AGENDA EQUIPMENT BOARD MEETING NO. 3-62

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01578A000100060012-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 9, 2016
• Document Release Date: August 3, 2000
• Sequence Number: 12
• Publication Date: May 9, 1962
• Content Type: AG

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,UTIAL AGENDA
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EQUIPMENT BOARD
MEETING NO. 3-6
DATE : 9 May 1962
TIIE : 1 -OO
PLACE . OC Conference Room
2D03 Hqs.
NEW BUSINESS
1. Discussion of catalog pricing procedure for equipment
built at the OC-E laboratory. (OC-E item)
2. Review of R&D budget for fiscal year 1963.
3. Procurement of fifty FSS-7 transmitters. (TTT item)
I+. Procurement of additional Agent Communications receivers.
OC Agent receiver stock levels are insufficient to meet require-
ments. A decision is required on the number and type of new re-
ceivers which should be procured. (TTT item)
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Meeting Number 3-62 of the Equipment Board was, held on 9 May 1962 at
1400 in the OC Conference Room,, 2D03 Headquarters Building. Those present
were:
DD/CO
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OC-E
OC-T
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No old business was carried over from the previous meeting.
II, NEW BUSINESS
A. Agenda Item No. 1: Pricing Procedure for J?.quipment Built at the
OC-E Laboratory
1. Introduction and Problem
At the present time the price of equipment produced at the OC-E
Laboratory includes only the costs of blue collar labor and components and
does not include engineering time or overhead. Consequently, the price is
unrealistic as a representation of the true value of the item. A decision
is required on whether this pricing procedure should continue or whether unit
costs should more closely approximate the cost of production by commercial
means.
The main points brought out in favor of continuing the present
policy were as follows:
a. Engineering time and plant overhead costs are already
paid for by the Agency; to include these items in equipment
costs would seem to be charging twice for the same service.
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Equipment Board Minutes
ONHDENT1AL Meeting No. 3-62
b. Pricing items on a commercial basis would indicate
that the Laboratory is a production facility., but this is
not the case because it is not chartered to do production in
the normal course of events.
The main points brought out in favor of pricing on a more realistic
basis were as follow:o
a. The present pricing system encourages people to push
for Laboratory production because of lover unit cost. Labora-
tory production should be discouraged so that the Laboratory
can be clear to meet its primary requirements in the produc-
tion field, that of a quick reaction to Office requirements.,
or provision of an extra degree of security for sensitive
operations.
b. Frequently., initial production of an item is undertaken
at the Laboratory with further production being done commer-
cially; commercially-produced items have substantially higher
costs which necessitate a change in the catalog price of the
item and creates an unfavorable impression in the minds of
our customers.
c. Producing equipment at the Laboratory places it in com-
petition with industry., and this is not completely compatible
with U.S. Government policy; pricing items below industry costs
aggravates the matter.
d. Price is the normal criteria which consumers use for
judging value of an item; this criteria does not hold for pres-
ent laboratory-produced equipment.
3. Board Action
The Board agreed that equipment produced at the Laboratory would
be priced on the basis of estimated commercial cost of comparable items.
As a general formula to be used., it was agreed that blue collar
labor cost plus components plus 200 per cent would be satisfactory.
B. Agenda Item No. 2: Review of R&D Budget for Fiscal Year 1963
1. Introduction and Problem
Board review of and recommendation to D/CO concerning OC-E/R&D
proposals is required.
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Equipment Board Minutes
Meeting No. 3-62
c. The Board agreed that 2l1 RR-2B receivers should be pro-
cured to balance stock levels,, but that additional procurement to
cover RR-2B receivers which might be issued with RT-11 or AT-3
transmitters would not be undertaken because of the relatively
large numbers of RS-1 equipment in stock and because,, until a new
tunable receiver is obtained,, many of the receiver requirements
can be met by issue of fi=d frequency receivers.
d. The foregoing procurements# as distinct from Laboratory
production,, will depend upon the availability of funds.
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