Nardi 2, 1965

Dear General Carter,

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I am very concerned /about the lack of progress. In

implementing the 12 August agreement between Mr. Vance and

Mr. ticCone to employ Aerospace in a general systems engineer-.

in role in the CORONA program. On 14 August, instructions

worn issued to: (a) authorize General Greer to take necessary

actions with Aerospace; (b) authorize Colonel Ledford to

incorporate the appropriate enabling clauses for the Aerospace

Carnation in contracts• hold with =4 GE(8/V) and DISC (A/P); •

(c) Authorize Colonel Ledford to allow the System Engineering

contract with IMSC to expire, and (d) authorize General Gtver

to initiate a contract with DISC to perform a Systems Integra....

tion effort in vim of the employment of Aerospace in a

Systems Engineering capacity.

On 17 Aumst the Director of Program B Contracting • Officer notified ITER , GE, and 1111SC that the enabling Ciansall

would be incorporated. To date, only the ITER contract has

been emended to Include the Aerospace clause:-.

In accordance with my instructaons, the Systems Engineering contract was allowad to empire. Rowaver, when General Greer

attempted to sin the Systems Integration contract with DISC,

the Director, Pros= B Contracting Officer verbally diredted

the DISC Contracting Officer not to sign because of •too reasons:

(1) General Greer had not submitted a formal request to Director;

Program B, for authorisation to apply "methods, materials, or

cquircent being generated under the contract" between IMSC and -•

Director, Program B Contracting Officer; (2) security procedures

contained in the contract .biteeon General Greer and IMSC were

more restrictive than those in contracts held by the Director,

Program J Contracting Officer.

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The circumstances behind these two reasons have been

looked into and tha following la an explanation of the facts

now available to so.

General Greece did, in fact, discuss the use of "methods,

materials or e being generated Isader the contract"

Director, Program B Contracting Officer

who was roe: aonsibte for administering the Systems Englsteoring

contract stated that ho could see no objections

to General Greer consummating the contract with MSC. Further,

the instructions issued by my office authorized General Greer

to proceed and I do not 'consider it -within the prerogative of

a contracting officer to take unilateral action to the contrary

without prior consultation with my staff- or my ismediate office.

At the request of Hr. 'Vance, a team composed' of an

Tr...0 Staff representative, a security officer from Director,

Pro am A, and cue from Director, Program B, -.we sent to the

i•sc to arrive at a recremendation as to disposition of the

diff=ances in security practices and procedures in =Eating

contracts and in the .contract proposed by General Greer. The

recoscendation unanimously agreed to was that the security

practices proposed by General Greer were an exact interpretation

of the BT 1A14 Security Guide and that these more stringent

security requirements should be adopted and standardized wits in

IZSC. The report was forwarded to you, and in your 16 November

memorandum you agreed with the recommendations. .

The, result of all of the above is that Aerospace is not -

performing the general systems engineering !motion becausethe onablins clauses have not been formally incorporated in .

the GE- and 7.NSC contracts, the security practices have not been •

standardized at IXSC, and the Systen Integration contract with

IZZC has not been signed.

I would . appreciate your immediate support in Issuing

necessary directives to correct the situations outlined above

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so that we may comply td.th the agreements reached between

Mr. Vance and Kr. licCone. U you have any questions, I

suggest we gat together at tbs earliest opportunity.

Sincerely,

Brockusy MeKillan '

Direct=

National ROCOMIIIISSUM Office

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General Narshall S. Carter

Deputy Director •

Central. Intelligence Agency

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