LETTER TO LOCKHEED AIRCRAFT CORPORATION FROM (Sanitized)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP69B00279R000200130019-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 14, 2016
• Document Release Date: August 22, 2002
• Sequence Number: 19
• Publication Date: April 19, 1967
• Content Type: LETTER

Approved For Release 2002/09/03 : CIA-RDP69B00279R000200130019-0
Contracts No. SC-59
SC-61
19 AN 167 SC-62
Lockheed Aircraft Corporation
Burbank
California
1. The limitation of the Government's obligation under
ntracts with your organization is fixed by the funding
thorized and recited in a particular contractual document.
2. Whenever you have reason to believe that the total
cost of the contract will be greater than either the esti-
mated cost thereof or in excess of the approved funding,
it is requested that you advise the Contracting Officer
immediately of the extent of any overrun or- additional cost
anticipated under the contract with the reasons therefor and
detailed cost information in support of the need for such
additional funds.
3. You are reminded that you are not to incur costs
in performance of a contract in excess of the amounts
stipulated in the written. contract, unless and until the
Contracting Officer notifies you that such excess amounts
have been authorized.
4. Further, timely notice is of the essence and authori-
zation to perform additional work or to incur additional
costs may come only from the Contracting Officer.
Yours very truly,
THE UNITED STATES OF AMERICA
STATINTL
11 Contracting Officer
Approved For Release 2002/09/03 : CIA-RDP69B00279R000200130019-0
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Approved For Ruse 2002/09/03 - c- fh AbAnWkaRQMQQJ 3001 ?0
PRECONTRACT APPROVAL
RECORD
(PART ONE)
SP-1928 #1
THIS CONTRACT APPROVAL RECORD CONTAINS A RECOMMENDATION SUBMITTED FOR CONCURRENCE OF
THE UNDERSIGNED. CONCURRENCE IN THIS PRECONTRACT APPROVAL RECORD IS RECOMMENDED BY THE CON-
TRACTING OFFICER. BY CONCURRENCE, THE CHIEF, BUDGET AND FINANCE BRANCH, SIGNIFIES THAT SUFFICIENT
FUNDS ARE AVAILABLE (NOT INCLUDING CONTINGENT & EXPOSURE) AND/OR HAVE BEEN ADJUSTED AS PROVIDED
IN THIS DOCUMENT.
^ L I si1L?F F.P. REDETERM ^ CPIF ^ TECH REP
^ DEFINITIZED ^ FPIP ^ T&M ^ FISCAL YEAR
^ F.P. ^ CPFF ^ CALL TYPE
April 6
TECHNICAL REPRESENTATIVE
proved For Relea
FORM
11.63
OSA-1509-67
Copy j of 2
17 April 1967
AT ION
24 APR 1967
SECRET GROUP 1
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CONTRACT
PRECONTRACT APPROVAL RECORD LOCKHEED AIRCRAFT CORP.
(PART TWO)
SP -1928
The services and equipment being procured by this Contract No.
Amendment No. 1 are in furtherance of the IDEALIST
Program(s), the nature of which cannot be publicly disclosed for security rea-
sons. The Contracting Officer therefore determines that this procurement must
be accomplished by negotiations pursuant to the authority of Section 3(a) of
PL 81-110 and Class Determination and Finding, OXC 2122, signed by the DDCI on
15 October 1961.
Certification of funds for this contract will be handled under the pro-
cedure approved by the Director of Central Intelligence on 15 December 1956
which, in effect, results in all covert expenses involving issuance of Treasury
Checks being accumulated in a separate account within the Finance Division. The
amounts in this account will be periodically scheduled for certification of the
vouchers by the Director. This procedure eliminates the necessity for a sepa-
rate certification of authority under Section 8(b) of Public Law 110, 81st Con-
gress (formerly 10(b) - see 85-507 dated 7/7/58) for each contract.
The following comments describe the procurement hereby effected, the
terms and provisions generally of this contract/amendment, and a resume of
major issues negotiated:
Contract No. SP-1928 covers conversion of 7 FOG U-2 aircraft to
"C" models. In addition, four sets of conversion parts including sheet
metal, machine and purchased parts and equipment.
Amendment No. 1 provides for the following:
a. Addition of Item 3 for converting three (3) additional
aircraft, serial nos. 368, 374, and 394.
b. Revised delivery date of 31 July 1967.
c. Revised target and ceiling price for the total contract.
d. Increase in funding to the ceiling price.
e. Revised interim billing prices.
The Contractor by proposal dated 19 August 1966 quoted for converting
three additional aircraft. Several changes were made as to the particular
aircraft to be converted. Changes were occasioned by loss of an aircraft
and rescheduling of assets between SAC and OSA. As a result, the Contractor
was required to submit a revised quote which was dated 27 December 1966. An
audit analysis was requested on 10 January 1967. The audit report is dated
9 March 1967, I-67-29-70 (OSA-0986-67). The Contractor through October 1966
was experiencing an underrun in costs on the original scope. Listed in
Exhibit "A" is a comparison of proposals, audit recommendations, offer and
acceptance.
It is felt that the LAC counter offer is reasonable and SPO concurs
in view of the type of contract, i.e. Price Redeterminable.
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 Approved For Release 2002/09/03 : CIA-RDP69B00279R000200130019-0
Approved For Release 2002/09/03 : CIA-RDP69B00279R000200130019-0