PACER:M11

Pate SLY A

MPAC4 STATEMENT WHICH HE PRO•

POSED REDUCTION IN MORE DETAIL. IF THE SENATE APPROVES

SUCH A DRASTIC CUT THE IMPACT ON OUR PROGRAMS WOULD BE

ALARMINGLY SEVERE IN ANY CASE AND POTENTIILLY UNTENABLE.

ALTHOUGH WE ENJOY THE HIGHEST NATIONAL PRIORITY, I SEE

KO ALTERNATIVE BUT TO COMPETE WITH OTHER SAMS° PROGRAMS

IF SUCH A CUT IS FORCED UPON US. I FORESEE SIGNIFICANT

RUN 10 EVERY MAJOR PROGRAMTHAT WE HAVE. iHROUGHOUT ALL

FHASES OF DEVELOPMENT, LAUNCH AND ON—ORBIY OPERATION.

S. IN THE Low RUN THERE ARE ALTERNATIVE WAYS TO SATIS•.

FY

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FRICRITY

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FROM GENERAL EIJI.

SuBJECi: PROPOSED FCRC REDUCHOO6

1. I HAVE Jusr LEANED THAT THE DEFENSE SUBCOMMITTEE OF

THE SE:ATE APPROPRIATIONS mom HAS ISSUED A DRAFT RE•

PORa RECOMMENDING ) .t REDUCTION FOR FEDERAL CONTRACT

RESEARCH CENTERS

FUNDING

N THE AIR FCRIE

I- IlD THE

ESTIMATES THAT 11415

Go 1 I OP

DOZE FCRC EFFORT WHICH SERVES AS AN:EXTENSION OF THE HEAD•

QTANIMIS STAFF FOR PLANNING AND REQUIREMENTS DOMINATION

FOR iNE SECRETARY OF DEFENSE CR THE SERVICE& I HAVE

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WITH IMPACT ON THE DIRE= SUPPORT IE REQUIRE

RIG' DEM, E.G., COW) SOIIE OF THE LABORATIRY MK BE

Oil O7

4. AN IMMEDIATE CUT IN TIE

*11. CAME REMAINING HIGH.Y LOOK

O)11 EMPLOYMENT; I WOILD EXPECT THIS TYPE OF EXODUS

OCCIR ALONG WITH A SIGNIFICANT REDUCTION IN MALE

COISEIRENT LOSS OF EFFECTIVEIESS. WHEN COUPLED WITH

LH LESGEH OF TIMEI WOLLD TAM TO AUGPlair SAFSP WITH

&IX SJII, CIVIL WICE EtraItEERS CR CONTRACTORS,

COiL SliCCEMFUL PROGRAM OPERATION BECOMES A

VIM: UAL II3IBIIITY.

5• &MOM INFORMEDGE

I UI1ACIflONi

AN) INCLUDED A GENERAL IMPACT

ARE iHAr SENATOR MC CLE1LAN IS BRIOED AND

10041..MGEA2LE OF THE HIP BUT SUSPECT THAT HE IS NOT

AWARE OF i HE IMPACT THAT HIS PROPOSEDCM' WOLLD HAVE

Or. US. I STRONkY URGE THAT }E BE CONTACTED MI) BRIEFED

01: THg. PROBLEMS IT WALD EATE. I ULTOISTAND THAT

TIE DEFi.NSE StECCMPIITTE OF TIE SENATE APPROPRIATIONS

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..',: E Futicr IONS PRESENILY BEING (URINE()

-.......‘ FEOFLE, SUCH AS INCREASING OUR ELUL SUIT

A AUDENTING WITH RESIDENT CIVIL SERVICE TECHNICAL PEOPLE. ...

0 1 I WITHER OF MSS fLIERNAIIIIESp 110*.VERip APPEARS mai

AT THIS TIME. AMMER ALTERNATIVE IS CONTRACTING WITH

D.DUSiRIA. SOURCES FCR SIMILAR SERVICES. SINCE THESE

O

. A. NE LONG RANGE SCLUTIONS, THEY DO NOT HELPS IF TIE

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MOM ACTION ON THIS MEASURE VERY EARLY

I DECZEER; THEREFORE, I BELIEVE TIMELY ACTION IS

REQUIRE.

