Document Number (FOIA) /ESDN (CREST):
CIA-RDP83T00573R000500170006-6
Body:
Approved FoMelease 2002/02/06 : CIA-RDP83TO057 'R000500170006-6
15 August 1962
SUBJECT . Record of meeting to reconsider letter of intent for IBM
1401 Computer.
STATINTL ATTENDING:
1. Several memoranda and drafts were presented informally
expressing various viewpoints and alternative courses of actions.
Copies of these papers were distributed to all present and
are attached.
2. Three facts were agreed upon:
(a) The increased cost of the IBM 1401 computer system
on order amounted to $1,477. per month more than a
comparable computer system (RCA 301) and made the
IBM 1401 too costly for 1tDPD use.
(b) Programming for the 1401 is a considerably greater
task than anticipated, and will continue to be necessary.
(c) Programming is nearly completed and installation of the
1401 could go forward as planned.
STATINTL 3. outlined three logical conclusions, considering
all background material. They are:
(a) The IBM 1401 will not be accepted.
(b) The IBM 1401 would be accepted if the raise in price
were withdrawn.
(c) The IBM 1401 would be accepted, no conditions.
4. It was agreed to do the following:
(a) To determine if an extension of time could be obtained
on the letter of intent, until the intentions of IBM are
clarified, so that no legal back-lash would involve the
Agency.
STATINTL
Approved For Release 2002/02/06: CIA-RDP83 0 3800(56170006-6
Approved ForRelease 2002/02/06 : CIA-RDP83T0057000500170006-6
(b) To write a letter to IBM, asking reconsideration
of the price increase.
(c) To cancel the letter of intent, if UM refuses
to maintain the price as stated in the proposal,
and
(d) In such an event, the entire question of a
satellite computer to replace peripheral
equipment is to be reviewed, such review to
be completed in one month, and presented
for recommendations.
STATINTL
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