FY 1973 FINANCIAL PROGRAM, FY 1974 BUDGET, AND FY 1975 THRU 1978 PLANNING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00514R000100050024-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 9
• Document Creation Date: December 15, 2016
• Document Release Date: August 1, 2003
• Sequence Number: 24
• Publication Date: February 25, 1972
• Content Type: MF

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(5) NATIONAL PE"ZONNPISSANCE OFFICE
WASrI:NGTON, D.G.
? 'HN L. '?~c: .
irector
February 25, 1972
I:E ORAND.UM FOR THE DIRECTOR OF CIA RECONNAISSANCE PROGRAMS
SUBJECT: FY 1973 Financial Program, FY 1974 Budget, and FY 1975
thru 1978 Planning
Guidance for the formulation of FY 1973 thru 1978 recommendations
for those INTRO accounts involving CIA responsibility is contained in
the attachments hereto.
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NRO review(s)
completed.
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GFNERAL: (CIA)
A. ?This correspondence provides program guidance, and launch
schedule data, for the development of resource requirements and related
cost estimates for the FY 1973 Financial Program, FY 1974 Budget, and
FY 1975 thru 1978 Planning as applicable. As such, they do not constitute
schedule or program approval. CIA is authorized to submit, in addition to
the estimates required herein, alternative program and cost estimates as
deemed appropriate.
B. The CIA FY 1973 Financial Program Recommendations are to be
submitted in one complete copy each for the DJ RO, NRO Comptroller, and
NRO Staff by not later than May 1, 1972.
0. The CIA FY 1974 Budget Recommendations are to be submitted to
the same recipients by not later than May 15 19 .2. At CIA choice, both
the FY 1973 and 1974 estimates may be~submitted in one package by May 1,
1972.
D. The CIA FY 1975 thru 1978 Planning Recommendations, to the extent
required in subsequent instructions, are to be submitted to the same
recipients by not later than May 29, 1972.
E. Project details are to be furnished on a line item basis, in
accordance with prior practice. No requirements are to be reflected in
line items which are not properly chargeable to that line item.
The aircraft and support programs chargeable to Aircraft
Procurement are subject to full funding.
G. Congress has established new rules for the FY 1973 RDT&E budgets,
which would have to be considered as applicable to "incremental" funding
in any NPR? appropriation. The OSD interpretation is that the budget and
funding should be based on funds required for obligation during the
applicable year to cover the costs of twelve-month increments of project
effort. In the case of the NRP, this is further interpreted that:
1. Funds should not be requested in any fiscal year that are
not expected to be obligated in that fiscal year.
2. Funds should not be requested generally which would cover
more than 12 months of effort. The 12 months would start from the
contractorts init4.ation of performance against the specific obligation.
Depending on contract timing, the 12 months might not start until late
in the fiscal year. There may be exceptions to the 12 months considera-
tions in relation to hardware procurements where multi-year contracts app
or to system development in similar circumstances.
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?3. Any unobligated balances at 30 June 1972 will be subject to
individual examination, and may be subject to withdrawal from FY 1972
approval.
H. OSD has provided revised factors for economic escalation, and
the following are to apply where escalation factors, are used:
1. FY 1973 submissions are to be based on expected FY 1973
prices.
2. Factors for FY 1974 t'rru'1978, in relation to an FY 1973
base are: (Percent increase)
FY 1974
FY 1975
FY 1976
FY 1977
FY 1978
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These factors should be used on a reasonably-selective basis, rather
than across-the-board. Also, economic escalation as applicable is to be
included in each line item, rather than subject to separate identification.
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U-2 Aircraft - General: (CIA and Director D)
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A. Plans are being formulated for the transfer of U-2 aircraft to the
regular Air Forcer However, the NRP FY 1973 Budget includes funds iar
support of all aircrafE, and it is eexpected that the NRP will fund and
~YA~9'7 as _
sw
contract nsibility is ort in rational
far 2 previous y, even i opebi ~
tr-ansfce~on or after _
197 financial 721, Therefore, the 1Y
program recommendations are to be developed and submitted
as if there were n transfer considerations, with the exception that the
oJ Idealist Senior Year Common
_a~gt_will be the estimating responsibility
of Director D rather than (`TA. The FY 1974 Budget recommendations will
'rtt ;-'"involve the same approach from the standpoint of field submissions, altho
it is expected that a portion of the costs will transfer from the NRP
budget to the Air Force.
B. For cost estimating purposes, it will be assumed that U-2-i's
will be .asstfined-:Eo Tthe CIA f, at, and-1 U- i Air F
Air Force will 'b le for U-2 support 25X1
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i applicable to U-2's, Cuban coverage. support nay 25X1
also be involved. CIA and Director _D are to propose, and include in the
cost estimates, U-2 C/G flying as appropriate to the preceding responsi-
bilities
At th
.
e present time approval not been granted to equ.p
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proceed by the time the cost estimates are formulated, Director D will
be responsible for the cost estivate recommendations, to be submittec,
separately, reflecting additive costs involved by U-2 account and line
item. AFSC will continue to fly 3 U-2 A/D/Fis. -
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IDEALIST: (CIA)
A. Idealist cost recommendations are to be on the basis of foir
U-2R's assigned, and U-2C/G's flying, as they may be recommended by CIA.
