FINAL SETTLEMENT OF CONTRACT (Sanitized)

• Document Type: CREST
• Collection: NGA Records (Formerly NIMA)
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78B04770A000200010006-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 28, 2016
• Document Release Date: July 1, 2004
• Sequence Number: 6
• Publication Date: June 2, 1969
• Content Type: MF

Approved For Release 2004/dREDP78B04770A0002000101 0
NPIC/TSSG/1?3)-1628-69
2 June 1969
MS t0RAND3N FOR: Chief, Contracting and Procurement Staff, TSSG/NPIC
SUBJECT' : Final Settlement of Contract
ACES 1. Letter 9225.02-69, Dated 31 March 1969
2. NPI jT/D-1173-68, Dated l0 April 1968
3. OI1/PD Memorandum, Dated 4 April 1968
1. In Reference 1, has submitted invoice numbers 18CR and 19 to
replace earlier invoices that were rejected by the technical representative
and the contracting officer. As stated in the II letter this matter was
is a legitimate request for payment.
negotiated in a meeting between the technical monitor, and theoont act
officer at NPIC in October 1968. As a result of these negotial ions, has
reduced the amount of their claim and indications are that the requested
2. In Reference 2, it is acknow2edged that 0 incurred additional
costs as a result of providing supplemental information for Phase 1 of 0
and proposals that had not been requested. Reference 2 further Ltates that
once these disputed areas are negotiated, the required funds be transferred
from the available FY-1965 funds in Phase 2 to Phase 1 and the Contractor be
reimbursed for the negotiated amount.
m 3. In Reference 3, the Office of Logistics informed the contract officer
that the remaining funds for Phase 2 were inadvertently deleted as r result
of a contract amendment in May 1967. V-pile this was not the intent of the
amendment, the 0L/PD Finance Branch states that as far as they are concerned
the funds are deleted and all remaining vouchers for Phase 1 are in excess of
contract maximum funds.
4. In order to reach a final settlement and close out Phase 1 of Con-
The only disputed area was with) providing some reports
it is requested that funds be obtained from FY-1965 or any other
available source and that the Contractor be reimbursed for the revised amount
quoted in invoice number 19.
I
Chief, Development Engineering vision,
TSSG
CROUP 1
'
Declass Review by NGA. `was gem "
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 Approved For Release 2004/0SEC rDP78BO477OA000200010006-4
SUBJECT: Final Settlement of Contract
Attaeb tnt.: (3)
As referenced
Distribution:
Orig - Addressee
ITPIC/TSSO/DED
NPIC/TSBG/DED/ -II
1 NPIC/TSSG/DED/R&B-III
(2 Jun 69)
25
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NPIC/TSS0/DED-1173-68
10 April 1968
ATTENTION
SUBJECT
I ORA M FOR: Chief, Procurement Division, Office of Logistics
Request for Overrun on Phase I of
REFERENCE 1. NPIC/TDS/D-1038-67, Dated 25 September 1967
2. Dated 28 November 1967
3:F Dated 3 August 1967
1. Copies of your speed letter dated 4 April 1968 and your memo dated
30 January 1968 have been referred to this office by for
comment. In these cceasunications a reply is requested to long stand-
ing request for overrun payments for alleged costs incurred under Phase I of
2. In Reference 1 this office acknowledges that 0 have incurred
some legitimate overrun costs in Phase I of this contract. submitted
the Phase I Feasibility Report and proposal for the Phase II Fabrication of
the instrument to EPIC in December 1965. Many doubts still existed on the
potential use of the proposed instrument, therefore, was requested to
submit a supplemental report providing additional information . deliv-
ered this supplemental report on 22 April 1966. in June of 1966 vas
informed that the proposed instrument would not be useful and NPIC reeoneseaded
against proceeding with Phase II. In August 1966, submitted a proposed
change of scope for Phase II and in September of 1!bt>l was informed that
the change had been rejected. Once again on 6 October 1966 0 presented a
proposal change for Phase II and this was rejected. At a meeting on 22 Nov-
ember 1966 =informed NPIC that the present operational material could
not be significantly improved by multiple image correlation. 0 was in-
structed to prepare a summary report on their findings. On 20 January 1967
this report was delivered but they also included a proposal for an image in-
tegration program to replace Phase II work. The proposed program was rejected.
