CONTRACT NEGOTIATION WITH (Sanitized)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72B00464R000400070019-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 14, 2016
• Document Release Date: October 21, 2002
• Sequence Number: 19
• Publication Date: February 14, 1967
• Content Type: MFR

Approved For Rele 2002/10/25: CIA-RDP72B00464R 070019-5
14 February 1967
25X1 A
25X1 A
25X1 A
SUBJECT: Contract Negotiation with
1. Negotiations were conducted on the 6th and 7th of
February 1967 with to redetermine Contract CW_6744.
The redetermination was required by the contract because the
Contractor's 31 November 1966 "estimate to complete" resulted
in variance of greater than 10% of the original contract value.
2. The following is a synopsis of the original negotia-
tion, the Contractor's 23 January 1967 proposal for completion
and the negotiated amounts:
Original 23 Jan.67 Redeter. Projected
Item Cont.Val. Proposal Contr.Lev. Costs (1)
I
II
III
IV
V
VI
VII
VIII
IX
X
Tgt.
Cst.
Fee
72%
Note: (1) The Projected Cost level is computed because the
contractor's burdens have increased and increased the
level of effort costs. However, the fee is based on
the Redetermine Contract Level column.
3. The factors relevant to the establishment of the re-
determined level of effort are as follows:
a. Item I Spares - The Government team recognized
that the $506,000 level was tight but was required
due to the tightness of the overall M & 0 budget.
Approved For Release 2002/10/25 gel
72B00464R000400070019-5
 e.,s Pa a e
Approved For Relemd 2002/10/25: CIA-RDP12BO046 R0 0070019-5
Depot personnel are presently buying pursuant to the
EOQ theory but were alerted to watch the spares dollars
and buy single items when the dollar budget is approxi-
mated. The cost of the first 182 line items procured
averaged $519 which was made up of 10.4 hours labor
and $349.96 material.
b. Item II Flight Test Support -
D
J
F
M
A
M
J
Total
Orig.Negotiated
7
5
4
4
3
3
3
29
New Projection
7
5
4
4
4
4
4
34
The increase of one man in months April thru June
is required to render more emphasis to the RCD testing.
The 34 man months was developed by authorizing 32 man
months plus 10% overtime. As a result, the total level
of effort for FY67 is 69 man months (July thru June 1967).
c. Item III Beale Support -
M
A
M
J
Total
Orig.Negotiated
4
5
5
5
5
5
5
34
New Projection
3
4
5
5
5
5
5
35
The 35 man months was developed by authorizing
32 man months and 12% overtime. As a result, the total
level of effort for FY67 is 51 man months.
d.
Item IV In Plant & Sustaining Effort
D
J
F
M
A
M
J
Tot.Hrs.
SRA
3
3
3
3
3
3
3
+10%
o.t.
3696
Engr.Backup
Engr.Sup.to SRA
3
3
3
3
3
3
3
3360
BW4 & BW5
3
3
3
3
3
3
3
3360
Proj.Engr.
1
1
1
1
1
1
1
1120
Design Engr.
1.5
1.5
1.5
1.5
1.5
1.5
1.5
2280
Studies
Radar Improv.
10 man months
1600
Projected
15.5 man months
2480
Approved For Release 2002/10/25.; CIA-RDP72B00464R000400070019-5
 Approved For Rel de 2002/10/25: CI1 T 00464R0 00070019-5
D J F M A M J Tot.Hrs.
25X1 A
ECP's (81,84,88,
95, 107, 110)
Proj.ECP''s 22.5 man months
Akron Support
Spares Support (PPB for
reprovisioning)
1707
3600
1120
25, 363
The average rate of 0 was experienced during
July through November and was applied to the 25,363 hrs.
As of the end of November 1966, 240 kits had been
completed on 10% of the effort and 10% of the effort
on 222 kits had been completed. Thus, 12.4 hours and
$89 were expended on the 262 kits (240 +22).
It was estimated for the total year that the fol-
lowing kits would be required:
(a) Completed 240
(b) Work in Process 200
(c) New Work 250
(d) Complex kits 5
As of the date of the negotiation, 132 Work Orders
had been completed at a cost of $107,500 or $815 per
Work Order. The average number of Work Orders per
month was 37. Thus, $362,000 was computed as the year's
requirement; i.e., 37 x $815 x 12 months. In addition,
a $160,000 requirement was estimated for the 12 unit
recycle program for the 2 degree nose up-tilt.
g. Item VII Follow-on AGE
Of the four AGE end items ordered in June, three
have been delivered. No other items will be required
this fiscal year. Thus, the original dollar require-
ments will stand.
As of 30 November 1966, 543 pages had been completed
with 2167 hours of labor and 284 pages were in process
of completion. Based on this experience, the contractor
Approved For Release 2002/10/25 14- P721300464R000400070019-5
 Approved For Re1+lse 2002/10/25 : CIA-RD
$A 14RM 400070019-5
projected the following:
Pages
Hours
(1)
Complete
543
2167
(2)
In process
284
900
(3)
Projected
12_1
thru
750
3695
3-1
(4)
Projected
3-1
thru
160
704
6-30
The Government team deleted 1/3 of the effort
(1470hrs) from the 12-1 thru 6-30 time period as work
required for RCD data which is covered in the Production
Contract.
(i) Item IX Reports
No change from June 1966 negotiation.
(j) Item X AVI
No change from June 1966 negotiation.
Note: Negotiation notes and relevant papers are filed
under CW-6744, "Proposals".
25X1 A
Approved For Release 2002/10/25 : COA-RDP72B00464R000400070019-5
 Approved For Release 2002/10/25 : CIA-RDP72B00464R000400070019-5
Approved For Release 2002/10/25 : CIA-RDP72B00464R000400070019-5