OVERRUN CONDITION OF FY 1967 R&D CONTRACTS IN NPIC

• Document Type: CREST
• Collection: NGA Records (Formerly NIMA)
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78B04770A002800020016-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 28, 2016
• Document Release Date: May 19, 2005
• Sequence Number: 16
• Content Type: MF

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NPIC/T$SC
MEMORANDUM FOR: Executive Director Coaptrollor
Tagc Deputy Directtlir for Intelligence
SUEJECT Overrun -condition of FY 1967 RO.Contracts in NP1C
REFERENCE Project Officer's Mlanual, Hay 1968, 111-3
1. Three RD contracts negoitinte n FY 1967 ara tou 5f,1 zn
overrun status and will require accl,ty fundina C:rom past ye_tr funds
in otter to continue. Noncally, r;P1C would utilize its own Of?l-ice
allotmonts to provic:o the fundin-;, funs are no longor 4vai1-
able from FY 1967 allotraents at F2iC. "0,c referenced t;ocuaont states
that when appropriate fisc/ year funds zire not available for overrun
funding in Office allotn;ents, aluinorandu:51 request should be addressed
to the Executive Director Coatptrollor for such funds.
2. NPIO has prered iiui 17s;,norandum requests for the con-
tracts for consieration !,layulents. Zaround inforation
is provided iA the followinr,; paz-Lvt-phs or each contract as justi-
fication for requestiag the 4:.zatio:Ia1 t'undinT,.
$. Wide Fiold H111 Power Avaa,:4-rv3Ilic Steroaviewer Contraetor:?
Amount of
Overrun:
The overrun is caused by under-ostiation by the contractor of the
costs of tho optical Llesizn which e3tens the state-of-tho-ert so far
that it has boon extrotLely diffult to reliably predict costs. NilIC
technical persolinel concur th::tt is a ressonaule cazase of overrun.
a consultant and
world reT.tr optical expert, had prodicte_i zit the effort would be
extrorzely ,Iiificult to per fom but recoime:Ae: contract with
to build this first nicrostoreoscope ever to be exclusively designed
? for the photeintorpreter.
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At the beNinning of the contract the risk involved was high,
but the pay-off would also be great if successful. As the work pro-
gressed, the risk bocaoo leas and less. NP1C strongly believes this
project should continue becauso (a) success is now likely; (b) the
instruoent is designed to acco=o4ate photograph systous products of
the future; and (c) the viewer will be versntile--able to handl? all.
current photographic uaterials as well as those of the future.
The great difficulty in developing this equiptent makes it nearly
impossible to state that there would be no further overruns. No one
has yet been soccessfel in extendirv, the field of viev of the mm!nitudo
Of this viewer and at the same time maintaining a flat, field. Recent
optical design techniques and advanced cooputer nothods have been de-
veloped which now permit industry to attenpt the advance in this area.
If successful, the P.I. will see about four times the oroa oZ the latest
tiodel viewers. It Is our opinion that he will be able to save tine in
viewing and will produce a fax better product more easily.
This contract will run out of money after 1 Sopteober. Action to
continuo the: contract should be taken before that tine in order to
provont any additional costs duo to a stop-work condition.
X1 ? 4. Ima'e,e ComilFison Mere/stereoscope. Controctor:
Orisinal cost of-Contraet:] Aloount of Overrun:
This overrun was caused by complexities in the original design one
creosed overhead rates. NPIC does rot bolievo that the maoy probleos
of development could have been predicted at the outset of the ootract;
they wore revealed during the design phase. As the devolopo;ent pro-
? ceeded, the cost of the overall design lucreased as better appreciation
of the highly complicated experimental device was realized. This in-
creased cost in devolorment amounts to about 75% of the overrun. About
2St was due to overhead rate changes. ISSC believes the overrun is
justifiable in viow of the noltiple proboln areas that had to be solved
which were not anticipated. In FY 1967 NPIC contracted with
5X1 I For the development of an Itlage Comparison Microstereoseope
411 which would enable a photointerpreter to rapidly compare old and now
stereo iQages to detect change., It will have the additional capability
of allowing Di-color imagery Woe viewed in stereo with a high resolution
? optical system. Essentially, the instrument is to be used to view four
? different images of the same target in order to assess changes on tho
target over a period of time.
