CONTRACTING SUPPORT FOR NASA U-2 PROJECT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00159R000200210002-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 5
• Document Creation Date: December 21, 2016
• Document Release Date: June 10, 2008
• Sequence Number: 2
• Publication Date: September 16, 1971
• Content Type: MF

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CONTROL NO. BYE-9121/71
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4P S E C R E T
BYE-9121/71
Copy / of-7-
16 September 1971
MEMORANDUM FOR: Deputy Director for Science and Technology
SUBJECT: Contracting Support for NASA U-2 Project
REFERENCE: Memorandum for DD/S&T from D/SA dated
4 February 1971; Subject: Same (BYE-9103/71)
1. This memorandum contains a recommendation for the approval
of the Deputy Director for Science and Technology. Such recommendation
is contained in paragraph 5.
2. Mr. Myron Krieger, Deputy Chief of Unmanned Space Programs,
NASA, visited this office on 3 September 1971 to request a continuation
of OSA contract support for the NASA Earth Resources Survey Project
after the present 30 June 1972 contract termination date. Mr. Krieger
cited the ease with which NASA had been able to implement this contract
with Lockheed and the rapidity with which the project had been able to go
operational. It was his opinion that under NASA contracting procedures
he would not have been able to accomplish this task near as efficiently
and that there would have been considerable additional expenditures of
both time and money.
3. The initial contract was handled by OSA for NASA, as we were
told that a multimillion dollar satellite survey program would be ready
to be launched in January or February 1972, but that considerable air-
craft collected information would have to be obtained prior to the launch.
It was the opinion of NASA that they could not get into contract quick
enough to produce this information if NASA contracting procedures
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were required. Therefore, in order to further the interests of the
government and not insert a delay in the multimillion dollar survey
program planned by NASA, the Agency agreed to consummate the
initial contract with the request that NASA take over as soon as
possible and in no case later than the end of fiscal 72.
4. In the above reference we cited reasons for not providing
this support and these reasons continue to be valid. Even though we
did accommodate NASA in its initial performance, for very specific
reasons, we do not believe OSA "black" contracting support should be
continued for this completely unclassified and highly publicized NASA
project. Our primary concern is that the confidential funds procedure,
which is used for this project, requires that the DCI certify to Congress
that funds are expended for confidential purposes. Although we feel the
present contract could be defended on the basis of accommodating a high
priority need which would save millions of dollars for the government,
we also feel continued contracting cannot be justified. The present
Agency contracting procedure is vital to our mission and we do not feel
it wise to place it in jeopardy to support an unclassified program for
another government agency which has had adequate time to implement
normal contracting procedures.
5. It is therefore recommended that OSA contracting support
should not be extended to NASA, for this project, beyond 30 June 1972.
6. In making the above recommendation we have considered two
factors related to cover. First, when NASA begins contracting directly
through their channels there is a possibility that questions will be
raised relative to past sole sources procurement through the Agency.
In this matter we feel that we are in a defensible position at this time
but that this position deteriorates rapidly if we continue fronting for
NASA. The second consideration relates to Gary Powers' request for
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Air Force retirement and the possibility of surfacing the fact that our
former pilots have retired from the Air Force and are now working
for NASA. While we consider this to be entirely possible, we do not
believe it relates to this contract problem. In spite of the problems
which may arise because of these last two considerations, our
recommendation in paragraph 5 still stands.
ENDELL'T . BEVAN
Brigadier General, USAF
Director of Special Activities
The recommendation contained in
paragraph 5 is approved:
16 Sept 71)
Distribution:
# 1 - DD/SA
#2 - DD/S&T Chrono
#3 - DD/S&T Registry
#4 - DD/S&T Registry
#5 - C MD / OSA
#6 - SS/OSA
#7 - RB/OSA
25X1 DD/SA/
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WILL CHECKCLASSIFICATION TOP AND TOM
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UN ASSIFIED CONFIDENTIAL SECRET
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
DATE
NI LS
D/SA
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3
4
5
6
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks: I contacted Myron Krieger today and
passed this information on to him. He, of course
would have preferred that we do the contracting,
as it certainly is much easier for them. Short
of actually doing the contracting for him, I
offered to help in any way we could and told him
that, while it was Carl's decision that we not
continue this contracting, it was certainly not
of concern to me if NASA wanted to reclama
the decision.
FOLD HERE TO RETURN TO SENDER
FROM: NAME, ADDRESS AND PHONE NO.
DATE
DD/SA
9-28-71
UNCLASSIFIED CONFIDENTIAL
SECRET
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