Document Number (FOIA) /ESDN (CREST):
CIA-RDP68B00724R000100060047-4
Body:
25X1
Approved For Relera
12568-66
Copy 1 of 10
12 AUG 1966
MEMORANDUM FOR: Acting Deputy Director of Science and Technology
SUBJECT: Funding Status of the KEMPSTER A Program
1. This memorandum contains recommendations for the
approval of the Acting Deputy Director of Science and Technology.
Such recommendations are contained in paragraph 8.
25X1
2. Following the presentation as made by 25X1
personnel on 1 August 1966 further discussions Lnave teen a
and an in-house meeting held on 3 August attended by cognizant
OSA and OEL personnel to discuss the future of this program.
This memorandum is written to advise you of tentative conclusions 25X1
and suggested courses of action.
4. The question first to be determined was whether continuance
of the program with the required I uin funding 25X1
was technically and programatically worthwhile. n this regard
the consensus of thosepresent at the 3 August meeting was that
the program should continue if the additional funding is avail-
able. Contracting Officer's personnel were of the opinion that
considerable sensitivity surrounded the methodology and procedure
of going forward with the program, they being of the opinion that
the original contract as negotiated should be maintained intact
without permitting the Contractor to unduly claim Government
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25X1
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redirection of the program, inasmuch as the Contractor (because
of overrun costs and slipage in delivery) has thus far incurred
incentive penalties to the extent that Contractor probably can-
not 25X1
hope to retain more than
Therefore, the Contracting 0 3cer s sugges ion was that if
additional funds are made available that the Contractor be
instructed to continue work under the contract as originally
described and under the original contract provisions including
incentive awards and penalties, with concurrent notice nbeing
ing 25X1
given to the Contractor that the
is presumed to be "overrun" costs un ess an o e extent that
the Contractor can reasonably demonstrate applicability of
bona fide changes (net additional work) to the original Work
Scope.
5. Contractually it was felt that if any work is deferred
it should be done at Contractor's election and not at the Govern-
ment's direction. If the Government directs- a stretch-out it 25X1
could at best thereby conserve or save L __LU ::~=
In the event of such redirection, the on rac or wou mos
certainly claim that it was "off the hook" for practically any 25X1
and all original contract provisions and performance requirements.
6. The immediate reasons for developing KEMPSTER A for use
on OXCART are:
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may, :4~ ~,
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7. Technically, the present program for the development
of operational prototypes is recognized as a very difficult
problem. It is no small effort to package the equipment down 25X1
to half the space and two-thirds the weight of the experimental
predecessors. Further, the Agency i trnil blazing in Pxn1nJ
ing this technological break through
as there is no other known program o i s Kind. as y, ere
will undoubtedly be other applications for the technique beyond
the present OXCART program.
8. The 3 August OSA/OEL "working group" therefore concludes
and recommends for your approval:
(a) That the Contractor be directed to continue
work under the KEMPSTER A contract as presently
negotiated with the firm understanding that
the Government will provide additions n ssary
funding not to exceed 25X1
(b) That the additionall 25X1
funds be sought from the u get
allocation for KEMPSTER B.
25X1
Deputy Director of Special Activities
vi etc 0
L
The recommendations contained in
paragraph 8 are approved:
Acting Dgp-6ty Director of Science
and Technology
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CMD/OSA/DDS&T,4 I(5 Aug 66)
Distribution:
Copy 1 - CMD/OSA
2 - DDS&T
3 - DD/SA
4 - ASD/OEL
5 - Compt/OSA
6 - R&D/OSA
7 - Dir of ELINT
8 - DDS&T Registry
9 - 11 II
10 - RB/OSA
Approved For Release 2002/08/06 : CIA-RDP68B00724R000100060047-4