CONTRACT APPROVAL CONTRACT NO. A-101

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81B00878R000300020040-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 20, 2016
• Document Release Date: November 19, 2007
• Sequence Number: 40
• Publication Date: January 26, 1956
• Content Type: CONT

Approved For Release 2007/11/19: CIA-RDP81 B00878R000300020040-7
SAPC-3569
Copy .2 of 7
26 January 1956
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Approved For Release 2007/11/19: CIA-RDP81 B00878R000300020040-7
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 Approved For Release 2007/11/19: CIA-RDP81 B00878R000300020040-7
SECRET
18 January 1956
CMCC Doc. 151.787
Copy j of 2
Page T -of 1
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ILLEGIB
Dear George:
You may recall that during your last visit we indicated that our account-
ing operations would be modified effective 1 January 1956 to permit utiliza-
tion of a divisional burden center system of accounting. Under this procedure
divisional indirect labor will no longer be treated as allocable direct as it was
during 1955, but will now be collected in the divisional overhead pool.
A general and administrative cost pool has been established, and it is
anticipated that the G and A rate applicable to the first half of 1956 will be
substantially higher than that for succeeding half-year periods because our
company is still of medium size and growing rapidly, and because a fair
number of administrative functions,which will ultimately be performed by the
individual divisions, are still being performed by the central administrative
organization.
It is difficult to estimate the new burden rates and general and admin-
istrative rate very accurately at this time because a number of new cost
collection pools are involved and there is quite limited experience of multiple
burden center cost collection on which to base such estimates. For billing
purposes, a Communications Division overhead rate of Ohas been
established and a general and administrative rate of 0 These estimates
have been submitted to the Air Force for approval, along with proposed
billing rates for the other divisions of the Company. Modification of these
rates will be made as soon as sufficient experience has been accumulated on
which to base better estimates.
We would appreciate receiving your approval to utilize these billing
.rates from an effective date of 1 January 1956, at your earliest convenience.
Sincerely,
SECRET
Approved For Release 2007/11/19: CIA-RDP81 B00878R000300020040-7