TRIP REPORT: CHIGOE; LTV VISIT - 25 MARCH 1966

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 05751013
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 4
• Document Creation Date: March 9, 2023
• Document Release Date: February 10, 2021
• Case Number: F-2011-01575
• Publication Date: March 28, 1966

Approved for Release: 2021/01/13 C05751013
611 0 C.
I- TV 6 7
28 March 1966
MEMORANDUM
Trip Report: CHIGOE; LTV visit - 25 March 1966
The following points were covered:
1. Dave will obtain and submit contractor's
flight personnel qualification certificate without delay,
for the necessary approval of the contracting officer.
2. Contractor pointed out the need for a system--
as near instantaneous as possible--for determining location and
acquisition of parts necessary in the maintenance of the vehicle
The best method, the contractor believes, would be:
(kr ")
to(' 1).1614
e �
v.rfc4)
(a).
(13).
Note:
A BUWEPS Instruction to all Naval Depots.
Containing a Project Identification as
Navy Project name or number (Navy has de-
cided to use the contractor's in-house
unclassified code name "MUDDY HILL").
Delegation to the contractor of authority
to requisition aircraft parts.
Bearing accounting appropriations symbol
or other charge instructions.
wants these costs to be billed
on the average usage/support basis per
type of aircraft method presently used by
the Navy to,pply. He also wants one con-
solidated-44ftV'billing--not piece-meal
billings. We should therefore arrange for
periodic Navy report on status of accumu-
lated cost.
3. Under such an arrangement the contractor can
handle aircraft parts requirements directly and expeditiously.
Also, Contractor will maintain property accountability records.
4. The attached document, BUWEPS 10000,1D illustrates
the type of arrangement we should obtain.
5. We should, when this is set up, establish that
charges as they occur will go to a Navy Finance Office and not
to the Agency.
6. It is planned that the_Contractor perform the
necessary maintenance to the vehicle during the period it is
-
Approved for Release: 2021/01/13 C05751013
(b)(3)
(b)(3)
Approved for Release: 2021/01/13 C05751013
410
under the contractor's control and/or custody. Accordingly,
it will be necessary for us to arrange that BUWEPS furnish
the contractor with distribution of all ASC's (Aircraft Ser-
vice Changes) for the vehicle-type SP2H.
7. As a result, the Phase II/III contract should
incorporate "direction of the contractor to follow standard
Navy tech order procedure in accomplishing the routine in-
spections and maintenance tasks for the aircraft", etc. The
work statement for these phases is to specifically spell out
what aircraft maintenance the contractor is expected to do
and what he is not expected to do.
8. Before Phase II is negotiated, ascertain whether
we shouldn't have Navy engineers run a structual check on the
changes proposed by the contractor.
9. The problem of maintaining program continuity
during the transition period from Phase I to Phase II. Pre-
sently there are some 8 engineers charging direct plus "C.F."
in Dave's office (Dave charges indirect, it is believed).
Agreed with the contractor that these engineers should remain
assigned to the program at completion of Phase I and authorized
their continuing charging time to the Program.
10. Regarding personnel, the quantity of 8 engineers
under Phase I will escalate rapidly in Phase II to a total of
approximately 80. It is understood this will represent a peak
in engineering staffing which will also drop off rather rapidly
as Phase II nears completion. The total of 80 engineers will
charge direct.
11. Of the total 80 personnel, 40 clearance requests
are in. The balance of 40 are already cleared by the Agency;
however, their names will be submitted and Cat. II clearance
established. Contractor stated that all Cat. III personnel
have been submitted.
12. Contractor is estimating 30 days for facility
readiness, including new location for existing commo link which
will be transferred to the closed Project Area. This area is
to additionally house all necessary facilities--stores, blue-
printing,etc.,etc. Estimated cost to revamp and move personnel
out and in/is $40K. However, we were assured by contractor that
costs associated with this plant rearrangement will be charged
either to overhead, or lease-hold improvements, resulting in
either event to only an indirect cost to the contract as lease-
hold amortization, or overhead application.
2
Approved for Release: 2021/01/13 C05751013
Approved for Release: 2021/01/13 C05751013
13. (0/S) should visit the contractor's (b)(3)
facility, perhaps this week, to discuss security implications
of the planned Project facility.
14. Regarding the cost estimate for Phase
will operate to reduce (b)(p
A J-
the material costs and tne contractor's direct costs un(b)(3) USC 130
original estimate. We are still shooting for a fixed
contract, at least for Phase II, and if Phase III involves
flight testing only, perhaps this can also be placed on a (F.P.)
rate basis per hour, or some other F.P. arrangement.
15. Contractor agreed to:
(a). accumulate separately costs incurred appli-
cable to Phases I and II, with especial em-
phasis on charges to Phase II concurrently
with Phase I.
(b). set out separately in the Phase II and III
cost estimate, the costs of vehicle inspec-
tion and maintenance.
16. The disposition of equipment to be dismantled
from the bird remains to be resolved. To be discussed with
appropriate Navy channel--probably PAX River.
17. Contractor authorized--for now--to run an IRAN
and a thorough inspection for flight, and then put aircraft in
storage, pickle the engines, etc. to make the bird "legally"
a Navy vehicle. He is also to make such calendar inspections
as become due during the period 'til July 1966. Costs esti-
mates on pickling and periodic inspections are to be furnished
29 March 1966.
18. Contractor's target date--for Phase II and III
work statement and cost estimate, and Phase I report--of 1 April
still expected to be met.
19. Testing under Phase III is estimated to run about
72 hours per month, or some 400 hours for the test period, per
normal Navy experience on programs like this.
20. There is no GFP POL at Contractor facility; all
POL will have to be procured from the contractor. Dave will
furnish an estimate of cost of POL for the program. If ex-
cessive, we may wish to investigate the possibility of arrang-
ing for one of the contractor's large AF contracts to absorb the
POL cost.
3
Approved for Release: 2021/01/13 C05751013
(b)(3)
maelp
Approved for Release: 2021/01/13 C05751013
21. Arrange thru A.F. channels for the local
D.C.A.S.O. (Defense Contract Administration Supply Officer),
Lt. Col. Fred R. Martin, to be informed that he need not be
curious about the program, etc. (Contractor's internal Con-
tract Ref. is #8853, or use Contract No. NOw-66-0451).
22 Before the bird is decomissioned in the near
'future, approved the contractor's request to qualify (b)(3)
a co-pilot in the vehicle. This will give us greater flexi-
bility since we will then have two qualified pilots.
23. The procurement of the Verdan computers should
be resolved by 29 March 1966. Dave anticipates no particular
problem. He may be able to "borrow" the units he needs from
surplus now on hand at contractor's facility, and later (1) re-
place them with units he is now attempting to obtain from
OCAMA, as received, or (2) modify them, if they are not identi-
cal with the type needed for the replacement.
24. Recapping Phase II work now authorized for con-
tractor to proceed with during Phase I:
(a). maintenance of bird plus pickle and inspect
(b). continuity of (8) engineering personnel
(c). procurement of long-lead items
(d). facility revamping--(charged to plant re-
arrangement and amortized to contract).
25. Procurement of IR film still to be arranged.
26. Plan to move (Pax River) flight and ground crews
into contractor's facility in June 1966 still obtains.
-4
Approved for Release: 2021/01/13 C05751013
(b)(3)