BACKGROUND AND ANALYSIS OF APPLE COMPUTER, INCORPORATED LETTER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89G00643R000900130015-8
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 18
• Document Creation Date: December 23, 2016
• Document Release Date: December 5, 2011
• Sequence Number: 15
• Publication Date: October 22, 1987
• Content Type: MEMO

Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
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STAT
STAT
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Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
AI}IINISTRATIVE - INTERNAL USE ONLY'
SUBJECTS (optional)
Background and Analysis of Apple Computer, Incorporated, Letter
ROUTING AND RECORD SHEET
STATFROM=
(William F. Donnelly
Deputy Director for Admini a on
STAT7D24 Headquarters
TO: (Outer designation, room number, and
building)
~? Executive Registry
7E12 Headquarters
Executive Director
7D55 Headquarters
Director of Central
Intelligence
7D60 Hea.aguarto
.1 2
STAT
STAT
2 3 01T 1987
OFFICER'S
INITIALS
_ OL 12178-87
DATE
COMMENTS (Number each comment to show from whom
to whom. Draw a Iine across column after each comment.)
5H r"
FORM 61 U USE US Government Printing office: 1SSS-494?S34/4913{
1-79 1 EDITIONS ADMINISTRATIVE - INTERNAL USE ,
Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
conr~~.Te1
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
DATE
TRANSMITTAL SLIP
TO:
Deputy Director for Administration
ROOM NO.
BUILDING
7D24
Headquarters
REMARKS:
FROM:
ROOM NO.
BUILDING
EXTENSION
REPLACES FORM 38-8 (47)
FORM NO. nA -4
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
ADMINISTRATIVE - INTERNAL USE ONLY
FOR 6 0 "~a Op5U5
I-79
Q U.S. Government prlntln9 Offloes 19,5_494'e34He13e
ADMINISTRATIVE - INTERNAL USE ONLY
COMMENTS (Number each comment to show from whom
to whom. or,, a line ocross column after each comment.)
Attached is background
information for the DCI on the
RFP questioned by Apple, Inc.
Also attached, for your signa-
ture , is a letter for the e DC if
to forward to Mr.
he so desires.
Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
ADMINISTRATIVE - INTERNAL USE ONLY
ROUTING AND RECORD SHEET
SUBJECT: (Optional)
Background and Analysis of Apple Computer, Incorporated, Letter
r--
FROM:
William F. Donnelly
STATuty Director for Administration
17DZ4 Headquarters
TO: (Officer designation, room number, and
building)
Executive Registry
7E12 Headquarters
1 9.
STAT
Executive Director
7D55 Headquarters
Director of Central
Intelligence
rte1
Director of Logistics
OFFICER'S
INITIALS
OL 12178-87
COMMENTS (Number each comment to show from whom
to whom. Draw a line across column after each comment.)
Government Printing Ofnt:e: 1gg3-494.634/49134
I-79 ADMINISTRATIVE - INTERNAL USE
FORM 610 uSEDITIONSUS
Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89G00643R000900130015-8
ADMINISTRATIVE - INTERNAL USE ONLY
1987
MEMORANDUM FOR: Director of Central Intelligence
VIA: Executive Director
FROM: William F. Donnelly
Deputy Director For Administration
SUBJECT: Background and Analysis of Apple Computer,
Incorporated Letter
REFERENCE: Letter to DCI from R. Oklewicz, dtd 1 Oct 1987,
Regarding Agency Workstation RFP 87-B121
1. This memorandum is in response to Apple's letter to you regarding the
Agency's general-purpose computer workstation Request for Proposal (REP).
Attached is a proposed letter to Apple Computer, Incorporated. Some background on
the RFP, an analysis of the points raised by Apple, and the basis of our
recommendation follow.
