PRECONTRACT APPROVAL RECORD ITEK CORPORATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00074R000500230005-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 21, 2016
• Document Release Date: January 5, 2009
• Sequence Number: 5
• Publication Date: June 9, 1964
• Content Type: FORM

Approved For Release 2009/01/05: CIA-RDP67B00074R000500230005-3
SECRET
PRECONTRACT APPROVAL
RECORD
(PART ONE)
Itek Corporation
BB-450 6
1
THIS CONTRACT APPROVAL RECORD CONTAINS A RECOMMENDATION SUBMITTED FOR CONCURRENCE OF
THE UNDERSIGNED. CONCURRENCE IN THIS PRECONTRACT APPROVAL RECORD IS RECOMMENDED BY THE CON-S FUNDSIAREOAVAILABLEY(NOTCINCLUDINGTCONTIiNGENTB& EXPOSURE)IAND/ORBHAVEHBEENGADJUSTEDHAS PROVIDEDNT
IN THIS DOCUMENT.
^ T&M ^ FISCAL YEAR
? FPIP
^ CPFF ^ CALL TYPE
$ 14,397,497
14,156,883
CORONA
CORONA
CONTINGENT UPON AVAILABILITY
OF FUNDS
FY-65
FY-64
6/9/64
CORONA
ONA
OM-5496
Copy of 3
9 June 1964
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John Parangoaky
CONTRACT SIGNATURE (Contracting Officer)
FORM 2167 SECRET
11.63
16 JUN 1964 `~/V
GROUP 1
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declo+clf orion
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 Approved For Release 2009/01/05: CIA-RDP67B00074R000500230005-3
SECRET
CONT RACE
PRECONTRACT APPROVAL RECORD
(PART TWO)
BB-450/Amend #6
The services and equipment being procured by this Contract No.
BB-450 are in furtherance of the ANA
Program(s), the nature of which cannot be publicly disclosed for security rea-
sons. The Contracting Officer therefore determines that this procurement must
be accomplished by negotiations pursuant to the authority of Section 3(a) of
PL 81-110 and Class Determination and Finding, OXC 2122, signed by the DDCI on
15 October 1961.
Certification of funds for this contract will be handled under the pro-
cedure approved by the Director of Central Intelligence on 15 December 1956
which, in effect, results in all covert expenses involving issuance of Treasury
Checks being accumulated in a separate account within the Finance Division. The
amounts in this account will be periodically scheduled for certification of the
vouchers by the Director. This procedure eliminates the necessity for a sepa-
rate certification of authority under Section 8(.b) of Public Law 110, 81st Con-
gress (formerly 10(b) - see 85-507 dated 7/7/58) for each contract.
The following comments describe the procurement hereby effected, the
terms and provisions generally of this contract/amendment, and a resume of
major issues negotiated:
Amendment No. 6 to Contract No. BB-450 has been written
to evidence the final price redetermination of the contract.
This contract was written on a Fixed Price Incentive basis
for Items 1-6, 8 and 9. The balance of Items, 7 and 10-24,
were written on a Fixed Price basis; however, the costs of the
latter items were not segregated from all other work and in
effect were subject to the redetermination. The contract
target price for Items 1-6, 8 and 9 was $12,610,850.00 and
the price for Item 7 and 10-24 was $3,553,086.00 or a total
price of $15,653,936.00.
The AF Auditor conducted an examination of the Contractor's
books and records. His Report No. 1232 is included in the
contract file. In substance, the Auditor ~reco nd ediaac-
ceptance of $12,309,907.00 in cost; 2
lowance and $135,199.00 for further consideration.
As a result of discussions between the Contractor, Auditor
and the Negotiator the following final actual cost and prices
were negotiated:
Final Costs
Costs recommended by Auditor
Costs reinstated due to Audit Error
Costs reinstated by CO as allowable
Costs reinstated by CO for IR&D
Total Allowable Costs
Less Negotiated Costs/Items
10-24
$12,309,907
49,171
135,199
40 000
1 , 534,277
2766364
7g~ Cont.
r FORM SECRET d~d.d ~om
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declossificonon
Approved For Release 2009/01/05: CIA-RDP67B00074R000500230005-3
 Approved For Release 2009/01/05: CIA-RDP67B00074R000500230005-3
SECRET
9,767,913
Less cost of Item 7
510,000
Total adjusted cost/Item
9,957,913
1-6, 8&9
Original Target Cost/Item
8&9
1-6
$11,412,535
,
Less Total Adjusted Cost
9 257 913
Total Costs Savings
"t 154,6
Final Prices
itgms 1-6, 8&9 - Total Adjusted
Cost
Target Profit -
Incentive Profit - 144 of Target
Cost - $1,597,198
Less Target Profit - 181984315
$ 9,257,913
1,198,315
Less Penalty on 8/I
10,700
Cameras
tal Incentive Profit
T
388.183
o
411
Total Price
Items 1-6,
8&9
10,844,
Total Price
Item 7
510t000
l Price
t
Item 10-24
3.013.086
a
To
Grant Total Price -
$14,397,497
As a result of the foregoing, the total savings to the
Government can be computed as follows:
Original Price $15,653,936
Final Price x144 397 497
Total Savings $ #2
Contractor has satisfactorily accounted for all deliveries
under the contract and property acquired or generated there-
under. Final Patent and Royalty statements are being submitted.
Upon receipt of the latter and receipt of a properly certified
invoice, it is recom ended that the Contractor be paid the final
price less any partial or progress paymsn$e heretofore made.
JLLET
Approved For Release 2009/01/05: CIA-RDP67B00074R000500230005-3