REPORT ON PRICE REDETERMINATION AUDIT; THE PERKIN-ELMER CORPORATION; NORWALK, CONNECTICUT; CONTRACT NO. SC-45-12; 1 NOVEMBER 1957 T

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81B00879R000100050049-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 19, 2016
• Document Release Date: July 21, 1999
• Sequence Number: 49
• Publication Date: January 7, 1959
• Content Type: MEMO

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sn Price Redetea~i:~tcm ~.udt' ~ Pki~-~lm~r =P?~
Qr~ra~, ~Gorn~. ~, ~ 2b Sep 5~
~? L~ ~...~.. ~~~~ ~ ~e#~ia~l'~f:ra~~xro ~s~a f'?7~i~ael
25X1A10
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~ac~r le ala9.ming ~ & A fsrr thin Pear imputed at the bc~al~ rate
t~f Sate accsptab3.e ~ th$ ~iuditc~r for ca~atract cost ~ ^ea
fe was as pr~a~sed tiY t#~ ccatractC-r to the
25X1A ~~t~di#~cr Por f#.nalis~-tion of certain ~ ter~3,ctat3c~t
..
~ ~C ~ ~ direct enste ghestic~aed i.n
2a2,
tQtall.iag Fa#'~, cou3.d not be deter~o-ix~ed ~lthsrugh gtitics appear
#~ be rea~na~e #.n ~riew ttf the fact that they are l.es~a ~ ore (I~
each for the ~+ixtaen {lb} smite being mc~dif~.a~d.
Seceasi vt' materials acquired fflr ~Qapra~~.cta~xle ~reowhatzl ?t
contact aaad regt~i.r~tant 13s'ts prepa~ced b,~ #~he~n~.neering pegt
~. A].tazc~ttt the: cx~ntsact~ did ~t ma9.tata~n re,c+~rds tc- s~?gort
c~ptio~ of direct s~teris9.s, we wars ab3,e #~ satisfy ourselves
ae t'be reasonabil~.t~r of gv~atitir~s prccur+~d f'or ~d~.~`S.s~atian kite,
s,~re Parma k~.ts acid pred3,ctabla averheul. Party ~ referee to t~!e
contractor has ncft Yet. cased Frith fix~at prcaperty
aczcow~zti~a re?~uires~ta under the Fr+c~eat. Bcnrevexi it was esta4a-
25X1 1
25X1A
'r ~,~ the audittar t~s-t residues, imv~atories do exist cad we
were discussed on 22: l~[vq~aber 158 with ~, past. '~ FOIAB3A
t&e~ nera~. lta~ Thy Cantrao'tQrt+~ ~s3.ticm is ae i`t~I.2ows:
a? '~~~~.~~:~ s xKat cur:. ~gprovals ve-re
ncrt obt~#a~d dui to the crash nature of the program and ~e sescuri#,p
r+~~sir+esaeatar.
uod$ratand that th3~s 3nf~+rmatioa is nQV in process oi' b~irsg c;il.
Settlt of this progoaal shcx~d, thersfcrre~ be s~ub~e?ct tca the
rssults of the pr+7g~srty audit.
~< ~ ~ s
fi.rtgs o;~ t'~e .tor ~eonta~r:ad 3.n attac~:ed 8xhibil a~ Sche~iulas
b. csha 3: i~efers~ tit 3~ev+~ fc~r ~segc7tiaticn.
~. ~ '~ t s~uriag
the use of t3ur audit itwss fouat3 that an 3te~ of tract,~ar-~saeci
dyable feet equipments costia~g ~~ ~&, }~ erren~~ly base charg~3
to the cazttract. ~e pc-inted this c~tt to the contractor as a r.* oa
Mich this a?~u~it was credited to cc~gtract cysts and deleted fro~a tb:e
east pa't~pca~3...
>~ ~ ~,~ ~~~ ~ contractor has ot~t msda a ap~if3.c
pcropcasa:l t'vr prt>i'it allowa~ace but is leaping the st~otznt to be detersi
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~ub;~ ~: ~epc-rt on ~l~ ~edet+ermluiation ~ud3t T}ae 8erklu
b~* t~eg~ttattots. ~r~tract ~Ge ccide~ratic~a !~ ~ fo~.3~a
?t~et Target
~` prcafi:t ~~ trs be dets~ix~ed the +axte
s ~erf~rmed ttie tract with ef~`c~ie$aay,
T1~e ~autraotor'a gas~ticm i+~ that the ~rgat ~r~oe a t~tant.~eat
upcan rac~eipt ?~~ all tra~k+~ ~ the -~'~ ts~ ~ i~ir~ 195,
ha~ae~re~r,~ tha 3aa-t t~ { 2~ trams terra not reoeivec~ ~a#.5.3. late lpril
~.9s~~, thue k!l,ag sr~he8a3:ed delivery ssitale sack iasereaeing the
comet ~~' the csantract. The acntractcar Wither states that the work
~e st+~pped t~r3.ce ~rhf.lr~ ~aitt~ ~`~ the tr~srs.
