DEAR DOC:

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00511R000100140068-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 14, 2016
• Document Release Date: September 23, 2002
• Sequence Number: 68
• Publication Date: August 18, 1960
• Content Type: LETTER

Approved For~ease 2002/10/16: CIA-RDP67B0051~00100140068-
r
August 18, 1960
Re: Documentary Film Processing
PO-660, KO-136
As discussed with you over the phone, we have done a con-
siderable amount of film processing for Kelly. Since the first of
the year, it has amounted to 29,930 feet (including both original
and dupe). This does include a small amount of work for Rod which
we didn't think of separating out at the time.
We handled this as an intra-company (i.e., internal bur-
25X1 den and no profit) transaction. The net cost to date has been
25X1 of which was charged to PO-660 and 25X1
to KO-13P. You have been or will be billed for these costs at
25X1A the above plus I uin accordance with the contract.
To date we have not kept a separate record of the costs incurred
by my department in handling the film - receiving, security moni-
toring of processing and printing, inspection, numbering, packing
and shipping etc. There have been 17 transactions to date with
the films varying from 2001 to 3700' in length .(including dupe).
On the average we figure that we spend about six man hours per
25X1 10001 or aboutio date.
Of course, our budgets do not include allowances for
such items and it would be desirable to handle in some other fashion.
However, I am not at all enthusiastic about handling a purchase
order or contract from Kelly because this would publicize a con-
nection between us. A purchase order or contract between Kelly
and our company is undesirable because of security. Also I believe
you would pay more this way.
One possible solution occurs to me. Have Kelly purchase
the work from Bill McF. and have Bill issue us a task type Purchase
Order or Contract to "do necessary work as requested". We would
bill McF. and he would rebill. This idea has not been explored
with anyone and I will not do so until your people indicate the
course of action you wish pursued. You might also consider that
Rod may have a similar problem. In his case, I think we might
live with direct association with his company if desired.
25X1A at
These orders might also apply to work (including travel)
prior to formalization of a Tech. Rep. contract.
ELG/MDG
cc: C.F.H.
D.K.
J.L.B.
F. G. F.
Approved For Release 2002/10/16 : CIA-RDP67B00511 R000100140068-2