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OFFICE OF THE SKR!" TOM THE AIR FORCE

OFFICE OF SPEUAL PROJECTS IMEEMUMPUIIU I

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emu:: 8 Aug 75

INIEMONANOUN FOR:

Upon my replacement of Gen Bradburn

I felt it appropriate to reaffirm prior SP

policies and provide the contractors with

some of my personal views.

Attached is a copy of a letter which '

I have sent to all of our major contractors.

I have also provided Les Dirks and

Capt Darcy with complimentary copies

for their information.

JOHN E. KU LPG JR.

Brigadier General

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8 August 1975

DEPARTMENT OF THE AIR FORCE

OFFICE OF SPECIAL PROJECTS (OSAF)

PO BOX MAO. WORLOWAY POSTAL CENTER

LOS ANGELES, CALIFORNIA 10001

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Dear

I look forward to working closely with you and your

people as I assume the job of Director of Special Projects,

and take this opportunity to reaffirm the basic policies

which govern our business relationships. We are each part

of a team which must continue to work hard at developing

the finest satellite intelligence collection systems that

we can produce with the resources available to us.

The policies and procedures which have been developed

over the years have worked very well, and we will continue

to use them. Because of the very unique nature of our interfaces, I would like to highlight four areas that deserve special

comment and emphasis at your level and mine -- contract management, security, marketing, and ethics.

With regards• to contract management, the office of Special

Projects has long placed emphasis on incentive contracts which

give highest ranking to technical performance. We will continue to. do so, at the same time insuring that maximum fee •

can be earned only by achieving our goal of truly superior technical performance. I believe we must work together toward this

common goal without creating an adversary relationship: however,

BAYS? will hold a strong line in negotiations to insure that

prices are realistic, fair and reasonable to all parties and

will work to assure that contracted performance is achieved. I

plan to maximize competition on new program procurements and,

when appropriate, existing program major modifications. I intend to do all I can to engender a sound, healthy, and highly

competitive industrial base which in the ultimate analysis will

certainly benefit the national satellite reconnaissance effort.

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SECRET cami
SECRET MIS000-75

The present environment of ever-increasing costs is having

a significant adverse impact on Defense dollars, and our programs are in stiff competition for government funds. Maintenance

of programs within target cost deserves extremely close management attention at all levels. We will look closely at the necessity for any proposed system changes, and we must jointly identify

potential problems at the very earliest possible date and work

vigorously to resolve them.

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The second area, security, requires constant attention.

Satellite intelligence collection systems are vital to the

nation -- and extremely vulnerable. This vulnerability not

only includes the threat of physical dame into

potential political countermeasures. Th system serves to prevent unfriendly nations asons

to exert political pressures against our reconnaissance

satellites, as well as protecting their true capabilities

and the military and industrial base engaged in their developtak

s. e canno a ford to give them any a•vantage.

recent public revelations of various aspects of satellite reconnaissance have been unfortunate. However, we must continue

not to comment on printed stores nor openly discuss this subject. We each need to reaffirm people that the

policies and procedures of th system must be

followed in spite of greater c awareness; if, in the

future, there are changes in security policy, they will be

conveyed to you directly and quickly from me.

The third area is marketing. We encourage independent

investigation and planning as a step toward introducing new

and better produc for the mutual benefit of the government

and company. However, the conventional marketing approach

has never been compatible with the protection needed for

sensitive intelligence collection apparatus and operations

and is not endorsed by SAFSP. You must continue to channel

ideas ardi•ce reconna s

iate

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Finally, a word on ethics. Satellite reconnaissance IS

a legal endeavor, consistent with federal statutes. No one

engaged in the program in any capacity, in government or

industry, must ever be directed to perform an illegal act.

The special security requirements of the program can be followed

legally and by using good common sense. Because of the lower

visibility afforded by our security we need to be particularly

sensitized to our personal conduct. We must avoid not only

true conflicts of interest, but also any appearance of a conflict of interest. I will not permit my people to accept any

form of gratuities or special favors and I ask your full support to preclude possible embarrassing situations.

In this reaffirmation of policies I want to assure that

our relationship works both ways and my door is open for discussion. Should you wish to do so, I encourage you to convey

to me your ideas on these subjects or any others that are of

mutual concern.. Because these thoughts are generally applicable to everyone who works within the satellite reconnaissance

program, I suggest that they be disseminated widely. Making

them work requires strong management effort from both of us,

and I look forward to a continued fine working relationship

between our organizations.

Sincerely,

JOHN E. KULPA, JR.

Brigadier General, USAF

Directór

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