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MEMORANDUM FOR DIRECTOR, DEFUSE RESEARCH AND ENGIBMRING 

as SUBJECT: Engineering Development Phase of MOL Program 

011111MMIONIMINIINIONOI 

,Immommlawomm■ 

.....101.0•11110■11 

Attached are copies of recent correspondence addressing 

the current approval status of the MOL Program. These memoranda are forwarded for your information at Dr. Brown's 

direction. 

HARRY L. EVANS 

Major General, USAF 

Vice Director, MOL Program 

2 Atchs 

1. Memo, SAY to Gen Schriever, 

Aug 20, 1966 (BYE-52636-66) 

Series A, Copy #1. 

2. Memo, Gen Schriever to SAP, 

July 20, 1966 (BYE 21181-66) 

Series A, Copy #1 v/i Atch: 

MOL Prog Plan & Fund Regents 

(BYE 21157-66, Copy #9).7t.4-4-41c= 

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DEPARTMENT OF THE AIR FORCE 

WASHINGTON 

r• . 

; • • •■■• ltt 

r. .%)7SIZra 

_ FICE OF THE SCCHETARY rj?Likv.t. fi 

August 20, 1966 

MEMORANDUM FOR DIRECTOR, MANNED ORBITING LABORATORY (MOL) 

PROGRAM 

SUBJECT: Authorization to Proceed with the Engineering 

Development Phase of the MOL Program 

References: (a) Secretary of the Air Force Memorandum for 

the Director, MOL dated August 26, 1965, 

Subject: Authorization to Proceed with 

MOL Program. 

(b) Memorandum for the Secretary of the Air 

Force from Director, MOL dated July 20, 

1966, Subject: MOL Program Plan and 

Funding Requirements. 

I have been informed that you have reached the final stages 

of negotiating the contracts for full-scale development of the 

Manned Orbiting Laboratory (MOL) Program. Prior to authorizing 

full-scale development, I would like to review'the total program cost and fiscal year funding requirements in the light of 

these negotiated contracts. 

In order to protect the development lead time you are 

authorized to obligate FY 1966 and FY 1967 MOL program funds 

released to you at a rate not to exceed your recommendation in 

reference (b), which provides an option up to January 1, 1967 

to limit requirements for FY 1967 funds to $208 million. This 

authorization will apply only until program approval for fullscale development and, in any event, will not apply beyond 

January 1, 1967. 

Every possible effort should be made to hold FY 67 MOL 

funding to the minimum consistent with meeting the schedule 

and primary objective for the first manned flight. In particular, you are requested to review the program plan and schedule 

to identify any items for which initiation of development can 
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be deferred without affecting this primary objective and 

schedule date and to report to me on such items at the time 

of review of the negotiated contract costs. 

..04.44,41 

2 Attachments 

.(a),: Sec/AF Memo for Dir., MOL 

dtd Aug. 26, 1965, Subj:' 

Authorization to Proceed 

with MOL Program. 

b) Memo for Sec/AF fr Dir., MOL 

dtd July 20, 1966, Subj: 

MOL Program Plan and Funding.: 

Itequirements... 

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.DEPARTMENT OF THE AIR FORCE '! 

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JUL 2'u 1966 

MEMORANDUM FOR THE SECRETARY OF THE AIR FORCE 

SUBJECT: Manned Orbiting Laboratory Program Plan and Funding 

Requirements 

REFERENCE: Metorandum for the Secretary of Defense, subject: 

Proposed MOL Program dated June 28, 1965 

The Secretary of the Air Force memorandum of June 28, 1965 

proposed a Manned Orbiting Laboratory (MOL) Program which would 

demonstrate an optical reconnaissance system ptomising ground 

resolutions of . The memorandum requested 

specific approval to enter the Definition Phase of the MOL Program, 

and this authority was directed by Presidential announcement on 

AoL;:t 25, 1965. This memorandum presents a summary description 

VIOL Program which has evolved from the Definition Phase studies 

,:oiimcted since August of last year and specifically requests a 

level of funding to support the technical baseline and schedule 

for that program. Attached to this memorandum are documentt which 

you may need to help you and the Director, Defense Research and 

Engineering in.assessing the need for the funding requirements 

stated. It.is recommended that you seek approval of the MOL Program 

schedule and concept as described in. this document which will cost, 

for development, approximately $1.75 billion over the next five 

fiscal years. 