2. The Agency's REP 87-Bl21, released 18 August 1987, contains mandatory
requirements that meet our minimum needs for general-purpose computer
workstations. This RFP, which was released to 33 vendors, is the result of two
years of close work with all the directorates to state the Agency's requirements
for a "production" workstation. Prior to release of the RFP, a preliminary Letter
of Interest was sent to 70 potential bidders on 27 March 1987. A prepr ppooal.
conference was held on 10 September 1987, attended by Apple representatives, with 43 representatives from 27 other companies. Amendments to the RFP were
issued answering over 100 questions from private industry (including 22 questions
from Apple). Experienced technical and contracting personnel objectively
considered each and every question in light of the Agency's requirements and, as a
result, several refinements and modifications were made to the specifications in
the REP.
3. Currently, proposals are due on Tuesday, 13 October 1987, and we
anticipate receiving at least eight proposals. Our current schedule calls for an
award in late January 1988 in order to meet critical Directorate of Operations
requirements. Every effort is being made to meet this objective with very
aggressive milestones and high-level management attention, resulting in the
appointment of a Source Selection Board with senior managers who are fully aware
of the Agency's critical needs regarding this procurement. A firm fixed-price
requirements contract will be negotiated for hardware, peripherals, and services,
with pricing for a base year plus four option years.
OL 12178-87
ADMINISTRATIVE - INTERNAL USE ONLY
Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89G00643R000900130015-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
ADMINISTRATIVE - INTERNAL USE ONLY
SUBJECT: Background and Analysis of Apple Computer, Incorporated
4. Apple's letter states that the ". . RFD's restrictive design
specifications conflict with the intent of the FIRMR [Federal Information
Resources Management Regulation] 201-30.013 which promotes functional
specifications and FIRMR 201-24.207 which requires an in-depth justification for
compatibility limited specifications." The RFP is, in fact, written to provide
functional specifications, where possible, and to utilize correctly compatibility
specifications which are critical to meet the Agency's minimum economic and
operational needs and technology constraints. These specifications have been
closely coordinated with representatives from all the directorates within the
Agency. In short, the Agency has adhered to the intent of the FIRMR's guidelines
for use of both functional and compatibility specifications.
5. Apple further asserts that the Agency's RFP ". . contains mandatory
requirements which unduly restrict and prohibit Apple from competitively bidding
this procurement" and suggests that ". . the RFP be restated to allow for a
multiple vendor award." , The RFP is, in fact, compliant, to the maximum extent
practicable, with both the spirit and the letter of the Federal Acquisition
Regulation in the area of promulgating full and open competition, given the nature
and purpose of a generic workstation.
6. One of the principal reasons for a single, general-purpose workstation
acquisition is to save money. Through identification of the basic "production"
workstation family, a common acquisition contract has been developed to provide
the desired economies of scale. Training, consulting support, existing and future
applications software interfaces, and maintenance represent significant portions
of the life-cycle cost of each major workstation type bought by the Agency.
Minimization of these costs requires a degree of standardization of the
information handling equipment that the Agency acquires. Thus, the current plan
is to make an award to a single vendor who can provide both the commercial and
tempest workstation requirements addressed by the RFP. Apple's suggestion to
allow for awards to multiple vendors in order to ". . satisfy a broader user
audience within the Agency" would, in reality, significantly disrupt the purpose
and goal of this acquisition.
7. The technical issues previously raised by Apple have already been
addressed. In its formal inquiries made in the context of this acquisition, Apple
has repeatedly raised self-serving objections to the Agency's key requirements.
Agency personnel have carefully explained the necessity for these requirements,
and extensive technical background information supporting the Agency's position is
available and can be thoroughly briefed, should the need arise.
8. Technical discussions by Agency personnel with Apple pertaining to the
requirements of this solicitation prior to contract award will unacceptably
compromise the ongoing competition. As Apple has indicated, they have taken full
advantage of the opportunities the Agency has provided to understand our
requirements and to market the capabilities of their products.
