WE WISH TO ACKNOWLEDGE RECEIPT OF YOUR PROPOSAL FOR A SMALL PLASTIC AIRSHIP, WHICH WAS SUBMITTED (SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-03642A001300040013-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 13
• Document Creation Date: December 22, 2016
• Document Release Date: June 12, 2012
• Sequence Number: 13
• Publication Date: January 10, 1956
• Content Type: LETTER

Declassified in Part - Sanitized Copy Approved for Release 2012/06/14 : CIA-RDP78-03642A001300040013-9
'
Gentlemen:
Sincerely yours,
25X1
LORI
MAINtic ship, which was sutmitted
L,ur I I I
LL LIU IIL
We wish to acknowledge receipt of your >aroaosal for a :kleall
The proposal has been forwarded to our Air Branch for review.
You should hear from that Branch shortly concernit the
action taken.
Doc _ _13 _ _ MV DATE Sa By ORIQ COMP . e opt _ TTPE
ORIG CLASS ,.L!. PAGES REV CL $$ -IK-Ok-
JUST --ANF-- NEXT REV ~ AUTHz MR 13.1
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642A001300040013-9
 Declassified in Part - Sanitized Copy Approved for Release ~;2012/06/14: CIA-RDP78-03642A001300040013-9
CONFI E TI If enclosure (s) is)are iih-'+Trw i
(cr not attachcd) the
-ir.; ,::;,.,: ' ?~
COYreS^^^.i?C: ~':~73 ':T!. 1-,a 25X1
.:,zip--)Iled without re e.ence to tho
o-;.ginating authority.
25X1
January 6, 1.958
Subject:~Proposal No. 11510-B - Small Plastic Airship
Reference: Our letter dated November 1, 1957
Gentlemen:
In response to referenced request we are pleased to submit herewith our
proposal No. 11510-B entitled "Small Plastic Airship." Subject proposal
supersedes proposal Nos. 11510 and 11510-A. Therefore, we have enclosed
herewith our fiscal and contractual. data together with. a breakdown of
costs and a summary thereof.
Lighter than Air vehicles have unique inherent characteristics which we
believe can certain military operational requirements. Under
contract we have completed a basic LTA study. The proposed
program is an outgrowth of that study and is important from the stand-
point of increasing our fundamental knowledge about airships. We feel
that a significant advancement in the state of the art will result, allow-
ing the definition of other Lighter than Air systems to perform military
tasks.
The estimated cost of this proposal is $325,359 plus a fixed fee of $22,775
for a total of $31+8,1314..
Should there be any questions concerning this proposal, we will be happy
to provide any additional information you feel necessary for your
CONFMANTI
Cl,~
G)
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642A001300040013-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
January 6, 1958
evaluation. We look forward to the opportunity of being of service to the
I
Very truly yours,
Approved by
Proposal and Contract Administration
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642A001300040013-9
PROPOSAL NO. 11510-B
FISCAL AND CONTRACTUAL DATA
it is hereby proposed that the Mechanical Division of
Inc., (hereafter referred to as the Contractor) enter into a cost-plus-fixed-
fee type contract with the Government to conduct research as discussed in
the enclosed Technical Discussion.
II. ESTIMATED COST
It is estimated that the cost of the proposed program will be $325,359
plus a fixed fee of $22,,775 for a total of $31+8,1311. A detailed breakdown
of this amount is given in the attached cost schedule.
III. DELIVERY
It is proposed that this program will run for a period of twenty-four
(21+) months after receipt of an executed contract.
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14 : CIA-RDP78-03642A001300040013-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
A. This proposal is subject to withdrawal by the Contractor unless written
acceptance thereto is received within sixty (60) days from the date specified
herein.
B. Any contract resulting from this proposal shall contain the standard
Exculpatory Clause entitled EXCUSABLE DELAYS found in Section 7-203.11 of the
Armed Services Procurement Regulations.
