NPIC'S RELATIONS WITH THE (Sanitized)

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP78B05703A000200010026-5
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RIPPUB
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S
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22
Document Creation Date: 
December 28, 2016
Document Release Date: 
February 26, 2004
Sequence Number: 
26
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Publication Date: 
July 24, 1970
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MF
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Approved For Release 2004A13126_! IA-RDP78B05703AN0200010026-5 DECLASS REVIEW by NGA x < Lt "' p u t y i r e c t o r f o r T tcfl iti the 1. 1 11t-aw n"Stigat t sophist in a s ' my letter to ' nator P,)-rd that t 2 4 JUL 1970 fairly t:lti res?ect to a large p oC t contract tai . I r cancliAed that the I k fairly. 22. P . cop of fix` #i i=s in the f of a , aranM for th, is attar-,d together `4th related w alts . +-itr; ,ecwd igraalt 19 of r-y A*wfor t= i' or is a irt }:_y-,;o rit. re- poise to t.3 letter. :. ho l+ette Was fora' [yrr`a Staff on 1.7 July to the ~ :fense I11telli race 01A, at (flir 5l j*st1a'i, t respodet wit'.4 an .no=y14 says t'he fitter is beir Investigate. To* .iLk ac'ataLo, tic CIA. request the Ixg1slat that I ' 4. 1 r co et 3 , r ~~ien or !Iyrayl staff inforz t v Y,.,* . ha tEo procu e'.ti3bent ra tion Is orse r i,y .ii, that Vo contract is class t ` - i s ?t , aid that we are 'spar : to t ri : ;:. ctvr f"rU o the facts of th can. S. I gave cosies to you t at I invite, $I of letter and the `may in whir--, it ;,acs Inaccurate to i" briefed i . 1C officm e in t:: ;tt this point; I as Ii i. d a *irst oin= g>o. Info r tI - W s s to - tnat a face-to-fay discussion -mild E:o gin- likely i n all ei r t t a # a w t o satisf the I 11 t i I - I'G T2 j :J4TAG COMJ GI irecto 1 .1w 'C y ,}},,.< e.. ' ational 11'"o4o -J 1C I tt+ r :2`n"t L ' E'. ':.. ~ *bAd" 23 My i.-M; ,M -!&t table . raltip< r.'?t ;r from ; for vrd, I,' Jul-.- 15,70 25X1 25X1 25X1 25X1 25X1 Approved For Release 2004/03/2 ;-p1;A P78B05703A00020 01~,.026-5 ,_ 2 SECRET Approved for Release 2004/03/26 : CIA-RDP78BO5703A000200010026-5 23 July 1970 25X1 25X1 25X1 25X1 25X1 25X1 MEMORANDUM FOR T1 1E RECORD 1. The following is a report of NPIC's relations with the as they relate to the complaint by that company, in a 9 July 1970 letter to Senator Harry Flood Byrd, Jr., that the-company was treated unfairly in the award of a procurement contract. The letter to Senator Byrd, and a detailed chronology on the case are attached. 2. In mid-1967 NPIC identified a need for a new light table deliverable by late 1970. Development Objectives were presented to the an established supplier of light tables, in May 1968 on a single source basis. In early June 1968 submitted a letter proposal and on 28 June 1968 a contract was awarded to lI to design and fabricate a prototype table at the fixed price of 0 This prototype was to be delivered on 1 November 1968. both companies. 25X1 25X1 25X1 25X1 25X1 . 3. The delivered the prototype on 6 February 1969. as d i o , The overall performance rating o the contractor during this per determined by this Agency's contract monitor, varied from "minimum acceptable" l test to "average". The prototype was then subjected to our usua These noted i . es were and evaluation procedures and several major deficienc deficiencies included low light level, excessive light gradient, poor film drive, film scratching and light flicker. 1969 we became aware that ar J I 25X1 y, anu 4. n e rotot formerly was developing with yp funds a similar p IC 25X1 light table. W on is ig1 table was offered an slivered to NP cted it to our usual test and evaluation procedures. bj 22 May 1969. - e e su d major deficiencies similar to those of the h l 25X1 J table The r a so a ortant i h d mp e t prototype, but it came with an advantageous new feature an motorized film drive system performed exceptionally well. 5. As a result of the two evaluations we determined that neither light table met our requirements. A new set of Development Objectives, incorporating d I . n the best features of both the tables, was prepare nt to 2 5X1 August 1969 requests for proposals against the new objectives were se NPIC's Relations with the 25X1 in the Development and Procurement of a New Light Table .