do not include any charge for (I) cost of facilities (including tools, jigs, dies, and other equipment)
which liupli-cater-any, charge against'ani othei` prior or current Government contract or subcontract. III) any
depreciation on facilities or equipment owned by the Government or any Government agency. (III) any rental or
use charge on facilities or equipment owned by the Government, or any Government agency if such facilities or
equipment have been provided free of charge;
(B) The prices shown on this form are based on the understanding that the following material, or services, will
be furnished by the Government:
(C) It does not require any Government financial assistance;
(D) Bases used in computation of burden rates do not include allowance for overtime compensation;
(E) The bidder (contractor) represents: (a) that he = has, =has not, employed or retained any company
or person(other than a full-time bona fide emplo working solely for the bidder (contractor)) to solicit or
secure this contract and (b) that he has ee has not, paid or agreed to pay to any company or person
(other than a full-time bona fide employee working solely for the bidder (contractor)) any fee, commission,
percentage or brokerage fee, contingent upon or resulting from the award of this contract; and agrees to fur-
nish information re.lating.thereto as requested by the contracting office.
(F) The prices shown do not include any cost of acquisition of facilities.
ANY EXCEPTIONS TO ITEM 5.SHOULD BE FULLY EXPLAINED ON SEPARATE SHEETS.
1, . . .
CERTIFICATION - THIS ISTO CERTIFY THAT THE INFORMATION CONTAINED IN THIS PROPOSAL HAS BEEN BASED UPON OR COM-
PILED FROM THE BOOKS AND RECORDS OF THIS COMPANY AND IS ACCURATE TO THE BEST OF MY KNOWLEDGE AND BELIEF.
IATP FIRM NAME
June 12, 1959
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 Declassified in Part - Sanitized Copy Approved for Release 2012/02/14: CIA-RDP78-0333OA004100080006-8
June 17, 1959
Subject: Proposal for production of units of AS-3 System
is pleased to quote on the production
of the several units of the AS-3 system. The sections entitled PRICE, DEL-
IVERY, APPLICABLE COMMENTS, and TERMS, all form a part of this
quotation.
Agrees to supply 250 of each of the following at.
the unit and total prices shown.
Major Unit
Unit Price
Extension
AT-3 Transmitter
2,090.70
522,675.00
AC-3 Power Supply
558.63
139, 657.50
CO-3 Coder
357.22
89, 305.00
CA-3 Cartridge
232.79
58,197.50
BA-3 Battery
190:89
47, 722.50
BC-3 Charger
152.35
38,087.50
Instruction Books - To be negotiated later.
TOTAL
$ 895,645. 00
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agrees to deliver the major units at the following 25X1
Quantity each
During major unit
June 1960 10
July 1960 20
August 1960 20
September 1960 25
October 1960 30 per month to completion
Delivery of the AC-3, CA-3, BA-3, and BC-3 can be started 3 months prior to
the above dates if you so desire.
APPLICABLE COMMENTS
agrees to furnish the major units to your specifications
No. 56-A-1046A of 26 April 1956 as modified by subsequent agreements including
those which will result from the Task No. 2 to Contract RD-122 currently under
negotiation with you. Production will proceed as rapidly as possible after approval
of the sample to be delivered under Task No. 2 Contract No. RD-122 but it is
assumed that action by you on approval of the sample will be taken within 10 days
of submission of same.
2 - June 17, 1959
will agree to a fixed price contract, redeterminable 25X1
downward only upon comp etion of the contract.
and are net 30 days.
This quotation may be considered firm for a period of 60 days from date of this
letter.
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June 17, 1959
wishes to thank you for the opportunity
of quoting on this equipment and will do its best to meet the quality and delivery
dates required by you.
Yours very truly,
Enclosures:
Price and Cost Analysis - Form DD 633
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 Declassified in Part - Sanitized Copy Approved for Release 2012/02/14: CIA-RDP78-0333OA004100080006-8
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 Declassified in Part - Sanitized Copy Approved for Release 2012/02/14: CIA-RDP78-0333OA004100080006-8
ANALYSIS OF TOTAL ESTIMATED COST
OF SPECIAL TOOLING
PURCHASED PARTS
SUBCONTRACTED ITEMS
6. OTHER FACTORS:-
Furnish in space at left separate analysis for total
cost of special tooling.