C. All subject matter (including drawings, present or proposed designs,
and other data or information) submitted with this proposal is incorporated
herein for a study on a confidential basis, without consideration, for the sole
purpose of negotiations of a possible contract. No subject matter is to be used,
copied, or otherwise reproduced, or disclosed to any third party in any manner,
directly or indirectly, without written approval by the Mechanical Division. All
property rights, including patent rights, in any such subject matter are expressly
except to the extent otherwise provided by the 25X1
specific terms of a written contract to which
is a party. 25X1
D. Net payment for work performed under any contract which may result from
this proposal shall be due thirty (30) days following date of the Contractor's
invoice.
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
E. In preparing this proposal, no allowance has been made for the working
of overtime. Any premium time which is paid in connection with any over-
time worked is charged to overhead, rather than directly to the contract.
F. All inventions which may result from work proposed hereunder will be the
property of the Contractor. If this contract actually calls for experi-
mental, developmental, or research work, Contractor is willing to include
the standard patent rights clause (ASPR-9-107.1) in such contract.
G. Any contract resulting from this proposal will contain provision for the
payment of the fixed fee as stipulated in the cost estimate and for reim-
bursing the Contractor for all costs incurred in the performance of this
contract, in accordance with Section XV, Part 2 of Armed Services Procure-
ment Regulations. Contract should further authorize that 25X1
=, be authorized the use of negotiated final overhead rates with pro- 25X1
visional reimbursement at current standard burden rates (for any department
in which work is performed) with adjustment to be made to the negotiated
final overhead rates as periodically determined in accordance with ASPR
3-701+.1.
For the purpose of compiling our estimate of costs, G&A and Burden have
been included at estimated rates which closely approximate the anticipated
actual G&A and Burden.
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
The following information and representations are provided to supplement
information contained in the discussion of Terms and Conditions.
A. having its executive
offices at Minneapolis, Minnesota.
B. The Mechanical Division of the company now employo approximately two
thousand (2,000) persons. Total employees of the corporation number
approximately thirteen. thousand (13,000).
C. There is no agreement to pay any commission, percentage, brokerage, or
contingent fee in connection with the proposed contract.
D. Individuals authorized to conduct negotiations on behalf of the Mech-
anical Division on the work proposed hereunder include: Mr. Z. Soucek,
General Manager; Mr. E. Frank Coy, Director of Sales; Mr. Victor E. Benson,
Supervisor, Proposal and Contract Administration.
E. The Mechanical Diviision is under cognizance of the United States Air
Force for security and for Government inspection when required.
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
Suttmiary of Costs
Phase I $ 88,1+91
Phase II 137,666
Phase III 60,926
Total -277-70-8-3
10 percent Contingency on
Phases II and III 19,859
Total Estimated Cost 30 6,9k2
G&A @i 6 percent 18,1+17
325,359
Fixed Fee @ 7 percent 22 775
Total Selling Price $3 8, 1
* Helium for tests in Phases II and III GFE
Portable Mooring Mast GFE
Large, HaAgar-type building for GFE
inflation tests
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
SCHEDULE II
Direct Labor:
Research
Principal & Senior Engineer 5,226 hrs. @
Associate & Junior Engineer 3,111+ hrs. @
Technician "A" 1,038 hrs. @
$4.10
$2.90
$2.20
$21,427
9,031
2,281+
$32,742
ERD Model Shop
Machinist 300 hrs. @
$2.6o
780
Balloon Operations
Principal & Senior Engineer 300 hrs. @ $3.85
$ 1,155
Technician 500 hrs. @
$2.00
1,000
2,155
Balloon Production
Principal & Senior Engineer 480 hrs. @
$3.85
$ 1,848
Technician 860 hrs. @
$1.90
1,631+
3,1+82
Technical Editing
Editor 100 hrs. @
$3.10
310
Burden:
Re
search 9,378 hrs. @ $3.30
$30,947
Ba
lloon Operations 800 hrs. @ $2.15
1,720
ER
D Model Shop 300 hrs. @ $2.90
870
Ba
lloon Production 1,340 hrs. @ $2.75
3,685
$37,222
Othe
r Expenses:
Tr
avel
$ 3,000
Ma
terials
6,400
Co
nsultant
2,460
11,800
Total Cost Less G&A and Fixed Fee Phase I
88,14.91
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
Phase II
Labor:
Research Department
Principal or Senior Scientist
1+,671 hrs. @ $1+.10
$19,151
Balloon Manufacturing Department
Senior Engineer
3,700 hrs. @ $3.85
$11+, 21+5
Development Engineer
600 hrs. @ $3.15
2,070
Draftsmen
1,500 hrs. @ $2.65
3,975
$20,290
Balloon Operations Department
Senior Engineer
1+,050 hrs. @ $3.85
15,593
Draftsmen
1,600 hrs. @ $2.25
3,600
Technicians
2,800 hrs. @ $2.00
5,600
$21+,793
Burden:
Research Department
1+,671 hrs. @ $3.30
$15,1+11
Balloon Manufacturing Dept.
