(SANITIZED)PROPOSAL NO. 11510 - SMALL PLASTIC AIRSHIP

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-03642A001300040008-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 22, 2016
• Document Release Date: June 14, 2012
• Sequence Number: 8
• Publication Date: September 20, 1957
• Content Type: LETTER

Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040008-5
STAT
September 20, 1957
n rac Administrator
STAT
Subject:
Proposal No. 11510 - Small Plastic Airship
Reference: Telecor Request for Proposal
Gentlemen:
In response to the referenced request, we are pleased to submit herewith our
proposal entitled "Small Plastic Airship".' Although this r
STAT
STAT
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fill certain limited objectives, it is anticipated that a considerableoadvance-
ment in the state of the art of powered lighter-than-air vehicles will result.
The experience and knowledge gained from the program will then aid in the
feasibility investigation and/or specification of lighter-than-air vehicles
for tasks in which they possess inherent advantages. In this manner, a superior
task performance can be achieved at a fraction of the cost of other systems
which expend large amounts of energy, at'great complication, to maintain posi-
tion and altitude at reduced personnel, vehicle, and equipment efficiency.
The estimated cost of this proposal is $71+,690 plus a fixed fee of $5,228 for
a total of $79,918.
Should there be any questions concerning this proposal, we will be happy to
provide any additional information you feel necessary for your evaluation. We
look forward to the opportunity to be of service to you in this program.
Very truly yours,
STAT
Approved:
Proposal & Contract Administration
STAT
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Declassified in Part - Sanitized Copy Approved for Release 2012/06/14 : CIA-RDP78-03642AO01300040008-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642A001300040008-5
PROPOSAL NO. 11510
FISCAL AND CONTRACTUAL DATA
I. SCOPE
It is hereby proposed that the Mechanical Division of
Inc., (hereafter referred to as the Contractor) enter into a cost-plus-fixed-
fee type contract with the Government to conduct research as discussed in the
enclosed Technical Discussion.
II. ESTIMATED COST
It is estimated that the cost of the proposed program will be $79.,918.
A detailed breakdown of this amount is given in the attached cost schedule.
III. DELIVERY
It is proposed that this program will run for a period of twelve (12)
months after receipt of an executed contract.
STAT
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642A001300040008-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040008-5
A. This proposal is subject to withdrawal by the Contractor unless written
acceptance thereto ie received within sixty (60) days from the date specified
herein.
B. Any contract resulting from this proposal shall contain the standard
Exculpatory Clause entitled EXCUSABLE DEIAYS found in Section 7-203.11 of the
Armed Services Procurement Regulations.
C. All subject matter (including drawings, present or proposed designs,
and other data or information) submitted with this proposal is incorporated
herein for a study on a confidential basis, without consideration, for the sole
purpose of negotiations of a possible contract. No subject matter is to be used,
copied, or otherwise reproduced, or disclosed to any third party in any manner,
directly or indirectly, without written approval by the Mechanical Division. All
property rights, including patent rights, in any such subject matter are expressly
reserved to except to the extent otherwise provided by the STAT
specific terms of a written contract to which
, is a party. STAT
D. Net payment for work performed under any contract which may result from
this proposal shall be due thirty 00) days following date of the Contractor's
invoice.
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040008-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040008-5
E. In preparing this proposal, no allowance has been made for the working
of overtime. Any premium time which is paid in connection with any over-
time worked is charged to overhead, rather than directly to the contract.
F. All inventions which may result from work proposed hereunder will be the
property of the Contractor. If this contract actually calls for experi-
mental, developmental, or research work, Contractor is willing to include
the standard patent rights clause (ASPR-9-107.1) in such contract.
G. Any contract resulting from this proposal will contain provision for the
payment of the fixed fee as stipulated in the cost estimate and for reim-
bursing the Contractor for all costs incurred in the performance of this
contract, in accordance with Section XV, Part 2 of Armed Services Procure-
ment Regulations. Contract should further authorize that
Inc., be authorized the use of negotiated final overhead rates with pro-
visional reimbursement at current standard burden rates (for any department
in which work is perfprmed) with adjustment to be made to the negotiated
final overhead rates as periodically determined in accordance with ASPR
3-704.1.
For the purpose of compiling our estimate of costs, G&A and Burden has been
included at estimated rates which closely approximate the anticipated actual
G&A and Burden.
STAT
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040008-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040008-5
The following information and representations are provided to supplement
information contained in the discussion of Terms and Conditions.
A.~ having its executive
of'ices at Minneapolis, Minnesota.
B. The Mechanical Division of the company now employe approximately two
thousand (2,000) persons. Total employees of the corporation number
approximately thirteen thousand (13,000).
C. There is no agreement to pay any commission, percentage, brokerage, or
contingent fee in connection with the proposed contract.
D. Individuals authorized to conduct negotiations on behalf of the Mech-
anical Division on the work proposed hereunder include:
General Manager;
Supervisor, Proposal and Contract Administration.
E. The Mechanical Division is under cognizance of the United States Air
Force for security and for Government inspection when required.
STAT
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STAT
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040008-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040008-5
COST BREAKDOWN
all Plastic Airship
Proposal No. 11510
DIRECT LABOR:
Principal & Senior Engineer
3,114 hrs. @ $4.10
$12,767
Associate & Junior Engineer
3,114 hrs. 0 $2.90
9,031
Technician "A"
1,038 hrs. @ $2.20
22284
$24
082
ERD Model Shop
,
Machinist
300 hrs. @ $2.60
780
Balloon Operations
Principal & Senior Engineer
300 hrs. @ $3.85
$ 1,155
Technician
500 hrs. @ $2.00
1,000
2,155
Balloon Production
Principal & Senior Engineer
480 hrs< @ $3.85
$ 1,848
Technician
86o hrs. @ $1.90
1,631+
3,1}82
Technical Editing
Editor
100 hrs. @ $3.10
310
Research
7,266 hrs. @ $3.30
$23,,978
Balloon Operations
800 hrs. ? $2.15
1,720
ERD Model Shop
300 hrs. @ $2.90
870
Balloon Production
1,340 hrs. @ $2.75
3,685
30,253
Travel
$ 3,000
Materials
6,,4oo
9,;400
$709462..
G&A Expense ? 6%
4,228.
$74,690
Fixed Fee @ 7%
5,228
TOTAL ESTIMATED COST
$79 91.8
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040008-5