.Dgfinitfona are shown on DD Form 347 referenced in ASPR
?paragraph.7--105.7, Bill of Materials. Attachlist of prin-
cipal parts and items indicating source and unit price.
2'Ordinarilyincludes (1) basic commodities and raw ma-
terials acquired by a contractor in a form or state
which requires further processing and (2) other gen-
eral usage materials which are procured or manufac-
tured for usage in the normal course of contractor's
business. Describe method of costing (2).
-'For research and development and other projects under
which it is impracticable to show unit prices, the data
should be presented on a total contract price basis.
-elFur,nisly patent numbers, names of licensors and rate
and basis of royalties.
-QExcludenany preproduction or other non-recurring costs.
-If previous contract is not completed, use best esti-
mate.
'Explain fully, attaching list of items and amounts.
Selling price must include any applicable excise tax
on finished articles.
PYice is F.O.B. N:3aorigin or = destination. If
the latter, indicate transportation cost $
11Should include, for example, such things as:
1. "Packaging and Packing", if special to the contract,
of significant dollar value, or separately accounted
for. As alternate procedure. use a supporting schedule.
1. Is the estimate for direct labor based on wage rates currently prevailing in your plant? E Yes No
(If not explain difference on a separate sheet)
2. What monthly rate of production is contemplated in calculating your price proposal? 20 units How
many hours of operation required per week? 40
3. If currently producing the same or similar items, what monthly rate of production prevails? - - - units
How many hours of operation required per week? - -
4a. Explain method of computing any depreciation charge included in your proposal.
Depreciation included is in accordance with rates established by the
Engineering Division of the Internal Revenue Department,
b. Have you included any charge for fully depreciated facilities or equipment? = Yes R5a No (If yes,
5. The Company, Corporation, or Firm submitting this analysis represents that; (A) The prices shown on this
form do not include any charge for (I) cost of facilities (including tools, jigs, dies, and other equipment)
which duplicates any charge against any other prior or current Government contract or subcontract. III) any
depreciation on facilities or equipment owned by the Government or any Government agency. (III) any rental or
use charge on facilities or equipment owned by the Government, or any Government agency if such facilities or
equipment have been provided free of charge;
(B) The prices shown on this form are based on the understanding that the following material, or services, will
be furnished by the Government: none
(C):It' does not require. any~Goverament financial assistance;
IN Bases used in computation of burden rates do not include allowance for overtime compensation;
(B) The bidder (contractor) represents: (a) that he 0 has, t has not, employed or retained any company
or person (other. than _a full-time bona fide employee working solely for the bidder (contractor)) to solicit or
secure'-~this'?contract and?(b) that he = has ? has not, paid or agreed to pay to any company or person
(other than a full-time bona fide employee working solely for the bidder (contractor)) any fee, commission,
percentage, or.-Proteragp fee, contingent upon or resulting from the award of this contract; and agrees to fur-
nish iriformationreiating-thereto as requested by the contracting office.
(F) The prices shown do not include any cost of acquisition of facilities. 25X1
ANY .EXCEPIIIONS. TO ,ITEM,.5.'SHOULD BE FULLY EXPLAINED ON SEPARATE SHEETS.
CERTIFICATION - THIS ISTO CERTIFY THAT THE INFORMATION CONTAINED IN THIS PROPOSAL HAS BEEN BASED UPON OR COM-
PILED FROM THE BOOKS AND RECORDS OF THIS COMPANY AND IS ACCURATE TO THE BEST OF MY KNOWLEDGE AND BELIEF.
June 15, 1959
TITLE
Vice President
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 Declassified in Part - Sanitized Copy Approved for Release 2012/02/14 : CIA-RDP78-0333OA004100080006-8
ANALYSIS OF TOTAL ESTIMATED COST
OF SPECIAL TOOLING
PURCHASED PARTS
SUBCONTRACTED ITEMS
6. OTHER FACTORS:1/
1-117urnish in space at left separate analysis for total
cost of special tooling.
J Defjnit,ions are shown on DD Form 347 referenced in ASPR
paragraph 7-105.7, Bill of Materials. Attach list of prin-
cipal parts and items indicating source and unit price.
Ordinarily includes (1) basic commodities and raw ma-
terials acquired by a contractor in a form or state
which requires further processing and (2) other gen-
eral usage materials which are procured or manufac-
tured for usage in the normal course of contractor's
business. Describe method of costing (2).
