Agency Procument Activities in Fiscal Year 1964

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67R00587A000100150007-3
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: November 11, 2016
• Document Release Date: November 9, 1998
• Sequence Number: 7
• Publication Date: October 15, 1964
• Content Type: MF

Approved For Release: CIA-RDP67ROO587AO001 00150007-3
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MEMORANDUM FOR: General Carter
SUBJECT: Agency Procurement Activities in Fiscal Year 1964,
1. I have noted DDS' report of August 14 to you on Agency
procurement activities for Fiscal Year 1964.
2. It is my opinion that savings can result from insistence
upon competitive fixed price contracts in every instance where such
procedure is practical. While I realize there are areas of procurement
where other, than competitive and fixed price arrangements are feasible;
nevertheless, it is my observation that this principle can be applied
in an increasing number of situations with consequences of benefit, if
you and DDS insist upon it. I therefore urge you, as a matter of policy,
to take such a position and to establish regulations which would require
our procurement officers to explain the reasons why competitive and
fixed price contract arrangements are not feasible before they proceed
on a sole source, non-competitive or cost plus fee award.
3. With respect to fixed fee contracts, it has been my experience
that vast savings result from incentive type contracts. A number of
forms for incentive contracts have been developed by Defense and NASA
and I am sure they are utilized by CIA. I urge that they be used to
the fullest extent possible and that our procurement officers be instructed
accordingly.
JOHN A Mc CONE
Director
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Approved For Release : CIA-RDP67R00587A000100150007-3