LETTER TO THE RAMO-WOOLDRIDGE CORPORATION FROM (SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81B00878R000300020033-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 20, 2016
• Document Release Date: November 19, 2007
• Sequence Number: 33
• Publication Date: February 28, 1957
• Content Type: LETTER

Approved For Release 2007/11/19: CIA-RDP81 B00878R000300020033-5
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Approved For Release 2007/11/19: CIA-RDP81 B00878R000300020033-5
 Approved For Release 2007/11/19: CIA-RDP81 B00878R000300020033-5
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February 12, 1957
428
CMCC Doc. No. 151X5.
~ opy/of 2
e 1 of2
Beginning with the calendar year 1957, the Communications
Division has revised its accounting Policies and Procedures to provide
separate burden rates for Research and Development work and Pilot Line
work. It has been concluded that this change should be made at this
time because the volume of work in the Pilot Line is reaching the point
where inequities in cost distribution for Overhead would result if a
single burden rate were to continue to be used. In addition, work in
the Pilot Line may be expanded during the 1957 calendar year to include
production type contracts of either a CPFF or Fixed Price nature.
The Communications Division forecasts that the separate burden
rates for Research & Development and Pilot Line work for the calendar
year 1957 will be as follows:
Research & Development Pilot Line
In addition the Division forecasts a General & Administrative Expense
rat The latter rate consists of Division Administrative Expense
of ied to the total of Direct Labor, Overhead and Other Direct
Costs, and Corporation General & Administrative Expense of 0 applied
to the total Cost of Sales including Division Administrative icpense.
Forecasts by quarters indicate generally declining overhead
rates for both the Research & Development and Pilot Line Organizations,
and for General & Administrative Expense during the year. For this
reason, we have requested provisional billing rates for the first quarter
that are higher than the anticipated rates for the entire year to provide
recovery of costs closer to actual during the beginning of the year. It
is planned to adjust the rates quarterly or as circumstances dictate to
maintain billings consistent with actual experience.
The provisional rates and forecasts have been reviewed by
personnel from Headquarters, Western District, Auditor General's Office.
A presentation of out methods of accounting for costs assignable to
Research & Development or Pilot Line organizations has been made to these
persons. They have indicated their provisional approvals subject to
later review and audit findings.
The Resident Air Force Contracting Officer has approved pro-
visional billing rates for the Communications Division for the first
this document tbnfains information affecting t'he national
defense of the United States within the meaning of the
Espionage Laws, Tills 18 U.S.C., S#ction 793 and 794. Its
transmission or the revelation of its conrenrs in a::y
SECRET manner to an unauthorized person is prohibited by law.
Approved For Release 2007/11/19: CIA-RDP81 B00878R000300020033-5
 Approved For Release 2007/11/19: CIA-RDP81 B00878R000300020033-5
SlLKt I ?W
CMCC Doe. N
o. 151x5.+28
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2
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February 12, 1957
quarter of 1957 as follows:
Research & Development Pilot Line
The General & Administrative rate consists of Division Administration
Expense of Dapplied to the total of Direct Labor, Overhead and
Other Direct costs and Corporation General & Administrative Expense
of applied to the total Cost of Sales including Division Adminis-
tra ve Expense.
A copy of the letter containing the Resident Air Force
Contracting Officer's approval is attached. We request your approval
of these rates for billing purposes for the first quarter of 1957, or
until changed by subsequent review and approval, as soon as a contract
amendment providing for interim billing rates has been executed.
Sincerely,
Enclosure:
Ltr dated 1-7-57
Subj. Request for
1957 Interim
Overhead Billing
Rates
SECRET
This document contains information affecting the nations)
defense of the United States within the meaning of the
Espionage Laws, THIe 18 U. S. C., Section 793 and 794. Its
transmission or the revelation of its contents in any
manner to an unauthorized person is prohibited by law.
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