~z l'4:vtii:^xwr.2 era Approved For Release 2004/03/2: l8BO5703A000200010026-5 t-:: ; 4r:J ff,, ~~ ~r~l?. .iica~an ~ i a .eix.ixave. ?.re.w.euc.s^>oein-?.. N. SECRET Approved For Release 2004/03/26 : CIA-RDP78B05703A000200010026-5 SUBJECT: NPIC's Relations with the I Iin the Development and Procurement of a New Light a e 6. On 20 October 1969, a contract was awarded to the to develop and fabricate ft second prototype light table with a delivery date of 20 February 1970. A similar contract was awarded to 0 on 3 November 1969 with a specified delivery date of 23 February 1970. 7. With these awards, NPIC had made a total investment of over I I-- toward the development of prototypes for equipment that was critical to our future needs. Because the need was critical, we encouraged the competition to ensure obtaining effective equipment at reasonable procurement costs, and timely deliveries to meet our scheduled needs. 8. On 6 March 1970 0 delivered the second prototype which was immediately returned for several minor corrections which were to have been eliminated before delivery. On 11 March the table was again delivered to us. 9. The 0 table was delivered on 9 March, with assembly being completed on 11 March. ? 10. Again, both prototype light tables were subjected to engineering testing and operational evaluations. Visits by both contractors to make adjustments and repairs were restricted to those which were required to rectify outright failures that were sufficiently serious to interfere with completing the test and evaluation. Under these circumstances, made two visits and =made four visits during the testing period. NPIC's operational evaluation was completed on 6 April 1970, at which time NPIC concluded that both tables continued to display deficiencies, but that the table evidenced fewer and technically less complex deficiencies. 11. On 14 April, representatives of NPIC met with 0 representatives to discuss, in detail, the engineering tests and operational evaluation of the 0 table. The same procedure was followed the next day with a repre- sentative of the to discuss the 0 table. Both companies agree to confirm in a letter their agreement to correct the deficiencies noted. These letters were received during the week of 20 April, and, on 4 May, the two tables were returned to their respective companies for modification and rework in accordance with the agreements expressed in their letters of intent. 12. On 5 May 1970 the Executive Director, NPIC, after an intensive review of all aspects of the tests evaluations, unit costs, and availability of funds, decided to procure the table for NPIC. The basis for this decision was the suitability of the table to NPIC's tasks, lower costs and a judgement that 0 could meet production requirements. 25X1 25X1 25X1 25X1 25X1 25X1 Approved For Release 2004/03/ 78B05703A000200010026-5 Approved For Release 2004/03/26 : CIA-RDP78BO5703A000200010026-5 SUBJECT: NPIC's Relations with the and Procurement of a New Light Table in the Development 13. The Center submitted a request for proposal, to include price quotations, to on 15 May 1970, and to 0 on 19 May 1970. The request to was based on NPIC's decision of 5 May to purchase the II table, and included the additional quantities and configurations of other agencies' needs, in recognition of the possibility of a decision by those agencies to purchase the Q table. The request to was based on the needs of other a encies in the community, and for contingency purposes in the event could not fully satisfy NPIC's needs in the time period required. was requested to propose costs of producing three different configurations or variants 'ranging in units of 17 to 281. 0 was requested to bid on producing two variants of their model in units of .5 to 140. 14. Both companies responded on 25 May 1970, as follows: Configuration 1 - 281 units @ 179 units @ Configuration 2 - 63 units @ 30 units @ Configuration 3 - 37 units @ 17 units @ Configuration 1 - 200 units @ 155 units @ 45 units @ Configuration 2 - 200 units @ 155 units @ 45 units @ 15. On 28 Ma submitted a 'revised quotation as follows: Configuration 1 - 40 units @ Configuration 2 - 5 units @ 25X1 25X1 25X1 25X1 25X1 25X1 Approved For Release 2004/03/2 .C ' 178B05703A000200010026-5 Approved For lease 2004/03/26 : CIA-RDP78B0570 00200010026-5 SUBJECT: NPIC's Relations with thel in the Development and Procurement of a New Light Table 16. On 15 June 1970, a production contract was awarded to II This contract calls for the production of a total of 389 light tales, costing a total of Delivery is to be completed by 28 June 1971, with 145 units being delivered on or before 2 January 1971. 