LETTER OF INTENT - RCA 501

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83T00573R000500170014-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 12, 2016
• Document Release Date: January 9, 2002
• Sequence Number: 14
• Publication Date: November 26, 1963
• Content Type: MF

Approved For Release 2002/02/06 : CIA-RDP83T00573R000500170014-7
26 November 19,63
hiORANt`U FOR: The Acting Comptroller
SUBJECT : Letter of Intent -- RCA 301
R;Er NCE : hwmo to Acting comptroller from C/AL'A'I=`
dated 22 November 1963
1. The referenced memo requests that a letter of Intent go
rwsrd to RCA prior to 27 November 1963 placing the Agency on
...
record as being seriously interested in procuring a second-mod RCA
SO c r. The reason for acting hastily is to take advantage of a
ay not be available later.
After, reading the attached material I come to the con-
clu*ien that CIA has insufficient Information on which to base a letter
of sent to RCA for an additlonal Sol.
3. Chef, Procurement DIVisian. 0/1D, has adwiaed me that
the issuance of a loner of intent carrriot with * not a legal but a moral
c+ mitm*ut on Om part of the Government. The issuance of such a
e
letter is usually prefaced by considerable staff activity which Indicate
strong certainty that positive action will be taken later.
4. While RCA may be offering us an attractive dollar bargain
I do not think we should be forced to react to this issue within the ? CA
iff4w**4 short d eadine for the following principal reasons:
a. The Agency`s total computer resources are
art being used to capacity. Viewing # I)PT's
Est in an Agency context, it is unsound to
recommend more hardware when we are not
fully utilizing what we now have on hand.
U. The management 'decisions to be made",
rafere*ced in pers. 4 of the A tPD memo to the
Acting Comptrolleer dated 22 November 1963,
could result in a reduced or shifted workload
for the present RCa ,Lharr obviating the
Approved For F t If6~?6d0170014-7
 Approved For Release 2002/02/06 : CIA-RDP83T00573R000500170014-7
e. Major systems design changes appear to be in
the offing for DPDts applications. The effect at
tiwne changes on required comp r time is yet
rminp' t.
d. The RCA 501 computer is no l,e r in production.
'mss. neither Sol hardware nor software, 00 important
to dynamic computing, is being developed or upgraded
byy RCA. Several users have now turned In heir RCOA
!i equipment. CIA should be r* indeed to
stock up on phase-out gear of this sou... even at give -
aprices.
e. A letter of intent from CIA is morally binding on
the Agency... yet no responsible decision to acquire
r RCA can be made within the time
constraint of the RCA offer.
3. to light of the above I think the issue of a letter of Intent
at this time would be premature. All concerned need mere time to
an alyse t e implications of bringing more hardware into the Agency
before we sign" our Intent to do s4e.
JOSEPH DECKER
Assisi Director,
Computer Services
DD/S&T
DD/S
OCS/JBECKER:bd (26 Nov 63)
Orig & 1 - Addressee
1 - DD/S&T
1 - DD/S
1 - OL/PD
1 -OCS
1 - OCS Chrono
Approved For Release 2002/02/06 : CIA-RDP83T00573R000500170014-7
 Approved Fir Release 2002/02/06: CIA-RDP83TOO
,W573RO00500170014-7
MEMORANDUM FOR: Assistant Director for Computer Services
Letter of Intent for Purchase of RCA 501
Computer and Rental of RCA 501 Systems
Equipment, Rental 64-57
REFERENCES (a) Memo to Actg Compt fr C/ADPD dtd
22 Nov 63
(b) Memo to OL/PD fr C/ADPD dtd 22 Nov
63 Concerning Purchase of RCA 501
W/Att: Ltr to C/ADPD fr RCA dtd
19 Nov 63
(c) Memo to OL/PD fr C/ADPD dtd 22 Nov
63 Concerning Rental of Certain 501
Systems Equipment
1. In accordance with our telephone conversation of 21
November 1963 I am forwarding herewith a copy of a memorandum,
Reference (a), and the originals of References (b) and (c) for your
concurrences.
2. As agreed to in our telephone conversation the purchase
and rental of the equipment will depend upon certain decisions that
must be made with respect to utilization of the 501 System. If
these decisions result in increased utilization of the 50lSystem
which will warrant the additional equipment in question then steps
will be taken to procure and rent the subject equipment. If it is
determined that the equipment is not necessary then letter of intent
will be cancelled.
3. I feel that the decision as to whether to make the purchase
should be made within the next several months, if possible before
February.
4. It will be appreciated if you will expedite the two memo's
to the Office of Logistics since, as you will observe from the letter
from RCA, they are only holding the option for the Agency until
27 November.
STATINTL
hm ts? Acting Comptroller
- `r6vedePor Release 2002/02/06 : CIA-RDP83T00573R000500170014-7
Refs a, b, c
 Approved Fo,r. Release 2002/02/06 : CIA-RDP83T00573R000500170014-7
MEMORANDUM FOR- Assistant Director for Computer Services
SUBJECT
Letter of Intent for Purchase of RCA 501
Computer and Rental of RCA 501 Systems
Equipment, Rental 64>57
REFERENCES . (a) Memo to Actg Compt fr C/ADPD dtd
22 Nov 63
(b) Memo to OL/PD fr C/ADPD dtd 22 Nov
63 Concerning Purchase of RCA 501
W /Att: Ltr to C/ADPD fr RCA dtd
1 Nov 63
(c) Memo to OL/PD fr C/ADPD dtd 22 Nov
63 Concerning Rental of Certain 501
Systems Equipment
1. In accordance with our telephone conversation of 21
November 1963 1 am forwarding herewith a copy of a memorandum.,
Reference (a), and the originals of References (b) and (c) for your
concurrences.
