ANTICIPATED OVERRUN OF PROJECT #10147 PI PRINT ENLARGER (Sanitized)

• Document Type: CREST
• Collection: NGA Records (Formerly NIMA)
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78B04770A002700020014-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 28, 2016
• Document Release Date: June 6, 2005
• Sequence Number: 14
• Publication Date: September 29, 1967
• Content Type: MFR

Approved For Release 200@& ;rTA-RDP78BO477OA002700020014-7
Declass Review by NGA.
NPIC/TDS/D-1050-67
29 September 1967
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SUBJECT: Anticipated Overrun of Project #10147 PI Print Enlarger
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Historical Background.
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In a memo (IPO/OSB/M-35-6S) dated 4 August 19651described their
need for equipment to produce enlarged photographic prints. Further
interest was expressed by PAG in memo IPO/OSB/M-43-65 dated 5 October
1965. The Imagery Analysis Service expressed a need for similar equip-
ment in a 16 November 1965 memo (IAD/OSS-346-65).
Enlarger employing 2:'diffusion transfer photographic material.
0
On 4 October 1966 IAS encouraged the prompt approval of the
posal (IAD/OSS-221-66).
osal
-VA-66).
but expressed no interest in purchasing the equipment f(IPO/OSM/
On 10 October 1966 PAG indicated it had received the
2. Contractual Matters.
pro-
25X1 original quote was for 0 In January 1967 this price
25X1 was raised to to cover increased overhead that occurred during
the period required for contractual approval. The "cost plus incentive
fee" contract was si nod on 27 February 1967 with a target cost of
25 1 and a target fee of II The period of performance was to be from
27 February 1967 to 27 September 1967.
Contract Monitoring.
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and I made trips to on 21 April and 12 May
1967. During these visits we discussed the design of the PI Print En-
larger. The contractor encountered no apparent serious technical pro-
blems in the design. During May 1967 left the Technical
Development Staff and I assumed responsibilities as project monitor of
this contract. The contt etor's monthly reports for March, April, and May
1967 all estimated that the project cost would equal the target costs of
the contract.
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submitted a proposal (153/66) on 8 September 1966 for a Print
dawa_r~cbg ar~d
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During mid July I was notified by the project engineer 25 1
that the June monthly report was nearly ctnplete but that
there was a delay by their accounting department in completing the status
of funds. f#egave no indication at that time that there was any financial
trouble however.
During the week of 24 July, Contracts Manager
I called to say that an overrun of approximately l was
anticipated. On 11 August I visited 0 to discuss the overrun and to see
what steps could be taken to reduce its magnitude. Nearly all of the de-
sign was completed and most of the parts had been ordered. The only
suggestions offered by the contractor were to reduce the quality of the
deliverable manuals and to minimize quality assurance expenditures.
However, both of these items would have little effect in reducing the
overrun.
On 14 S tember, visited NPIC. II
i f th Ames 8 ding and I discussed
e
d
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251
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for rom
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the project. A cost ana ysis presented by is attached. 26 1
also delivered the July and August monthly reports at that time. a ceps
analysis presents two pages showing costs to complete. The estimate made
on lW>uly shows an anticipated overrun of while the one wade on 2511
IS August predicted an overrun o Thus, has shown little 25 1
compteence in making cost estimates before or during t e period of the
contract.
4. Alternatives.
The following alternatives are presented with cost data available at
the date of ;his memo. These figures will. be updated if changes are an-
ticipated byII
a. Cancel the contract - Approximate cost: 1:f
the contract is cancelled, no assembled equipment will be re-
ceived. Unfinished parts, unground lenses., etc. will be furnished
in an unassembled form.
ho Reauire contract to be c leted -ximate cost:
overrun, the assembled
ffPl Print nlarger would be delivered.
c. Require all c rents to be finished and as
ment at I PlP Costa rox mater verrun'
$ cost is uncertain at this time since gs not been
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pressed with this alternative.) informed me that
most of the components are completed but that he has not asyyet
spent more than the contract target cost. When it was suggested
that the overrun would be consumed almost entirely in assembly,
debugging and manual preparation, he indicated some uncertainty
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as to the status of completion of the project and said that he
would furnish more up-to-date figures on expenditures. If we
can obtain all components for close to the original contract
target cost, then perhaps our Equipment Performance Staff could a
assemble it.
d. Send letter to responsible administrative personnel.
suggesting that t abs rr i a portion o the overrun costs. Since
sane ? t- e overrun costs were due to poor inancia1_est *Rtes and
control byl might be willing to pay some of
these costs. O. course, this approach does not produce a
favorable reply bywe would still be faced with selecting
one of the other alternatives.
Support Systems Branch, DS/TDS
ATTACHMENTS :
F Proposal 153/66
Cost Analysis
IPO/OSBIM-35-65
IPO/OSB/M-43-65
IAD/OSS-346-65
I PO/OSB/M-161-66
IAD/OSS-221-66
Distribution:
Original - Route 4 File
I - Originator
2 - NPIC/TDS/DS
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DATE
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