I believe that a program which adhetes to the primary criterion 

of a minimum cost program and which best balances the date of the 

first manned flight with an orderly progression of the development 

program would require new obligating authority in the RDT&E appropriation for FY 1967 of $253.9 million. Neither the program total 

nor the FY 1967 funding requirement quoted include allowances for 

contingencies, negotiations, advanced studies'amd- technology. The 

DoD budget apportions $178.4 million for MOL-in FY 1967 which can be 

applied to the new obligating authority requiteMent of $253.9 million, 

leaving a funding deficit of $75.5 million..,.:;,- 

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In addition to the above-stated requirements, there are 

below-the-line items which inclUde-funding requirements in two 

basic categories; those which will increase the basic mission 

capability of the MOL system and those which support the development of new missions. In both categories there are items which 

when funded in FY 1967 and subsequent years would greatly.enhance 

the health and future of the MOL Program. Therefore, I would like 

to solicit your support for reprogramming $13.9 million in FY 1967. 

to initiate these advanced studies and technology tasks. 

Program Scope 

The attached tabs point out in summary detail that our. recommendations are based upon the results of Contract Definition effort 

which has been underway for the past ten months. The initial 

objective of the MOL Program remains the development and early 

demonstration of an operationally useful high resolution optical 

reconnaissance system capable of achieving of ground 

resolution or better. In meeting this objective, consideration will 

be given to-extending on-orbit lifetime, and to incorporating on a 

timely basis advanced optical sensors capable of affording resolutions on the ground 

The system will provide the option of operating in 

either a manned or an unmanned mode. The MOL Development Program 

as now recommended will support an operational program which can 

use both manned and unmanned versions of the Fystem in whatever 

manner is most consistent with individual mission requirements, and 

the international situation that may exist at the time. 

The development and demonstration of other military mission 

applications of MOL such as SIGINT and Ocean Surveillance remain as 

secondary objectives. .Provisions for the introduction of these 

missions, both in'the form of supporting experiments and full-scale 

demonstrations, will be considered in Vehicledesign, insuring that 

the initial objective is not compromised. 

Accommodation of DoD and NASA scientific:and technological 

experiments is . a tertiary objective. We'hopeto.pursue an experiment 

.program of significance and value throughout the.MOL Program, but 

without interference to principal military objectives. Although a._ 

broad spectrum of experimentation isencourage4-priority will be 

shown to those which support-the.inve#igatiorit&theUtility 

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Five basic elements comprise the MOL vehicle system. These 

major system segments and the associate contractors responsible for 

their development are: 

1. 'Laboratory Vehicle and System Integrator - Douglas 

Aircraft Company. 

2. Mission Module and Data Recovery System - General 

Electric Company. 

3. Mission Payload - Eastman Kodak Company. 

4. Gemini B - McDonnell Aircraft Corporation. 

5. Launch Vehicle - Martin Marietta. Corporation, A,:xojet 

General, AC Electronics Division and United Technology Center. 

Approximately $90 million has been expended during the past ten 

months of Phase I Definition. These funds have been applied to the 

engineering definition of-thAr-ifiaj-6i'SYstem segments, the engineering 

and hardware for the Heat Shield Qualification (HSQ) flight from 

ETR later this year, and in the case of Eastman Kodak extended to 

hardware development, procurement of long lead items and construction 

of industrial facilities associated with the acquisition of the DORIAN 

payload. During the MOL Definition Phase, contractors' roles and 

responsibilities were established and delineated for mission system 

hardware. These functions are discussed in detail in TAB A to this 

memorandum. 

The associate contractors have submitted their cost estimates 

for Phase II Development based on latest program guidance and 

direction on hardware definition and schedules. The contractor proposals, based on an earlier definition of the program baseline, have 

received thorough in-house review and evaluation by the Air Force 

and the results constitute the definition of the current system 

baseline. Schedules and costs are documented in considerable detail 

in TAB B to this memorandum. The contractors' estimates submitted 

on the baseline will serve as a departure point for Phase II contract 

negotiations to commence during the latter part of this month. With 

the exception of those contracts written for the DORIAN effort and 

those elements which directly interface with the acquisition of the 

sensor payload, it is our intent that contract funds for RDT&E will 

be dispersed under incentive type contract arrangements. Realization 

of this goal will give incentive type contracts which approximate 

over 70 percentf total program costs. 