For research and development and other projects under
which it is impracticable to show unit prices, the data
should be presented on a total contract price basis.
elFuroish patent numbers, names of licensors and rate
and basis of royalties.
Exclude any preproduction or other non-recurring costs.
If previous contract is not completed, use best esti-
mate.
-"Explain fully, attaching list of items and amounts.
Selling price must include any applicable excise tax
on finished articles.
i
Price is F.O.B. = origin or Q destination. If
thelatter,.indicate transportation cost $
Should include, for example, such things as:
1. "Packaging and Packing", ifspecial to thecontract,
of significant dollar value, or separately accounted
for. As alternate procedure, use a supporting schedule.
1. Is the estimate for direct labor based on wage rates currently prevailing in your plant? ? Yes No
(If not explain difference on a separate sheet)
2. What monthly rate of production is contemplated in calculating your price proposal? 20 units How
many hours of operation required per week? 40
3. If currently producing the same or similar items, what monthly rate of production prevails? - - units
How many hours of operation required per week? - -
4a. Explain method of computing any depreciation charge included in your proposal.
Depreciation included is in accordance with rates established by the
Engineering Division of the Internal Revenue Department
b. Have you included any charge for fully depreciated facilities or equipment?
r-?plain)
5. The Company, Corporation, or Firm submitting this analysis represents that; (A) The prices shown on this
form do not include any charge for (I) cost of facilities (including tools, jigs, dies, and other equipment)
which duplicates any charge against any other prior or current Government contract or subcontract. (II) any
depreciation on facilities or equipment owned by the Government or any Government agency. (III) any rental or
use charge on facilities or equipment owned by the Government, or any Government agency if such facilities or
equipment have been provided free of charge;
(B) The prices shown on this form are based on the understanding that the following material, or services, will
be furnished by the Government: none
(C) It does not require any)Gov.eynment financial assistance;
(D) Bases used in computation of burden rates do not include allowance for overtime compensation;
(E) The bidder (contractor) represents: (a) that he 0 has, ? has not, employed or retained any company
or person(other than a full-time bona fide employee working solely for the bidder (contractor)) to solicit or
secure this 'contract and (b) that he = has ? has not, paid or agreed to pay to any company or person
(other than a full-time bona fide employee working solely for the bidder (contractor)) any fee, commission,
percentage_or.~rokerage fee, contingent upon or resulting from the award of this contract; and agrees to fur-
nish information relating -thereto as requested by the contracting office.
(F) The prices shown do not include any cost of acquisition of facilities. 25X1
ANY EXCEPTIONS TO ITEMS SHOULD BE FULLY EXPLAINED ON SEPARATE SHEETS.
CERTIFICATION - THIS ISTO CERTIFY THAT THE INFORMATION CONTAINED IN THIS PROPOSAL HAS BEEN BASED UPON OR COM-
PILED FROM THE BOOKS AND RECORDS OF THIS COMPANY AND IS ACCURATE TO THE BEST OF MY KNOWLEDGE AND BELIEF.
June 15, 1959
TITLE
Vice President
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 Declassified in Part - Sanitized Copy Approved for Release 2012/02/14: CIA-RDP78-0333OA004100080006-8
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 Declassified in Part - Sanitized Copy Approved for Release 2012/02/14 : CIA-RDP78-0333OA004100080006-8
ANALYSIS OF TOTAL ESTIMATED COST
OF SPECIAL TOOLING
PURCHASED PARTS
SUBCONTRACTED ITEMS
6. OTHER FACTORS:
Furnish in space at left separate analysis for total
cost of special tooling.
Definitions are shown on DD Form 347 referenced in ASPR
paragraph 7-105.7. Bill of Materials. Attach list of prin-
cipal parts and items indicating source and unit price.
clOrdinarily includes (1) basic commodities and raw ma-
terials acquired by a contractor in a form or state
which requires further processing and (2) other gen-
eral usage materials which are procured or manufac-
tured for usage in the normal course of contractor's
business. Describe method of costing (2).
For research and development and other projects under
which it is impracticable to show unit prices, the data
should be presented on a total contract price basis.
-elFurnish patent numbers, names of licensors and rate
and basis of royalties.