ADMINISTRATIVE - INTERNAL USE ONLY
Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89G00643R000900130015-8
ADMINISTRATIVE - INTERNAL USE ONLY
SUBJECT: Background and Analysis of Apple Computer, Incorporated
9. In summary, it is our recommendation that you not entertain any
discussions with the company at this time but, rather, that the attached letter be
sent to Apple. The proposed letter thanks them in very general terms for their
interest in our workstation procurement, while at the same time referring them to
the cognizant contracting officer or chief of the procuring activity.
STAT
William F. Donnelly
ADMINISTRATIVE - INTERNAL USE ONLY
Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89G00643R000900130015-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
ROUTING AND RECORD SHEET
SUBJECT: (Optional)
Background and Analysis of Apple Computer, Incorporated, Letter
FROM: John M. Ray
EXTENSION
NO.
Director D i re for of Lo istics
OL.12178-8 ,
GATE
TO: (Officer designation, room number, and
building)
DATE
OFFICER'S
COMMENTS (Number each comment to show from whom
RECEIVED
FORWARDED
INITIALS
to whom. Draw a line across column after each comment.)
1.
DDA
Bill:
7D24 Hqs
2.
Attached is background
information for the DCI on the
RFP questioned by Apple, Inc.
3.
1
Also attached, for your signa-
ture, is a letter for the DCI
to forward to Mr. Oklewicz, if
4.
he so desires.
TAT
5.
John M. Ray
6.
Attachments
7.
8.
9.
10.
11.
12.
13.
14.
I
i
15.
FORM 610 USED PREVIS * U.S. Government Printing Office: 191115-494-934/491136
1-79 ADMINISTRATIVE - INTERNAL USE ONLY
Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
ADMINISTRATIVE - INTERNAL USE ONLY
ROUTING AND RECORD SHEET
SUBJECT: (Optional)
Background and Analysis of Apple Computer, Incorporated, Letter
FROM:
William F. Donnelly
EXTENSION
NO.
OL 12178-87
TATzty Director for Administration
mz4 Headquarters
DATE
TO: (Officer designation, room number, and
ildin
)
b
DATE
OFFICER'S
COMMENTS (Number each comment to show from whom
g
u
RECEIVED
FORWARDED
INITIALS
to whom. Draw a line across column after each comment.)
1 Executive Registry
7E12 Headquarters
2.
3. Executive Director
7DS5 Headquarters
4.
S' Director of Central
Intelligence
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FORM
1-79
610UEDTIONS"S
ADMINISTRATIVE - INTERNAL USE W, Government Printing Office: 1985-494-S34/4R13$
Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
S
S
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
ADMINISTRATIVE - INTERNAL USE ONLY
~f)r 2 n,
i? i~ai~l
MEMORANDUM FOR: Director of Central Intelligence
VIA: Executive Director
FROM: William F. Donnelly
Deputy Director For Administration
SUBJECT: Background and Analysis of Apple Computer,
Incorporated Letter
REFERENCE: Letter to DCI from R. Oklewicz, dtd 1 Oct 1987,
Regarding Agency Workstation RFP 87-B121
1. This memorandum is in response to Apple's letter to you regarding the
Agency's general-purpose computer workstation Request for Proposal (RIP).
Attached is a proposed letter to Apple Computer, Incorporated. Some background on
the RFP, an analysis of the points raised by Apple, and the basis of our
recommendation follow.
2. The Agency's REP 87-B12l, released 18 August 1987, contains mandatory
requirements that meet our minimum needs for general-purpose computer
workstations. This REP, which was released to 33 vendors, is the result of two
years of close work with all the directorates to state the Agency's requirements
for a "production" workstation. Prior to release of the RFP, a preliminary Letter
of Interest was sent to 70 potential bidders on 27 March 1987. A preproposal
conference was held on 10 September 1987, attended by Apple representatives, along
with 43 representatives from 27 other companies. Amendments to the REP were
issued answering over 100 questions from private industry (including 22 questions
from Apple). Experienced technical and contracting personnel objectively
considered each and every question in light of the Agency's requirements and, as a
result, several refinements and modifications were made to the specifications in
the REP.