Acknowledgement is made that 0 must have incurred additional costs in pre-
paring the supplemental and summary reports on the requested information. It
is felt that 0 should be reimbursed for this work and any overhead or rate
compensated for any reported coats occurring on Phase I after 20 January ~..
changes that have been authorized. But on the other hand should not be
paid for the unsolicited proposals or{_requested changes o scope of Aug--
ust and October 1966--or January and I 967. Furthermore,should not
Approved For Release 2 IA-RDP78B04770A000200010006-4 ~zctudettrw d
dewn6radina s~
f i decl?!sstticai~en
 Approved Far ~ lease 2004/07/2SIR t 78BO47 X000200010006-4
Request for Overrun on Phase I of ContraCt
has repeatedly requested II to give a further
cost breakdown on outstanding invoices Nos. 7, 9-12 so that II can be reim-
bursed only for the authorised work. 0 has elected to ignore these re-
guests for a cost breakdown. In Reference 2 1 recognivas that
has requested a cost breakdown. In this same reference, seems to infer
that ICAD auditors have ruled that, should be paid for is full claim;
but this does not seem in line with standard procedures. In Reference 3
Indicates that additional charms accrued on this contract for five
different reports generated between April 1966 and March 1967, but in effect
only two reports-were requested.
4. The Office of Logistics is requested to return invoices related to
and iustrc:at them to submit cost breakdowns
Phase I of this contract to ;;J
as to the specific tasks, re a, and meetings the charges are being made.
Once an agreement is reached on the acceptable charges for Phase I, it is
requested that the required funds be transferred from the available FY-1965
Hands in Phase II to Phase I of Contract in order to reimburse the Con-
tractor for the negotiated amount..
__S~
Chief, Technical Se ces upport Group,
NPIC
stribution:
Orig - Addressee
1 - NPIC/TSSG/Chief
1 - NPIC/TSSG/DED
12 - NPIC/TSSG/DED/R&DB II
NPIC/TSSG/DED/R&DB/
(l0 Apr 68)
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25
25
25
 d breadboard phase
Lion of a prototype
2. In i)ec rer of .196S.OsuLnitteed a report covering, the feasibil-
and breadboard phase and proposing t 4e type of instrument to be fa')rieated
Phase 2. The technical monitor felt that the findings, of tills feasil'11 t
report were not conclusive enough to warrant fabricating the instrwe nt. In
February 19 6., the technical monitor requested that additional information be
submitted in a supplemental report. In the succeeding eoaths
direction of effort. As a result of this additional information s and
NPIC technical personnel concluded that while this instrument can o uilt it
will not produce the results required for our high resolution phetograpby.
additional information, and s now proposals for Phase 2 and a Wroposed re
3. The above ferennced letter requests payment mf for Invoices
7 and 9 through 12 plus Ofor a negotiated rate increase. The same -
letter cites 5 reports or proposals prepared tatwe April V66 and March 1967
that allegedly acct for this added expsense. The technical monitor requested
and received the pprle ental Peport on 22 April 196k and the Summary deport on
20 January 1967. It* claim for reimbursement for the Iiork performed on these
two reports is legitimate and should a paid. O is also requesting payment
for submitting unsolicited ?ro osals , chin #ees of scope; and ree o ende4 re-
direction of efforts the technical monitor feels that the contractor 3tould
not he compensated for these activities. These are normal costs of obtainin Y
business and are rightfully company ex nses .
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C/TD?:/h, -1038.67.
25 September 1967
ated 3 Aut 1967
, NPIC entered into a CFIF contract for
for the development of an automatic Multiple Image
This project was to be accoa if shed in to phases
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4. T;.Ae, If'fico of Logistics is requested to o; t:kr 'rom0P cast
bre*kdo,n of Invoices 7 and 9 though 12 as relstec' to + ic'- of t'~e ref--
eranced 5 items and su. 5e