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The development effort is divided into two phases: Phase I (Systen
Analysis , Design Analysis, arid a Design Plan); and Phase II (Final Design
and Fabrication). Phase I.has been successfully concluded with the de-
livery of a roctup and a technical report. These have been evaluated,
determined to be satisfactory, and we aro now ready to initiate Phase
II (Final design,and Fabrication of the prototype instrutaent).
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S. Autoe,atic Viewtir.12h Ge,1011cor. Contractort
2 X1 Orizinal cost of contract: 1 1A::ount of Overrun;
This overrun is caused Ly tlo:icient insuae.leat on the part e.
1h FY 1967 rmc contracted with to fabricoo two
Auto=tic ViewAxaph Generators for 1 On 24 August 1967 NPIC
representatives vow, inforaed MI the ccrTauy that there would be an
2.X1 overrun of approximatoly to co-Tlete two Viewgrarh Generators
.2 X1 or to complotc ono. Interaai NPIC approval was obtained derinn
kay 196b to complete the,ono Viewtraph Generator for an overrun of
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Officer c,r NP1C, visitecl Ito (.:12C45:5 the res*,nption of work -on the
On 28 '.!ay /968 ?Mee of Log4istics Contractin::t
centr..ct. lio was informed that zL recent analysis of the rro.iect 1n-
eicatcd an adational werrom) would llow
ba required to complete one Vieugrh Generator. Troy ;.tr.ted timt
a6citim4 labor hours would bo r'aquircd above and beybv, those an-
ticipated nreviozAsly. On 1) J4r1f official of1 VIcited NPIC atd
presentod Alrther yovisod info2sf--i:/). that ostited al, adt:laionni
over thlt alrea4 4pprovoa (int of tho estivatod ca
28 May). This t,rou,onv the total overrun to
Tae reaseps s4ted by
tho overrun wore:
a. The first estizilte e: the cost to colvloto.
not correct 4104 was so assessed by the, now nanAgezent at
The estivate had been 4:,-;tele by the old reine an,: did
not take into considerztion l'o?Ilistic costs and unanticipated
actionl.y. According there vould surely have been
another overrun had the contract been negotiated for only
for the vaciIlati as of theswount of
.14415
. b. ? .The contract had been in a,stov-wor% condition
since September 196z7. All the personnel involved wore re-
moved frotl the. pro)ect. 4ith renewed activity, only sexc
? of the oriinal:ttchnical people would be used and thoy
- needed to'tece150 fanilisr, once azain, with the project..
:Iaadditien; other new personnol*Ould have to be celled
iu to the job having no previmS pperience en. the project-.
'c. requires zore ti.;.le for onzineorinsupervision:
than had origraally been ostipated in order to cozplote..
,devolopment Arid -eabugging.'
NPIC and the Office, of Logistics _have been concerned about the
- .ii.,mitede of the percentne of this overrun and. the history ,of other
I
5X1 )espito. the rolutivi, sir of the .)w,aptm, azIki the serious
5X1 zannacczent problosus ati Iwe believe that the aiiditios2,1 cost of ,
5X1? , 1-----71sheald be paid to !cove forward with thtt project. The require-
nents-&or the equirk,lent have boon resto,td within NF1C. Tho View5raph '
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Gencrattr will, roiluco the nuf:foor of howrs of ored.lction of :;acricls
as well as =cue? the tizo interval Lettican tho request and product
delivery.
6. The total of the FY 1967 furAs require:1 Ler pay2ent ce these
5X1 overre,ns is Sono aOjastments in this ci:leunt Dlny take place
atrin7, nefmtiations. Thls mount will be requesteJ Aoncy fuods
? for FY 1967.
7. .PIC is accutoly aware of the need for cntrol,
?ant- ae4i-gistration of contracts. 0,r technica/ 4oaitors 114vc becrs.
?instructed to be particularly elert to inconcistencios an?l charTk!s in
the develornent. A full worin7i.rnprt and tolgr.. zeIntionsili:.; is os-
tblished 1-,otwoon the Office of Leivistics an.!PIC ropresentatives in
? oreer to insure efficient cootdination on all WiD contracts at NPIC.
ARmurt C. LUNDAM.
Director
. National Photegraphic Interprtotion Center
Distribution:
Original 1 -Addressee
2 - NPIC/ODir
2- NPIC/TSSG/SSO/12.
? 1 , NPIC/TSSG
1 - NPIC/TSSG/DEDwe
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