FY 1987 DIA SAFE REPROGRAMMING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89M00699R000100110005-2
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 15
• Document Creation Date: December 22, 2016
• Document Release Date: December 19, 2011
• Sequence Number: 5
• Publication Date: May 7, 1987
• Content Type: MEMO

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ROUTING AND RECORD SHEET
SUBJECT: (Optional)
FY 1987 DIA SAFE Reprogramming
FROM:
Robert M. Gates
EXTENSION
NO.
DCI/ICS 3573-87 w/atts.
ADC I
DATE
TO: (Officer designotion, room number, and
DATE
building)
OFFICER'S
COMMENTS (Number each comment to show from whom
RECEIVED
FORWARDED
INITIALS
fo whom. Draw a line across column after each comment.)
1? ICS Registry
Atts: DCI/ICS 3573-87/1 thru /4
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FORM L ~ O USE PREVIOUS
1-79 v EOIiIONS
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DCI/ICS 3573-87
7 May 1987
MEMORANDUM FOR: Acting Director of Central Intelligence
FROM: Director, Intelligence Community Staff
SUBJECT: FY 1987 DIA SAFE Reprogramming
1. Action Requested: That you sign the attached letters to the Committee
and Subcommittee a rmen of the Congressional Oversight Committees. The
letters request approval of a reprogramming.
2. Back round: This re uest re ro rams
funds to acquire for the DIA part of the
Suooort to Analysts i e nvironmen rogram. Funds in the FY 1987
~awara
Lieutenant General(, ~YSAF
Attachments: 4
Cong. Ltrs for Signature (DCI/ICS 3573-87/1 thru /4)
25X1
25X1
25X1
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SUBJECT: FY 1987 DIA SAFE Reprogramming
ICS/PBS
5 May 1987)
Distribution: DCI/ICS 3573-87 (All w/atts)
Original - ER (for DCI, DDCI)
1 - D/ICS
1 - ICS/LL
1 - PBO Subject (Gong. Reprog.)
1 - P60 Subject Chrono
~ - Pso
1 - ICS Registry
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The Deputy Director of Central Intelligence
Washington, D.C. 20505
p 8 MAY 1987
The Honorable David L. Boren, Chairman
Select Committee on Intelligence
United States Senate
Washington, D. C. 20510
Dear Mr. Chairman:
SAFE is a Congressionally directed joint DIA and CIA program to improve
automated support to intelligence analysts. SAFE development is based on
sequential software deliveries, with each adding capabilities to the
operational system:
7X1
25X1
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I would appreciate your prompt and favorable action so that the DIA part
of the joint SAFE Program can continue on schedule. ~~ 25X1
Sincerely,
)s) Robert 1r1. 6ate~
Robert M. Gates
Acting Director
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SUBJECT: ADCI Ltr to Chairman, SSCI re Funds for IBM SIERRA Processor
ICS/PBO~ 1 May 1987)
Distribution: DCI/ICS 3573-87/1
Orig. - Chairman Boren. SSCI
1 - D/GDIP Staf f
1 - OMB/NSD (Mr. Arnold Donahue)
1 - ER (for ADCI)
1 - DD/ICS; D/ICS
1 - ICS/LL
1 - PBO Subject (Reprogramming)
1 - PB
1 - PB rono
1 - ICS Registry
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COyF~B'EtiTIAL
The Deputy Director of Central Intelligence
Washington, D.C. 20505
0 B MAY 1987
The Honorable John C. Stennis, Chairman
Subcommittee on Defense
Committee on Appropriations
United States Senate
Washington, D. C. 20510
Dear Mr. Chairman:
Your approval is requested to reoroaram
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The Deputy Director of Central Intelligence
Washington, D.C. 20505
The Honorable Louis Stokes, Chairman
Permanent Select Committee on Intelligence
U. S. House of Representatives
Washington, Q.C. 20515
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CON TIAL
The Deputy Director of Central Intelligence
The Honorable Bill Chappell, Jr., Chairman
Subcommittee on Defense
Committee on Appropriations
U.S. House of Representatives
Washington, D.C. 20515
Your approval is requested to reprogram
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Background paper
I. INTRODUCTION
AN ECONOMIC ANALYSIS OF OPTIONS
FOR THE ACQUISITION OF IBM CPU
MODEL 3090-200 (SIERRA) AND UPGRADE
A. Pur ose: To provide an economic analysis for alternative
means by IBM for DIA's acquisition of an IBM 3090-200 and
an upgrade of an existing 3090-200 to a 3090-400.
B. Background: DIA is currently procuring SAFE CPU processors on
a lease-to-purchase arrangement. These processors are now
supporting the development of multiple SAFE software deliveries as
well as the existing SAFE operational capability. The procurement
of the SAFE hardware processors is accomplished via a contract
between CIA and IBM. Consistent with the current SAFE development
schedule, DIA will need to procure additional computing capability
to support planned software deliveries for FY 1987 and FY 1988.
The proposed procurement will support system testing, system
transition, parallel operations, and production.
C. Approach: An economic analysis was performed on the various
alternatives in accordance with DIAR 45-8, "Economic Analysis and
Review of Resource Management." The concept of present value with
the DoD specified discount rate of 10~ was employed to analyze
alternatives. This is also in line with DoD Instruction 7041.3
"Economic Analysis and Program Evaluation for Resource
Management". For simplicity, year one (1) in the economic
analyses corresponds to FY88 even though DIA would incur the cost
of the lease and software maintenance for one (1) month in FY87
under the lease-to-purchase options.
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D. Assumptions:
(1) The CIA contract with IBM allows for either the direct
purchase or lease-to-purchase arrangement of IBM 3090 series CPUs
for DIA under GSA rates and at a better price than DIA can
currently negotiate under its own contracting authority. Under
permission from Congress, DIA has already exercised the lease-to-
purchase arrangements for IBM CPUs.
(2) The economic life of the equipment is eight (8) years.
(3) Year one in each of the alternatives corresponds to FY88.
(4) If the lease-to-purchase option is selected the payment
schedule will be the same as those for the current option on the
IBM 3080 series, that is to say, within the first month of the new
year and not quarterly or monthly.
(5) Each CPU arrives with one year warranty whether it is
purchased or leased which means one year free hardware
maintenance; however, software maintenance costs, program
products, licenses, etc are not included.
(6) The maintenance figures are calculated as if the CPU is
the one machine in operation in the DIAC. In fact the cost can
and will be negotiated for somewhat less given the fact that other
IBM equipment is already installed and operational in the DIAL.
However, the reduced rate is unknown at this time.
(7) There is no additional software maintenance costs for the
FY88 upgrade. The hardware maintenance cost for the com leted
upgrade from the 3090-200 to the 3090-400 i per STAT
annum basis.
II. FACTS
There are basically four (4) options available to the Agency.
Each option approaches the acquisition differently and while each
option has different cost parameters there is a constant estimated
cost in each one for hardware maintenance and
software maintenance for each CPU. In
considering the options, exclusive of h/w and s/w maintenance, IBM
is willing to accept any amount in each year under the lease-to-
purchase option. However, Tables 1 thru 4 are based upon the
figures detailed below:
STAT
STAT
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STAT
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