Exclude any preproduction or other non-recurring costs.
if. previous contract is not completed, use best esti-
mate.
-"Expla-in fully, attaching list of items and amounts.
-AlSellin
g price must include any applicable excise tax
on finished articles.
Price is F.O.B. SM origin or = destination. If
the ltter, indicate transportation cost $
11Should include, for example, such things as:
1. "Packaging and Packing", ifspecial to thecontract,
of significant dollar value, or separately accounted
for. As alternate procedure, use a supporting schedule.
1. Is the estimate for direct labor based on wage rates currently prevailing in your plant? ? Yes No
(If not explain difference on a separate sheet)
2. What monthly rate of production is contemplated in calculating your price proposal? 20 units How
many hours of operation required per week? 40
3. If currently producing the same or similar items, what monthly rate of production prevails?-- units
How many hours of operation required per week? - -
4a. Explain method of computing any depreciation charge included in your proposal.
Depreciation included is in accordance with rates established by the
Engineering Division of the Internal Revenue Department
b. Have you included any charge for fully depreciated facilities or equipment? 0 Yes ? No (If yes,
5. The Company, Corporation, or Firm submitting this analysis represents that; (A) The prices shown on this
form do not include any charge for (I) cost of facilities (including tools, jigs, dies, and other equipment)
which duplicates any charge against any other prior or current Government contract or subcontract. (II) any
depreciation on facilities or equipment owned bytbe Government or any Government agency. (III) any rental or
use charge on facilities or equipment owned by the Government, or any Government agency if such facilities or
equipment have been provided free of charge;
(B) The prices shown on this form are based on the understanding that the following material, or services, will
be furnished by the Government: none
(C) It does not require an.yaGover.nment financial assistance;
(D) Bases used in computation of burden rates do not include allowance for overtime compensation;
(E) The bidder (contractor) represents: (a) that he = has, ZX has not, employed or retained any company
or person(other than a full--time bona fide employee working solely for the bidder (contractor)) to solicit or
secure this contract'and (b) that he = has ? has not, paid or agreed to pay to any company or person
(other than a full-time bona fide employee working solely for the bidder (contractor)) any fee, commission,
percentag.e,or brokerage fe.e, contingent upon or resulting from the award of this contract; and agrees to fur-
nish-information rel'atingthereto as requested by the contracting office.
(F) The prices shown do not include any cost of acquisition of facilities. 25X1
ANY EXCEPTIONS -TO ITEM..5 SHOULD BE FULLY EXPLAINED ON SEPARATE SHEETS.
CERTIFICATION - THIS IS TO CERTIFY THAT THE INFORMATION CONTAINED IN THIS PROPOSAL HAS BEEN BASED UPON OR COM-
PILED FROM THE BOOKS AND RECORDS OF THIS COMPANY AND IS ACCURATE TO THE BEST OF MY KNOWLEDGE AND BELIEF.
DATE .
June 15, 1959
TITLE
'Vice President
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 Declassified in Part - Sanitized Copy Approved for Release 2012/02/14: CIA-RDP78-0333OA004100080006-8
Declassified in Part - Sanitized Copy Approved for Release 2012/02/14: CIA-RDP78-0333OA004100080006-8
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/14: CIA-RDP78-0333OA004100080006-8
ANALYSIS OF TOTAL ESTIMATED COST
OF SPECIAL TOOLING
PURCHASED PARTS
SUBCONTRACTED ITEMSIL/
6. OTHER FACTORS:1/
Furnish in space at left separate analysis for total
cost of special tooling.
-Defigi-t ions are shown on DD Form 347 referenced in ASPR
paragraph 7-105.7. Bill of Materials. Attach list of prin-
cipal parts and items Indicating source and unit price.
-Slordinarily includes (1) basic commodities and raw ma-
terials acquired by a contractor in a form or state
which requires further processing and (2) other gen-
eral usage materials which are procured or manufac-
tured for usage in the normal course of contractor's
business. Describe method of costing (2).
-'For research and development and other projects under
which it is impracticable to show unit prices, the data
should be presented on a total contract price basis.
elFurniish patent numbers, names of licensors and rate
and basis of royalties.
-L1Exelade,any preproduction or other non-recurring costs.
"I'f'previous contract is not completed, use best esti-
mate.
/Exp'lain'fully, attaching list of items and amounts.