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A number of very important technical decisions and changes in 

program content and concept have occurred during the past ten months 

of Phase I Definition. The program proposed in.late June 1965 

consisted of seven launches, two unmanned and five manned;.from the 

Western Test Range. The two unmanned development launches' were 

scheduled for early test of system hardware exclusive of optical • . 

sensor equipment which was identified as the critical pacing item in 

the original schedule that projected a first manned flight of late 

1968. This original planning date was structured to provide the • 

desired mission capability at the earliest possible date, and was 

'based on initiation of Phase II engineering development at the 

beginning of calendar year 1966. On this planning date, the. total 

cost of the development program was estimated at $1.5 billion. This 

. original estimate was based entirely on the primary reconnaissance 

mission of the MOL. It'did not include funds for experiments nor 

for any effort related to additional missions such as SIGINT or 

Ocean Surveillance in which the Navy:has expressed considerable 

interest but which have not yet been approved by the Department of 

Defense. 

A more realistic appraisal of development lead times completed 

during the definition phase studies on the DORIAN payload made it 

necessary to revise the phasing of development schedules for all 

• major segments of the program. Our current estimate is that first 

manned flight with DORIAN optics cannot occur prior to December 1969. 

This is to be accomplished using the DORIAN Compatibility Model 

with the possibility of using high quality optics. The results of 

thin; schedule revision plus program impact from the budget limitation 

plact,d on the MOL Program for FY 1967 made it necessary to reorient . 

hase I contract schedules and to adjust contractors' level of 

during the last quarter of FY 1966 and throughout FY 1967. 

This required extending the system definition studies on the 

Laboratory and Mission Modules with Douglas and General Electric 

and the Gemini B spacecraft with McDonnell through August 1966. 

Phase II.activities will be underway by September I, 1966 at: a pace 

and level of effort which is balanced with the other segments of the 

program. Concurrently, we have proceededi paced only by technical 

limitations, with the engineering design, the procurement of long 

lead items and the industrial facilitization required for the. 

development and acquisition of the optical sensor package. We also 

have implemented on a controlled schedule, a moderate level of effort 

for continuing the development of the Titan III seven-segment solid 

rocket motors and the necessary modifications to the core.Stage I 

engine to meet MOL requirements. 

In addition to the above schedule adjustments, guidance received 

from the Panel on Reconnaissance of the President's Science Advisory 

Committee (PSAC) and the Department of,Defense resulted in changes 

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to the MOL baseline. Specifically, the requirement that the reconnaissance system be designed from the beginning to provide the option 

to be operable in either a manned or an unmanned mode has been placed. 

in the MOL system specification. Contractors' roles and responsibilities are now aligned to include this dual mode as an integral part 

of the development program. The program is currently planned with 

the option that two of the seven scheduled launches can be flown in 

the automatic (unmanned) mode. As previously proposed, all launches 

will be made using the seven-segment 120-inch diameter solid rocket 

motor Titan III with specific improvements on the airframe and, liquid 

rocket engine necessary to meet•the MOL payload requirements. The 

other system segments are as described in TAB B. 

The configuration selected for the MOL system to.accomplish an 

early manned demonstration of high resolution optics has followed 

the primary criterion of a minimum cost program. Existing flight 

and ground system hardware. and capabilities from the DoD and NASA 

inventories are being used to the fullest possible extent. This 

optimized selection has been made only after thorough examination 

during the Definition Phase of the many alternatives and trade-offt 

of subsystems and components developed and tested in other manned , 

and unmanned space systems. Extended life capability will'be-achieved 

through minimum modification of existing systems by means of • 

redundancy, spares, maintainability or product improvement, and a 

minimum of necessary new subsystems or components should be proposed 

for development.' The Air Force, throughout the Definition Phase, 

- has insisted that the contractors be continuously conscious of cost 

effectiveness in their design definition. In preparation of this 

submission, cost reduction items'totaling over $100 million were 

:identified and agreed to by both the Air Force and the contractors 

and these savings are reflected in the cost estimates detailed in 

;TAB B to this memorandum. It must be emphasized that these cost 

.estimates'support the "baseline" requirements of the primary program, 

objective and no contingency funds have been added to allow for 

uncertainties wtich normally arise in this type of development. The 

':- estimates are based on comprehensive analysis made with contractors 

who have been selected to do the actual work on the basis of detailed 

:Specifications furnished by the Air ForCe. 