B. Submit a table of flying hours (broken down between operations,
ferry, test and training by Detachment) by tail number aircraft, as
actually accomplished in each quarter of FY 1971, the first three
quarters of FY 1972, and as forecast for the last quarter of FY 1972.
For FY 1973 and 1974, provide forecast flying hours by quarter, any
aircraft out for IRAN, etc., again distinguishing between operational.,
ferry, test and training hours by U-2R and U-2C/G; these need not be
by tail number. Explain planned U-2C/G utilization in FY 1973 and 1974.
C. F.Y. 1973 Financial Program Recommendations:
1. The costs to be submitted under this account are to be
arranged under headings of Airframe Support, Airborne Electronics Support,
Pilot Salaries and Benefits, Construction Maintenance, Operations and
Maintenance, Field Service Support, and any other categories related to
Idealist peculiar support.
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2. Under these headings, submit usual line item detail, being
certain to submit not only the line item costs, but also numbers or
explanations as appropriate (numbers of field service personnel by
contractor, reasons for significant changes from FY 1972 funding, etc.).
In this connection, FY 1972 approvals were on the basis of supporting 5
U-2R aircraft, while FY 1973 will be on the basis of supporting 4; therefore,
some reductions should be expected. If not, specifically explain.
D. F.Y. 1974 Budget Recommendations:
Submit in similar detail as for the FY 1973 Financial Progrwi.
E. F.Y. 1975 thru 1978 Planning Reco=endations:
No subnussion is required unless CIA-OSA considers that costs in
any of these years would be significantly different from FY 1974. The NRO
Comptroller will cover economic escalation considerations.
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A. F.Y. 1?73 Financial Pro,-ram Recommendations:
1. Sub. iit line item costs on the basis of. "Maintenance" of
existing equipment only.
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2. In the event that additional develo gent and/or investment
is considered mandatory, submit comprehensive data, including requirements,
proposed schedules, cost details, masons for mandatory need, and any other
pertinent information. If additional operating costs are also involved,
specifically identify the costs.
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B. F.Y. 1974 Budget Recommendations:
Submit in a similar manner as for the FY 1973 Financial Program.
C. F.Y. 1975 thru 1978 Planning Recommendations:
No submission is required unless CIA proposes additional
development and/or investment in this time period.
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U-2R INUFSTME JT: (CIA and Director D)
A. No provision was made in the FY 1973 Budget nor in any
subsequent fiscal year for U-2R Investment costs. This does not
prevent submission for the FY 1973 ZinQrXiLa
Prot am nor the rY 1974
udget for new or replacement equipments as deemed mandatory ' CIA or
Direct ro ewer, the anticipated transfer of a portion of the U-2
eIet raises certain questions as to responsibility for determining
mandatory changes and for funding.
B. If either CIA or Director D proposes U-2R Investment E_ ro'ects
for FY
1973 or 1974 ?u ~ _ .
~, she projects rust be suppo bar meaningful data
suc as the re uirelents basis proposed schedules for contracting and
c~eive q
_ cos details. reasons or man atory nee easts for
quantities requested, operating cost considerations and any other
pertinent information. _. Fiscal year estimates are to be on -__f1
fluid ingg
S ~ COMTgOL MO
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General 'RCD (Aircraft) (CIA)
A. The Nov 71 Ex Con established al total for thi.,
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account for FY 1973 and 1974, to cover bo an 1rector D requirements.
B. This account is limited to R&D for aircraft. No recommendations
for satellite RO are to be submitted under this account. I this
connection, there was a question for FY 1972 funding on the L I
entry, which may be reconsidered for FY73/74 if i can e
demons rated that this effort is principally for the benefit of the
satellite progr Lms. Accordingly, will be subject to
special consideration.
C. F.Y. 1973 Financial Program Reco=endations:
1. Submit line item recommendations with comprehensive justifi-
cation. Arrange in pri r with the basic submission not to
exceed excluding (altho the latter is to be
submitted un er this account, ws reasons why it should move to Satellite
Applied Research). An addendum additional request may be submitted at
Agency option.
2. For any line items, specifically distinguish between those
which are continuations of FY 1972 or prior approved efforts and those
which are new proposals. In both cases, identify FY 1974 and subsequent
year follow-on costs to completion for the effort, if appropriate.
3. Specifically identify line items which are U-2 related, and
any possible existing equipment modifications which may result from the
proposed R&D.
D. F.Y. 197L Budget Recomendations:
Submit line item recommendations in a similar manner as for
FY 1973, and within the same dollar constraints for the basic budget.
Addendum additional requests may be submitted at Agency option.
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