CONTRACT AF33 (657) 7351 (WE 1025) PROPOSAL FOR FINAL INVOICE (Sanitized) REFERENCE AAD 51001)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00820R000300180017-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 12, 2016
• Document Release Date: January 10, 2002
• Sequence Number: 17
• Publication Date: March 6, 1966
• Content Type: LETTER

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25X1A
March 16, 1966
A0009W
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Subject:
Contract AF33(657)7351 (WE 1025)
Proposal for Final Invoice
Reference: (a)
Reference AAD 510$1)
letter to ASZ-5 dated
10 December 1964, serial no. A18283U
(b) ASZ-5 letter dated 14 May 1965
Reference OSA-1283-65
Enclosure: (1) Three (3) copies Amendment No. 1 to
Agreement No. NONM63-4, Final 1962 Rates,
dated 1 March 1965
(2) one (1) copy accounting
Sales sheets for
no. 11 and Maryland work
and Use
Tax
(3) Four (4) copies Contractor's Release and
Assignment of Receipts, Rebates, and Credits
for Contract AF33(657)7351, executed
4 March 1966
(4) One (1) copy of Memo of Invoices Issued
Gentlemen:
By Reference (a) proposed the use of
interim rates in order to settle and close out this contract.
By Reference (b) you accepted these rates for this purpose
and provided an offer for final settlement. However, prior
to this offer our final rates for the period in which this
contract work was performed were negotiated as set forth in
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ASZ-5
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- 2 - March 16, 1966
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Enclosure (1.). Comparing the proposed rates and the final
rates it is to be noted that they are identical except that
a 0 interim G&A rate was proposed, and the final G&A rate
w s npantiat 1 atl I This difference results in an in-
crease in final settlement of 0 over that proposed by LOA-IA
your letter Reference (b).
Since the final rates were negoti..ated prior to the
receipt of your letter, we have prepared our release using
the final approved rates, which release is submitted as
25X1A Enclosure (3). The detailed work sheets from Accounting
supporting our future invoice no. 11 are submitted as
25X1A y audited our accounting detail and that our final
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(1) Etax on 0 subcontract of
(2) Independent Research and G&A at
0
and II on the tax
(3) 10% penalty on tax of
0
(4) ears' interest at 6% on the
tax
(5) Attorney's fixed price on 10%
of the tax plus penalty plus
interest
invoice includes no costs over and above those which he
reviewed.
We request comments and concurrence on this; if satis-
factory, we will proceed with the submission of our final
vouchers.
Your attention is invited to a provision for defi-
ciency in Maryland Sales and Use Tax in the estimated amount
The calculation on which this is based is contained
in Enclosure (2). Realizing that this may be a little diffi-
cult to follow, this is based on the following calculation:
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ASZ-5
- 3 - March 16, 1966
A0009W
As you are aware, this dispute over payment of the
Maryland 3% tax on R&D material has been going on since 1961.
This matter could drag out to 1968 before settlement is
reached.
If you have any questions, please call me.
Very truly yours,
25X1A
Research & Development
Programs
Marketing Department
RW E/v r
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