OVERRUN ON CONTRACT (SANITIZED) TASK ORDER 22

• Document Type: CREST
• Collection: NGA Records (Formerly NIMA)
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79B00873A000100010075-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 28, 2016
• Document Release Date: November 1, 2012
• Sequence Number: 75
• Publication Date: May 15, 1969
• Content Type: FORM

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El UNCLASSIFIED
El
--.-.-,-.REQUEST TO PROCUREMENT DIVISION FOR SERVICES
-(other than property or building maintenance and repairs)
OFFICE/DIV/BR
REQUEST NO.
DATE OF REQUEST
I CERTIFY THAT FUNDS IN THE ESTIMATED
AMOUNT OF L ARE
EL/ESD/TSSG
15 May 1969
I
V
A
A
LABLE. CHARGE TO FAN
PROJECT TITLE
PROJECT OR CONTACT OFFICER
EXTENSION
SIGNATURE OF BUDGET OFFICER DATE
Image Analysis
B?
(change in scope
R -
PROPOSAL NO. ND DATE
A
CONTRACT & TASK ORDER NO. (if known)
9
To-B 4o-6
7 April 69
Task. 32
TYPE OF
I
RE
E
T
APPLICABLE ONLY TO REPAIRS AND MODIFICATIONS
SERV
CE
QU
S
ED
TECHNICAL INSPECTION IS REQUIRED BY
X RES-EARCH/DEV
TRANSFER OF FUNDS TO
O RECEIVING DEPOT T /# I TECHNICAL MONITOR
GRANT
OTHE.R GOVT. AGENCY
(Specify if applicable)
Q 5 PERFORMED AT;
REPAIR
AIHTENANCE
ITEM
DIFICATION
UNCLASSIFIED
___(specify)
SHORT SUBSTANTIVE
To design
These are
covering
TITLE AND/OR DESCRIPTION OF SERVICE TO BE PERFORMED
and fabricate a set of shaded apertures
to be the delivered item along with the
their use.
-
for the Image Quantizer.
appropriate documentation
(See reverse for specific information
required on R&D requests.)
APPROVAL
DESIGNATION
SIGNATURE
DATE
Ch EL ESD TSSG
15 May 69
PROCUREMENT DIVISION USE
--TE RECEIVED IN PD
RECORDED BY
SECTION ASSIGNED TO
NEGOTIATOR
2420 AND 2416
^HICH MAY BE
UNCLASSIFIED
REPORTS CLASSIFICATION 25X1
El
(specify)
25X1
25X1
25X1
25X1
_ USED.
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[Ti =UNCL:ASSI:.ICED
CONFIDENTIAL ATTACHMENTS OR STATEPIENTS
M -SECRET .
;1 JUSTIFICATION .FOR SOURCE SELECTION
This is a change in scope to the Image analysis program to implement a
technique developed during that program. The contractor in question has
both the equipment and knowledge for immediate implementation. This
would not be available elsewhere within the cost.
2. PROPOSAL
Proposal.attached to approval memorandum. Proposal No. TO-B 40-69, 7 April 1969.
?
3. DELIVERABLE ITEMS
REPORTS REQUIRED NO. OF COPIES MONTHLY O INTERIM QUARTERLY fl FINAL
HARDWARE (state type and number) A set of shaded apertures in holders compatible with
the image quantizer.
OTHER
4. GFE REQUIRED
None
5. SPECIAL INSTRUCTIONS
EJ
UNCLASSIFIED
CONFIDENTIAL
? SECRET
(specify)
(specify)
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MEMORANDUM FOR: Chief, Technical Services & Support Group, NPIC
15 May 1969
(Image Analysis Program
SUBJECT.: Overrun on
Task Order 22 25X1
1. The purpose of this memorandum is to state the pertinent
factors related to the overrun on the Fiscal Year 67 Image
Analysis program with 25X1
2. Appendix A is a copy of the document forwarded to me
by OL/PD/CA&SB/CSS, for approval authorizing
'payment forthe.overrun. It carries as attachments the formal
for payment of the overrun
plus a breakdown of the overrun. This document received on
request from
7 May 69 was my first indication that any portion of the overrun
3. There was no notice of potential overrun during the
.term of the contract. The earliest mention of an overrun appeared
in a letter dated 21 March 68. The contract ended 1 February 68
seven weeks before this date. The letter is attached as Appendix B.
was attributable to direct labor at
4.
(a subcontractor on the same program) 25X1
was caught in a similar overrun situation. By mutual agreement
between
former Contracting Officer for NPIC,
to claim that portion of the overrun attributable to increased
to claim that portion attributable to overspending on direct labor.
