(Sanitized) PROPOSAL FOR AUTOMATIC VIEWGRAPH GENERATORS

• Document Type: CREST
• Collection: NGA Records (Formerly NIMA)
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78B04770A002800020029-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 28, 2016
• Document Release Date: May 20, 2005
• Sequence Number: 29
• Publication Date: March 31, 1967
• Content Type: MF

It, I
Approved For Release 2005/06/06: CIA-RDP78B04770A002800 X002'9?0
Declass Review by NGA.
MEMORANDUM FOR: Chief, Development Staff, TD/NPIC
FROM: Contracting Officer, NPIC
Proposal for Automatic Viewgraph (enerator5s
1. The original fixed price quotation of has now
been raised by Ion the basis of upward revisions
in fixed price OH and G&A rates. There is no way I can prevent
this as the original quotation was dated 3 November 1966 and was
valid for 60 days only. I will, therefore, require an additional
o award this contract.
2. An alternative available to you, as previously mentioned
to would be to convert the proposed contract to a
cost type. Because of the difference in OH and G&A rates plus a
possible negotiation of an 8% fee as opposed to the fixed price
profit of 15% in the current quotation, a reduction could be made.
that would en bl'e a contract award within the presently approved
amount J _ My analysis indicates that, without touching
labor hours material costs, a contract may be negotiated at a
figure as low as cost, plus a fee of or a
total of
3. It is true that a cost type contract always presents a
possibility of an overrun at the end of the contract. However,
when it is considered that this contract consists of modifications
to standard OPlatemakers the risk may not be as great as in
development of a completely new piece of equipment.
4. Use of a fixed price contract gives you protection in
that the Contractor must, within the contract price, deliver two
pieces of equipment. However, it should be noted that this is
non-standard equipment fabricated not to Government specifications
but to specifications drawn up by the Contractor as part of his
proposal and accordingly subject to possible differences in
interpretation. It must be understood that, while the Contractor's
25
25
Approved For Release 2005/06/06 : CIA-RDP78B04770A002800020029-0
 Approved For Release 2005/b6106 CIA `RUP78BO477OA002800020029-0
Proposal for Automatic Viewgraph Generators
profit has been negotiated at 15%, under a fixed price contract
any possible savings on costs are also translated into profit and
occasionally this can result in delivery of minimum or low perfor-
mance equipment when the items are non-standard. I do not strongly
suggest that this will happen as the Contractor's willingness to
accept a developmental contract on a fixed price basis indicates
that he considers this well within his capabilities.
5. Please advise as to whether you will further fund this
contract or whether you consider it desirable to follow the alter-
native approach outlined above.
0
contracting Ttricer,-NF-ic
0
25
Approved For Release 2005/06/06 : CIA-RDP78BO477OA002800020029-0
 Approved For Release 2005/06/06 : CIA-RDP78BO477OA002800020029-0
L
DAT
TRANSMITTAL SLIP 6 A r 67
TO:
ROOM NO.
BUILDING
REMARKS:
John P has bought
solution -- convert the proposed
contract to a cost-t e contract.
Give the go-ahead tool I If you
need to give him written confirmation
to change, draw-up a memo forlI
I signature. (I don't believe
you need a memo, however).
Boyd.
FROM:
ROOM NO. BUILDING ? e,
EXTENSION
FORM NO I REPLACES FORM 36-8
1 FEB 55-24 WHICH MAY BE USED.
25X1
25X1
25X1
25X1
Approved For Release 2005/06/06 : CIA-RDP78BO477OA002800020029-0
 Approved For Release 2005/06/06 : CIA-RDP78BO477OA002800020029-0
25X1
Approved For Release 2005/06/06 : CIA-RDP78BO477OA002800020029-0
 Approved For Release 2005/06/06 : CIA-RDP78BO477OA002800020029-0
TRANSMITTAL SLIP
DATE
31 March 1967
TO:
C/Development Staff, TD
ROOM NO.
SS 453
BUILDING
REMARKS:
13~---
1 RM NN..24 I REPLACES FORM 36-8
WHICH MAY BE USED.
25X1
25X1
25X1
Approved For Release 2005/06/06 : CIA-RDP78BO477OA002800020029-0