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n‘17.13.42.5
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11-6-75

IMPACT STATEMENT ON THE EFFECTS ON THE

APPROPRIATIONS SUBCOMMITTEE REDUCTIONS IN FY 76 FUNDING FOR £CRC's

The primary function to support

the Space and Missile Systems Organization (SAMSO) located in EL Segundo,

California essentially SAMSO's sole source of civilian

terhainal support in the nal of military gra "' ulret•mt snug rn:setia

reentry systems. Unlike other military organizations involved in weapon •

system acquisition, SAMSO has essentially no civil service staff technically

knowledgeable in its field --- that of military space and ballistic missile

systems. While many of SAMS0'e Air Force Officers have excellent technical training. it is essential that they have the support of a highly competent,

technical organization to accomplish their mission.

lies approximately 1200 engineers and scientists to the support of

SAMSO.

The impact of the proposed Appropriations Subcommittee reduction

of FY 1976 in Air Force FCRC ceiling has been investigated on

the basis of three assumptions of the reduction assigned

he assumptions for the three cases are

Case 1. The reduction is applied to the line item funding of all Air

Force FCRCs in proportion to the line item funding for each FCRC. In this

case t11.111111duction would be approximate

Case 2. The reef the reduction is increased

to help maintain the FCRCs which have a larger percentage of funding in inn

item the

a•...t.t

:1 •

It, .: t.igre
CASE I CASE 2 CASE 3

26.9

• 500 673

42.0 54.2

.2-

Case 3. The total reduction is divided in proportion to the total

funding for each FCRC. In this case. the reduction is approximatal hic s Air Force an Navy and Other

Defense Agencies.

Relationship of Funding Reduction to Reduction in Force of Personnel 

It is assumed that notification of the magnitude of the cut would be

received by 1 December 1975. Rased on past experience, it would take until

approximately 31 December 1975 to identify the areas that would be reduced

and the personnel that would be terminated. Assuming engineering and

scientific personnel (MIS) are given termination notices on January 2, they

would receive four weeks notice and be terminated on January 30 with

severance pay averaging ten weeks. It is assumed that the ratio of support

personnel to MIS remains at 0.93. Under these assumptions, one MIS

and 0.93 support personnel would have to be released for ea c11.111

which the funding is reduced. The figure o INNer M TS terminated

is the result of being seven months into the Fiscal Year before personnel

can be terminated, and the cost of the ten weeks average termination pay.

. . The total MTS population is 1650 and total support is 1540, giving a

total headcount of 3190.. Of this, approximately 1192 MTS and 1/10 support

tutroussaim work in support of Air Force activities. The foltowing table summarises the impact on personnel for each case:

Reduction iintrending

Number of MIS Released

Percent Decreaseof MIS

Supporting the Air Force

Support Personnel Released 300

Total Personnel Released 620

465 620 .

965 1290

* includes 3. 4% s•.••ortlne vv and elthor no•fee” A • .11,-1
Developertent Planning

Space and Missile Technology

1 - Space Test Program

•

12..

at a i.o EL • a

Research and Experimentation

Foreign Intelligence

Mr Force SatCorn Ilf III

UDMII Rocket Fuel Prove

Tot

. .

9D) lane Item

-3-

In addition to the problem of the funding cuts. t

presently striving to reduce Its costs • by approximately

deliver the target number specified in• the Air Force contract.

impact may be worse than indicated in the following.

Current A.sat 'tenants of Members of the Technical Staff MTS

Thus, the

It is understood that the Subcommittee intended that the reeilmtions

be in the "line item" effort. Prese luting cans for applying

159 MTS to the Air Fore. line item. Of these, the number applied to

"in-house" planning, technology, research,and intelligence, is approximately

97. Thirty are being used in support of programs such as the Air Force

Satellite Communications Systems it and III and the Space Test Program.

Another 32 are used to support the Air Force in supervising contracts for

developing a process to supply critically short UDMil rocket fuel and con-

,

tracts for space technology developments. Thus, none of thes

• MTSservesas "... an extension of Headquarters OW for planning and require.

meat determination for the Secretary of Defense and the services.u—tbe

category of work which the Subcommittee suggested be performed elsewhere.