-'Selling price must include any applicable excise tax
on finished articles.
-LIPrkce-is F.O.B. ? origin or 0 destination. If
the latter, indicate transportation cost $
Should include, for example, such things as:
1. "Packaging and Packing",ifspecial to thecontract,
of significant dollar value, or separately accounted
for. As alternate procedure, use a supporting schedule.
1. Is the estimate for direct labor based on wage rates currently prevailing in your plant? XCYes No
(If not explain difference on a separate sheet)
2. What monthly rate of production is contemplated in calculating your price proposal? 20 units How
many hours of operation required per week? 40
3. If currently producing the same or similar items, what monthly rate of production prevails? -- units
How many hours of operation required per week? - -
4a. Explain method of computing any depreciation charge included in your proposal.
Depreciation included is in accordance with rates established by the
Engineering Division of the Internal Revenue Department.
b . Have you included any charge for fully depreciated facilities or equipment? E Yes E No (If yes,
lain)
5. The Company, Corporation, or Firm submitting this analysis represents that; (A) The prices shown on this
form do not include any charge for (I) cost of facilities (including tools, jigs, dies, and other equipment)
which duplicates any charge against any other prior or current Government contract or subcontract. (II) any
depreciation on- facilities or equipment owned by the Government or any Government agency., (III) any rental or
use charge on facilities or equipment owned by the Government, or any Government agency if such facilities or
equipment have been provided free of charge;
(B) The prices shown on this form are based on the understanding that the following material, or services, will
be furnished by the Government: none
(C) It does not require any Government financial-assistance;
(D) Bases used in computation of burden rates do not include allowance for overtime compensation;
(E) The bidder (contractor) represents: (a) that he = has, ? has not, employed or retained any company
or person,(otha:r",than a full-time bona fide employee working solely for the bidder (contractor)) to solicit or
secure this contract and (b) that he = has =bas not, paid or agreed to pay to any company or person
(other than a full-time bona fide employee working solely for the bidder (contractor)) any fee, commission,
percentage-or brokerage fee, contingent upon or resulting from the award of this contract; and agrees to fur-
nish information relating thereto as requested by the contracting office.
(F) The prices shown do not include any cost of acquisition of facilities. 25X1
ANY EXCEPTIONS_TO ITEM'5 SHOULD BE FULLY EXPLAINED ON SEPARATE SHEETS.
CERTIFICATION - THIS ISTO CERTIFY THAT THE INFORMATION CONTAINED IN THIS PROPOSAL HAS BEEN BASED UPON OR COM-
PILED FROM THE BOOKS AND RECORDS OF THIS COMPANY AND IS ACCURATE.TO THE BEST OF MY KNOWLEDGE AND BELIEF.
-FIRM NAME
ATC
TITLE
- .vi*ce President
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June 15, 1959
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ANALYSIS OF TOTAL ESTIMATED COST
PURCHASED PARTS
SUBCONTRACTED ITEMS A/
6. OTHER FACTORS:_U
-92Furnish in space at left separate
analysis for
total
cost of special tooling.
Definitions are shown on DD Form 347
referenced in
ASPR
paragraph 7-105.7, Bill of Materials.
Attach list of
prin-
cipal parts and items indicating source and unit price.
clOrdinerily includes (1) basic commodities and raw ma-
terials acquired by a contractor in a form or state
which requires further processing and (2) other gen-
eral usage materials which are procured or manufac-
tured for usage in the normal course of con'tractor's
business. Describe method of costing (2).
-'For research and development and other projects under
which it is impracticable to show unit prices, the data
should be presented on a total contract price basis.
-elFurnish patent numbers, names of licensors and rate
and basis of royalties.
Exclde any preproduction or other non-recurring costs.
0", previous contract is not completed, use best esti-
mate.
iJExplain? fully, attaching list of items and amounts.
-biSelling price must include any applicable excise tax
on finished articles.
Price is F.O.B. (XN origin or = destination. If
the latter, indicate transportation cost $
_LlShould include, for example, such things as:
1. "Packaging and Packing", ifspecial to the contract,
of significant dollar value, or separately accounted
for. As alternate procedure, use a supporting schedule.
