OVERRUN OF PROJECT(Sanitized) AND PROJECT #10147, PI PRINT ENLARGER(Sanitized)

• Document Type: CREST
• Collection: NGA Records (Formerly NIMA)
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78B04770A002800020008-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 28, 2016
• Document Release Date: May 19, 2005
• Sequence Number: 8
• Publication Date: October 18, 1967
• Content Type: MFR

Approved For Release
Declass Review by NGA.
D RAF T
NPIC/TDS/D- -67
18 October 1967
respectively).
SUBJECT: Overrun of Project #10197, V' wgraph Maker [Contract
I land Projec #10147, PI Print Enlarger
Contract project 9619 and 9618
1. This memor,,a6dum presents a suggested format for a letter to
I orporate ersonnel requesting that they review the subject projects.
2T1,The Projects for the Viewgraph Maker and the PI Print Enlarger
are presently under separate contracts with the
t - predicts that both of these contracts will require about a
50% overrun to complete. The Government is seriously concerned about the
magnitude of these overruns and the fact that they were not anticipated
sooner. It is hoped that
will carefully examine its performance on
these contracts to determine if they are representative of the standards
by which
is to be judged.
significant historical data for each project Comments
are included to'pes__,_~,.gnifeat aspects of cited documents or events.
~- At this time, the Government can find no gross technical de/ ciencies
in the basic concept of the equipment being furnished under the subject
contracts; although a thorough evaluation of technical performance must of
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of course, rest on the acceptability of the delivered items. However,
9
the target costs of the contracts have already been- and 25
estimates considerable design and engineering effort yet to be carried
out. This, and comments from
(July monthly report for the PI
Print Enlarger (Statement A.3. - "Redesign was effected in a number of
major areas."), suggest that technical performance was open to some
The most disturbing aspect of performance rests in its 25
inability to predict costs either before or after contract negotiations.
The Government puts great trust in a contractor's ability to accurately
account for past costs and to predict future costs with a reasonable
tiit"(~ F,) ~~f hetlSl2S !'~ AbIhi fA flF(Ph~^~'. ~~i rCehO'd~~ ~{V1t
'2 coca." rla[4 w0.~Qaaa dCr Fc,1yit /L\ i4F~'~, i\\*CV 1 cf~ Ski,
degree of accuracy. When the contractor grossly underestimates his future
efforts, he creates administrative delays that prolong the completion of
the project. He may also disturb the Governments R 4 D budget to such
an extent that other projects are jeopardized. In the two projects under
discussion,
consistently predicted via its monthly reports that the
projects were in no financial difficulty.
were delayed, but verbal contacts with
last monthly reports 25
project managers predicted
25
suddenly predicted a 50% overrun on the PI Print
Enlarger, the Government was immediately concerned about the financial
status of the Viewgraph Maker. However, two
personnel reported that 25
the latter project would not have an overrun. Within two weeks, this
statement was contradicted by the sane personnel and a 50% overrun was
estimated.
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and for the Viewgraph Maker. The contracts were negotiated and signed
should have estimated its target costs on the
basis that only one contract would be signed. Since both contracts were
let, and since both projects had considerable common technology, design,
and even component parts, should have been in a position to exploit,'
aS informed the Government's Contracting Officer flit it
will not accept its estimated total costs to complete the projects as a
ceiling price. Therefore, the Government is confronted with an uncertain
total cost for either project and cannot assess the cost effectiveness of
the equipment.
`~-.&. Due to the magnitude of the estimated overruns n and because of
uncertainty of these overruns, the Government to
have spent a considerable unt of money and received virtually nothing
for it. The Government1requests that
review both projects and suggest
any alternative courses of action that would be of more advantage to the
25
25
Support Systems Branch, DS/TDS
Attachments:
Historical Data for Project #10197, Viewgraph Maker
Historical Data for Project #10147, PI Print Enlarger
Distribution:
Original - Route $ File
/Contracting Officer, NPIC
Originator
a NPIC/TDS/DS
3
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submitted independent proposals for the PI Print Enlarger