In sum, we feel the MOL Program will give us: first, opera, 

-tional intelligence collection at resolution or better; 

second, knowledge of the critical contributions of man to photographic-. 

reconnaissance, such as increasing total reconnaissance information - 

content, and of-the specific differences, in an engineering sense, 

between manned and unmanned systems of large size and very high . 

resolution; and third, the optical technology and-design for systems - 

which, if mannedi can give us resolutions 

and perhaps:as:good as 

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To accomplish the primary MOL objective, a development program 

of seven launches is proposed and the schedule was summarized at 

the beginning of this memorandum.. The first manned launch would 

take place late in calendar year 1969, and the last development 

flight early in 1971. The first manned reconnaissance system flight 

(MOL FLT 3) in December 1969 would be preceded with two unmanned 

flights in April and July 1969 for the purposes of qualifying the 

Gemini B Spacecraft, the Titan III uprated booster and orbiting 

vehicle structures. The last two of the five total reconnaissance 

payload flights scheduled for October 1970 and January 1971 are 

planned for operation in the fully automatic unmanned mode. This 

schedule will provide operationally useful take at the earliest ' 

practical date in consideration of system and sensor development and 

is expected to provide increased quality and quantity of mission data 

as the flight test program matures. 

Program Costs 

The Phase I program definition efforts have resulted in 

moderate changes in estimated program costs. The program being 

submitted by the Air Force and recommended-in this paper for funding 

approval is estimated at $1.75 billion for the development phase. 

One of the major objectives of the Phase I effort was to establish a 

firmer grasp of the anticipated program costs. Part of the increase 

in our current estimates is due to increased scope received during 

the definition phase to incorporate the option for both a manned . 

and automatic mode of operation. Initially, the MOL Program was 

to share the cost of the Titan III AGE at WTR with other users; 

this construction is now being totally funded within the MOL PrograM. 

Part of the increase is due to the need to procure seven new uprated 

Titan III launch vehicles in lieu of five new vehicles plus modification of two R&D boosters as originally planned. The nine-month . 

schedule delay in the flight test program, dUe to pacing development 

of the sensor payload and the inclusion of General Electric as a 

major participating associate contractor are still other changes 

which were either unforeseen or not fully understood a year ago. For 

the most part, the rest is due to more realistic estimating of what 

it will actually take to accomplish the development tasks and, of 

course, costs escalation also have contributed to increased estimates. 

It is difficult to be sure that development costs will not exceed 

the $1.75 billion estimate and it must be emphasized again that this 

is a Program Office estimate based on in-house studies and contractor 

proposals, and that no contingency funds have been included in this 

estimate. The next total program cost estimate closer to actual 

future espenditures. will'beforthcoming after contract negotiations 

are complete. 

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At the present time the $1.75 billion appears to be a reasonable 

estimate of the total development cost and $253.9 million of new 

obligating authority appears to be the minimum funds required in FY 

1967 to meet the schedules and technical objectives of the MOL Programas now defined. Detailed system segment schedules and funding requirements are contained in TAB B of this memorandum. The proposed Fiscal . 

Year RDT&E funding leve]:; which are consistent with MOL Program -- 

objectives and schedules are summarized below: 

(Dollars in Millions) 

FY 1967 FY 1968 FY 1969 FY 1970-. FY 1971 TOTAL 

328.9 556.8 457.8 289.6 116.1.1749.2 

Tt should be noted'that $75 million of FY 1966 uncommitted funds 

can be applied to the FY 1967 funds requirement, thui leaving a net 

tww o:aigating authority requirement of $253.9 million. 

Additional advanced study and technology requirements not included 

in the above estimates 

Advanced 

are shown below: 

FY 67 FY 68 FY 69 FY 70 FY 71 TOTAL 

Studies 10.9 10.0 10.0:.10.0: 10.0 50.9 

Advanced 

Hardware 6.0 11.0 7.8 3.4 1.2 29.4 

Ocean 

Surveillance 3.0 15.6 18.8 20.8 15.6 73.8 

The below-the-line requirements identified during the Definition 

Phase are for the Navy's Ocean Surveillance mission, and other ' 

advanced studies and hardware essential to MOL system growth. Included 

in these advanced studies are several promising developments which 

were not fully contemplated at the time the MOL Program was approved 

last August but which now show great promise as a state-of-the-art 

advancement toward future system applications. They are.discussed in 

detail in TAB C. The advanced hardware requirement represents a 

mission operation enhancement device which has not yet been incorporated 

into the MOL baseline. 