1. Is the estimate for direct labor based on wage rates currently prevailing in your plant? ? Yes No
(If not explain difference on a separate sheet)
2. What monthly rate of production is contemplated in calculating your price proposal? 20 units How
many hours of operation required per week? 40
3. If currently producing the same or similar items, what monthly rate of production prevails? -- units
How many hours of operation required per week? - -
4a. Explain method of computing any depreciation charge included in your proposal.
Depreciation included is in accordance with rates established by the
Engineering Division of the Internal Revenue Department.
b . Have you included any charge for fully depreciated facilities or equipment? = Yes g 3 No (if yes,
explain) '
5. The Company, Corporation, or Firm submitting this analysis represents that; (A) The prices shown on this
form do not include any charge for (I) cost of facilities (including tools, jigs. dies, and other equipment)
which duplicates any charge against any other prior or current Government contract or subcontract. (II) any
depreciation on facilities or equipment owned by the Government or any Government agency. (III) any rental or
use charge on facilities or equipment owned by the Government, or any Government agency if such facilities or
equipment have been provided free of charge;
(B) The prices shown on this form are based on the understanding that the following material, or services, will
be furnished by the Government: none
'(C) It does not require any Government financial assistance;
(D) Bases used in computation of burden rates do not include allowance for overtime compensation;
(E) The bidder (contractor) represents: (a) that be = has, ? has not, employed or retained any company
or person,(other, than a full-time bona fide employee working solely for the bidder (contractor)) to solicit or
secure this contract and (b) that he 0 has = has not, paid or agreed to pay to any company or person
(other than a full-time bona fide employee working solely for the bidder (contractor)) any fee, commission,
percentage ?or brokerage fee, contingent upon or resulting from the award of this contract; and agrees to fur-
nish information relating "th"ereto as requested by the contracting office.
(F) The prices shown do not include any cost of acquisition of facilities. 25X1
ANY EXCEPTIONS TO ITEM 5 SHOULD BE FULLY EXPLAINED ON SEPARATE SHEETS.
CERTIFICATION - THIS IS TO CERTIFY THAT THE INFORMATION CONTAINED IN THIS PROPOSAL HAS BEEN BASED UPON OR COM-
PILED FROM THE BOOKS AND RECORDS OF THIS COMPANY AND IS ACCURATE TO THE BEST OF MY KNOWLEDGE AND BELIEF.
June 15, 1959
TITLE
Vipe President
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ANALYSIS OF TOTAL ESTIMATED COST
OF SPECIAL TOOLING
PURCHASED PARTS
SUBCONTRACTED ITEMS
6. OTHER FACTORS:J/
11Furnish in space at left separate analysis for total
cost of special tooling.'
Definitions are shown on DD Form 347 referenced in ASPR
parAgraph 7-105.7, Bill of Materials. Attach list of prin-
cipal parts and items indicating source and unit price.
clOrdinarily includes (1) basic commodities and raw ma-
terials acquired by a contractor in a form or state
which requires further processing and (2) other gen-
eral usage materials which are procured or manufac-
tured for usage in the normal course of contractor's
business. Describe method of costing (2).
For research and development and other projects under
which it is impracticable to show unit prices, the data
should be presented on a total contract price basis.
Furnish patent numbers, names of licensors and rate
an'd'basis of royalties.
-LlExclude any preproduction or other non-recurring costs.
.If'previous contract is not completed, use best esti-
mate.
1Expfain fully, attaching list of items and amounts.
Selling price must include any applicable excise tax
on finished articles.
i
Pryce is F.O.B. I= origin or = destination. If
the latter, indicate transportation cost $
-LIShould include, for example, such things as:
1. "Packaging and Packing", if special to the contract,
of significant dollar value, or separately accounted
for. As alternate procedure, use a supporting schedule.
1. Is the estimate for direct labor based on wage rates currently prevailing in your plant? Cn Yes No
(If not explain difference on a separate sheet)
2. What monthly rate of production is contemplated in calculating your price proposal? 2() units How
many hours of operation required per week? 40
3. If currently producing the same or similar items, what monthly rate of production prevails? -- units
How many hours of operation required per week? - -
4a. Explain method of computing any depreciation charge included in your proposal.
