REQUEST FOR FUNDS FOR CLOSEOUT OF AQUILINE CONTRACT WITH MCDONNELL DOUGLAS ASTRONAUTICS COMPANY

• Document Type: SPECIALCOLLECTION
• Collection: Aquiline
• Document Number (FOIA) /ESDN (CREST): 02103240
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 24
• Document Creation Date: July 16, 2020
• Document Release Date: July 30, 2020
• Publication Date: February 28, 1972

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3.3(h)(2)
3.5(c)
BYE-9443-72
Copy 6 of /1-,
MEMORANDUM FOR: Director of Central Intelligence
SUBJECT: Request for Funds for Closeout of AQUILINE Contract
with McDonnell Douglas Astronautics Company
REFERENCE: Memo for DCI from DDS&T, dated 1 November 1971;
Subject: Termination of Project AQUILINE
(BYE-6507-71, Attachment I)
1. This memorandum contains a request for the approval of the Director
of Central Intelligence. The specific request is contained in paragraph 6.
2. In accordance with the directive received from the Executive
Director-Comptroller (reference memorandum), the AOUILINE Program was
extended through 15 November 1971 with the funds previously authorized -
through 7 November and through 15 November. Effective
1 November, MDAC was notified that all planned anned contract activity was to
cease and they were to prepare their program closeout bid for presentation
and negotiation. On 22 and 23 November, negotiations were conducted at
MDAC which covered: program closeout costs and time; the determination of
contract incentive bonuses allowable under the incentive clauses of the
contract; MDAC fee and associated other open items remaining on Contract
3. Attachment II is the negotiated MDAC proposal for Program closeout in
the amount of $ In addition to this closeout bid, it was determined
that MDAC was due and should be awarded $ as incenti ment for
satisfactory completion of the tasks as s ipua e. in Contract incentive
clauses. Therefore, of the $ authorized by the Execu
Director-Compt,ro11pr fnr terminating the MDAC efforts, only $
be required ($ for the contract extension 7 through 15 November
il and $ for closeout costs). The following table presents the total
picture on the results of the 22 and 23 November negotiations:
Event or Activity
Contract Value at 30 September 1971 (Less Fee) $
Contract Extension Thru 31 October 1971
Contract Extension Thru 7 November 1971
Contract Extension Thru 15 November 1971
Exclutomttic
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Event or Activity
Contract Value 15 November (Less Fee)
MDAC Expenditures and Commitments Thru 15 November
Contract Funds Available at 15 November
Fee Thru July 31, 1971 as Negotiated
22 November
Fee July 31 Thru 15 November as
Negotiated 22 November
Total Negotiated Fee
Minus 22 November Disallowed
Costs (Material handling, ops
hourly increase at Field Site,etc.)
Subtotal $
Balance of
(Funds of $
unds Available at 15 rvember
Minus Fee of
Contract Closeout Cost (At No Fee)
Incentive Bonus
Subtotal $
Additional Fundi R quired for Closeout and
Incentives ( Minus of
Available Fun
4. It is anticipated that all closeout actions of MDAC Contract
will be completed not later than 15 February 1972.
5. Contract monitor for this closeout program will be
. Security classification of this contract will remain
Sc.- J.
MUM
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AQU INE
BYE-9443-72
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6. It is specifically requested that you authorize the expenditure of
funds in the amount of $188,700.00 for the purpose of closing out
Contract and payment of incentive bonuses of that contract.
CARL E. DUCKETT
, Deputy Director
for
Science and Technology
Attachments:
I and II As Stated
SIGNATURE RECOMMENDED:
1 FEB 1972
Director of Special Activities -V
The request contained in
paragraph 6 is approved:
Is'
Director of Central Intelligence
Date
F:
Date
AQUI E HANDLE VIA BYEMAN
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AQUILINE
BYE-9443-72
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DPM/AQUI/OSA, (2 December 1971)
Distribution.
Orig - DPM/AQUI/OSA (w/atts)
2 - DDCI (w/atts)
3 - Ex.Dir.-Comptroller (w/atts)
4 - ER (w/atts)
5 - DDS&T Chrono (w/atts)
6&7 - DDS&T Registry (w/o atts)
8 - SA/DDS&T (w/atts)
9 - PMS/ORD (w/atts)
10 - 0/PPB/DDS&T (w/atts)
11 - D/SA (w/atts)
12 - C/B&FD/OSA (w/atts)
13 - CMD/OSA (w/atts)
14 - RB/OSA (w/o atts)
AQUILINE
SF-GRE1
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I I
_
(sPc-cify)
UNCLASSIFIED- CCAp�p.rO\7eCrioiRelease: 2020/02/711 CO2103240=
"�,,,mmampoemommemmomememm,
REQUEST TO PROCUREMENT DIVISION FOR SERVICES'
(other than property or building maintenance and repair.) DD/',AT#
OFFICE/DIV/RR
DDS&T/OSA/AQUI
REQUEST NO.