3. Currently, proposals are due on Tuesday, 13 October 1987, and we
anticipate receiving at least eight proposals. Our current schedule calls for an
award in late January 1988 in order to meet critical Directorate of Operations
requirements. Every effort is being made to meet this objective with very
aggressive milestones and high-level management attention, resulting in the
appointment of a Source Selection Board with senior managers who are fully aware
of the Agency's critical needs regarding this procurement. A firm fixed-price
requirements contract will be negotiated for hardware, peripherals, and services,
with pricing for a base year plus four option years.
ADMINISTRATIVE - INTERNAL USE ONLY
Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89G00643R000900130015-8
ADMINISTRATIVE - INTERNAL USE ONLY
SUBJECT: Background and Analysis of Apple Computer, Incorporated
4. Apple's letter states that the ". . RFD's restrictive design
specifications conflict with the intent of the FIRIR [Federal Information
Resources Management Regulation] 201-30.013 which promotes functional
specifications and FIRMR 201-24.207 which requires an in-depth justification for
compatibility limited specifications." The RFP is, in fact, written to provide
functional specifications, where possible, and to utilize correctly compatibility
specifications which are critical to meet the Agency's minimum economic and
operational needs and technology constraints. These specifications have been
closely coordinated with representatives from all the directorates within the
Agency. In short, the Agency has adhered to the intent of the FIRMR's guidelines
for use of both functional and compatibility specifications.
5. Apple further asserts that the Agency's RFP ". . contains mandatory
requirements which unduly restrict and prohibit Apple from competitively bidding
this procurement" and suggests that ". . the RFP be restated to allow for a
multiple vendor award." The RFP is, in fact, compliant, to the maximum extent
practicable, with both the spirit and the letter of the Federal Acquisition
Regulation in the area of promulgating full and open competition, given the nature
and purpose of a generic workstation.
6. One of the principal reasons for a single, general-purpose workstation
acquisition is to save money. Through identification of the basic "production"
workstation family, a common acquisition contract has been developed to provide
the desired economies of scale. Training, consulting support, existing and future
applications software interfaces, and maintenance represent significant portions
of the life-cycle cost of each major workstation type bought by the Agency.
Minimization of these costs requires a degree of standardization of the
information handling equipment that the Agency acquires. Thus, the current plan
is to make an award to a single vendor who can provide both the commercial and
tempest workstation requirements addressed by the RFP. Apple's suggestion to
allow for awards to multiple vendors in order to ". . satisfy a broader user
audience within the Agency" would, in reality, significantly disrupt the purpose
and goal of this acquisition.
7. The technical issues previously raised by Apple have already been
addressed. In its formal inquiries made in the context of this acquisition, Apple
has repeatedly raised self-serving objections to the Agency's key requirements.
Agency personnel have carefully explained the necessity for these requirements,
and extensive technical background information supporting the Agency's position is
available and can be thoroughly briefed, should the need arise.
8. Technical discussions by Agency personnel with Apple pertaining to the
requirements of this solicitation prior to contract award will unacceptably
compromise the ongoing competition. As Apple has indicated, they have taken full
advantage of the opportunities the Agency has provided to understand our
requirements and to market the capabilities of their products.
ADMINISTRATIVE - INTERNAL USE ONLY
Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89G00643R000900130015-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
ADMINISTRATIVE - INTERNAL USE ONLY
SUBJECT: Background and Analysis of Apple Computer, Incorporated
9. In summary, it is our recommendation that you not entertain any
discussions with the company at this time but, rather, that the attached letter be
sent to Apple. The proposed letter thanks them in very general terms for their
interest in our workstation procurement, while at the same time referring them to
the cognizant contracting officer or chief of the procuring activity.
