PROPOSED FINAL REVISED PRICE SECTIONS A AND B

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP65-00523R000100070069-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 21, 2016
• Document Release Date: November 17, 2008
• Sequence Number: 69
• Publication Date: December 8, 1958
• Content Type: MEMO

Approved For Release 2008/11/17: CIA-RDP65-00523R000100070069-0
December 8, 1958
To: Contracting Officer, SP-1915
Suib ject: PAOPS D IWL Dx1ISID PRICI, S1CTI03tS A AM I
Amendment No. $ established the tentative eantract billing price of
$2,310,000 for the supplies and other work being furnished pursnnt to
subject contract.
Commencing 1 July 1958, supplies and work of the kind previously covered
by Sections A and D of the work statement of subject contract are covered
by Contracts SP-1917 and BP-1918.
Consequently, we hereby submit or final statement of costs sad proposal
for the final revised price, for Sections A and3 of subject contract.
Work under Section C is contempUtod to continue, with a revised scope
presently under consideration] so it is only practicable in that regard
to establish a tentative billing price for all Section C work through
31 December 1958, reserving further pricing until some time after the re-
vised scope becomes known. All work under Section C, therefore, is proposed
to be the subject of its separate final price revision at a future date.
Our final statement of costs for Section A and D is submitted in. Enclosure
I. On the basis of such cost statemaennt, and in consideration of the work
performed, we propose a final revised price for Sections A and B, in the
etmount of $2,093,000.
For Section C we purpose a tentative bilU*g price, as of 31 December 1958,
of #900,000. Our statement of actual cost for Section C work, from inception
through 2 November 1 90., and our estimate of costs for November and December,
is submitted in Inalosure II.
If the foregoing is aacaegtable, it is requested that an appropriate amendment
be prepared, which would include the following principal points:t
1. Final revised price for Sections A. and D is $2,093,0O0
2. Tentative Billing Price for Section C is $900,000, payable
upon submission of invoice 31 December 1958 and such other
evidence as Contracting Officer may require.
Your* very truly,
STAT
Approved For Release 2008/11/17: CIA-RDP65-00523R000100070069-0
 Approved For Release 2008/11/17: CIA-RDP65-00523R000100070069-0
'A 0
COl -CT SP. P 1915
SICTI016 A _ ANDI
PI11" COST Ml~
Enclosure I
r. / 4./
.mac T
Labor
$ 795,379
Overhead (Net Rate)
551,813
(Material
430,24L"
Contract and Amtinistrative Expense (Net Matt)
13k,2351
Total Cost
$1,911,675
Profit ...... i8 ..+'.
Total Revised Price - Sections A and 3 $2,093,000
3M,inent Data:
The above costs include costs recorded per books to 2 November 1958, and a
purchase ccmit ant of $6,9553-00 to Oarrett Corporation, Purchase Order
No. 3641.
Overhead rates used in above costs:
1957 - Not Rate $2.60108992 for Engineering
3.336327 for ftct"Y
.5760 for C. i A.
1958 - Net ftto $2.7655 for Nagineering
3.9617 for Factory
.8050 for C. & A.
Direct Labor Noyce 1 Total
Nagintering 73,483.8 110,780.1 184,263.9
Factory 1,626.2 2,232.6 _3,8828_.8
Total ll?.0 .7 188.122.
Approved For Release 2008/11/17: CIA-RDP65-00523R000100070069-0
 Approved For Release 2008/11/17: CIA-RDP65-00523R000100070069-0
A
4 Enclosure A
3 y
M BP-1915
luii+~w
ow C
~rrn~rrrrr
BILLI PRICE 70* P IOh INCEPTIt?ll'
(W UM 1 fle"I 111 1
Estimated Costs
Recorded Mouths of
Costs to 1o,lleesl.r and
2 Eorseilear l4S$ as~sr 195f3 Total
Labor $369,682
Overhead (Wet Rate) 209,0h2
Material 47,858
Contract and Ad ilnistrative _8
Total Costs
Profit 9-
Total Estimated. Pride
Lams: Reduction for concervatiau in
esteblishing a tentative billing price
Praposed Tentativs Milling Pride
$ 75,E 4"5,9482
41,576 250,618
16,991 64,849
T0,`'
)46 11:. $831,508
7x 3
$910,501
10,501
00000
Approved For Release 2008/11/17: CIA-RDP65-00523R000100070069-0