Lion of the line item funded MTS is shown in the following table:

Item Funded MTS

41

56
-4-

Approximately 980 MTS primarily are performing systems engineering

in support of SAMSO on-going flight hardware developmentprograms

involving contractor costs which typically run 20 times th

These include such hardware programs as the Defense Support Program,

Titan IIt and the NAVSTA& Satellite System. This contractor work cannot

proceed without the Air Force having this support. IS additional MTS arc

working on selected tasks important to SAMSO. Examples are

development for future apace application.. 39 more MIS are employed for

other parts of the Air Force such as the Air Force Weapons Lab,

, there are

a total of 1095 MTS working on activities which would have a serious impact

if stopped. The manpower on these tasks is already at or below the minimum

level needed to carry out the work. Any reduction would lead to major

program delays, probable flight failures, and cost increases at contractors

that would be large compared to the recluction

allocation of MTS funded from programs and projects other than the "line

item" is tabulated below followed by the "line item" total to shove the overall

distribution:

ZuJideclfresLMstava_L ams and Pro acts MTS

Space lc Missile Flight Hardware Program System Engineering 979

SAMSO Funded RDT&E Tasks 15

Support of Air Force RDTIrE Tasks Other than SAMSO 39

Total Funded from Air Force Programs/Projects 1033

Aerosoace Line item Funded (from previous table) 159

Total MTS Supporting Air Force 1192

The following sections will describe the impact of the three cases of

reduced funding defined earlier.

st Includes 30 for AF SatCorn, etc. plus 32 for UDMH, etc. (see Page 3)
bn • act for Case 1 76 Fundin Reduction

It is understood that it was the intent of the Subcommittee to reduce

"line item" type effort. The table on Page 1 shows that for th

FY 76 reduction•of Case 1, 320 WI'S would have to be released, w roes

from the table on Page 3 only •1S9 MTS presently are planned to be funded

in Ty 76 by e item. Thus, the funding reduction

necessitates releasing 320 minus 159 or 161 additional MIS that support

the effort on the major space and reentry systems programs discussed on

Page 4. The importance of these programs i s such tbatSAMS0 would

of necessity have to procure civilian support services in coma *thus mammy.

Most probably it would have to hire services froma profit-making firm at

a coat higher tha and in contradiction to the guidance provided

by Congress wh a established: i. e.. specifically that ;fork

of this type should e done by a non-profit organisation. In addition to

replacing the 161 MIS that would be dropped from program support. 62

of the 159 MIS funded by the line item also support SAMSO in the technical

management of industry contracts. Thus, it would also be essential to

replace these MTS.

As pointed out by the report of the Special Study Group on Federal

Contract Research Centers established by Dr. John Foster-in 1971, if

re to be abolished, it would have to be

reincarnated eiffisr as a new element of an existing private organisation,

a new private corporation or a new in-house government activity. The

report also states that in all three cases "; .. the bulk of the new entities

staff would likely be drawn fromthe prese Thus,

the changes would be primarily cosmetic in nature.

•
-6-

Because of the short time between now and the time thinning

MSS would be released (January 30, 1970, the probable alternative the Air

Force would have to choose would be to hire an element of an existing

. profit-maldn•organleation which in turn would hire many of the released IIIIIIIIPrkers to•perform the essential tasks. Since there is no

ceiling limitation on such contracting and. funding is available in the space

system programs and other effirts carriri on by SAMSO, this mu:. rs,s of

action would not be proscribed by the Subcommittee's report. Even the

alternative of replacing 1131 111111111with civil service employees

(were such available and other limitations could be overcome), would not

save mon as June 1974 data indicates that the avers

alary is 7.5% below that of comparable NASA employees.

Clearly if the Congress wishes to save money, the only effective way

is to reduce or cancel some of tis apace programs contracted with industry

for whic rt. As an example, when the

s terrainstelillitunderwent a

reduction in force of 164 MTS. Since the Air 

p

rcals space program has

suffered from budget squeezes is recent years, any such cancellations

would serichasly impair our military space capability, but such program

cutbacks or cancellations are the only way in which tb111111111111,e

work honestly can be eliminated.
ilPFY Impact for Case 76 Funding Reduction

Case 2 differs from Case 1 in that th 76 reduction in.

funds.requires a reduction in force of 500 mn instead of 320 (see table

on. Page 3). Subtracting the 159 MTS presently planned to be funded in

FY 76 by the line item leads to the result that 341 additional MTS would

have to be withdrawn from the 1033 listed on Page 4 as presently planned

to be funded from Air Force programs and projects. This would be a 33%

reduction in the support of high priority military space programs.