2. As agreed to in our telephone conversation the purchase
and rental of the equipment will depend upon certain decisions that
must be made with respect to utilization of the 501 System. If
these decisions result in increased utilization of the 5-01-System
which will warrant the additional equipment in question then steps
will be taken to procure and rent the subject equipment. If it is
determined that the equipment is not necessary then letter of intent
will be cancelled.
3. I feel that the decision as to whether to make the purchase
should be made within the next several months, if possible before
February.
4. It will be appreciated if you will expedite the two memo's
to the Office of Logistics since. as you will observe from the letter
from RCA. they are only holding the option for the Agency until
27 November.
R. H. FUCHS
Attachments Actin Comptroller
i rove 6r1Release 2002/02/06: CIA-RDP831 05738000500170014-7
s a, c
 Approved FCC Release 2002/02/06 : CIA-RDP83T00573R000500170014-7
99 ft"Ober 1963
D A Eit 70; Offum or Z stice
ProMe"INMt Division
I tot, Automatic Data teeing
Divisia@, Offtee of the CtaWtroUer
totter of intent for puvbase of
501. system ; tisent
It is Witted that a letter of Intent be issues.
for the pArcbw* at the s c sg ant
,
tieg to 1, 934.80,, outlined on page 2 or the
NOwshed WA letter. pmt is to be installed
in SO= 2o6# C ntxsl, ? 41 ling an or about 1 fte ice.
Pie price to be in acc
4 with CwMVut
~
e a s t The ..165 5, w i t h r inn
*""U to APVU pins a thirty (30) per *@ at
t? Such pie to be subject to avafi,abiljty
STATINTL
diet, UtO Siag A3vis3OM
Assts Aut motor
Orflkw of tester aft-vu ees
ActUw t broijer
Approved For Release 2002/02/06 : CIA-RDP83T00573R000500170014-7
 Approved hv~Release 2002/02/06 : CIA-RDP83T007 R000500170014-7
iA ~9GI?5~'FI'C1~tt @I, it.tr,7d 1P`'ri1 P7:]te .1?1 1D"lTt "!1 ',
.I.M :ILM RAINU : A).?aN .M P?!M iq [::F ~d 4)11 Fi1~ 9)!13 nMI1;M"V
R9.
97)&!E HS f9'9.98G:7S?b?? N.
.?~:Sflit 11 pv qd N d)RJ 9)v 1). 3:.
19 November 1963
STATINTL
2430E tree ,. .
Washington 25, D.C.
STATINTL
An ideal situation has arisen whereby the following equipment will
be available by 1 June 1964. We indicate the equipment costs below
consider this advantageous opportunity.
y
ma
at you
h
so t
M del
o
No.
Description
Original
Purchase
Price
503
CPU
$218,500
561-2
Hi-Speed Storage
150,500
369,000
Book
Value
P.O. Credit
Savings
$ 98,012
$120,488
85,003
65,497
183,015
$185,985
Equipment Discounted at 30% $128,110.50
For the above main frame and memory, there are seven (7) tape stations
available at a total rental of $3,969 per month on a 200 hour contract
basis.
Approved For Release 2002/02/06 : CIA-RDP83T00573R000500170014-7
 Approved. Felease 2002/02/06 : CIA-RDP83T00#2000500170014-7
Detailed information for the entire system is as follows:
Original
Model Purchase Book
t no. Description Price Value
1 503 CPU $218, 500 $ 98,012
1 533 On-Line Printer 30,300 14,40T
1 54T-6 Tape Switch 11.,800 5042
1 561-2 Hi-Speed Storage 150,500 85,003
want you to have the first option on the offer. Undoubtedly, we will
not be able to hold the option for you past Wednesday, 27 November,
unless we have an affirmative indication of your intent to procure
the hardware
$11,100
$202p764
Complete System Discounted. 30% $]1,931.80
Demand fret other sources for this equipment is acute; however, we
Approved For Release 2002/02/06 : CIA-RDP83T00573R000500170014-7
 Approved FQr Release 2002/02/06 : CIA-RDP83T00573R000500170014-7
92 der 1,963
Office of latics
3 ?ant iivtsixm
f, Autamutic DMA lei
v#ai j Office of the Ctr 1.1er
Litter at intent for rental of RCA
aromm Liai t, mental 9x-57
It to ire t+ed that a; 3.eetter of mat be iss d
to ltd; for the rental of "Von (T) now stet ,
to be tuwUdJmd in comtMatiaet iith an 3A 501 C iter
Syp an or omwt 3, jkxW . Tape 91tatiMs to be
?eature 26, Vu check m serial, and
m fi cede 21-2. Ree CC TRaM ti oaa,
00 each, maetit 3 total 0116.00.
STATINTL
serf,, Autantio Data Processing Divisid?.
R, 1* radbe
Acting Cutler
Approved For Release 2002/02/06 : CIA-RDP83T00573R000500170014-7