17 0n 16 June 1970 the?NPIC Contracting Officer informed that they were unseccessful in their bid for light to es an that the award to their competitor was based on both technical and cost considerations. On 25 June, the Chief of NPIC's Technical Services Group informed representatives of the that the procurement ,contract had been awarded to e to them a as a result of a thorough engineering testing and operational evaluation program, the table had not been found acceptable for NPIC use. 18. The following comments are in specific response to each of the points or questions posed in the letter to Senator Byrd: a. Thel makes the point that it. was working primarily with its own funds, and reports that it was paid for its prototype while II reportedly, was paid about for the prototype. NPIC's record shows that it contribute to the development of the 0 prototypes, and for the 0 prototypes. b.II states that, during the evaluation of the tables, no information was given it regarding the comparative performance of the two tables. This is true - neither was any such information given to 0 during that time. Each company was informed of the test and evaluation results concerning its table following the test and evaluation. c. 0 states that I] personnel were frequently called in to resolve difficulties with their equipment during evaluation, but that Q was told not to correct such difficulties until testing was completed. In fact, each company was called in r II twice and =four times - to correct only those failures which would have prevented continuation and completion of the full series of tests. d. 0 states that they asked for a review of the reasons they had not been selected and that the review had not yet taken place, but is anticipated shortl . Although such a review has been discussed by II personnel with our contracting officer and contract monitor, t e Executive Director, NPIC, has not decided whether such a review should be conducted. 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 4 Approved For Release 2004/03/ 6,s IA- RDP78B05703A000200010026-5 L a.,i I.. Approved For -Release 2004/ 61A DP78B0570MA000200010026-5 SUBJECT: NPIC's Relations with thel in the Development and Procurement of a New Light Table . e. 0 states that it was not asked to bid on the "substantially larger quantity" which would have lowered its price significantly. NPIC's record shows that each company submitted cost estimates on two separate occasions. The first occasion in May 1970 both companies submitted budgetary cost estimates for the same quantities (200 and 300 units) with the.I price being approximately 250 higher than [::]in both cases. On the second occasion submitted bids for 200, 155, or 45 units, while on the same date bid on the basis of 281 and 179 units. bid was considerably lower for 179 units than was bid for 200 units. f. 0 asks if price was a major factor, why were no negotiations held with 0 concerning the price of its equipment? Price was an important factor, but the performance of the equipment was more important. On both counts thelI record was better than that of Also, time had run out - NPIC had no more time to negotiate further if it were to meet the scheduled need. g. Istates that it has learned that those who are to participate in the forthcoming technical review of its equipment have been instructed not to compare the table with the successful 0 table. The technical review refers to is apparently the final review action require by the contract for the prototype development, and is not relevant to the procurement contract. NPIC officers have not been told to refrain from comparing the 0 and tables at any time. h. Il asks why it was never asked to submit a definitive proposal on the larger quantities - 400 units - which now are being procured from II Neither 0 nor I as requested to bid on quantities of 400 units. NPIC's decision to purchase from and the 265 units it requires was based on tests, evaluations, a comparative analysis of earlier cost estimates for smaller quantities of tables submitted by both Subsequently, other agencies have decided to loin in this procurement action, resulting in a total of 389 units for all agencies now on order with II i. J Istates it has reason to believe that deliveries a e begin in August 1970, and that this would indicate that =ad received a contract commitment prior 25XI 25X 25X1'; 25X11 25X1 25X1 25X1 Approved For Release 2004/03/26 CIA-RDP78BO5703A000200010026-5 CE T SE Approved Forelease 2004/03/26 : CIA-R .DP78B057d` 