Depreciation included is in accordance with rates established by the
Engineering Division of the Internal Revenue Department.
b. Have you included any charge for fully depreciated facilities or equipment? = Yes
explain)
5. The Company, Corporation, or Firm submitting this analysis represents that; (A) The prices shown on this
form do not include any charge for (I) cost of facilities (including tools, jigs, dies, and other equipment)
which duplicates any charge against any other prior or current Government contract or subcontract. (III any
depreciation on facilities or equipment owned by the Government or any Government agency. (III) any rental or
use charge on facilities or equipment owned by the Government, or any Government agency if such facilities or
equipment have been provided free of charge;
(B) The prices shown on this form are based on the understanding that the following material, or services, will
be furnished by the Government: none
(C) It does not require any)Government financial assistance;
(D) Bases used in computation of burden rates do not include allowance for overtime compensation;
(E) The bidder (contractor) represents: (a) that he = has, KKR has not, employed or retained any company
or person(other than a full-time bona fide employee working solely for the bidder (contractor)) to solicit or
secure this contract and (b) that he = has 7X has not, paid or agreed to pay to any company or person
(other than a full-time bona fide employee working solely for the bidder (contractor)) any fee, commission,
percentage or tjrokerage fee, contingent upon or resulting from the award of this contract; and agrees to fur-
nish information relating thereto as requested by the contracting office.
(F) The prices shown do not include any cost of acquisition of facilities. 25X1
ANY EXCEPTIONS TO ITEM, 5 SHOULD BE FULLY EXPLAINED ON SEPARATE SHEETS.
CERTIFICATION - THIS ISTO CERTIFY THAT THE INFORMATION CONTAINED IN THIS PROPOSAL HAS BEEN BASED UPON OR COM-
PILED FROM THE BOOKS AND RECORDS OF THIS COMPANY AND IS ACCURATE TO THE BEST OF MY KNOWLEDGE AND BELIEF.
June 15, 1959
TITLE
Vice President
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Next 1 Page(s) In Document Denied
Iq
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 Declassified in Part - Sanitized Copy Approved for Release 2012/02/14: CIA-RDP78-0333OA004100080006-8
June 17, 1959
Subject: Proposal for production of units of AS-3 System
Gentlemen:
is pleased to quote on the production
o the several units of the AS-3 system. The sections entitled PRICE, DEL-
IVERY, APPLICABLE COMMBWIS, and `TERMS, all form a part of this
quotation.
PRICE
Agrees to supply 250 of each of the following at
the unit and total prices shown.
or Unit
AT-3 Transmitter
AC-3 Power Supply
CO-3 Coder
CA-3 Cartridge
BA-3 Battery
BC-3 urger
unit Price
Extension
2,090.70
558.63
357.22
232.79
190.89
152.35
U2,675.00
139, 657.50
89,305.00
58,197.50
47,722.50
38,087.50
TOTAL $ 895,645.00
Instruction Books - To be negotiated later.
i
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DELIVERY
June 17, 1959
agrees to deliver the major units at the following 25X1
quantity each
major unit
June 1960 10
July 1960 20
August 1960 20
September 1960 25
October 1960 30 per month to completion
Delivery of the AC-3, CA-3. BA-3, and BC-3 can be started 3 months prior to
the above dates if you so desire.
APP1.I LE COWME TS
agrees to furnish the major units to your specifications 25X1
No. 56-A-1046A of 26 April 1956 as modified by subsequent agreements including
those which will result from the Task No, 2 to Contract RA)-122 currently under
negotiation with you. Production will proceed as rapidly as possible after approval
of the sample to be delivered under Task No. 2 Contract No. RD-122 but it is
assumed that action by you on approval of the sample will be taken within 10 days
of submission of same.
RG"
will agree to a fixed price contract, redeterminable 25X1
downward only upon completion of the contract.
Prices sewn are fo o. b. and are net 30 days.
This quotation may be considered firm for a period of 60 days from date of this
letter.
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 Declassified in Part - Sanitized Copy Approved for Release 2012/02/14: CIA-RDP78-0333OA004100080006-8
Joie 17, 1959
wishes to drank you for the opportunity
of quoting on this equipment and will do its best to meet the quality and delivery
dates required by you.
Yours very truly,
AWP:ms
Vice President
Enclosures:
Price and Cost Analysis - ?orm 00 633
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12 June 1959
ject: Contract I -122, Ptoposal for Task Order No. 2
is pleased to quote on R & i for
changes in the design of basic equipment ivered under subject contract.
