LETTER TO THE RAMO--WOOLDRIDGE CORPORATION FROM(SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81B00878R000300020031-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 20, 2016
• Document Release Date: November 19, 2007
• Sequence Number: 31
• Publication Date: July 29, 1957
• Content Type: LETTER

Approved For Release 2007/11/19: CIA-RDP81 B00878R000300020031-7
SECRET
SAPC 17555
Copy-2-of 4
29 duly 1' -
.=d* to your letter dated 1 JuJLy ` zques g
biing rates retroactive to .1mnuary 1, 1957,
at the end of the third quarter if necessary,
dictate,
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A-101 Approvals w/SAPC 17700
SECRET
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Approved For Release 2007/11/19: CIA-RDP81 B00878R000300020031-7
 Approved For Release 2007/11/19: CIA-RDP81 B00878R000300020031-7
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17 July 1957
CMCC Doe. No. 151X5.635
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WC A7;7
COPY / OF /
With. six months of the calendar year behind us, we have been
taking a careful look at our Overhead and General & Administrative
Expenses and have been appraising the results in relation to the
forecasts we made earlier this year. Although the total dollar
amounts of expenses for the period January through June are only
slightly higher than our forecast, and monthly expenses are cur-
rently less than forecasted, the ratios of indirect expense to the
direct labor base are higher than planned. This is due to the fact
direct labor could not be increased as rapidly as planned and
because it was necessary to incur increased indirect labor and
overhead expenses in advance of the corresponding increases in
direct labor during this period of rapid growth.
It is now probable that our planned manpower levels will be
realized during the months of July and August, and we expect that
the ratio of indirect to direct costs will adjust to the desired
proportions during the latter half of this year. The net results
of these differences from our earlier forecast are: (1) actual
expenses are in excess of costs recoverable on current business
using the provisional billing rates established earlier this year,
and (2) the cumulative Overhead and G & A rates which we now believe
can be achieved by year end are higher than those formerly anticipated.
It should be pointed out that although the current picture is not as
optimistic as we thought was possible earlier this year it is still
a considerable improvement over the results for the calendar year
1956. We now believe that we planned a greater reduction in rates
than it was practical to achieve in one year.
In our letter of January 30, 1957 (CMCC Doc. No. l5lX5.415) we
stated that our forecast of Overhead and General & Administrative
Expense rates for 1957 were as follows:
R & D Pilot Line
Overhead
G & A Expense
Today our forecast of expense rates has been revised to the following:
R & D Pilot Line
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SECRET
Approved For Rele
This document contains information effecting the national
defense of tha Urited Stator within the meaning of the
Espionage Laws, Title It U.S.C., Section 793 and 794. Its
transmission or tha revelation Ot its contents in any
manner to an unauthorized person is prehibitai by law.
 Approved For Release 2007/11/19: CIA-RDP81 B00878R000300020031-7
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111111W SEUKET %or
CMCC Doc. No. 151x5.635
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Page 2 of 2
These rates com are with a single overhead rate for the Division
during 1956 of and a General and Administrative Expense rate
of F__1
In view of the higher actual expenses during the first few
months of the year, we have requested and obtained approval of the
Resident Air Force Administrative Contracting Officer to revise
the billing rates as follows in order to recover the costs incurred
more currently:
R & D
From To From
Overhead
G & A Expense
To
The G & A Expense is a composite figure for Division Adminis-
trative Expense and Corporation General and Administrative Expense.
Attached is a copy of our letter to the Administrative
Contracting Officer, which contains his approval endorsement. We
request your permission to bill costs incurred on Contract A-101
at these new interim rates. Commencing with the next group of
vouchers submitted we will utilize the new rates in order to not
delay the billing process.
Sincerely,
SECRET
'This document contains information affecting the national
defense of the United States within the meaning of the
Espionage Laws, Titlj 18 U.S.C., 5: ction 793 and 794. Its
trapsrs 5Sion or th, revEl8 lo7 of its contents in any
manner to an unauthorized person is prohibited by law.
Approved For Release 2007/11/19: CIA-RDP81 B00878R000300020031-7