000200010026-5 SUBJECT: NPIC's Relations with the in the Develop'Ment 25X1: and Procurement of a New Light Table to the time 0 was asked to submit a firm proposal, since component deliveries would'require at least 60 days. In fact, deliveries are to begin 5 October 1970, and did not receive any contract commitment prior to the time was asked to submit a proposal. states that it has very good reason to believe that its equipment, as finally configured, was superior to that offered by NPIC's tests and evaluations resulted in finings that the =table was preferred in most respects by NPIC's engineering,, maintenance, and operating personnel. We have no doubt that, given time, both could develop a table superior to that .NPIC is purchasing from 0 NPIC has no more time to give. 25X1 25X1 25X1 Executive Director National Photographic Interpretation Center Approved For Release 2004/03/2$-40 78B05703A000200010026-5 Approved For Relee e 61413126: CIA-RDP78905703A000200010026-5 CHRO'NOLOG'Y OF LICHT TABLE DEVELOPMENT 1. Summer 1967 2. April 1968 3. May 1968 4. 9 June 1968 : 5. 28 June 1968 National Photographic Interpretation Center (NPIC) identified the need for a new light table to exploit a future acquisition system. .Development Objectives prepared for a Split- Format 1540 Light Table Model I. Development Objectives delivered to and a proposal requested. Letter proposal submitted by to design and fabricate prototype table at fixed price of 25X1 Table with operating and maintenance manuals to be delivered 1 November 1968. The performance on this contract is indicated below: Ills~ection Report No. Date Overall Performance Rating 1 2 Aug 1968 Average 2 15 Oct 1968 Minimum Acceptable 3 26 Dec 1968 Minimum Acceptable 4 18 Feb 1969 Minimum Acceptable 6. 6 February 1969 Prototype delivered; Operating and Maintenance Manuals have not boon delivered as of 20 July 1970. 25X1 25X1 25X1 7. 10 February - 10 March 1969 : Test and evaluation period for Q proto-2 5X1 8. 22 Mai 1969 : type. Major deficiencies noted were a low light level, excessive light gradient, poor film drive, film scratching and light flicker. A 1540 Light Table, developed by 0 now known 25X1 as a 25X1 di company funds, 25X1 and partially design ment Objectives was ed to meet NPIC's Develop- delivered to NPIC. Approved For Release Q 4 26 : CIA-RDP78B05703A000200010026-5 rte. "low Approved For Release 2004/03/26 : CIA-RDP78B05703A000200010026-5 Q NOTE: NPIC understands the Navy discussed their requirements for a 1540 type light table with 0 and through this conversation a majority of the photo intelligence commu- nity's needs, 0 requested a copy of NPIC's Development Objectives which was furnished to them in January 1969, learned of NPIC's developmental efforts. In order to fabricate a table configured to 9. 22 May - 23 June 1969 : Test and evaluation period for 0 prototype. Two units were provided;-one equipped for manual film drive and the other for motorized film drive. The motorized film drive system performed exceptionally well. In addition, a unique and advantageous new feature, a table tilting capability, was included. Major deficiencies 10. July 1969 included low light level, light flicker, excessive light gradient, poor focus control and no provision for motorized microstereoscope carriage motion. Decision reached to undertake parallel develop- ment contracts with This decision was based on a consideration of the following factors: a. The critical need to have an acceptable light table in large quantity by late 1970. b. The necessity to ensure sufficient quantities to meet NPIC and community needs. We believed that simultaneous production by two sources would be needed in order to procure sufficient numbers of the new tables in time to cope with the scheduled arrival of new kinds of photography. c. A desire to achieve reasonable equip- ment costs and optimum technology in a heretofor non-competitive situation. had become over the years the major source of light tables and, in our judgement, had begun to show 25X1 25X1 25X1 25X1 25X1 Approved For Release 2004/CSO' C?. 2DP78BO5703A000200010026-5 V1 . SECRET Approved For Release 2004/03/26 : CIA-RDP78BO5703A000200010026-5 signs -- particularly in the initial phases of the Model I light table development -- of being unresponsive to our requirements. 11. 24 July 1969 : New Development Objectives were prepared for competitive development of a 1540 Light Table Model II. It combined the best features of both tables and further refinement suggestions from the photo interpreters. 