The sections entitled PRICE, DELIVERY, APPLICABLE CO dE TS, and
tY all form a part of this quotation.
PRICE
price of 478, 096.00,
agrees to supply the material and services for a 25X1
DELIVERY
=agrees to deliver one each of all modified units not
later than December 31, 1959 or as soon prior to this as possible a
Yn. d it I requested that each of these units be returned
___with your comments within 10 days by deliv to an
messenger. By proceeding In this manner it is expected that= can use these
units for completion of final manufacturing drawings and for the preparation of
production tooling and test fixtures. One each of the following modified units is
to be delivered to you: A T3 Transmitter, CA3 Cartridge. The BA3
Battery will also be supplied if it is determined that a new physical dimension is
required for the unit.
25X1
25X1
25X1
25X1
LOA1
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APP dI ABI.3 COMN '
agrees to furnish the necessary facilities, equip-
:gent, and personnel to make the following modifications and changes based on
(1) the customer's test reports of the prototype units, (2) conference notes of
May 27, 1958, (3) making the production of certain units more feasible as in-
dicated below. The type of work to be done is listed under each item.
1. AC-3 Power Supply:
This unit will remain the same as the prototypes.
II. BC-3 Battery Charger:
This unit will remain the same as the prototypes.
M. BA-3 Battery:
a. The Battery case will be re-designed for production.
b. The size may be increased based on customer approval
of the same cell in a taller package which allows for
more electrolyte and consequently less maintenance.
c. The battery type could be changed to a BTK6XH which
is the same size as the present battery, but having
4.5 amp. hr. capacity, and better suited to the type of
operation of the AS-3 system.
IV. CA-3 Cartridge
a. Make necessary modification] to improve tape wind-rewind
o .
b. Investigate method of insertion in conjunction with manu-
facturers of similar cartridge
c. Change cover hinge location so AT-3 controls will not be
obscured.
d. Reduce cartridge thickness
e. Reduce noise level during rewind operation
f.11?ify erase shaft to eliminate interference with other
components.
V. AT-3 Transmitter
a. It to expected that the transmitter will increase slightly
in width and/or length.
b. Provide for low power tune up (less than I watt radiated)
by incorporation of additional switching operation.
c. Use tuning meter only during low power tune up, neon
bulb when high power is used.
d. Revise antennae matching circuit for faster tune up
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' Ark L
J! J, 11
e. Modify AT-3 for break-in operation during hand key
operation only.
Provide power plug for VFO and investigate require-
ments necessary for AT-3 to be operated by the VFO.
(see section VII).
g. Provide for easier operation of. push buttons.
h. Change crystal socket to accept FT-243 crystal pity
instead of the modified pins as per the prototype.
1. Provide lock for hand key door in the operate position.
J. Provide suitable protection from antenna shorts to case.
k. Enclose as much as possible the channel which holds the
cartridge.
1. Insure equate frequency coverage.
m. Investigate coupling of RF energy at the receiver terminals
during transmission.
a. ieyer amplifier
Investigate the practicability of using a dot channel and hash
channel instead of the present start and stop channels; the
dot and dash lengths to be fixed by design of the keyer
amplifier. The advantage of this method should result in
a more simple and reliable coder. If this new method does
not prove sufficiently atts?active, the present method would
be retained.
o. Should the new method of keying the transmitter prove
feasible, the frequency of the identification (WY) would
have to be changed to-approximately 195 -10 cps.
p. We sal Investigate the reduction of key click interference.
a. Increase the cutout around the key buttons.
b. Improve mechanical spacing, principally after dashes.
c. Investigate along with the proposed keyer-amplifier change
the siplificaon of impressing the pulses on the tape.
Regardless of the ke3 method used. Improve the
reliability
VII.. Remarks:
it will be necessary at a very early date in the continuance of
this work that the following equipments be supplier= on
a loan basis:
1. RR/11-0 Receiver
2. TP-3 Printer
3. VO and its characteristics.
4. Other manufacturer's cartridge..
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contract with all of the terms and conditions of the original contract.
CONFIDENTIAL
agree to a Task Order No. 2 to subject
of presenting this propos .
wishes to thank you for the opportunity
Yours very truly,
WFC/AWP:ms
Enclosures: (a) Cost and Price Analysis, Form DD633
NEDENTAL
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