William F. Donnelly
ADMINISTRATIVE - INTERNAL USE ONLY
Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89G00643R000900130015-8
ADMINISTRATIVE - INTERNAL USE ONLY
SUBJECT: Background and Analysis of Apple Computer, Incorporated
STAT /pD/gyp 1 (13 Oct 87 )
retyped:O-DL mgk 13 Oct 87)
Distribution:
Orig - Addressee
1 - Executive Registry
2 - DDA
1 - OL Files
1 - CL/PD Official
1 - OL/PD Chrono
1 - C/ADP/PD/OL
Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89G00643R000900130015-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89G00643R000900130015-8
Central intelligence Agency
Re('. G f I L 4 :
Mr. Ronald C. Oklewicz
Federal Operations Manager
Apple Federal Government Operations
1892 Preston White Drive
Reston, Virginia 22091
As the executive of the Central Intelligence Agency in
charge of procurement matters, Judge Webster has referred to my
office your letter of October 1, 1987.
The Agency wishes to express its appreciation for your
interest regarding the recently released Request for Proposal
(RFP) 87-B121; however, as you must be aware, any meeting with a
potential bidder during an ongoing competitive procurement could
be prejudicial to that procurement and is therefore unacceptable.
If you have any further questions, please contact the
cognizant contracting officer or chief of the procuring activity.
Sincerely,
William F. Donnelly
Deputy Director
for
Administration
Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89G00643R000900130015-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89GO0643R000900130015-8
G-e
October 1, 1987
Judge William Webster
Director,
Central Intelligence Agency
Washington, D.C. 20505
Dear Judge Webster:
The purpose of this letter is to express the concern of Apple Computer, Inc.
regarding the recently released RFP #87-B121 for the unclassified acquisition of
generic workstations at the Central Intelligence Agency. The focus of our concern
is the fact that this RFP contains mandatory requirements which unduly restrict and
prohibit Apple from competitively bidding this procurement.
For the past two years Apple representatives have aggressively marketed to the CIA
and in the process have generated considerable interest within the user community
for the benefits that Macintosh technology provides in the analysts' environment.
Our representatives and company officials have conducted numerous executive calls
and briefings to your senior management in an attempt to create a fair and
competitive position within the Agency. There are many users who are convinced
that our innovative technology robustly connected to your existing ADP inventory
could greatly enhance the overall mission effectiveness of the CIA.
Apple Computer understands and could comply with the overall IBM data
communications and networking architecture developing within the Agency.
However, in our opinion, the RFP's restrictive design specifications conflict with
the intent of the FIRMR 201-30.013 which promotes functional specifications and
FIRMR 201-24.207 which requires an indepth justification for compatibility
limited specifications. In the spirit of the FAR Part 6 and CICA 2304, which
promote the requirements for "full and open competition", we suggest that the RFP
be restated to allow for a multiple vendor award. This would then provide a
procurement vehicle that would satisfy a broader user audience within the Agency.
uinr Inc.
FctkaI (., wcrMIkl11 Opcwm m'.
INN! I'ft,M. in Mow Drn'C
Rol"1 \'4 -'Ir)I
- 14 -Y- 4- ;If 9 1
87.-448.4X
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 A
Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89G00643R000900130015-8
In writing to you directly we are seeking your
your reputation for fairness only after having exhausted all other avenues of ased upon with the exception of a formal GSBCA protest. To date we have artici change
RFC process and submitted numerous technical questions to encourage P pated in the
to open up the specifications and allow for increased competition. h eAgen
have been unsuccessful. efforts
s
We want very much to work with the CIA and are convinced
that innovative technology which could greatly benefit your organization we offer
opportunity to compete. After your review and at your convenience, we woul a n lithe
to meet with you and your staff to discuss our suggestions in greater detail. I e
Well
contacting your office within the next week to discuss the possibilit of ar be
such a meeting. y ranging
Sincerely,
Ronald C. Oklewicz
Federal Operations Mana
er
g
,
Apple Federal Government Operations
STAT
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Declassified in Part - Sanitized Copy Approved for Release 2011/12/05: CIA-RDP89G00643R000900130015-8