5,800 hrs. @ $2.75
15,950
Balloon Operations Department
8,1+50 hrs. @ $2.15
18,168
$49,532
Material and Fabrication Costs
23,900
$137,666
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
Phase III
Labor:
Research Department
Principal and Senior Engineers
Balloon Manufacturing Dept.
2,076 hrs. @ $1+.lo
$8,512
Senior Engineer
1,000 hrs. @ $3.85
3,850
Balloon Operations Dept.
Senior Engineer
1,100 hrs. @ $3.85
$1+,235
Draftsman
200 hrs. ? $2.25
450
Technicians
2,550 hrs. @ $2.00
5,100
$22,1+7
Burden:
Research Department
2,076 hrs. @ $3.30
$6,851
Balloon Manufacturing Dept.
1,000 hrs. @ $2.75
2,750
Balloon Operations Dept.
3,850 hrs. @ $2.15
8,278
17,879
20,900
Total Cost Less G&A and Fixed Fee Phase III $60,926
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
????? ???" ? ?"?? VI[ MU rillou In., ? /
NAVEXOS 2116A I5-5.51
DATE RECEIVED LOGGED BY
1/9/58 mlr
Proposal No. 11510-B - Small Plastic Airship
3 copies
DO NOT DETACH unless incoming document is offi-
dally transmitted to another activity.
cially
33786
1/6/58
RECEIVED
RELEASED
ROUTING
(CODE
Pub.
POSE
DATE
DATE
COMMENTS
d d
NO.>
?
INITIALS
INITIALS
ate)
(Initial an
r
460
1
. C
469
Ives-
461
A -it
Instructions and additional comment space on reverse side.
? I. INFORMATION. S. COMMENT REQUESTED.
CENTRAL MAIL AND FILE ROOM USE.
1. COGNIZANCE. 4. ACTION.
5. SIGNATURE ON PREPARED REPLY.
SUBJECT CLASS NO.
REPLY SERIAL NO.
When Filled In
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9
 Declassified in Part - Sanitized Copy Approved for Release 20.12/06/14: CIA-RDP78-03642AO01300040013-9
Who Ffed IN
INSTRUCTIONS
ROUTING. Central Mail and File Section assigns RED code routings from a mall routing guide (MAILDER),
Effectiveness of MAILDEX to dependent on receipt in the Central Mail and File Section from cognizant su?
pervisors of current information on changes In assigned mission, personnel or physical location within ONE.
PROCESSING OF ROUTE SHEET COPIES.
Original -remains with incoming correspondence at all times while in custody of ONE.
Green copy -is used by cognizant or action code to notify Central Mail and File Section when correspond
once Is retained In Branch or Division file.
Blue copy -is used by cognizant or action code for mail control purposes.
Yellow copy-is filed alphabetically In Central Mail and File Section and is used as a mail locator file.
FILING. When route sheets are appropriately Initialed for release and forwarded to the Central Mail and
File Section, the route sheet and accompanying correspondence will be subjectively classified and filed in
Central Mail and File Section for future reference.
? CONFiq@ITIAL, ?
Who Filled In
Declassified in Part - Sanitized Copy Approved for Release 2012/06/14: CIA-RDP78-03642AO01300040013-9