~xever~ .it l pcantad c~txt than 3n a+~rdaarae with article 3~,
erat~'urrxiehed FrQP~"~Y ~, the P~Fe~Y ie r?ctit c~e3.3.~-~ed
'~ a~catrscstcr b~ such tir#.t~es ~eaeary to meet de~.verg car '~~ce
dates the ecntrscts~r shams make a tix~3;y ~r~.tteu. request to the
~cnts~ct~g i3ffiver faa~ equ~.table ad~t~st~att cf the deli~e~r,~ car
pe~?cares dates Qx the craatract pricse~ or ~th~ as ~rcr~ri~3ed ~'cr in
ert~.cle ~~, ahengea. To cur Hedges 'th9.s ~sas scat acme.
additi~? nte~ctaal zrorx~espor~ence caf the Ct~'s'~'~tcar i.adicsated
that ~.~' the c?~zatrx~~t~r had beau ate t~ d?r a~,.~ Qf the ~acaarSc ~-t c~r~r
tip ~eaad users wrre availa.b3e~ actual casts ~ havP e~cteeded
contract target costar ~ ~ - s?. T 3a~ a:~gaeare to have 2aeen
c~u b~ the #ect that tie ec~'tx~actor greater tmdereatimata+3 asset
~.at~ar is i~ target. r~aat grcapoa$~.. Acttu~ aa~semblg labar exceeds the
terg~rt amc~ant by sgproxiteT,y ~ hours.
Acccaxttirt~?s the srsatt+et3r of pro~'it allawa~+e is ra~`erp
trading ~~t`iaer for s~propr3ate determ3nat,3.cx~.
Lla3.soa +Otfie~et
~etern ~istr3ct
~~itar ~e~r.ertt].
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T~ P~rkitr-III !C+arge~ral~~
So~ralk~, Caasn~ticrr~t
~~y tit ~aticr~ of +aa~s
~,'+t a ~1 ~o~ ~t _ a ~-e e
~~
B~ a~~ ScsYi~.e 2~
~~~ ~ Schcx~u~,es ~ a~ad Vii.
ReS,
~ ~~e~~t: ~'~
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5~~h~sO 1
ect3.cut
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~ubt'~xe .:~ a~5 S ~~'~.a~,I.. ,~ gp~rad
~aa~ S~deKt ~~. ~vly 198
~u~contraa#,s mot a~ar+~rec3 tay the Caxn~aottxg t?~'P~+~r ~.~
~e s~bcont~~ats 3:cle of t~~?
'~ Aic~n Cam } ~'uraha$ed f~~.ah3
~.85~5 L~ar~ ~iue+erin~ ~ 3pere ~~ {mss
~a~ ~as`Irr~nt GC~? ~t19.~"lcatio~ ~t1t
Ts~ta~, caste queea~fi~taaed
~s interred
appxove?~.
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TY~e PesrkII~ir Cvrpc-r~l~.i.+~t
ct cwt
~rarti~ Prssai~aa
~l ~' 19:58
~rti gr+~f:~ fir ~hi:alx specific e~pi^9c'vsl r~~s nt>t 4br~d
f'~cm 1 Cva~ Officers
~gi~e+sring
P1~chine ~~Crp
~erb~r
~`ots.3. ~e~ G,s~eti~
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Ferici~ Corpcra~irsn
l~arvsl~ C?an~ae~aticu
atrative ~nss C2a~ed fir Yeax` ~dr~d
~~ ~ul,~ 195 ~n 1~~ss ~~'' ~c~se~ta~~.e Ita-~e
Rats
0
~+.7..~terr Aetwa.
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~........., Ya~r ended 31 duly ~'~
~e~otiste~3. .ate
....,.._,.. ~.~~ e~
Ao~ttaal T~ rate dear exiled 31 3~3~* l~~
C~~cul.ated rake -- {2~ m#.x~s (1)
R~1ke Accepted b~ .~~adi#As
AvdS.tvr for titu~l.is~tiox~ 4f
te.acti~ cis.
emits recex~~l~r p~posed Air Foxes ~:ssiden~
5X1A10 i
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Ztufactwr~g aoeta a1~
ors Ai~rf s Cows ~,ueel;ionsd ~~chedu~.es 1 ~ ~}
Appxo~~l a.factur~.~g mete
.~caeptr~'ble Fta#,~r Apprc~n~d.
~~' ~~~
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~eh~du~e tr
~'~+rk~a-8mer ~crr~at~rati+r~~a
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e :~.~i.n~.atra~'.3.t~e ~xpene~r ~ ~9~t ~Cas1i~ G~
Zat~r wed ~3. JttZp ~.9
~ix~ect G~vs#~
Q~st3.ane
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