FY 67 NRO BUDGET DISCUSSION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP68B00724R000100060032-0
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 4
• Document Creation Date: December 12, 2016
• Document Release Date: June 3, 2002
• Sequence Number: 32
• Publication Date: May 26, 1966
• Content Type: MF

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UY_/V of /-7,
26 May 1966
MEMORANDUM FOR: Director of Special Activities
SUBJECT: FY 67 NRO Budget Discussion
1. A meeting was held in the DD/S&T Conference Room
starting at 1100 on 25 May 1966, with
in attendance.
The pur ose of this meeting was to receive a wire brushing
from on our FY 67 budget proposals. This main
objec ive was accomplished prior to completion of the meet-
ing.
25X1
2. We were handed copies of 26 questions which we were
to answer on the OXCART program. A copy of these is attached.
A secondary purpose was to discuss the breakout of the FY 66
Pratt & Whitney expenses amongst the programs. 25X1
This was accomplished. A third purpose was to receive a
concurrence for continuation of contracts into FY 67 and the
funds necessary. to accomplish this act. This was not accom-
plished.
3. At the onset, the undersigned requested 25X1
to allow the expenditure of FY 67 funds up to approximating of the proposed budget, so that a continuity ofcontracts
could be maintained through the end of the fiscal year. This
question was rephrased at three different tim d a concise,
clear answer was never received from The closest' 25X1
I could come to an answer was that the InItI a approvals should
arrive here some time around 15 June. I was given a
approval of funds for Lockheed, Pratt & Whitney, Pilots, andtial
the Construction and O&M line items of our 67 proposal for
OXCART.
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4. Items where there have already been specific
cuts are as follows:
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If we propose the purchase of engines, 25X1
I Iwould be too large a number to support the
OXCART vehicles. No specific number was given as
being reasonable, but we were advised to review
very carefully the number we felt were required to
support the future OXCART program.
b. Under Lockheed Service Contracts, he speci- 25X1
fically took issue with Category F, 0 erational C
Support, and insisted that rather than 25X1
were sufficient to man one aircraft. I was not able
to find out the logic behind this assumption, other
than, "I think that is all that you need."
c. Specific exception was taken to the over-
haul contract for the Pratt & Whitney engines. Ours
was based on 2400 flying hours per year. This was
obviously an error, as we included 360 hours of air-
craft #124, and further, it is not realistic to ex ect
that we will fly a full 2400 hours. Therefore 25X1
refigured that we would fly 1614 hour , ss
0 #124, for a total of 1374 flying hours. Doubl-
ing this, we arrived at 2748 engine hours, and assuming
100 hours as the TBO, we arrived at 28 overhaul for the
OXCART engine, and 12 additional were allowed for pre-
mature failures and as a hedge against achieving 100
hours TBO. This of course called for a major cut in
25X1
5. A lengthy discussion was held as to the advis-
ability of program budgeting by flying hours, aircraft on
hand, or whims of the pencil pusher. It was suggested that
we go on a flying hour basis for FY 68. We agree this would
be nice if we have sufficient historical information so that
realistic forecasts can be projected, but it is felt that
this will not be achieved prior to the submission of the FY
68 detailed budget. 25X1
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6. The Type II camera costs were questioned, and
we indicated that there was a good probability of a
camera decision around 30 September, but if not, we would
advise him and give him a renewed date.
7. A major discussion and presentation was given to
Ion FY 66 Pratt & Whitney expenses vs- ftinralin
e outcome of this major discussion was that the 25X1
ould obligate 100% of their budgeted funds, an
the OXCA program would be the swing account to receive
the fruits of the excess funds available. These funds would
not be obligated at this time for any purpose, but would be
held for use in FY 67 as needed by approved programs, or in
lieu of this, would be applied to the Pratt & Whitney 25X1
contract to put this contract on an obligation or ful - un ng
basis at the end of FY 67.
8. I received, as expected, a ver detailed needling
on the operations and maintenance costs and the 25X1
costs for the shuttle service. We went into many details,
and I don't think I won the discussion. As of now, I ad-
vised that I would give him complete details
on the cost p e shuttle service in an attempt to receive
full funding.
9. We were given some initial approvals, and these are
as follows:
Category
LAC Service Contract
P&W Engine Support
Pilots
Construction
O&M
Fare Haul
Shuttle Service
67 Request
67 Initial Release
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10. hastened to assure me that rebuttals
would be in order i we could disprove his thoughts on re-
quirements for FY 67. I hastened to assure him that I
would rebut several of these categories, and I would give
full details as to logic behind my assumptions.
25X1
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11. The other portions of the OXCART budget, the
IDEALIST and other attachments have not been wire brushed
by the NRO, and we can probably expect a paper on or about
the 15th of June giving initial approvals.
12. It was interesting to note that 25X1
seemed quite worried as to the outcome o is bout wi h
Mr. Bill Thomas of the BoB, scheduled in September. You
may remember he made note in his proposal request that we
insure that we have airtight cases for continuing not only
the subsystems, but the whole OXCART project. I make note
at this time that all interested parties should start pre-
parations for justifying completely each penny that they
have requested in the budget, and that they stand ready
to support the Programs Staff during July and August in
the preparation of this budget presentation to the BoB.
The seriousness of this presentation cannot be overemphasized,
and I feel that the future of the OXCART as a program is in
Attachment:
Questions to Agency - 6 pages
PS/OSA
Distri ion:
Cy 1 - D/SA w/att
Cy 2 - D/TECH/OSA w/att
Cy 3 - D/FA/OSA w/att
Cy 4 - C/CD/OSA w/att
Cy 5 - C/MD/OSA w/att
Cy 6 - C/C&FE/OSA w/att
Cy 7 - C/SD/OSA w/att
Cy 8 - C/OXC/OSA w/att
Cy 9 - B&F/OSA
Cy 10-RB/OSA w/o att
Cy 11- PS/OSA w/att
26 May 66)
Cy 12- PS/OSA w/att TOP SECRET
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