DATE OF REQUEST
PROJECT TITLE
AQUILINE
EXTENSIoN
n. 5682
14- 229
CERTIFY THAT rums.; Is TI
AMOUNT Or $
[V
no
/ "
AVAILARLE CHARGE TO FAN.
-SaNA-iURF OF BUDGETIOFFICIP
CONTRACTOR (if known)
McDonnell Douglas
Astronautics Company
PROPOSAL NO. AND DATE
24 Nov 1971
TYPE
OF
SERVICE REQUESTED
X
RESEARCH/DEV
TRANSFER OF
GRANT
OTHER GOVT.
(specify if
REPAIR
MAINTENANCE
MODIFICATION
STER
ITV
sc 0
s c
SC
CONTRACT 6 TASK ORDER NO. (if
FUNDS TO
ACIEHCY
applicable)
TECHNICAL INSPECTION IS REQUIRED SY
71RECEIVING OEPOT T Q I E:1 TECHNICAL MONITOR
riITEMS TO SE PICKED UP ORE: SERVICES PER r0 *urn AT!
ITEMS TO SE REDELIVERED TO:
CONTRACT CLASSIFICATION
SECRET
WORK CLASSIFICATION
SECRET
HARDWARE CLASSIFICATION
SECRET
REPORTS CLASSIFICATION
SHORT SUBSTANTIVE TITLE AND/OR DESCRIPTION OF SERVICE TO BE PERFORMED
Closeout of MDAC Contract
Total Closeout Cost After Negotiation $188,700.00
SECRET
(See reverse for specific ipformstion
reouired on R&D requests )
DESIGNATION
D/SA
14 DOM
Ex.Dir.-Compt.
AprROVAL
,11-matti0E
PROCUREMENT DIVISION USE
DATE RECEIVED IN PD IRECOROED BY
SECTION ASSIGNED TO NEGOTIATOR
DATE
25 JAN 1972
n
FORM 9uwI 2420 AND 2416 REPLACES FORMS
UNCLASSIFIED 1-1 CONFIDENTIAL 071 ET El _ (specify)
3.67 'L-r" F-1
WOICN MAY BE
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" �--- "" ATTACHMENTS OR STATEMENTS KA ET
I. JUSTIFICATION FOR SOURCE SELECTION '
('�
storage.
N/A
2. PROPOSAL
3. DELIVERABLE ITEMS
REPORTS REQUIRED
NO. OF COPIES El MONTHLY E] INTERIM ni QUARTERLY E.:SPINAL
HARDWARE (state type and number)
OTHER
All Program Documentation
-11 : 1".". f:
All GFE and Contract IP urchased Equipment
4. GFE REQUIRED'
None
5. SPECIAL INSTRUCTIONS
All Program assets, hardware, documentation, GFE, etc. at contractor's
Huntington Beach facility will be packaged and shipped to Area 51 for semi-permanent
E=1 UNCLASSIFIED El CONFIDENTIAL _ FX)1 $ ET ED
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RECEIVED
RELEASED
DATE
TIME
SEEN BY
SIGNATURE
DATE
TIME
NAME a OFFICE SYMBOL 0
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Handle Via Indicated Controls
N,
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Access to this document will be restricted to those persons
cleared for the specific projects;
WARNING
This document contains information affecting the national security of the United States within the meaning
of the espionage lows U. S. Code Title 18, Sections 793 arid 794. The law prohibits its transmission or
the revelation of its contents in any manner to an unauthorized person, as well as its use in any manner
prejudicial to the sofety or interest of the United States or for the benefit of any foreign government to the
detriment of the United Stotes, It is to be seen only by personnel especially indoctrinated and authorized
to receive information in the designated control channels. Its security must be maintained in accordance
with regulations pertaining to BY IMAN Control System.
Top CRET
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BYE-6507-:71
Copy
MEMORANDUM FOR: Director of Central Intelligence
SUBJECT: Termination of Project AQUILINE
1. You will recall that following my preliminary
report to you on the status of AQUILINE, you gave me
guidance to terminate the program because of the high
costs needed in FY 72 and 73 to reach operational
readiness. We have completed our study of how termination
might best be accomplished, and this memorandum defines
two options for your consideration. My recommendation is
contained in paragraph 4.
