LETTER TO (SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89B00487R000300500027-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 22, 2016
• Document Release Date: July 7, 2011
• Sequence Number: 27
• Publication Date: June 29, 1956
• Content Type: LETTER

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SAPC-724 7
CopyLof L
Letter Contract No. BC-200
Hycon Manufacturing Company
Pasadena, California
1. An order is hereby placed with you to furnish to the Goverment
the equipment, supplies and services described in more particular
detail in Exhibit A, attached hereto and hereby designated as a part
of this Letter Contract.
2. Except as otherwise expressly provided to the contrary herein,
you are directed, upon your acceptance of this order, to proceed immedi-
ately to procure the necessary materials and to commence the manufacture
of the supplies or performance of the services called for herein and to
pursue such work with all diligence to the end that the supplies may be
delivered or the services performed in accordance with the time schedules
set forth in Exhibit A. Any circumstances which may indicate the
necessity to extend such time schedules must be brought immediately to
the attention of the Government.
3. By your acceptance hereof you agree to undertake as soon as
feasible the negotiation of a definitive contract for the equipment,,
supplies and services called for herein. Preparatory to such negoti8?
tions you agree to submit a detailed estimated cost breakdown in connec-
tion with the manufacture of such equipments and supplies and the
furnishing of such services, indicating all elements of cost (direct and
indirect) and profit included therein. It is contemplated that the
definitive contract to be negotiated will be of a redeterminable fixed
price contract, Form IV type, the terms and conditions of which may or
may not be at variance with the provisions of this order. It is
expected that we can reach agreement on such a definitive redetermine
able fixed price type contract by approximately 1 August 1956. The
failure of either party to do so by that date will not in any way
effect performance hereunder.
4. You are not authorized to expend or obligate in furtherance
of your performance hereunder more than $1,540,000 in the aggregate.
The definitive contract to be negotiated will indicate the maximum
price for delivery of the equipment, supplies and services contracted
for therein.
5. Title to all Government-furnished property shall remain in
the Government and shall be so identified while in possession of the
Contractor, as directed by the Contracting Officer.
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6. Pending the execution of a definitive contract, any termination
by the Government will be governed by the standard termination provi-
sions of the Armed Services Procurement Regulations, as modified by
security requirements and the particular circumstances of this order.
7. Progress payments will be made as the work progresses, upon the
presentation of invoices showing the costs incurred and chargeable to
this Letter Contract. Such invoices shall not be presented more fre-
quently than once each month, unless more frequent presentation is
approved by the Contracting Officer. Such progress payments shall be
made to the extent of ninety percent of the amount of such invoices.
The aggregate amount of progress payments made to you hereunder shall
not exceed $1,386,000 . If the Government shall make any progress pay-
ments to you hereunder, the title to all materials, parts, assemblies,
subassemblies, supplies, equipment, and other property, theretofore or
thereafter purchased, constructed, or otherwise acquired by you for the
performance of this Letter Contract, shall automatically pass to and
vest in the Government. Such passage and vesting of title shall neither
.impair any rights of the Government hereunder, nor relieve you of any
of your obligations nor deprive you of any of your rights hereunder.
8. It is contemplated that this order will be governed by
standard clauses utilized in other contracts between your company and
the Goverment. Public policy provisions required by law, regulation,
or executive order will similarly apply.
9. You will provide a complete system of inspection of all
materials, fabrication methods and finished parts in accordance with
requirements of the Government.
10. All costs which have been incurred by you in anticipation of
this Letter Contract prior to its signing and which are directly attri-
butable to performance of the work called for herein, which if incurred
after signing of this Letter Contract would have been considered allow-
able items of cost under this contract, shall be considered as allowable
items of cost under this Letter Contract.
11. You have been made aware of the security restrictions in
connection with this contract and you are hereby directed to conform to
the directions given to you in this regard. In the event of any pro-
blems which arise in this area you are to immediately contact the Con-
tracting Officer or his duly authorized security representative.
12. If you agree to the terms of this Letter Contract please
execute the original and two copies of this Letter Contract and return
~1 ,.
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the original and one copy to the undersigned. One copy may be retained
in your files under such security conditions as the Goverment may
impose. Copies of this Letter Contract will not be made without the
Government's permission.
ByJ
Authorized Contracting Officer
ACCEPTED FOR
HYCON MANUFACTURING COMPANY
PASADENA, CALIFORNIA
CC
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Letter Contract No. BC-200
XHIBIT
A. CONTRACT WORK
1. SCIDIIhE I ~~)
a. The Contractor shall manufacture and deliver to the 5/
Government eight (8) cameras known as "B" Type Cameras and
more fully identified and described in technical specifi-
cations in possession of the Contractor and the Goverment,
b. The Contractor shall furnish associated equipments and
spare parts for the above cameras.. The Contractor shall
consult with the Contracting Officer as to what associated
equipments and spare parts, and quantities of each, are
desired by the Government prior to initiating production of
these items,
2. SCW_M 2 C/-- iil
a. The Contractor shall manufacture and deliver to the
Goverment three (3) cameras known as "B" Type Cameras and
more fully identified and described in technical specifi-
cations in possession of the Contractor and the Government,
b. The Contractor shall manufacture and deliver to the
Goverment three (3) cameras known. as "A-2" Type Cameras
and more fully identified and described in technical specifi-
cations in possession of the Contractor and the Government.
c. The Contractor shall furnish associated equipments and
spare parts for the above cameras, including ground handling
and test equipment, special tools, for the six cameras set
forth in this'Schedule 2. The Contractor shall consult with
the Contracting Officer as to what associated equipments and
spare parts, and quantities of each, are desired by the Govern..
meat prior to initiating production of these items.
d. The Contractor shall provide instruction handbooks in
connection with the cameras set forth in this Schedule 2.
B. , DELIVERY
The Contractor is advised that expeditious delivery of the items
set forth herein is required and the Contractor shall exert its best
efforts to complete and deliver all items at the earliest possible
date and within delivery schedules made known to the Contractor. The
Contractor is directed to review his production schedule and to autanit
to the Contracting Officer as soon as possible a realistic delivery
schedule indicating delivery target dates for each major item set
forth in this Letter Contract. The Contractor agrees to keep the
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tl
CrSI r
Contracting Officer informed by periodic reports of the status of
production of such items and to report promptly any anticipated
slippage in deliveries.
C. INSPECTION An ACCEPTANCE
An inspection and acceptance procedure shall be agreed to between
the Contractor and the Government and shall be substantially the same
as the procedures presently existing in the Contractor's plant in
connection with other Goverment contracts,
D. GOVERNME T-FURNISEED EQUIPMENT
The Goverment shall furnish to the Contractor from its stocks the
basic equipment necessary to manufacture the three "A'2" type cameras.
The Contractor shall account for and treat such equipment in accord-
ance with standard procedures governing the utilization of Government
furnished equipment and. materiels.
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