'A' FOLLOW-ON PROCUREMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00728R000400020033-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 12, 2016
• Document Release Date: May 1, 2002
• Sequence Number: 33
• Publication Date: August 20, 1963
• Content Type: LETTER

Approved For Release 2002/06/11: CIA-RDP66B00728R000400020033-8
Refer: SD-513
20 August 1963
STATINTLTo :
Subject: "A" Follow-on Procurement
Associated with the "E" Prime clock to be delivered with the
"A" follow-on system is the requirement whereby FCI will
procure from its Semiconductor Division integrated milliwatt
logic T"hiq equirement is also prevalent on subcontracts
STATINTLwith for "E" Prime clocks. The policy of the
corporation is such that the inspection and audit clause
contained in fixed price and CPFF prime contracts with either
Lockheed or the Government would not be applicable to fixed
price purchase orders with Fairchild Semiconductor Division.
I would like your opinion as to whether the following language
can be incorporated in the Prime contract to be issued for the
"A" follow-on system:
"The Fairchild Space and Defense Systems is
authorized to procure from its Semiconductor
Division integrated circuits and/or Semi-
conductor devices on a Fixed Price basis, which
subcontract shall contain the terms and con-
ditions of a Fixed Price contract and will not
be subject to inspection and/or audit, not-
withstanding any other provision of this
contract."
In conjunction with procurements of this nature from the Semi-
conductor Division, further assurances are given to the
Government that the price quoted is one quoted to most favored
customers and in no case would exceed those prices quoted to
any other corporation.
I would appreciate your consideration of the above clause and
your early reply as to whether or not the clause cited above
would be acceptable to the Government.
Your cooperation in this matter is appreciated.
STATINTL
Very truly ypur
Approved For Release 2002/06/11: CIA-RDP66B00728R000400020033-8