2. Option I provides for the immediate termination
of the project and storage of all assets. Under this
option, there would be no further expenditures of funds
,
for aircraft construction, testing, final reports or ror;tm
documentation. It will take about two months 1
to implement this option. An additional $ would
allow full program and technical documentation to be
accomplished during the termination period, which would
provide the basis for reactivation and use at some later
date by this or some other organization. Under the origin .1
contract, MDAC is also due approximately $ for paymen
of incentives on that contract Therefore, the total cost
of this optio be $ or, if program documentLAio-A
is desired, $
3. Option II would provide for a four months'
termination period and would cost about
more than Option I. During this period several
flight tests would be conducted using the in-plant test
facilities and field test assets now in being. It would
also provide full technical documentation. The flight tests
would be conducted at Area 51 over a test range instrumented
with Simulated Soviet air defense radars to define radar
detectability and with observers and sensors, to determine
!ANDLF VA BYFMAN
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visual and aural detectability. Additionally thee tests
would give us a better understandin of some of the more
important technology such as navigation and command control.
I feel sure we will want to use some of these developed
items in other Agency programs.
4. I would like to put the AQUILINE technology on the
"shelf" in a way that would satisfy us all that we have tied
all the Those ends together and have made it available for
confident assessment for future uses I therefore recommend
Option II. We had budgeted $ for the program this
year, of which $ remains uno igated.
5. This recommendation for termination would rot be
complete without reference to the fact that we still have
an important need for a technique for deep penetration for
covert emplacement and technical intelligence collection.
We therefore would like to continue to explore ways to
exploit some of the AQUILINE technology and other system
concepts for using this technology. With your permission,
we will from time to time be proposing the expenditure of
relatively small amounts of money in these areas.
Carl E. Dudkett
Deputy Director
for
Science and Te(Ainology
c.
74 'ZJ
/-1Lct
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Subject:
Reference:
Dear Sir:
C r i..:,�:). ', .-*J 5301 Balsa Avenue, Huntington [truth, CA 92647 (7141 89G.3371
titk h 0 ij .-
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--4
NOV 2.1 1971
CONTRACT FIRII CPFF PROPOSAL FOR
PRUGRAH CLCSEJUT
r
r")
Pursuant ta prior discussions with the Contracting Officer
and in reply to reference TWX, the Contractor is transmitting herewith
his firm CPFF proposal covering closeout activi , ubjact Contract.
This proposal consists of an estimated cost of . Details of
this proposal are cont:-.id in the enclosure.
The ContrEl.:.ter has prepared this proposal assuming it is
additive to the baselire ;,quiline Program effort which was concluded on
12 NovEnLer 1971. Clos&eut ilctivities were initiated, per Customer
direction, on 15 Novpm:,er 1v71.
CMC:pr
Lhclosura as noted
cc:
1�;!-91,1F,11614 AITI.CTViG
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LAOS. TITLE 18.
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Contracts-Program Control
Special Programs
w/Lnclosure
DOCUMEN I CON IF,!01._
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GROUP 1
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rx(-3..uoco mum Adioml IC;
nirc tm,ru r: 1,,LisaGt_1o4N.-� DOWNUADING AND
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) '
FIRM CPU PoPoSAL
FOR
PROGRAM CLOSEOUT
Prepared Under Contract Number
By
McDonnell Douglas Astr. .autics Company
Western Division
McDonnell Douglas Corporation
Huntington Beacn, California
McDonnell Douglas Corporation Proprietary Data Furnished In Confidence
And Subject To Exemption Under Subsection (b) bUSCbb?_. JDo Not Disclose
Outside Recipient Organization Ana U. S. Government.
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CONTENTS
SECTION 1 INTRODUCTION
SECTION 2 ASSUNPTIONS AND CONDITIAS
SECTION 3 hOUk/DOLLAR SUNOARY
SECTION 4 COST PROPOSAL
Page
1-1
2-1
3-1
4-1
4.1
Engineering
4-2
4.2
Operations
4-2
4.3
Uuards
4-2
4.4
Document Control Clerk
4-2
4.5
Material
4-3
4.5.1 EDO Material
4-3
4.5.2 Reproduction Material
4-3
4.6.3 Major Subcontracts
4-3
4.b
Travel and Per Diem
A-4
4.7
Pricing Cost Breakdown
4-5
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CUST PROPOSAL
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