.. Again the consequences would be oimtler to thou is Coe* 1 *swept

that 50 TS world have to be replaced by arranging contracts

with private industry with even more severe problems than discussed in

Case 1. Alternatively if the Congress wishes to reduce

%Inuit toy SOO Mira, It should cancel 33% of the space andligre ry systems •

programs carried on by SAMSO. It should also cancel the industry

contractual work being carried out under the items listed in the table on

Page 3 under Space and Missile Technology, Air Force Satcom II and ILL

and LIMAN rocket fuel process development. In addition, it should prohibit

SAMSO from replacing the effort listed in the table on Page 3 in Develop-

. =Lent Planning, Research and Experimentation, Foreign Intelligence and

In-House Technology Tasks with the equivalent in contracted support.

Such cancellations and plohibitions would severely damage the military

space capability of the nation, and we do not believe that such reductions

are desired by the Congress.

1111111 .
Impact for Case 76 Funding Reduction 

Case 3 in whi ld receive a action in.FT 76

would result in having to relines* 670 MTS and 6 support personnel or a

-total of 1290 people. As shown by the same table, this is a reduction in

support of 56.0% of which 3.4% would come from support to the Navy and

Other Defense Agencies. This reduction would amount to approximately

41% in the sine of th there is considerable question as

to whether ould survive such a large cut-back. Certainly

it would make it extremely difficult to kire in highly competent new personnel

if requirements increased in later years.

As in Case.2, if the Subcommittee honestly wants to reduce this type of

effort, it should cut-back the 'activities carried on by SAMSO by approximately 56%. Such a cut-back would be . extremely damaging to the United

States military space and ballistic missile capability and obviously i; not

the intent of the Subcommittee as the funding for the SAMSO programi and

projects has almost entirely beeo approved as recommended by the

Authorisation Committee.

&amnia ry

Because we have progressed so far in the fiscal year and because of

termination casts, the potential funding reductions for FY 76 intended to

reduce "line item" type activities a the effect both cf

totally eliminating line item work and also depen ng on how the Cut is

•

allocated among FCRCs of cutting seriously into the support of space and

1111111111

reentry systems hardware programs.
-9-

It is understood from. the Subcommittee report that the intent was to

eliminate those activates which "...are an extension of Headquarters staff

for planning. and requirement determination for the Secretary of Defense

and.the services.• A careful analysis of all the work done for the Department

of Defense 1, 1111111161tate* that there are not more than a dozen out

of the 1650 MTS who can possibly be considered to be supporting Headquarters

stiff. Even these few have hawk selected to provide inputs to Ireadquertere

.because the technical competence and breadth of knowledge is the znilits.sy

space field is not available anywhere but st th1111111111111111111111Fn

view of the very small number of MTS whose work could be interpreted as

falling within the scope the Subcommittee desires to reduce and because •

of the circumstances requiring this effort, it is believed completely

inappropriate to make funding cuts which would force UAIMIIIINIIIIIIMF

ease between 620 and 1290 personnel depending on how the

one are allocated.

56.2% xt of the Air Force and Other Defense Agencies. .

Since SAMSO essentially has no civil service technical support knowledgeable

in the space and missile field, it would be necessary fer SAMSO to con set

with profit-making !inns for personnel to replace .those lost by tit

Such contracting would increase the coat and be contrary

to the Congressional recommendations that resulted in the creatttin of the

addition, it probably would result in the

organisations that take over what formerly had been 411111111,rkload hiring many of the releaJIMIIIIhppnel because of their

expertise in the work. Therefore, unless it is the intent of the Subcommittee

These cuts would range from 26.9% to
-10-

to cut-back the military space programs supported

from 27% to 56% the logical approach is not to reduce

funding. . Therefore, it is urgently rilguested .that there be no reduciipa

is the funding of the line item or the IrCRC- egging! allocated to the