In addition to the RDT&E funds required as shown, there is a need 

for $8.7 million in FY 1967 for facilities at WTR and there maybe a 

need.in FY 1968 for an additional $10:0 million of Military Construction funds. The FY 1968 funds would support the construction and 

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facilities for a staging area on Henderson Island for use in recovery 

operation in case of abort during powered flight, if the survey which 

is being conducted now proves feasibility of the concept. This 

staging area for the MOL Program must operationally support approximately 20 aircraft and 375 personnel. Construction must be started 

with FY 1968 funds to be properly phased with the recommended flight 

test schedule. Further details on this requirement are given in 

TAB B. 

Funding Philosophy and Approach 

The foregoing figures represent the best current Air Force 

estimate of the funds required to accomplish MOL development on 

present schedules. These estimates were developed purely on the basis 

of projected rates of effort and planned, normal assumption of fiscal 

liabilities of MOL contractors. The figures herein presented do not,. 

therefore, necessarily correspond with or reflect the funding distribution that can reasonably be anticipated now from DoD. The FY 1967. 

requirement of $253.9 million, for example, is substantially higher 

than the $178.4 million presently apportioned to MOL. If, as now 

seems probable, the Congress fails to appropriate additional FY 1967, 

funds for MOL, I propose, and ask your concurrence andsupport in, 

the following general approach. 

With the program funds presently available, I would propose 

to proceed at the NOA rate of $253.9 million until January 1, 1967 

with the engineering development phase on the schedule and toward 

the objectives previously indicated herein. In so doing, I will 

exploit all lawful measures to minimize FY 1967 obligations and to 

defer FY 1967 funds requirement. to.FY 1968.--During this trial 

period, SAF-SL will track on a.monthly basis actual and forecast 

obligations of FY 1967 funds and at no- time willobligations, which. 

will be based .on contractors' minimum commitments, exceed funds 

available to.the Director, MOL. 

By:January 1967-we will reassess our program reqUirement and 

provide you with ' 

A current evaluation:of:the progress being made toward 

meeting approved program schedulesand- objectiVes, and a recommendation 

as to-whether:,that,schedule:shouldbeladjusted.' 

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b. An estimate of program funds required to complete the 

FY 1967 program based on the recommendation of (a) above. 

If, in spite of all preventive measures, it is clear at that.time 

that additional obligating authority is required to maintain program 

schedules and scope, I will initiate a request. for such new authority. 

Conclusions 

In summary, the definition phase of the MOL Program has.been 

conscientiously undertaken during the past.ten months by the Air 

Force and the contractors. '.Unquestionably, it has yielded valuable 

results. The program as now defined and recommended for funding 

approval will satisfy the national need for high resolution satellite 

reconnaissance photography at resolution or better. Technically, the feasibility of the MOL Program has been affirmed by the 

Phase I study; the areas considered to include technical risk have been 

.studied in detail, and as a result we have much more confidence in our 

performance predictions. The schedules which have evolved from our 

Phase I analyses of development lead times provide the best balance of 

orderly progression for system development and first manned flight in 

late 1969 with fiscal year budgeting. The critical system segments of 

.the program as now defined are paced only by technical limitations and 

our ability to accurately forecast their magnitude and frequency. Our 

estimate of total program costs, while moderately higher than our 

Original proposal, is judged to be reasonable in consideration of changes 

which have occurred in program content and scope during the past year. 

Actions Requested 

The following specified approvals for the MOL Program are 

requested; 

a. Concur in principle in the selected program 

schedule and scope. • 

b. Concur with the funding philosophy and approach 

as specified above. 

c. Reflect total RDT&E'program estimate for_. the development 

program by readjusting- the MOL Program'total to $1.751Allion and the 
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follow-on fiscal year budget ceilings in the Five-Year. Force Structure 

and Financial Plan as follows: 

FY 68 $556.8* 

FY 69 457.8 

FY 70 289.6 

FY 71 116.1 

*Anticipates FY 1967 funding in accor nce 'th stated requirements. 

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