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CONTROl SySTEM 

OXCART/TAGBOARD 

J.91' NATIONAL RECON NAISSANCE OFFICE 

WASHINGTON, D.C. 

THE NRO STAFF November 4, 1966 

MEMORANDUM FOR DR. FLAX 

SUBJECT: TAGBOARD 

1. The draft memorandum to the ExCom on the reorientation 

of the TAGBOARD Program was delivered to Mr. Vance's office 

earlier this week (I don't know if he has seen it yet), Although 

I assume the TAGBOARD Program will be continued, there probably 

will be some deliberations ahead befo~e ExCom approval is given 

(in view of BOB interest and Mr. Helms' concern with the overall 

cost of intelligence collectionl 

2. Meanwhile, we are at the point today where some program 

direction and guidance must be given Lockheed. In early August, 

after his discussion with you about the launch accident, Kelly 

Johnson (via a letter) placed his sub-contractors and vendors 

on a 90-day restricted work status (the minimum effort applicable 

to either launch technique and engineering applicable to the 

B-52 launch), Hycon, who is an associate contractor and on 

separate contract, was permitted to continue working on the 

second procurement increment of seven cameras (reduced from 15 

after the accident). 

3. The 90-day period is up at the end of this week. 

Kelly Johnson needs to give some direction to his sub-contractors 

(Marquardt and Minneapolis Honeywell North and South) and vendors. 

Some possible options are as follows: 

a. Attempt to hold the team together. This probably 

would work for the bulk of the key people at Lockheed, Marquardt, 

and M-H, but does not appear to be a practical solution for 

vendors who provide finished items. This would result in a 

sizable program slip and not result in much progress for the 

money spent. 

OXCART /TAGBOARD 

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OXCART!TAGBOARD 

b. Terminate everything except the engineering effort 

at Lockheed. Unless the program were terminated later, this 

would impose at least a several months slip. 

c. Release Lockheed, Marquardt, and MinneapolisHoneywell to start work on the proposed program, but control 

expenditures on a month-by-month basis. This would not be too 

expensive for November and would protect the earliest possible 

operational date. 

40 I gather that from 1 July through 31 October, the 

TAGBOARD Program has "spent" about $8.6 million ($2.3 million 

to Lockheed for A-12 and other support at Area 51; $5 0 3 to 

Lockheed and the sub-contractors; $1.0 at Hycon). Approval to 

start at a reasonable rate now would involve the obligation of 

about $3-3~ million more in November ($2.0 to the sub-contractors 

and vendors; $l-l~ to Lockheed). The rate of spending would go 

up in December--$53.0 million is proposed for the reoriented 

program in FY 67 (including the $25.0 million carried over from 

FY 66) and only about $12.0 million would have been spent 

through November. 

5. I recommend you approve initiation of work on the 

proposed program and limit spending on a month-by-month basis--

pending final go-ahead approval--starting with a maximum of 

$3.5 million in November. All that is needed is direction to 

Kelly Johnson since more than enough money was released last 

Summer. 

ames T. Stewart 

ajor General, USAF 

Director, NRO Staff 

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