LETTER TO FRANK FROM (Sanitized)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72B00464R000100060019-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: June 27, 2001
• Sequence Number: 19
• Publication Date: September 27, 1965
• Content Type: LETTER

Approved For Release 2001/07/26 : CIA-RDP72B00464R0001000600
Enclosed is the new control chart for the month of August. The chart will
be revised and forwarded to you each month. After our meeting a couple
weeks ago, if was apparent that the type of report being furnished to you
did not present a true picture of the program. Realistically speaking, it
did not give me a factual view either, and I realized my knowledge of the
program was more from "gut feel."
The chart is based on pure dollars and direct labor hours. The reason
for selecting unburdened dollars is due to the difficulty on this program
to forecast when the material dollars will be booked. Even commitments
cause spikes and do not appear as forecasted. These spikes cloud the chart
and obscure the true picture of the program.
In viewing this chart my first impression was that I still wasn't showing
you anything, and that these lines are bound to follow each other across the
chart. However, I do not believe this is true. The first three months of
this budget were based on actuals so they do not count. The remaining hours,
however, were based on our proposal to you, but reduced for a bit of a pad.
The budget dollars are figured from the budget hours and our divisional
average rates for salary and hourly hours which were used to figure the labor
costs in the proposal. The actuals, however, are based on the individual
salary earned by each person working on the program. Naturally, if we use
more hours than budgeted, the dollars will increase accordingly, However, if
we use higher level people on the program than the divisional average, then
we begin to exceed the budget. In the "dollars" column it is apparent that
this is true since the actual dollars are higher than the budgeted dollars
which are based on the proposal and division average rates.
In the"hours" column a quick view of the e fort being expended on the program
is possible. By breaking out salary and hourly hours, the area of effort is
definable with salary representing more of the engineering effort and the
hourly hours representing the technicians and "tin benders." From time to
time there may be an increase in salary hours over that proposed without the
corresponding increase in labor dollars. This will indicate that salaried
personnel reimbursed for a specific number of hours per week are, in fact,
working in excess of these hours with the program benefitting without cost
from this additional effort.
In view of the foregoing and with your concurrence, I will no longer forward
the two meaningless charts as the financial report, but will replace them
with this one chart. For your further information, the total burdened figure
booked against the program will be included each month.
Enclosure:
(1) Control Chart
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