CONTRACT GA-1853 WITH(Sanitized)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00728R000400050040-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 12, 2016
• Document Release Date: February 22, 2002
• Sequence Number: 40
• Publication Date: July 23, 1964
• Content Type: MEMO

Approved For Release 2002/06/11: CIA-RDP66B00728R000400050040-7
1. On 22 July 19641 25X1 A
I inegotiated with the undersigned
Contracting Officer for an extension of the effort under the subject
contract beyond 30 June 1964 including a new subcontract with I 25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
DE-031-64
464
25X1A
; I ii?.~
SUBJECT: Contract GA-1853 with
2. A copy of the Contractor's quote is attached. While the
Contractor quotes a full years program for the prime effort under
their estimate, T-14309, covering Operation the Contracting
Officer advised Ithat e technical representative, _
had no basis for continuing the contract requirement
beyond December 1964. In separate conversations with the
Contracting Officer was advised that the effort with =might end upon
completion of subcontract which is anticipated to be in
November 1964. There is available for funding the prime contract the
sum of 0 made available in Category II of the ASG/OEL budget
(see memorandum of 4 June 1964 to Chief, Contracts Division,
OSA). This sum was intended to cover effort from 1 July 1964
through August 1964 at which time I ladvised that additional
FY-65 funds would be available to cover an extension of the
effort. Funds to cover the subcontract with II were made available
in Chief, ASG/OEL memorandum of 6 April 1964 to Chief, Contracts Division,
OSA. This memorandum made available of FY-65
money for a contract with , however the initial effort with
was limited to
A was made available by
and accordingly the balance of the
subcontract with I
3. In view of the monetary limitations as well as the time limitations
it was agreed with that the lI extension would be
handled on a quarterly basis, that is to say that the extension would
provide for contract services for the first quarter of FY-6,1~ Eased upon
subse unt conversations with however, it was agreed that the
IIe effort could be written through 30 December 1964 subject, however,
to availability of funds.
4. The Contractor's quote for the prime effort was submitted in the
amount of 0 which was intended to cover the full time effort of
for a total of 5,800
man-hours of effort for one year. Part time clerical effort was quoted
at 561 man-hours. The overhead rate of = was that approved by the
cognizant audit group. This rate plus the labor rates, G&A, advanced
engineering had previously been reviewed by Headquarters
audit representative, who had performed a complete audit review of the =
contract is preparation for the Contractor's proposal for continuation
for other purposes including
25X1A
Z5M
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
AA
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
Approved For R4eas4002/06/11 CIATRDP66B00728R000400050040-7
 Approved For Release 2QQG/46/11. CIA-RDP66B0072-8R000400050040-7
of the effort. The Contractor quoted LJ for advanced engineering and
0
5. A fixed fee of E:1 and a G&A burden of ^ were negotiated for
25X1A
the subcontract effort. In its earlier quote the Contractor had proposed
25X1A
the full GU on the subcontract effort, however the Contractor was
informed that unless G&A could be reduced it would not be possible to
handle the 0 work as a subcontract. As a result of the negotiations 25X1A
then the total mark up on the subcontract was negotiated at ^ 25X1A
for G&A. Fixed fee for the prime effort was quoted at
6. As a result of the negotiations the total rice for one years
pr' e e t by lI and the subcontract with e
was agreed upon
at~ including a fixed fee of The rate of fixed fee on
the total effort is ^ While the ~. represents the cost of the
total program it was agreed with the Contractor that the extension of work
would be limited to a six month effort which would include for
the 0 subcontract and 0 for the rime effort for
25X1A a total of 0 including fixed fee. The fee of on the 0
25X1A portion of the effort is considered reasonable in view of the fact that
this contract calls for the full time effort of three of the
engineers specifically in EMW Operations. This is a straight engineering
effort with no production, follow-on or material procurement other than
travel.
7. As a result of the foregoing negotiations, contract GA-1853 will
be extended for a six month period through 31 December 1 64 which will
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
25X1A
cover the completion of the subcontract effort with II Notwithstanding 25X1A
the period of performance the amendment will specifically limit the
Contractor's prime effort from a funding standpoint in as much as only
is available to cover the prime effort through 31 August 1964. 2 5X1A
Prior to that date additional funds will have to be added before the
Contractor can continue work. Because of the difference in the application
of G&A between the prime effort and the subcontract effort the Contractor
requested that two amendments be written, one to cover the prime effort,
the other one to cover the subcontract effort. Since the Contractor's
prime effort has been reduced by one-half, the amendment will specify
2,900 man-hours of engineering effort in lieu of 5,800 man-hours and 280
man-hours of clerical effort in lieu of 561.
25X1A
Contracting Officer
Approved For Release 2002/06T1 f : tIA-RDP66B00728R000400050040-7
 Approved For Release 2002/06/11: CIA-RDP66B00728R000400050040-7
Approved For Release 2002/06/11: CIA-RDP66B00728R000400050040-7
 Approved For Release 2002/06/11: CIA-RDP66B00728R090400050040-7
Provide continued consultant service in accordance with the basic
work statement of June 1963.
Briefly this includes:
Staff planning aids in the form of recommended
I Icapabilities and employment doctrines.
b. Time sequential planning outputs providing for
the overall management of an effective, continuing
program.
Approved For Release 2002/06/11: CIA-RDP66B00728R000400050040-7
 Approved For Release 2002/06/11: CIA-RDP66B00728R000400050040-7
Approved For Release 2002/06/11: CIA-RDP66B00728R000400050040-7