12. 8 Au u st 1969 : Requests for proposal in accordance with the new Development Objectives were forwarded to 13. 4 September 1969 AIL submitted proposal to develop light table 14. 5 September 1969 Richards submitted a proposal to develop light table for 25X1 25X1 25X1 15. 20 October 1969 was awarded to 25X1 to develop an fabricate a Split Format Light Table in accordance with the Development Objectives dated 24 july 1969. The contract was negotiated at a firm fixed price of for late delivery to 20 days an a maximum contract value of ased on a reward 25X1 of 0 per day for ear y e ivery up to 20 days. The target date for delivery was 20 February 1970. performance on 25X1 the contract is in ica a elow: Inspection Report No. Date Over all Performance Rating 1 16 Jan 1970 Very Good 2 S.Mar 1970 Above Average 3 7 May 1970 Above Average 16. 29 October 1969 Following negotiations1 "submitted a modified 25X1 proposal with an offer to accept a contract at a firm fixed price with a minimum 25X1 contract value of of based on a penalty of 25X1 per day for-late delivery up to 20_days_and a maximum contract value of, based on a 25X1 reward of E= per day for early delivery up to 25X1 20 days. 3 Approved For Release 2004/03/26 : CIA-RDP78BO5703A000200010026-5 SECRET with a minimum contract value of based on a penalty of per day 25X1 SECRET Approved Forelease 2004/03/26: CIA-RDP78B0570000200010026-5 17. 3 November 1969 Inspection Report No. was awarded to 0 to develop and fabricate a Split Format Light Table in accordance with the Development Objectives dated 24 July 1969. The contract was awarded in accordance with the pricing indicated in =letter 29 October 1969. The target date or delivery was 23 February 1970. 0 performance on the contract is indicated below: Overall Performance Ratin& 1 16 Jan 1970 Very Good 2 5 Mar 1970 Above Average 3 7 May 1970 Above Average 18. 3 November 1969 : At this point in time the Government had made 19. 6 March 1970 20. 9-11 March 1970 the following investments in the 1540 Light Table Development: A. B. Contract for Mod II 25X1 25X1 25X1 25X1 25X1 25X1 25X1 : II Mod II light table delivered which was imme lately. returned because had failed 25X1 to correct the air bubbles and ig t flicker problems, which had been noted by the project monitor while conducting his pre-acceptance tests at d which were to have been 25X1 eliminated prior to delivery. : 0 Mod II table delivered and assembled at NPIC. 21...11 March 1970 : I 22. 12 March 1970 : od II table redelivered. Test and evaluation of both light tables initiated by NPIC personnel. Because the time for producing a substantial quantity of the light tables was becoming critically short the period for both engineering testing and operational evaluations was limited to one month. Accordingly, NPIC found it necessary to restrict any adjustments, repairs, and modifications by the manufacturers during test and evaluation to outright failures Orig Contract for Mod I - Contract for Mpd II : Cost to Gov't for Mod I - Approved For Release 2004/03 M L P78B05703A000200010026-5 .rrp~~? Now Approved For Release 2004/03/2 A-F~D.78B05703A000200010026-5 23. 24. 24 March 1970 : 25. 27 March 1970 : 26. 30 March 1970 : 27. , 31 March 1970 - 6 April 1970 28. 3 April 1970 29. 6 April 1970 that were sufficiently serious to prohibit further test and evaluation if they were not corrected. All other modifications or rework were to be deferred until the conclusion of the engineering testing and operational evaluations. NOTE: During the test and evaluation program failures were experienced in both tables; in the= table four failures (which were 25X1 repaired on 24, 27, 30 March and 22 April 1970). and in the F_ table two failures (which 25X1 were repaired on 3 and-22 April 1970). AIL repaired Y-bridge'drive clutch. AIL repaired Y-drive cable. AIL again repaired Y-drive. : Following engineering testing both tables were subjected to operational evaluation by the photo interpretation group. This operational testing was performed by eight experienced imagery interpreters using a variety of imagery. The evaluation group worked in teams of two, uninterrupted, for a period of four consecutive working days. Each team Jiad an opportunity to operate each light table one full day. In addition, one member of the group used both tables one-half day each on an operational scanning project. : During the operational evaluation 25X1 repaired a gear failure. : At the conclusion of the operational evaluation, "the results were consolidated and swnmarized.. The conclusion was unanimous: the =table 25X1 was found to have a substantially greater operational suitability than the unit. 25X1 This was based on Such factors a superior. film drive, dry light source and lower heat output -- features critical to the particular task NPIC performs in exploiting photography. Cost was not a factor in arriving at this conclusion. Approved For Release 2004/03/26 : CIA-RDP78BO5703A000200010026-5 SEC'T Approved For Release 2004/03/26 : CIA-RDP78B05703A000200010026-5 30. 