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DEPARTNICIAT TI IF' AU? FoRrx 

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ouricc or 'THE SECRETARY 

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MEMORANDUM FOR THE SECRETARY OF THE AIR FORCE 

SUBJECT: MOL Program Plan and Funding Requirements 

PROBLEM: 

Coincident with the submission of the. MOL Program Plan 

and Funding Requirement to the Secretary of the Air Force 

on June 22, it was learned that the $80 million additional FY'67 

funds anticipated for MOL would probably not be appropriated 

by the Congress. Subsequently, the MOLE Program has beim 

apportioned $178.4 million FY 67 funds by °SD. This reduced 

funding availability in FY 67 for MOL requires that possiblt! 

alternatives for proceeding with the MOL Program-be developed. 

FACTORS BEARING ON PROBLEM: 

The following assumptions are considered valid for et-:tablishirtg 

a meaningful approach for orienting the MOL; Program to a iowei 

level of funding for FY 67: 

A. The primary objective of the MOL Program is to develop 

a high resohition photographic reconnaissance capability to b 

operated in both manned and unmanned modes. 

B. Achieve a full mission capability as ear 

with funds provided. 

C. Continue with the full scale development of the camera 

optical system as this is the pacing MOL Program elemen: 

D. Maintain essential effort of other program eIernentS,,tO 

support an overall MOL Prodra.rn schedule commensurate with the 

availability of the cameraoptical system. 

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DISCUSSION: 

As a result of the recently completed contract deL),h ,,r1 effort, 

a MOL baseline configuration has leen established as well ;(s a 

recommended program schedule and fiscal year funding recilliternent. 

Recommended Program Flight Schedule 

CY 1969 CY 1970 

1st 2nd 

Apr Jul 

3rd 4th 5th 6th 7th 

Dec Apr Jul Oct Jan 

#1 Flight - Titan HIM & Gemini 

Qualification 

#2 Flight - Titan HIM Qualification 

(Gemini B optional) 

#3, 4 & 5 Flights - Manned/Autorriatic 

#6 & 7 Flights - Automatic 

MOL Funding Requirements (Millions) 

FY 67 - $253.9 FY 70 - $28.9,6 

FY 68 - $556.8 FY 71 - $11.6 1 

FY 69 - $457,8 

This recommended schedule represents a 10 month slip in. achi6ririg 

, 

the first reconnaissance flight capability from that initially planned 

at the outset of the program. This schedule was revised prim arilY 

to be compatible with the capability of Eastman (odak to design; 

test, and produce the camera-optical assembly on a realistic time 

basis. The critical development elernentS of the camera-optical 

assembly such as engineering design, procurement and delivery o 

long lead hardware and equipment (optical blanks, optics grinders; 

test chambers, etc.) and the construction of test and productionfacilities have been initiated and are now proceeding on a -schedifle 

which will support the delivery of camera-optical asseinblies to the 

MOL master planning schedule. While other elements of the:Mc:n..1 

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such as the THUui hoo.;icr .!nd the t,;tboratory Alt hi,le 

have long development schedules, they are not as critical the 

comera -optical assembly and are properly timed phased to support 

the overall MOL Schedule. The recommended MOL Prog to 

schedule is considered to be one both technologically and r !alistically 

feasible of achievement. 

The following are possible alternatives that have 1.)cen 

considered to cope with the problem of the FY 67 funding Ihnitation: 

First alternative: Re-orient the MOL Program at rirne 

to assume that the FY 67 NOA will be limited to $178.4 milion. 

This fund limitation dictates a major schedule slip in the M.OL 

Program which is estimated would postpone the first reconnaissance 

lydssion flight until approximately June 1970. It must be noted 

that this revised schedule date assumes that the magnitude of funding 

would be on the order of $550 million each for FY 68 & 69. ,Based 

on the assujption that the MOL program funding would he' helc1.•:to 

a funding rate provided in the current F&FP, the first reconnaissance 

flight would probably not be sooner than November 1970 

In that this alternative results in an inefficient streteil out 

of the limited quantities of hardware being produced, the increase 

in Total Program Cost is expected to be substantial. If this 

program alternative is adopted it would be advisable to delay the 

current Air Force and Contractor evaluation and contract negotiation 

effort and to require all Contractors to submit new schedule an 

cost proposals based on the most realistic funding criteria that 

could be forecast. 

Second alternative: Re -orient the MOL Program :.;to 

FY 67 new .obligating authority. of $2.08. 4 million on the assumption 

that an additional $30 million can be programmed in r.ir 67 ,for MOL 

This FY 67 funding plus FY 68 & 69 funding of $575 million 0..n4. 

$485 million respectively would support a program schedule for the 

first re conna.is sance flight in April 1970. However, if the ry.68- 

and subsequent year funding is held to the existing F&FP funding 

levels the first reconnaissance flight would not be sooner-th4n,abbitt 

September 1970. It is estimated that the minimum 'increase in total 

program cost for this alternative is $25-30 million... 

Third alternative: Proceed initially with effort to support:the 

recommended program schedule with the proviso to reschedule the 

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MOL Program no later than January 1967 based on the realities 

of negotiated contract prices and FY 67 fund availability. Also ,this 

approach would allow the subsequent reprogramming action to take 

into account the level of FY 68 funds provided in the DOD FY 68 

budget. The merit of this approach is that it affords the least 

disruption to the program until contract negotiations have been 

completed and proceeds with the program development build up, to a 

point in time where contractor effort could be held to proceed„ at a 

level based on a program schedule dictated by the FY 67 and FY 68 

funding availability. 

The chart below depicts, the rate of spending (incurred costs 

anticipated for FY 67 and that fund obligations could be limited 

$100 million up to January 1, 1967. 

300 * 

z 

0 

200 

100 

CUMULATIVE 

Redirect as 

required 

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CONCLUSION: 

The recommended program schedule is realistic of achievement 

based on the camera-optical and booster development effort in progress 

and a balanced phasing of development and production effort for the 

total program over the ensuing 4 1/2 years. This schedule meets 

the program objective criteria at the earliest possible time and is 

the most economical of accomplishment. Realizing that the. FY 67 

and FY 68 funding level may be lower than required to support the 

recommended program it is still possible to proceed on this program 

and retain optimum reprogramming flexibility based on available 

funds. 

RECOMMENDED ACTION: 

Consistent with the initial program direction and guidance -issued 

by the President's Scientific Advisory Committee in late 1965 we are 

proceeding towards the objective of developing a high resolution 

orbital reconnaissance system as a high priority national goal„. 

recommend that approval be granted to continue with MOL development effort on closely controlled basis at a rate which supporis the 

recommended program schedule. Anticipating that FY 67 & 68'fund 

availability will be more clearly specified by January 1, 1967, - I 

recommend that any necessary rescheduling of the program be-.-dOne 

at that time. 

I have attached for your consideration, a proposed,Memo 

to the DDR&E asking for their concurrence in this pogition 

t. , 

1.2'. A. SCI-I I VER 

General, USAF 

Director, MOL Prograin 

Atch 

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