REVISED PROPOSAL FOR ADDITIONAL WORK

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP69B00279R000200130028-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 14, 2016
• Document Release Date: August 22, 2002
• Sequence Number: 28
• Publication Date: December 27, 1966
• Content Type: MEMO

Approved For Release 2002/09/03 : CIA-RDP69B00279R000200130028-0
27 December 1966
25X1A
25X1A
To: Contracting Officer, SP-1928"'
Subject: REVISED PROPOSAL FOR ADDITIONAL WORK
Reference: (A) Our letter dated 1 August 1966
(B) TWX Message,6304 dated 1 November 1966
Enclosure: (1) Revised Price Proposal to Modify Three (3) Additional
STATINTL
Aircraft
(2) Revised Price Proposal for Seven (7) Aircraft (Item 1),
and Four (4) Sets of Parts (Item 2)
(3) Proposed Revised Billing Prices and Delivery Schedule
In reference (A) we furnished price proposals for alternative combinations of
additional modification work. Final aircraft assignments for conversion rep-
resent a third alternative which was not considered. Accordingly, we are pro-
viding herewith as Enclosure (1) our proposal to convert one (1) AFSC U-2
(S/N 368), one (1) SAC U-2 (S/N 374) and one (1) AFSC two-place U-2 (S/N 394)
to the configuration described in Exhibit A of the contract. This proposal
supersedes reference (A) in its entirety.
The final selection of aircraft increases the scope of the added work contem-
plated by reference (A) and raises the price from II set forth in ref-
erence (A) to of this proposal. This price increase is minimal since
we used the latest approved overhead and G & A rates which are lower than those
previously used and tend to offset the effect of the scope increase. In addi-
tion, the universal labor rates have been used for both of these revised pro-
posals and result in reducing the total price of this particular contract by
approximately $90,000.
We are pleased to advise that our experience has been very favorable on this
contract to date. The work force has been stable, we have been able to do our
purchasing on good terms and we. have not encountered any unforeseen difficulties.
Normally, we would wait for price redetermination at the end of the contract to
adjust the price, but are ropos ng a; Uy!Aed ..price for the initial work
(Items 1 and 2) the funds to be
so tk~at you_za y. ...use ze ,the savings and, i
allotted to the contract. This revised proposal is set forth by enclosure (2)
hereto. A summary of the entire contract price, which includes the savings
for the initial work and the price of the follow-on work, is as follows:
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Page 2.
27 December 1966
Subject; Revised Proposal for Additional Work
Estimated Cost Profit Price
STATINTL Initial Seven (7) Airplanes
(and 4 sets of parts)
STATINTL
Three (3) Additional Airplanes
Total Ten (10) Airplanes and Parts...
Enclosure (3) proposes revised billing prices for Items 1 and 2 and suggests,a
billing price for the added work, described as Item 3. These amounts are some-
what less than the revised contract target price. Please advise if these bill-
ing prices are acceptable to you, so that we may immediately adjust our invoices
prior to formal revision of paragraph a. of Part III of the contract. The re-
vised delivery schedule of Enclosure (3) may be substituted for the one now set
forth in Part II of the contract.
Please advise if you need any additional information regarding this proposal.
Sincerely,
STATINTL
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 'Approved For Release 2002/09/03: CIA-RDP69B00279R0002ftg2e0 (3) to letter
STATINTL
CONTRACT SP-1928
PROPOSED REVISED BILLING PRICES
Item 1 Conversion of 7 aircraft upon delivery..........
Item 2 4 Additional sets of conversion parts upon
completion ......................................
Item 3 Conversion of 3 aircraft upon delivery..........
PROPOSED REVISED DELIVERY SCHEDULE
Unit SIN Input
375 October 1965
390 December 1965
367 February 1966
393 April 1966
373 June 1966
392 August 1966
368 October 1966
f 4 November 1966
394 February 1967
47 March 1967
Output
March 1966
April 1966
June 1966
August 1966
October 1966
November 1966
February 1967
March 1967
June 1967
July 1967
As required to support conversion work
on Item 3 aircraft.
Item Number
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