13-21 April 1970 : DIAAP-9 and Imagery Analysis Service/CIA had the two tables for operational evaluation and both selected the II model for procurement. NOTE:' NPIC understands that the superior microscope transport of the 0 table was a primary factor in the choice of the I lunit because this feature is critical 31. 32. 33. to t e particular tasks they perform in exploiting the photography. 10 April 1970 : As a contractual requirement budgetary cost estimates were submitted by Don production quantities of light tables. 14 April 1970 As a contractual requirement budgetary cost esti mates were submitted by I I on prod uction quantities of light tables. : A co st comparison of the esti mates is as follows: 1. Basic Configuration 2. Motorized Film Transport 3. Power Elevation 4. Power Tilt F, Carriage Drive 5. Total 6. Difference 34. 14 April 1970 35. 15 April 1970 : 200 Units 300 Units 25X1 25X1 25X1 25X1 25X1 25X1 NPIC personnel met with" representatives 25X1 at NPIC concerning the engineering testing and operational evaluation of their table. All deficiencies, both major and minor, of the IItable were discussed in detail and 25X1 remec. is action was suggested. The 25X1 table was not discussed. At the cone i of this meeting 0 agreed to submit a letter 25X1 of intent of their agreement to correct the deficiencies noted. NPIC personnel met with a 0 represen- tative. All deficiencies associated with the unit--were discussed and remedial action was suggested. The 0 light table was not discussed. At the conclusion of this meeting greed to submit a letter of intent o' their agreement to correct the deficiencies noted. 25X1 25X1 25X1 Approved For Release 2004/03/26 : C(A-RDP78B05703A000200010026-5 SECRET Approved Four Release 200 25X1 36. 20 April 1970 25X1 37. 22 April 1970 25X1 38. 22 April 1970 25X1 39. 22 April 1970 40. 4 May 1970 41. 5 May 1970 6NL -RDP78B057'3A000200010026-5 submitted their letter of intent. 0 repaired carriage motion drive. repaired drive. submitted their letter of intent. Acting for all community interests, NPIC returned the tables to each company for modification and rework. Even though NPIC management was considering recommendations for purchase of the =table, other agencies 25X1 had tentatively selected the 0 table, 25X1 if satisfactorily reworked, as a purchase item. The Executive Director, NPIC reviewed all aspects of the tests, evaluations, budgetary costs estimates of both tables, and availability of fiscal year funds with all relevant NPIC personnel. Following this review and lengthy discussions the Executive Director decided that the n light table would more fully 25X1 satisfy NPIC needs. The record shows that his decision was based on the following considerations: 1. The greater suitability of the =table 25X1 to the unique tasks of the NPIC photo interpreter, with particular regard to the film drive, dry light source, lower level heat output, and quietness of operation. 2. The lower unit cost of the O table 25X1 (based on a comparison of budgetary cost estimates submitted by each contractor). 3. A judgement that problems associated with the =table could be corrected, 25X1 and corrected in time, to meet production requirements; whereas the problems of the 0 table could 2 5X1 not be since they were considered to be of a greater complexity. Approved For Release 2004/03/26 : Sig HHCRE1 Approved Fo`f"Release 2004/03/26 : CIA-RDP78B05iVA000200010026-5 42. 15 May 1970 43. 19 May 1970 A request for proposal (including price quotations) was issued to 0 This request included, in addition to NPIC's needs, the quantities and configurations of other members of the community. These quantities and configurations were as follows: Configuration #1 - 179 units and 281, units (NPIC & IAS) Configuration #2 - 30 units and 63 units (AF) ' (Army $ Configuration #4 - 17 units and 37-units 0 Similarly a request was made of 0 for the following quantities and configurations based on the community's requirement for the table. Configuration #1 - 40 units and 140 units (DIA and potential NPIC) Configuration #2 - 5 units and 15 units (Navy) 44. 