25X1
25X1
This conversation took place at the time,-r,-., 25X1
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of contract negotiations on 27-28 May 68 fora follow-on contract.
The overrun claimed in Appendix A referring t
25X1-,
subcontract overrun reflects this philosophy.
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 --Declassified in Part - Sanitized Copy Approved for Release 2012/11/01: CIA-RDP79B00873A000100010075-1
5. Appendix C is a copy of a letter sent to me at my request
.explaining the nature of and reasons for the overrun. No comment
is made on any but the fourth paragraph "This additional-.
At no time was any approval verbal or otherwise given for an
overrun nor`was the subject even broached prior to the letter
of l5 March. While the excess costs were discussed, the only
direct labor excess cost discussed were those incurred by
I had the understanding that the overrun by
were attributable solely to overhead and G&_q.
concurs with these statements.
6. TSSG/SSD,4FB, during a telephone conversation
stated that there are no funds left in the FY 67 R&D budget to
cover the overrun.
25X1
25X1
25X1
25X1;
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 Declassified in Part - Sanitized Copy Approved for Release
2012/11/01 : CIA-RDP79B00873A000100010075-1
` APPENDIX A
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 Declassified in Part -Sanitized Copy Approved for Release 2012/11/01 : CIA-RDP79B00873A000100010075-1
T.0
FIOfi
f2't.FL.RI.
CONYNACT :J')..
I . The above referenced in format ion i s forwarded to your office for
your technical review, evaluation and ce t errnr nat ion as t o recommended
procurement cction
40
2 . Fund i ,l of tflc'
cuov:. Corrt ~,ct .;(.)S or i na I l y acs -,mp
Regn. :Jo.
Al I of cr:mn I
Voucher No. '_ ...._, ,.:.: :..
3. Your response .; i th i n ten ( 1 0 ) days fro the date of t h i s ^ ome-
randurn is request'-:,. Should you -oresee a delay in p rocess i nc vcL:r rr~nlv
beyond ten (I i) ciay period, p I ease not i f y
4. If procuremenr act i cn i s des i rea, p Iease complete and return the
..
original and one copy of this f or rii I i +h i tiic TO l Ir: 1
IC';Ing
ivrmat lore
APPROVf_r):
Certifl :.. Ui:Us 4vaifaCle
Al .~.c^. .
Cont'ac Ile fl corrosponcer,_e
25X1
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 ILLEGIB
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:;I. I)cccnlber
Attention:
Subject:.
Gentlemen:
(M Ott 1, Iti(';1 r endillt hook 1';ttcs.
1C' u..eJ.rim on SUo:cc t: co lit I act- wn ncii,,,nfn 1b- f,.+,i
ovcl'run to be
Cont.rac'tin;; Officer
. Task Order No. 22
1n accordance .~ ith our previous letter of 29 July 1963 regarclin the amount
ftl
1111 CS ti mate is
Enclosed hercvvjt.h is attachment A Shows a brea!timate. as soon as possible.
Please do not hesitate to contact the undersigned if clarification of the
foregoing is desired.
Sincerely yours,
RJT/db
Contract Administrator
25X1.':
25X1
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 Declassified in Part - Sanitized Copy Approved for Release 2012/11/01: CIA-RDP79B00873A000100010075-1 ---
8 May 1969
25X1
25X1
? Attention: John C.
Subject:
Task Order No. 22
In response to your recent request regarding the overrun of direct cost on the
subject contract, the following information will justify the additional costs
expended during the period of performance of this contract.
The Image Quantizer and Enlarger-Printer instruments delivered under this
program required considerably more design and manufacturing hours than was
? originally anticipated. This was due to the complexity and technical difficulties
of the instruments. This additional cost was necessary in order to successfully
complete the technical requirements of the program.
Secondly, the guard service cost was initially anticipated to be for a period of
nine months instead of twelve months. Also an additional cost per hour clue to
a wage rate increase occured during the middle of the program. This increased
cost was not taken into consideration at the time of negotiations.
This additional effort was done in good faith based on verbal approvel from the
Contracting Officer and the Technical Representative. The excess costs incurred
were further discussed during negotiations of the follow-on contract and the
overrun approved predicated on audit review of booked. costs.
A formal written request was forwarded on 31 December 1968 to the Contracting
Officer regarding the claim for the total overrun.
.-We trust the above information will be favorably received and that the overrun
will be funded.
Sincerely yours,
Declassified in Part - Sanitized Copy Approved for Release 2012/11/01: CIA-RDP79B00873A000100010075-1