25 May 1970 : 0 quoted as follows: Configuration #1 - 281 units 179 units Configuration #2 - 63 units 30 units Configuration #3 - 37 units 17 units 45. 25 May 1970 0 quoted as follows: Configuration #1 - 200 units 155 units 45 units Configuration #2 - 200 units 155 units 45 units 25X1 25X1 25X1 25X1 25X1 8 Approved For Release 2004/03/26 : CIA-RDP78BO5703A000200010026-5 SEC' ET Approved Fo Release 2004I2 lARDP78B0570 A000200010026-5 46. 28 May 1970 47. 1 June 1970 48. 9 June 1970 49. 10 June 1970 50. 10 June 1970 51. 15 June 1970 : 52. 16 June 1970 : An unsolicited letter received from 53.' 25 June 1970 which revised their quote of 25 May 70 as follows: Configuration #1 - 40 units @ $ Configuration #2 - 5 units @ $ Navy advised the NPIC Contracting Officer that price of table was too high and they would switch to =table. DIA advised NPIC that it. had decided to procure 0 table. IAS had previously decided to procure the =table. NPIC representatives performed pre-acceptance tests on the reworked =light table at the =plant. Negotiations for production contract of light tables began (at this point in time all PI elements of the community had elected to purchase the 0 table). 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 Production contract awarded to 0 Their 25X1 production rate was sufficient to satisfy the totality of the community's needs. Accordingly, a second source for light table procurement was not required. The NPIC Contracting Officer informed II 25X1 that they were unsuccessful in their bid fight tables and that the award to their competitor was based on both technical and cost considerations. Meeting initiated by NPIC representatives with representatives 25X1 In this meeting it was explained t at as a result of a very thorough engineering testing and operational evaluation NPIC found the II table unsuitable. It was pointed 25X1 out, however, that this decision would not negatively effect consideration of 25X1 as a contractor for future development or procurement. Approved For Release 2004/03I~8 ttP781305703A000200010026-5 Approved Fd elease 2004/03926c~4 DP78B05 A000200010026-5 54. 10 July 1970 In accordance with normal contractual procedures NPIC representatives performed pre-acceptance tests on the reworked 25X1 Mod II table at their plant. This to .e wi be subjected to the regular engineering test and operational evaluation program after delivery at NPIC; the results will be disseminated to the Intelligence Community. Approved For Release 2004/JFC$~TRDP78B05703A000200010026-5 ApprovZrd For Release 2004/03/26 : CIA-RQP705703A0,00200010026-5 r3 A -L o -J Z. G v:..:vw ,7uly 10, 1970 b re_e:'i"ea C,; ; ,- s ; c'na1 Liaisonfense :;a _.nte111C1-..Lice Agency T?'r~:.r. or., D. C. 3 e o the desire of this office to be ;G;ponslve to all inquiries and communicationsy you consideration of the attached is rccweste Your findings and yews, in. duplicate _orm, along with return of the oncl.osurO-, will be appreciated by lia Zy T .... VZ.,... r ............... U.S.S. Approved For Release 2004/03/26 : CIA=RDP78B05703Ad0Q 0 01 0 0 26-5 Approved For Release 2004/03/26 : CIA-RDP78B003A0002 :._ Cod "y-3 , J'} S D. C. 2051.0 `3yi.d: 9 July' 19-70 U. re a `^?e x 20 old \C tpatsy . located iii :" la:nu rCtt'.~e e.quip::?C ti: .)`.r. y use by t ha ' L: .. :i.. l.'O~/'e ~.~t.':f' ?i.:a 1:":l ~. Cte i 'i. several t'ea'r:: we T' 1 vc 17C:G:7 the p..radomw- ~. ,L we I.c"t~ t L.o f;.l: ~.:_.:^; o '~ . :,:L c2c ~''? lig?.1t tables: ` ,In ~? p~?,~ _oto- r.elli_ rr::n c: com:mn-.,'ty, We h vo had a conolete7y, s.i-"i-,f.ac..Ii:-^J xela onsh` ~.: e local Ci:trL(en[:i2?~' 1t creIes C'f_ '_Sf'X: of pie ' _':upply. Ho,vever our Confidence in Clad Opi e n and -c i:' h... bscr% by their ~''^ T1' ling o ~_ G of a a la- contract `c.. c1'e pe5 t~has been C , o-v yunc1s -- o the develop- 7.: O_ a new 11 {ilk .7 nest the Sp: C'_ iC of `h' ace 10--al cs \? ncies. The first proto- i j' C s con t acted fo j r rirej i ded 'O tbese agencies over a year 0 for tiota~ ll ce. C ~= \at t:Z "ire decided no0 - to Make a: ?%::'ccuci: o i y S'^t . ^.te. d a r'.~~7tsed and t'o e detailed act. ".Ore cov p:pi piece of equip-Imant. At ti-.c i^C,;.'."..e`i.C:C1 LJia~:Z!L'S for a second pro-otype ~I:cy jde e -U?t::ed that an alter .ate ~o vide ry~711 a 1 YO'to4- 1 J. s alter}. tC Ce N.% f knc,m as the as i. tier, a.:x , or ou_~ prototype. Reportedly, '' "7'~~'~c for tL1eir'S. WC._, C7"'' i? GC 'C